The Future of the Automotive Industry

The Future of the Automotive Industry


hi I’m Nathan Shipley I’m the industry expert at the NPD group for the automotive industry the automotive industry is embarking upon a period of significant innovation and change one could argue that over the next 10 years our industry will see more innovation and change than any other industry that MPD tracks and this these factors hold true for both sides of the market both the do-it-yourself market on the retail side as well as the Duke forming market where consumers are taking vehicles to have work done for them if you think about changing consumer behavior things like baby boomers retiring we know that on average all boomers will be retired in the next 10 years and you have Millennials that are coming into their peak driving years you have boomers that when they retire we know that their driving behavior literally cuts in half the amount of miles that they drive in a year literally overnight goes in half and what it was when they were working no other industry that knew PD tracks these consumer behavior change so drastically upon retirement as the automotive industry does we know that the e-commerce marketplace has an impact on certain categories but not all in the DIY space we know that consumers are standing at the store shelf looking at products to buy for their cars but they’re on their phones looking online at your website your competitors websites looking at reviews trying to understand how other consumers have rated these products what the market data is out there about these products what manufacturers are saying about their products so your presence online is critical as it relates to consumers buying products for their cars on the do it for me side of the business we know that consumers are bringing their cars to shops for repairs but they’re also doing research online about the products that you’re recommending for their cars as well as the services you’re recommending trying to understand all the services really necessary are the prices you’re quoting fair on the DIY side for e-commerce we know that certain categories really are what we consider to be distressed purchases and so these categories are more ecommerce proof think about batteries and hard parts categories that we really don’t see consumers shifting online because they are distressed purchases the product is broken it’s not working they need it now so ecommerce is having a varying effect but an important effect are and while it’s important to think about 2017 and all of these factors both macroeconomic factors as well as factors in our industry that are impacting your business it’s also important to think about down the road more like ten years down the road this whole idea that self-driving cars will be all over the place I had the opportunity to attend the Consumer Electronics Show earlier this year and at that show a big part of that show was automotive manufacturers automotive companies exhibiting self-driving cars and all the technology that comes along with self-driving cars it’s hard to believe but these cars are here they’re on the roads today and they will be very prevalent within the next ten years on the road so if you’re a company in the automotive aftermarket are you thinking about the longer term it’s important to think about your business today but it’s also important to think about the longer term and how your business are going to adapt to things like self-driving cars


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