2015 autocommerce keynote
TRANSCRIPT
#AutoCommerce2015
PRESENTED BY:
Life in the Fast Lane: Accelerating Growth in the
Automotive Aftermarket
Gigi Ho, Dir. Product DevelopmentDirect Communications Inc. (DCi)
#AutoCommerce2015
PRESENTED BY:
Gigi Ho
14 Years in the Industry
Data Geek better known as…
The Data Goddess
NOW PRESENTED BY:
#AutoCommerce2015
What is DCi
Largest Sales & Data Networkfor Performance & Accessory Parts Market
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Products Seen in Over 100 Countries
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$933 BillionProduct Exposure
Annually Worldwide
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Sales Network of Over 60,000
Business Locations
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Facilitating Sales ofNearly $7 Billion Annually
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What is DCi
Largest Sales & Data Networkfor Performance & Accessory Parts Market
N e a r l y
20 Yearsof electronic cataloging
experience
O v e r
60,000aftermarket businesses
annually supplied via the data network
N e a r l y
$7 Billion in sales annually powered
via the sales network
O v e r
150 Millionvehicle fitments
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Trends we’ve seen
in the last few years…
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Social Media– Present: As a way of connecting with your audience
and customers.
– Future: Several are transitioning to “social shopping” blurring lines of connecting and buying.• Products pinned or posted on Pinterest or Instagram
connecting to eCommerce product pages.
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Responsive Design– Research and shopping predominantly mobile!
Buying still more on desktops and laptops.*• 44% - desktops/laptops• 41% - brick-and-mortar locations!• 11% - phones/tablets
*2014 ComScore Study
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Marketplaces– eBay and Amazon commands majority share.
– Their success has fueled others into the mix with niche focus or brand name power.• Newegg• Walmart• Etsy
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Logistics Entwined with Purchase Decision– 58% will leave a cart after seeing shipping costs.*
– Customer are expecting more and waiting less.• Need to have selection and inventory.• Need to offer reasonable to free shipping options.
*2014 ComScore Study
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so…what’s next? .
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Minimum Advertised Price (MAP)
Unilateral Pricing Policy (UPP)
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MAP and UPP are not new “trends” per se.
New tools for manufacturers to enforce these policies is what’s next!
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Over 50% of premium brands today have MAP or UPP on some or all of their products.
By end of 2015, could be over 70%.
And manufacturers are very serious about enforcing these brand value-protection policies today.
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Confessions of a MAP Violator
I sold below MAP and got caught by over 100 vendors and put on a Do-Not-Sell list on most…
I created fake UPCs and still got caught...
I changed my name in Amazon three times, trying to avoid MAP pricing issues. Only to find that Amazon gives [out our] company ID that is traced by MAP enforcing companies…
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What It Means to Online Sellers
The Good The Bad The Ugly…“Do-Not-Sell List”
…and The Good again.
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The Good .
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The Good
Helps level competition for small businesses competing against big box or online stores.
Profit per transaction goes up. Compliments and cross-promotes your brick-
and-mortar stores. Allows for better customer service instead of
discounting yourself out of business.
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The Bad .
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The Bad
In a Marketplace environment…– Every merchant will be selling at same price.– Capturing attention of new buyers will be hard if not
already established with customer base.– Higher margin per sale, but the number of sales
decreases.– No longer a “get rich quick” scheme.
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The Ugly .
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The Ugly…“Do Not Sell List”
Brand Protection Agency Channel IQ Brandskout …with more monitoring services emerging.
Violate and risk being on the Do-Not-Sell list.
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so…what’s Good again??
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Price is not the main reason why
shoppers buy online.
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Convenience Variety (wider selection) Availability Product comparison Seller comparison
Price is underlying in comparison but not always main reason for purchase.
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Compete with add-on services and value.– Build loyalty programs– Understand what your customers want– Provide them with wanted content– If available, promote installation services or
questions “hotline”– Monitor your customers and your competitors
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But How?!
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your business
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Your Business
“Bags fly free”– They don’t fly free. The cost is part of their price!
• But this gives passengers the feeling of convenience, taking stress out a stressful check-in process.
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Your Business
Entire fleet are 737’s– Gives them operational efficiency
• Replacement parts can be bought in bulk.• Any plane can substitute for any route.• Lowers maintenance and associated costs.
– Where can you find efficiency in your systems?
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Your Business
Genuinely happy crew– Genuinely friendly dealing with the customers.
And we like doing business with people we like!
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Look to your customers and your partners.
(ahem…you know, like DCi)
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Find where and how you can make…
Your Customer
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PRESENTED BY: Direct Communications Inc. (DCi)
515.276.0442
THANK YOU!