Car Accessories Market Overview
The car accessories market is expected to witness substantial growth over the coming years, triggered by the rising demand for cars and the increasing inclination of millennials towards vehicle customizations. Also, new technologies such as lighting technology, biometric vehicle access, and active window displays are expected to open up new opportunities for companies in the car accessories market over the next decade. However, with rising customer expectations and requirements, automotive accessories manufacturers need to constantly adapt to the fast-evolving marketplace to maintain a positive brand perception. This is where companies realize the real power of leveraging market opportunity analysis.
An upsurge in the demand for premium vehicles and introduction of new technologies are expected to bring about major transformations in the global car accessories market. Our market opportunity analysis can help you to keep pace with market changes and industry developments. Request a FREE proposal today!
Business Challenge
The client is a Chinese car accessories manufacturer and supplier.
Our client, a car accessories manufacturer chose to expand its operations to the German automotive aftermarket as Germany was the best-renowned country for its manufacturing capabilities. Expanding into the German automotive market seemed to be an appealing option for the client. However, the complexity of the German legislative environment and rising custom duty on spare parts/accessories increased challenges for the company. The client, therefore, realized the need to carry a comprehensive market opportunity assessment to understand key opportunities and overcome market entry barriers. As such, they approached the experts at Infiniti Research to leverage their expertise in offering market opportunity assessment.
Other key objectives that the client wanted to achieve by leveraging Infiniti’s market opportunity analysis were:
Car accessories market challenge #1: Rising taxes and import duties on spare parts
The client noted that custom duty on specific car accessories and spare parts has been raised to around 25% and import duty increased by approximately 5% in the German car accessories market. This impacted the market price of luxury cars and necessitated premium car companies to increase prices across lines, in the range of around 3 to 5%. Also, the company realized the need to comply with national (DIN), European (EN), and international standards (ISO) in order to export their products to the German car accessories market. With Infiniti’s market opportunity analysis, the client wanted to understand the complexity of the German market and identify changes in taxes and custom duty.
Car accessories market challenge #2: Delayed custom clearance
The increasing delay in the release of car accessories and spare parts from custom office was making it difficult for auto accessories manufacturers to ensure timely services and delivery to customers. As such, companies in the German car accessories market were adopting alternative ways to ensure timely delivery of products and increase sales. With Infiniti’s market opportunity assessment, the client wanted to thoroughly analyze the top companies in the German car accessories market. By doing so, they wanted to identify their business models and make strategic business decisions.
Car accessories market challenge #3: Rising need for the support of an intermediary
The client needed the support of an intermediary to establish their business in Germany. However, they faced difficulties in identifying the best way to venture into the German market. With Infiniti’s help, they wanted to identify the best route to enter the German car accessories market.
Having a comprehensive understanding of the market opportunities, trends, and challenges can help businesses to efficiently adapt to the market demands and succeed in the long-run. Our market opportunity analysis can help you to achieve these objectives. Contact us today!
Solutions Offered
Our experts followed a three-phased approach which included:
A market intelligence engagement to gather comprehensive insights into the present as well as long-term forecasts of the German car accessories market. This phase of the engagement also involved identifying the latest market trends and technological developments through an in-depth understanding of the market forces and competitive landscape changes.
A competitive intelligence study to analyze the strategies and business models of the top companies in the German car accessories market. This phase of the engagement also involved identifying the strengths and weaknesses of the client’s key competitors to identify business gaps and opportunities for differentiation.
A market scanning and monitoring analysis to identify the different routes to enter the German car accessories market. Also, our experts helped identify the best partners to support the client’s business operations in the German car accessories industry.
Results Obtained
With Infiniti’s market opportunity analysis, the client was able to gather comprehensive insights into the German car accessories market. Also, the client was able to understand the complexity of the German legislative market and identify changes in taxes and custom duty. Furthermore, by identifying the export policies and tax changes, they were able to comply with national (DIN), European (EN), and international standards (ISO).
As recommended by the experts at Infiniti Research, the client chose to start a franchise in order to limit the costs and risks associated with setting up a new office. This helped them to successfully establish their operations in the German car accessories market. Besides, they were able to ensure timely services and delivery to customers. This subsequently helped the client to enhance sales and acquire new customers. Also, within two years of entering the German car accessories market, the client was able to exceed their sales expectation and increase profits by 17%.
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