Automotive aftermarket strategy drives profits
It has been announced that NSK is to enter into the Independent Automotive Aftermarket (IAM). In order to help the company gain market share as quickly as possible, NSK has developed a carefully structured aftermarket approach strategy that will also ensure its partners and garage owners become more profitable, efficient and effective.
NSK considers there to be good growth prospects in the IAM, particularly for wheel bearings. According to the company, it occupies the leading OE position in terms of third generation hub wheel bearings, so entry to the aftermarket is the logical next step.
In Western Europe, NSK will initially focus on the leading markets of Germany and France, even though they are highly saturated with a high level of competition. The other initial target market, Russia, offers a very different dynamic as an emerging marketplace showing rapid development. The demands and the way of doing business are very different in Russia, giving opportunities for quick growth. NSK is also targeting emerging markets such as Turkey and the Middle East.
“We worked extensively to develop value propositions, group them through our offer with OE quality and a fair price, and of course, we strive to ensure reliable delivery,” said Paul Cranston, Automotive Aftermarket Director, NSK Europe.
NSK’s aftermarket growth strategy is based on two fundamental values: quality products and services. For the latter, the availability of products at the right time is critical. With this in mind, the company’s future development partners will play a major role in the distribution strategy moving forward. It is important that NSK partners have the stock they need, that they build a real relationship with garages and offer local support every day.
Although NSK is celebrating its 100-year anniversary in 2016, the company is clearly looking to the future with its IAM strategy and developing its ‘Vision 2026’.
“It is important to take our business to the next level,” said Dr Jürgen Ackermann, CEO, NSK Europe. “The aftermarket parts business has seen exceptional growth over the past decade. Today is the right time to benefit from the expertise and resources that have been put in place in order to address the IAM.”
In the shorter term, the company’s main aim for the coming months is to make NSK a recognised brand for replacement automotive parts. Furthermore, over the next three to five years, the company wants to make a step change in the root to market and establish long term partners in all countries for which NSK Europe has responsibility, from Vladivostok in the far east of Russia, to Reykjavik in Iceland and South Africa. To aid this process, the company has launched a special website for the IAM to better inform the market about its product lines and services.