Lang Aftermarket iReport: ‘Do-It-For-Me’ growth by channel
“The $12.5 billion surge in car and light truck Do-It-For-Me (DIFM) product sales over the past five years (2013 to 2018) was not generated equally by the five major distribution channels supplying the light vehicle U.S. aftermarket.
“Two channels accounted for 70% of total DIFM product growth. The Integrated channel attained the largest increase in DIFM product sales over the past five years, followed by the Traditional channel. The rates of DIFM product growth differed significantly among the five major channels.”
— Jim Lang, publisher, Lang Aftermarket iReport
DIFM Product Growth: 2013 through 2018
Do-It-For-Me product volume soared $12.5 billion at user-price between 2013 and 2018, averaging 3.0% annual growth. DIFM annual product growth rates among the five major channels ranged from 4.8% to a 0.5% decline.
Integrated Channel Leads
Integrated distribution (characterized by the ownership of products not changing hands between their sale by Manufactures and their purchase by the ultimate consumers or Installers) generated 43% of total DIFM product growth between 2013 and 2018.
This Integrated channel DIFM product growth received a boost from increased commercial sales by Retail Auto Parts chains and the expansion of Ecommerce sellers. The Integrated channel’s 4.5% annual DIFM product growth between 2013 and 2018 was half-again stronger than the yearly rate of total aftermarket DIFM product expansion.
Traditional Channel Second
The Traditional channel (Traditional Warehouses and/or Traditional Jobbers engaged in both two-step and three-step distribution) represented over one-quarter of DIFM product growth between 2013 and 2018, nearly $3.5 billion at user-price.
The Traditional channel averaged 3.4% DIFM product annual expansion, more than one-tenth stronger than the average annual increase of total light vehicle DIFM products.
OE Channel Surges
The OE (Original Equipment) car and light truck channel recorded $2.3 billion more in 2018 DIFM volume than it did during 2013, a 2.6% average annual gain.
While this was a below-average rate of growth, the OE channel has recorded significantly stronger DIFM product expansion over the past two years than the product growth pace of the total DIFM market.
Import Channel Tops in Growth Rate
Import distribution (Import Warehouses and/or Import Jobbers involved in both two-step and three-step supply) expanded its DIFM volume approximately $1.5 billion and accounted for one-eighth of the total increase in Do-It-For-Me car and light truck product volume at user-price between 2013 and 2018.
The Import channel averaged the highest annual increase in light vehicle DIFM product sales, up 4.8%, much stronger than the 3.0% average annual percentage growth of the overall DIFM market.
Specialized Distribution Declines
The Specialized channel (characterized by its focus on a specific segment of the aftermarket or involvement in a limited range of aftermarket products) was down $0.3 billion in DIFM product sales over this five-year span, suffering a 0.5% average annual decline.
Shifting Channel Strength
The Integrated channel recorded the highest DIFM product volume during 2018, expanding its DIFM product lead over the Traditional channel from $2.3 billion during 2013 to $5.5 billion by 2018, at user-price.
The Traditional channel ranked second in 2018 DIFM product sales, increasing its lead over the OE channel (which fell to third position in 2012) to $2.3 billion in 2018.
The OE channel achieved the third largest DIFM sales gain, eclipsing the Import channel in product growth share.
Although ranking fourth in volume growth between 2013 and 2018, the Import channel increased its DIFM product sales by over one-quarter during this five-year period, by far the strongest percentage gain of any major channel.
Six Major Takeaways
- Two distribution channels generated 70% of the $12.5 billion surge in Do-It-For-Me (DIFM) car and light truck product sales from 2013 to 2018, at user-price.
- The Integrated channel accounted for 43% of the total DIFM product growth over this five-year span.
- The Traditional channel recorded over one-quarter of DIFM car and light truck product expansion between 2013 and 2018, achieving nearly a $3.5 billion product gain at user-price.
- The OE channel topped a $2.3 billion product increase over this five-year period and recorded the second largest DIFM product gain among major channels during the past two years.
- The Import channel expanded its DIFM product volume approximately $1.5 billion and generated one-sixth of the total increase in DIFM product volume at user-price between 2013 and 2018.
- The Import channel averaged the highest DIFM product annual growth rate over this five-year period, 4.8%; followed by the Integrated channel, 4.5%; Traditional channel, 3.4%; and the OE (Original Equipment) channel, which averaged 2.6% annual growth.
Copyright 2019 by Lang Marketing Resources, Inc.
NOTE: Special thanks to publisher Jim Lang for granting us permission to publish the Lang Aftermarket iReport.