The concentration and cooperation processes in the aftermarket are getting more intensive.
The experts from wolk after sales experts have been waiting on a counter reaction of the medium sized wholesalers on the growing concentration tendencies of “IAM distribution enterprises” in Europe for quite some time now.
Finally, the time has come. The 6th trade and buying group for automotive components in the aftermarket alongside ATRI, TI, GAI, ADI and TecCar named NEXUS AUTOMOTIVE INTERNATIONAL is entering the market.
The target course of NEXUS concentrates on middle-sized and small parts wholesalers. This new trade- and buying group plans to expand especially in the “growing markets” in- and outside of Europe. NEXUS’ executive director is Philippe Guyot, former manager of Group Auto France, business development.
Especially the middle-sized business structured cooperations like adi and GAI will notice the new competition in their market. The potential of powerful partners for those ITGs has decreased in the past years because of the concentration process (buying/holding) in some countries. Therefore the fight for powerful middle-sized parts wholesalers will get more intense.
This could also be the wake-up call for ATRI and TI to further pursue the direct delivery of garages. Even the retail system partners of the big distributors may be found on the acquisition target list of NEXUS.
Time for new strategies in the European IAM wholesale trade
Everybody should be aware of the fact that the entry of a new international cooperation into the market will not lead to even a single additional sale in parts. But the competition will be crowded out on a supranational level of the buying groups, thus the opinion of the automotive experts from wolk after sales experts.
In times of decreasing gross benefits and growing costs for the service-support for the IAM garages NEXUS may be able to give the automotive branch new impulses if NEXUS’ focus will be concentrating rather on know-how transfer than on material logistics. It may not be a constructive decision for distributors as well as for garages to push even more JIT and private labels into the market. Since the aftermarket is affected by a passive demand, it would have a market reviving effect if the focus will be on pro-active sales impulses which would also generate a sustainable growth.
That means that the component manufacturers will have to face not only the concentration process of the big distributors but also a concentration process on the cooperation level.
The pressure on conditions because of harmonization on the international level and on margins may get more intense. It would be no surprise if manufacturers of automotive components receive stronger impulses to find a direct way into the garage in order to escape that pressure on margins and the dependence on distributors.
It cannot be excluded that NEXUS’ entry into the market may lead to exits and changes in the existing cooperation scene and that today’s structure may be rearranged. The experts of wolk after sales experts believe that paired with an increasing after sales online business, we are about to face an interesting future full of possibilities and chances.
Please get a deeper insight by checking the attached press release by NEXUS.
If you wish to learn more about NEXUS and trade- and buying groups we would like to refer to the following expertise by wolk after sales experts: .
The largest car parts distributors in Europe (handbook in English)
The largest truck parts distributors in Europe (handbook in English)
Car Aftermarket Europe Report (automotive after sales market-analysis in English)
The “Who is who” of the German IAM car parts distribution (Poster)
Pressrelease of Nexus:
PIONEERING STRATEGIC ALLIANCE CREATES INTERNATIONAL DISTRIBUTION GROUP FOR THE GLOBAL AUTOMOTIVE AFTERMARKET
A major new international autoparts distribution group, Nexus Automotive International (N!), has been created to service the global automotive aftermarket.
It follows agreement, with effect from 1st January 2014, between leading distributors in Europe, the Middle East and Africa.
N! is based in Switzerland, with headquarters in Geneva and additional offices in Paris and Dubai. Its founding shareholders are successful distribution companies based in multiple territories, including the UK and Ireland, France, Spain, Portugal, Italy, Belgium, Finland, Poland, Turkey, Russia, Jordan, Lebanon, Emirates, Saudi Arabia, Egypt and Ghana.
N!’s ambition is to position itself as a ‘balanced innovative force’, consistently delivering strong performance in a very competitive market, addressing the challenges of the European market while supporting rising opportunities in multiple fast-growing territories.
The new group is planning to expand at an accelerated pace in the next three years, with no specific restrictions in terms of channels and territories. It will do this through three dedicated organisations:
- Nexus Automotive International (Geneva) hosting the founding partners and all future aftermarket players having a yearly turnover exceeding 50M€.
- Nexus Automotive Overseas (Dubai, Paris) welcoming all companies based in Africa, Middle-East and French Overseas territories.
- Nexus Automotive Mid-Cap (Geneva, Paris) hosting all N! representatives in middle-sized European territories with a yearly turnover below 50M€.
A Strategic Suppliers Conference will be organised in Geneva on March 5, 2014, at which the N! prospects for the three coming years will be shared in detail.
Gaël Escribe, formerly Valeo and Delphi Executive, currently acting as CEO until the next meeting of the Board of Directors, said: “All the partners are energised by the possibilities this exciting multi-national partnership will deliver. Our company will be strongly focused on bringing innovation to supplying the global automotive aftermarket, while promoting profitable growth opportunities both for our 45 strategic suppliers and for our local representatives.”
”Driving performance, innovation and simplicity, making ideas happen, getting better every day, are the strategic pillars that will allow N! to create significant opportunities for growth”.
Steve Fulford, chairman of The Parts Alliance (UK/Ireland), said: “The Parts Alliance is a major force in the UK and Ireland. Now as a founding partner in this new international group, it will enable us to expand our horizons.
“We have substantial volumes of purchasing and by aligning ourselves with other partners across Europe, and in emerging economies, we will be able to create additional value for those who invest in our business while helping our customers provide better choice and value for their customers”.
Akram Shahrour, Vice-President of NASCO Automotive (Jordan), said: “The focus of N! on fast growing territories should create lots of enthusiasm on the supplier side. Nexus Overseas has to be considered as a key facilitator for all manufacturers willing to expand in Africa and the Middle-East”.
Jean-Claude Bauduin, General Secretary of IDAP (Spain), said: “The Value Proposition of N! is unique and is very much addressing the challenges of the Aftermarket of today, which convinced us to engage time and resources in this new initiative”.
Nexus Automotive International S.A.
5, rampe de la Treille