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THE
growth of the motoring industry has already given birth
to a lot of business opportunities in the local market,
and one of these is the so-called after-market parts.
The
entry of major car manufacturers in the local market and
the penchant of Filipinos to save money on replacements
parts or customize their cars have resulted in the rise
of various “after-market dealers” nationwide.
Through
the years, this after-market became a significant sector
of the auto industry as it created a network of
companies that manufacture, remanufacture, distribute
and retail vehicle parts, tools, equipment, accessories,
chemicals and services which do not fall under those
products that are used as original equipment to
manufacture new vehicles. These after-market parts are
either replacement parts or accessories designed for
styling, performance enhancement, comfort, safety and
are added on after a car is purchased from the
manufacturer.
Surprisingly, the
Philippines
is not the only country in the world where after-market
parts are prospering. In the United States, for example,
the Specialty Equipment Market Association (Sema) has
been in existence for several years now and it annually
holds conventions and trade shows which are now some of
the keenly awaited events internationally.
But
local after-market parts suppliers, manufacturers or
even dealers are fragmented in terms of addressing
problems that are present in the burgeoning market. And
this is the reason why a new organization will be
launched in consonance with the holding of the 2007 Auto
Salon from November 15 to 18 at the newly opened SMX
Trade Center in Pasay City.
It is
show organizer Sophie de los Santos who hopes to gather
together the present batch of after-market groups as
pioneering members of the soon-to-be organized
Philippine Automotive After-Market Industry Association
(PAAIA) “since the automotive parts industry is in
direct relation with the motor industry as it follows
the latter’s trend and PAAIA, in a big way, can help in
the growth of automobile sales and vice-versa.”
De los
Santos added that the demand for after-market products
and services today does not rely solely on repair and
maintenance needs anymore. “A big section of the market
purchases new vehicles and aftermarket-enhancement
products almost at the same time. Thanks to the
proliferation of car shows and competitions and the
popular trend in car customization. The PAAIA also hopes
to coexist healthily with and support the local car
manufacturers in this area, just like what is happening
in the US, Canada, Europe, Australia and Japan,” she
said.
De los
Santos said that there are various issues that the new
group needs to work on, and these are: linking the
aftermarket-supply chain through e-commerce;
establishment of councils or aftermarket subsectors to
address specific industry issues through roundtable
discussions; develop partnerships on a regional,
national and global level; develop an IT forum;
technical support and training to meet constant changes;
and striking a balance between do-it-yourself customers
and mechanic-installed customers.
“There
are also several problems permeating in the industry
today that the organization should look into, and these
are the presence of substandard or
poor-quality after-market products which threaten the
safety of consumers; the proliferation of illegally
acquired parts used for resale; and even a lack of
detailed macroeconomic and demographic data, as well as
data on market size and segmentation necessary in the
analysis of the after-market industry prospects and
competitive landscape,” de los Santos added.
She
further said that the government must also play a big
role in the creation of the said organization. “As a
single voice of the automotive after-market suppliers in
the country, PAAIA will need the government’s support on
matters of legislations as far as restrictions and
regulations on automobile repair and enhancements are
concerned. There will also be issues on import and
export taxes and even support for SMEs in the automotive
after-market field.”
Being a
member of the Sema herself, de los Santos said that it
was Sema Asia-Pacific director Richard Saberon who
encouraged her to form the group, “so that effort will
be collective and representative of the industry voice,
and I strongly agreed to it.”
“Recently, there was an invitation to join the very
first Asia-Pacific Aftermarket Networking Meeting held
during the Sema show on October 30 and to which I
presented informally the formation of PAAIA. Now, PAAIA
is officially one of the eight association-members of
the AAAL [Automotive Aftermarket Active League], headed
by Koichi Sumino [CEO of Autobacs, Japan]. The aim of
AAAL is to overcome the difficulties and obstacles of
the global [specifically Asia-Pacific] after-market
business by unifying the powers of the pioneering
member-associations from Japan, China, Australia and the
Philippines,” de los Santos revealed. |
