AutoDirect aspires to be India’s largest digital distribution channel for the automotive aftermarket, bringing the benefits of e-commerce to the Indian independent aftermarket through a B2B business model, as stated by the company’s management in an interview with Rajesh Rajgor
In India, the automotive independent aftermarket community (IAM) is estimated to be worth Rs 40,000 crore. It’s ironic that such a large segment lacked a common platform for product (parts) procurement, as available to many other product domains, without having to go through multiple dealers and distributors till now. The scenario has changed.
“The idea of starting AutoDirect was primarily to provide all the advantages and benefits of e-commerce to the automotive independent aftermarket community, which was not previously having access to this convenience.
– Deepak Mahendra, CEO, AutoDirect Techsystems India
AutoDirect fulfils the need for a B2B platform through an app designed to bring Tier I OE suppliers to the market. “AutoDirect aspires to be the channel of choice for the retailers’ community, especially the new generation of buyers,” Mahendra adds. Their app promises to integrate the supply chain by connecting suppliers and retailers without the use of multiple levels of dealers or stockists. This is to ensure that genuine products reach retailers and end-users, reducing the scourge of counterfeit parts in the market. “Our app not only allows the retailers to order multiple brands on a single platform any time of the day but also empowers him to order only those items he really needs,” he elaborates.
Backed by Behavioural Changes
The addressable IAM market that AutoDirect is aiming for is expected to be worth more than Rs 50,000 crore by 2025, implying that there is tremendous opportunity for rapid growth at a high CAGR. By that time, AutoDirect will have suppliers contributing to 75-80% of the aftermarket size and 30,000 retailers across the country. “We launched the AutoDirect app two years ago in September 2019 and now have a field staff presence in 20 states. AutoDirect has serviced over 4,000 orders with zero returns and over 25,000 SKUs in the app. Digitalisation is the way to go,” Mahendra states.
“Looking at where we are now, the entire consumer journey is progressing significantly,” he adds. The company also firmly believes B2B e-commerce will necessitate behavioural changes, and AutoDirect is noticing this trend among the new generation of retailers. “Other trade malpractices such as spurious parts and going through multiple distributors or layers will be addressed by our app. Our primary focus area is Tier II, III and IV towns where the App can bring small retailers into the mainstream and get parts directly from OE suppliers,”
– Nitin Gulati, AVP (Business Development), AutoDirect Techsystems India.
Growing Together
Explaining how the app would assist retailers, Gulati says, “The suppliers benefit by adding another futuristic channel to their arsenal for growing their business, which will soon occupy a sizable portion of the IAM portfolio. AutoDirect adheres to a highly corporatised and business-compliant process and provides all discounts and schemes to retailers in a transparent manner.” AutoDirect passes on all promotional schemes, etc. directly to retailers and helps manufacturers become competitive. Its strategy to effectively utilise schemes in the market increases the shelf occupancy of the retailers.
“We promote manufacturers’ entire product catalogue and give complete access to the retailers via the app. Our seamless app collates and communicates new product launches and offers seamless transmission of schemes and promotions to the retailers. We also engage in educating and training retailers about product features. With the app we are able to cater to customers on a pan-India basis and penetrate retailers even in the Tier II, III and IV towns and enable scientific data analytics, technical inputs and real-time tracking. As such, AutoDirect is aligned with the future trends of e-commerce,” Mahendra concludes.