Aftermarket is the market, which in the field of capital goods ( eg machinery ) or durable consumer goods (eg, automobiles) that arises because those goods need to be serviced / repaired or replacement parts or complementary items are sold for the estate. So this is about selling service services and / or parts that are reasonably related to the previously completed sale of the estate.
In the automotive sector in addition to the vehicle manufacturers also offer alternative manufacturer of spare parts. The total market in which these parts are traded is called the " aftermarket ". This market includes not only wear and repair parts and tuning parts.
In the field of high-quality capital goods the aftermarket is becoming increasingly important. This is due to the fact that here often maintenance and service contracts are concluded with long maturities, which provide a long-term customer loyalty and continuous revenue stream from the perspective of the provider. This means that the maintenance service the resources needed to plan long term and is therefore able to optimize the related own resources ( service technicians, spare parts supply, etc.).
It can be observed that the aftermarket is often a business that generates high returns, a particularly stable growth and shows can be return stronger than the division that handles the actual sale of the capital goods. So it is not uncommon for an industrial manufacturer of one and the same capital goods are responsible for up to three business units:
- Aftermarket ( sale of related parts and services)
- Rental (renting, leasing)
- Sales (sales )
And the yield strength of the same hierarchy follows.
Especially in the automotive sector
In the automotive industry, a distinction between the two areas of the so-called independent aftermarket (Independent Aftermarket, IAM) and the bound parts market, which is often based on the designation OEM vehicle manufacturers also OES (English: Original Equipment Service; translated to be understood as maintenance and repair with original parts ) is called. The abbreviation OES is also used for the suppliers in this market, which produce spare parts for distribution via the vehicle manufacturer under its brand.
Since many owners see in Germany the franchised by the vehicle manufacturer to the vehicle inspections within the warranty period or warranty period, the aftermarket arises here as a rule only after these periods. In other countries, replacement parts are installed from the aftermarket in the first years of life of a vehicle.
In Germany, the automotive aftermarket is generally referred to as the market, which is entered after the sale of the vehicle to the customer. The automotive aftermarket is therefore first to see regardless of whether the requirement in free or bound market is covered.
The margins in the aftermarket are for the manufacturing suppliers usually significantly better than in selling to original equipment or the vehicle manufacturer. Often is a supply to a vehicle manufacturer is profitable only by the following aftermarket business. Nevertheless, there are in many areas by patents and contractual agreements made blocking clauses, which forbid the distribution of spare parts by the supplier, regardless of the vehicle manufacturer.
The world's largest aftermarket trade fair, Automechanika in Frankfurt am Main. In addition, there is the Automechanika in many other international locations.