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    2 Replies Latest reply on Apr 8, 2009 7:37 AM by hchung

    Looking for partener to make Aftermarket auto parts business

    hchung Wayfarer

      Hi Everyone,

      I have family business in Taiwan and China for manufacturing Auto Parts. Now, I want to use those resoures, plenty supplier information and diversity product line to create a business in the Unite States.

      The questions I faced are distribution channel and marketing.

      In the distribution channel aspect, most of distributors wants to carry our product cause we focus on high quality and competitive price. However, the payment term is 30 days to 60 days credit. In the other words, company must have strong cash flow. Also, they all want to be an exclusive distributor. But they can not guarantee that they can have consist purchase power. Therefore, our company want to be the manufactor and distributor, meaning directly deal with retailers and end users.

      For the marketing aspect, it is difficult to forecast which parts should I import cause different car has different parts no. and the demand is not the same either. For example, the popular car in the u.s. may be TOYOTA COLLORA 1996 ~ 2006, but they have different parts no. throught those years.
      Thus, wish someone help forecast the demand for the popular no.

      What is the competitive advantage? First, we have competitive price because of directly dealing with factory. Second, we have diversity product line to fulfill different clients need. Third, we have office in Taiwan and china to do research new product lines supplier.

      If anyone have question, please send me a meesage. I am willing to answer any question.
        • Re: Looking for partener to make Aftermarket auto parts business
          snipperred Scout

          Hello, and welcome to the Bank of America Small Business Online Community. I just read your first comment and can tell you would make a valued addition to these forums.

           


          I am glad you asked. Here, you should find some especially qualified contributors who are happy to meet you. Personally, I have an interest in your field from an industrial engineering standpoint. It is a pleasant surprise to see a foreign autoparts dealer reach out.

           


          That said, I think you should consider modern marketing and distribution models. I am sure you are familiar with demand-pull. In these days, you have the opportunity to connect directly with your market. All you generally need is to know what they want. You can do this best by meeting them and asking. Or, if you are really good, then you can influence what they want. Racing for one.

           


          If you want to get hot, set up an online shop for local garages, kids organizing around certain kinds of cars and building/ modifying, and the passionate garage mechanics. You have the technology to do this, and these people pay with credit card on the spot. The question is, how well do you know the market? You'd have to have somebody going around and seeing, meeting, and being these people.

           


          So there you go. Your marketing channel should be direct through your market. Your distribution as well.

           


          Best,

           


          Anthony Reardon

           

          Nascent Dynamics ( ) Modern Business for the Modern Environment
            • Re: Looking for partener to make Aftermarket auto parts business
              hchung Wayfarer
              Hi Snippered,

              Thanks a lot for your analysis.

              I thought about your suggestion and few things I would love to point out.

              First, the demand will be not consistance and small in this situation.

              Also, the cost is high in this strategic becuase you have to prepare a lot of inventory. But I like your idea that entering with few specific items and expend in the future.

              My business plan is to deal with retail for following reasons,

              Price: My price can be more flexible and competitive.
              Quantity: They can order more quantity for most of items.
              Channel: They can deal with most of DIY "Do it Yourself" market & DIFM "Do It for Me" market.

              The key point here is how do I do business with those retail, especially payment term and authorize for saleing the product.