Published on December 18th, 2015 | by Subhash Nair0
Malaysian Auto-Parts Industry To Benefit From Cross Border Trade
eBay today released consumer insights that outline the strong opportunities for Malaysia’s automotive industry to boost sales of auto parts and accessories via retail exports on the global marketplace. According to the survey, 47% of US vehicle owners have purchased automotive parts and accessories (P&A) online, and that 23% are likely to do so in the future. This is a promising opportunity for Malaysian P&A vendors to come online and embrace e-commerce as a means of growing a global revenue stream.
Auto-parts is one of the top category for Malaysia’s retail exporters on eBay with the US as the number one destination market. This presents a huge opportunity for Malaysian P&A vendors to set up their online presence and to focus on cross border trade. According to the Export-Import Bank of Malaysia, the total export of automotive products have grown steadily for the past 5 years1.
The survey also revealed that (67%) of consumers have conducted research on vehicles via their mobile devices, with one in five saying that they “always” or “very often” do so. This is an opportunity for Malaysian automotive retail entrepreneurs and vendors to use eBay as a platform for their business. eBay also provides local entrepreneurs access to foreign markets with low entry barriers – making it easier for them to tap into these markets.
Additionally, eBay allows commercial sellers to export their products worldwide through its business and consumer online sales services. Jdm-motorparts is an example of a Malaysian company that has leveraged eBay as their business platform to expand globally. From its business premises in Selangor, the company specialises in selling new and second hand car parts to countries like the UK, US and Australia.
Malaysia’s has signaled its intention to grow the country’s e-commerce under the eUsahawan programme, which is an initiative aimed to elevate and develop digital entrepreneurship. According to Malaysia’s Prime Minister, Dato’ Seri Najib Tun Razak, the country’s e-commerce is estimated to reach RM72 billion this year and is expected to grow up to RM88 billion next year.
Some of the other key findings from the survey include:
- 64% of buyers are DIYers (Do-It-Yourself) who installed the parts they bought online themselves
- 22% of buyers are DIFMers (Do-it-for-Me) who brought the parts they purchased online to a repair shop and/or dealership to perform the installation
- 14% of buyers are both DIYers/DIFMers
- 2 in 5 women have purchased auto parts online, and more than half of them install the parts themselves
With the help from eBay, Malaysian entrepreneurs can design their online shop front to appeal to not only men, but also to women, and provide instructions to aid them with installing the parts. The eBay Motors Reveals the Future of Automotive Retail aims to provide an overview on automotive retail sector and to determine consumer shopping habits in order to help inform what the future of the automotive retail experience will look like. The survey was conducted amongst 1,001 U.S. vehicle owners.