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Case Studies

Automotive Spare Parts Wholesale Strategy in Myanmar

The client is a global automotive OEM looking to establish a spare parts wholesale operation in Myanmar.

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Issue

The Client dominated the Myanmar passenger cars market in terms on units in operation, but spare parts sales through its official channels remained low with parallel imports, imitation products and illegal imports of used spare parts addressing the bulk of the domestic demand. The client wanted to establish a competitive wholesale channel strategy for spare parts in Myanmar to ensure widespread availability by understanding what are the emerging opportunities and growth segments, key customer targets as well as the regulatory framework impacting the spare parts wholesale operations.


Approach

Solidiance placed a team composed of 1 Analyst, 2 Consultants, 1 Manager and 1 Partner dedicated to the project for 12 weeks. The team conducted in-depth interviews with Ministry of Commerce, Road Transport Authority Department, Myanmar Port Authority, Customs, Insurance companies, workshops, retailers, wholesalers, and associations to gather data points which will eventually lead to strategy formulation.


Solution

Solidiance estimated the total addressable market for the client in terms of volume and value based on total registered vehicles in Myanmar split by vehicle types – passenger cars, SUV, MPV / Vans and Pick up Trucks. Through in-depth interviews with stakeholders, Solidiance shortlisted the most used top 5 parts in planned repair, unplanned repair and collision parts for our client can focus on and forecast market demand till 2020. Solidiance also analyzed the threat of parallel import, imitation and used spare parts circulating in the market and customer perception, decision-making factors, influence from workshops/retailers and wholesalers as well as channel expectations in terms of pricing and incentives. A deep dive analysis of competitive landscape split by OEM, Non-OEM genuine, Non-Genuine, and Imitation parts allowed us to shortlist the most impactful approach for the client to enter the Myanmar market and effectively engage its target channel and customer base.


Engagement ROI

Based on Solidiance findings, the client has been able to secure regional buy-in for establishing a Myanmar spare parts wholesale operation equipped with an in-depth understanding of the automobile aftermarket structure, parts flow and effective channel as well as customer engagement strategies.