Industry Analysis & Industry Trends
The industry has enjoyed robust growth in recent years. This was particularly evident in the three years through 2013-14 after a turbulent period for retailers. As the economic recovery gathered pace, consumers flooded back into the market and industry demand soared. The industry sells a range of discretionary accessories that have been in high demand as disposable incomes have risen. Falling fuel prices and an increase in the number of motor vehicles on the road have also provided more opportunities for retailers.
Over the five years through 2016-17, industry revenue is expected to grow at a compound annual rate of 3.3% to reach £6.55 billion. The industry has benefited from an ageing national car fleet in recent years, which has boosted demand for essential repairs... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry are low due to the lack of regulation and market power in the industry. The only major constraint lies in the cost of setting up a new store and developing a reputation. Stores are generally large and must carry a wide range of car parts in order to drive footfall. New entrants may find it difficult to compete against already established stores as those already have a customer base.
For a new entrant to be successful, it would be required to invest heavily into advertising and marketing to establish its brand name and gain a customer base. It is market where consumers are generally loyal to previously visited or recommended firms. To .. purchase to read more