How to Develop Overseas Market of Auto Parts

Callnovo provides a one-stop multilingual customer service, outsourcing solutions to one of the largest auto parts importers and distributors in Canada—Tiger Auto Parts. With its combination of English-Spanish and English-French professional customer service team resources, global cloud communication platforms, and CRM system, it is helping to firmly grasp each potential customer and improve the customer service performance and efficiency. Furthermore, it is greatly facilitating the specialization for this large North American native brand in customer service and after-sale process.

The improved export situation for Chinese auto parts

European and American markets

According to the statistical data, the total sales for auto parts exceeded $1.3 trillion in the global aftermarket in 2018. The North American area has become the biggest auto parts market in the world, with more than one half of the demands relying on imports. In this area, the US market, occupying more than one quarter of the global market share, is the biggest destination market for Chinese auto parts exporters, followed by Australia, Britain, and Germany. It seems that the mature European and American markets are still the main objectives for Chinese auto parts sellers to develop future business.

In this Red Sea Market, with well-defined industry rules, price and quality are no longer the prominent difficulties of competition. Chinese enterprises strive to obtain bigger market shares and should focus on the pre-sales and after-sales customer service and support to highlight the added value of the brand.

Emerging market

Compared to the white-hot North American market, Chinese auto parts sales has also sustained a strong growth momentum in the key emerging markets. In Argentina, Israel, and Norway, the growth rates is as high as 130%, 78% and 69% separately. In Russia and Brazil it has increased by an average of 51%;In Africa, at an annual rate of 11% for its growing auto parts demands. It is estimated that the market scale will reach as much as $15.3 billion by 2020.

Online market

According to an analysis by Hedges & Co, an automotive digital marketing agency, the demand for auto parts, repairing accessories, and DIY products has risen to the top line of the market. Online sales of auto parts in the US came to $10.8 billion in 2018 and more than 60% of the transactions were done through smart phones. It is estimated that the online sales of auto parts in the US will grow by about 16%, to an amount of $12.3 billion in 2019, while Canada will grow to about $2.9 billion. Mexico will grow to $700 million; In total, the North American market will hit $15.9 billion. Nowadays, automobile lovers are more and more apt to purchasing auto parts online. However, auto parts are easy to copy and have a low threshold for market entry. The professional native service therefore becomes one of the core competition strengths for the future cross-border e-commerce of Chinese auto parts suppliers.

Case introduction

One of the biggest auto parts suppliers in Canada – Tiger Auto Parts

Tiger Auto Parts, founded in 2001 and headquartered in Toronto, is one of the biggest auto substitutive parts importers and distributors in the Canadian automotive aftermarket. In addition to the commitment to providing the best quality auto parts at the lowest price, it provides the best customer service and timely deliveries. It has the biggest inventory of auto parts in Canada (with a total area of more than 190,000 square feet) and mainly includes thousands of parts from the leading producers of Toyota, Nissan, Honda, Mazda, Subaru, etc., such as the high-performance engines, gears, and aftermarket parts and accessories which are widely demanded in the market. Its customers are all over Canada and the US area, mainly including auto repair shops, repair accessories suppliers, and some buyers fond of auto DIY.

Tiger Auto Parts especially emphasizes the consumers’ purchase experience and customer service. Its achievement comes from the high praise and recognition of their customers, which is exactly the embodiment of the values of Callnovo. The company wishes to fully understand the expectations and feedback from customers in the North American area, with continuous effort in meeting and transcending the customers’ demands of this Red Sea Market. In order to do this, Tiger Auto Parts outsourced the English-French bilingual service of the Canadian market and the English-Spanish bilingual service of the the US market to the overseas branch of Callnovo global customer service contact center; a Bolivian workplace in South America.

Since anyone can order auto parts directly from a website, there is no major difference between Tiger Auto Parts and other online parts vendors. However, they do more than just providing accurate information about the products and services to the customers in the process of purchase, order processing, auto parts order acceptance, logistics tracking, convenient return and refunds, quality warranty, dispute handling, etc. Tiger Auto Parts also make full use of the professional knowledge of products, suggest customers buy upgraded or alternative products, and conduct up-selling and cross-selling through proper telemarketing. At Tiger Auto Parts, we ensure 24/7 availability for our North American customers with 100% customer service and support. Above all, our service representatives are professionally trained auto-lovers who can help you easily choose parts and ensure that the parts you buy match your auto types.

Chinese auto parts suppliers marching in overseas market can consider the introduction of customer service and after-sales outsourcing

For Chinese auto parts suppliers, the mature European and US markets have a large consumption base and the growing potential of other emerging markets is also attractive. From the practical point of view for marching in overseas markets, urgent challenges to the cross-border auto parts suppliers include native language communication, the consumption habits of customers in overseas market, quick and timely customer service response, and perfect global communication equipment. Of course, some enterprises can compensate the weakness in after-sales services through low-price competition and directly replace the damaged products with new ones. However, due to the demand level of the market, professional and efficient customer service is a must for the brands seeking long-term development.

In particular, human customer service is important. As an entrepreneur, you may be aware of many automated methods and it seems as if humans are about to be replaced by artificial intelligence. However it is certain that, no matter what intelligence is, it can never replace the human beings’ linguistic competence and ability to recognize the nuances of human emotions. If a very dissatisfied customer complains about a tire bulging, even the most advanced chatbot cannot replace the calm and caring customer service representative. It is difficult, after all, for a machine to decide on priorities to implement during complaint handling and crisis management, according to the customer’s anger, frustration, and other emotions, in order to achieve active brand maintenance.

For Chinese auto parts retailers, the more brands they sell, the more complaints they will encounter. Once you are behind in dealing with customer feedback or after-sale problems the number of vicious complaints will increase, and the brand image will be damaged and soon decline.

Therefore, in the current fast-paced online consumer market, Callnovo’s contact center takes its own resource advantages of more than 10 overseas workplaces, more than 30 native language supports, global cloud communication platforms, and human intelligence customization. This provides efficient overseas multilingual customer service outsourcing solutions to those overseas Chinese auto parts or maintenance suppliers, cross-border e-commerce platforms, and retailers. It  builds cost-effective, strong, and smooth channels of communication and makes every customer can fully feel the power of excellent customer experience from your brand.

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