Automotive Aftermarket and Car Body Shops in Portugal
The Car Body Shops Market in the economical situation of Portugal shows, over the last years, relevant growth rates (+2,8 in the first half 2017) far better than expectations; the Country shows an increase in average wages, in the employment rates, new car sales, and so on.
In this background, even the Automotive Aftermarket industry is doing better than the past.
That’s why the MMAS methodology with the experience in the Census & Panel On-Line in B2B and Normal Trade sectors, has realised the database of Car Body Shops in Portugal, completing the Iberia market picture (the MMAS Census in Spain is available since 2013).
As to the overall number of Oficina Reparações Carroçarias Automóveis, we have certified in our MMAS Database more than 1.200 shops (with other being verified that bring estimates to around 1.400).
This figure is consistent with the decrease after the economical crisis of ten years ago (before we estimate around 1.800-2.000 body shops) and according to population and car park size in the country, also compared to the other countries of South Europe, as described in short in the following:
As we can see, the average number of cars per shop in Spain and Italy is around the same, whereas in Portugal is greater (there are several reasons for that, one is the car park average age).
Back to the Portugal Census, the first edition (Foundation edition) was completed in June 2017.
MMAS Method: Data Analysis and Data Visualization
It is followed up, as usual for MMAS method, by yearly updates, that are made available to the companies in terms of data visualisation, data analysis, reports.
The data collected among the body car shops concern basically, but not exclusively, several key topics to get an overview of the shops, its activity and its business potential (sell in-sell out):
- Classification(independent standalone, car manufacturer dealer-operated shops, independent shops appointed by car manufacturers as manufacturer-approved, and more), network, number of employees focused on car, work on trucks/do painting
- Tintometric system: number, typology (water/solvent) and brand
- Distributor and reasons for choice, years of activity of the body shops and years of use of a specific brand
- Use of software system for quotation, and many others (e-mail address, fax, and web site where we see a limited penetration).
Car Body Shops in Portugal: Market Analysis
So that, we are able to draw also a detailed picture of this channel and get some key learning point on it:
- The number of the small shops up to 3 employees is 54% of the total, while the medium sized are 26,9%; top (7 employees and more) is 19,9% of the total meaning that this the magnitude of the “most potential” target. In terms of level of repair capacity and of consumption potential); 71,9 % do not work on trucks while 22,4% do the painting too
- Another relevant topic outlined by the research is the paint market competition: first of all, only the 67,3% declares to work with a tintometric system (water or solvent), and a large quota with just one of them (the gap between 67,3% and total are shops buying paints ready to use, or just repairing); paint brands used have been collected carefully with a research approach that is spontaneous plus a prompt, this allows to define the competition in detail. Top 5 groups are leading the ranking
- Distributor name and role: choice is made for the overall satisfaction, coming mainly from a mix of habits, confidence, personal relation for 29,4%, from reliability for 18,3%, from brand excellence for 8,2%.
- As to the years of activities, a large part of outlets (91,8%) works since 10 years and more; the so-called “start up”, considering the ones with less than 2 years of activity, are only 0,8%; results of “number of years” of use of the brand of the main (most used) water tintometric system are polarised: we have a 38,8% of strongly retained (10+ years using the same brand) and we have 26% of users that use tintometric system for “not more than 2 years”
- Crossing the data of number of years of brand use with overall years of work of the shop is highlighted that the body shop operation working since 10+ years uses the same brand in the 28% on total.
- For cost estimation, software application is used almost in the half of the shops (48,2%), with a strong concentration among the top: this is important to understand the repair estimation process, body shop profitability and other KPI (Repair times, operating Costs, etc.).
Many analysis and insights can be drawn from these data, as well as a concrete support to the Sales Force as the information are detailed for any shops (1to1 approach).
As an independent market analysts in the retail motor industry, MMAS by Marketing & Telematica, makes data available according to the Privacy Laws and provides ad hoc research both on the B2B and B2C targets.
We are looking forward to survey other European countries soon.
Article written by Alberto Aliverti, Senior Partner at MeTMi.