Amazon is the most relevant brand for Millennials because it appeals to them in a variety of ways. The aftermarket will be challenged to take them on, a recent report warned.
Particularly, when it comes to product selection and speedy delivery, Amazon comes out ahead. This, according to new research from Lang Marketing, is what the aftermarket is up against as Millennials — those born between 1981 and 1999 — make up the largest generational grouping.
“For the next quarter-century, Millennials will be the key generation driving the economy, as Baby Boomers fade from the scene and Generation Zers gain traction,” the report Amazon Owns Millennials said.
Amazon has the leg up on brick-and-mortar aftermarket retailers in a few areas. Notably, peer-to-peer opinions and buying alternatives.
“Peer-to-peer opinion sharing is a primary way that Millennials choose among products,” the report said. “This sets Amazon apart from many other buying sources (particularly brick-and-mortar outlets) and gives Millennials the feeling of extra value that makes their product selection much easier.”
Anirudg / Unsplash
Amazon also suggests brand alternatives, along with pricing advantages. “This is very important to Millennials who generally prefer branded merchandise but also seek competitive pricing,” the report said. “Such product and price variety are generally not available from brick-and-mortar stores.”
Amazon has its sights set on the auto parts sector as it expands. So the connection to Amazon for Millennials could have consequences for traditional aftermarket retailers.
“Millennials already play a key role in DIY parts buying and are rapidly becoming a larger factor in the DIFM market through the growth of Millennial technicians and repair shop owners,” the report noted.
It further noted that Lang Marketing found many differences in the buying policies of Millennial technicians and shop owners compared to older technicians and shop owners.
But what about delivery times, which have been the advantage of physical stores over Amazon? That’s becoming less of a concern. Amazon is expanding same-day and even one hour delivery service in key markets.
“Amazon could provide the swift and dependable delivery of auto parts that would be necessary for it to dramatically expand its position in the DIFM (commercial) segment in the aftermarket,” the report said.
An upcoming Lang study will examine the changing online buying habits of consumers and how the aftermarket could dramatically change over the next five to ten years.