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Supplier promotions getting back…

Supplier promotions getting back on track

Promotions played a bigger role in the automotive aftermarket last year, with deeper discounts and more frequent offers driving consumer behaviour, according to an industry observer.

Nathan Shipley, executive director and industry analyst in Circana’s automotive aftermarket practice, highlighted the increasing role of promotions in the industry — but they’re not as deep as we’ve seen in the past.

“We have seen kind of a step up in promotions this year. It does not mean that promotions are necessarily deep discounts, but the actual offer is out there at a higher rate than what it’s been historically,” Shipley explained during his presentation at AAPEX 2024, Aftermarket Outlook 2025.

Shipley provided detailed insights into the nature of these promotions, noting that the average discount is about 18 per cent but when compared to prices from last year, it’s more like 12 per cent.

“What that is saying is that we’re seeing a little bit deeper promotions on whatever price is being offered,” Shipley explained.

Focusing on the tire market, Shipley discussed consumer preferences for promotions. These are often mail-in rebates. He highlighted a significant consumer preference for immediate discounts instead.

“I want it right now. I don’t want to wait eight weeks for a cheque to show up in the mail,” he noted as customer feedback.

Even if the rebate is lower, a third said they’d be fine with that as long as the rebate was immediate.

Shipley emphasized the importance of understanding consumer mentality, especially for lower-income, DIY consumers who are sensitive to price changes. Can you attract them to your store or brand if they’re thinking about a rebate that might come six weeks or two months later?

“So that’s a big deal for the entire space,” he said.

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