Overview

The automotive aftermarket in North America and Europe is undergoing a transformative shift as private labeling gains prominence in response to evolving industry dynamics. Retailers and distributors are leveraging private labels to adapt to inflationary pressures and fluctuating supply chains by simplifying operations and controlling costs. In North America, private labels now account for nearly 50% of independent aftermarket (IAM) revenue in high-turnover categories like batteries and brake parts.

In Europe, buying groups such as Nexus and ATR are leading the charge, fostering regional collaboration to strengthen private label offerings. These strategies not only enhance profitability but also empower players to respond swiftly to consumer demand for affordable and reliable alternatives.

Frost & Sullivan’s latest analysis highlights the following growth opportunities in private labeling:

• Category Expansion: Enhanced focus on high-replacement categories such as filters and engine oil.
• eRetail Revolution: Growth of do-it-yourself (DIY) and online-first private label segments.

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