Collaboration with myTVS to reach out to manufacturers and distributors across the country
After having conquered the global aftermarket industry, MarketParts has set its eyes sharply on the Indian aftermarket industry by forging a partnership with Indian auto icon myTVS. In an exclusive interaction with N. Balasubramanian, Christophe Riberolle, CEO of MarketParts, and A. R. Satya, Director of MarketParts India, talk about their company’s worldwide distribution arm, rich knowledge in global aftermarket, plans to tap opportunities and make it big in the Indian aftermarket.
Can we start by knowing how MarketParts came into existence?
Christophe: MarketParts is a B2B aftermarket platform that was founded in 2019 to address a gap in the market for B2B transactions, specifically in the aftermarket sector. We recognized that while there were many solutions for B2C (business-to-consumer) transactions in the automotive aftermarket industry worldwide, there was a lack of efficient options for B2B transactions, especially at the manufacturer-distributor and distributor-distributor levels.
Satya: Before MarketParts, Christophe had experience in the B2C sector, having operated in 21 countries, primarily in Europe, North Africa, and South America, where he established a company called Mr. Auto. This experience led him to identify the need for a specialized B2B platform in the automotive aftermarket industry.
How does MarketParts differ from major global platforms like Amazon and eBay?
Christophe: MarketParts distinguishes itself from global giants like Amazon and eBay by offering the ability to add thousands of references to a single basket simultaneously. In contrast, platforms like Amazon and eBay require users to add parts individually. Furthermore, while the average basket size for car parts on Amazon is around 80 Euro, MarketParts caters to customers who stock parts, with an average basket size of 10,000 Euro, often involving the sale of pallets, trucks, and containers.
How does MarketParts support its stakeholders, including manufacturers and distributors?
Christophe: MarketParts serves a two-sided marketplace comprising sellers and buyers. Sellers on MarketParts are primarily manufacturers and distributors, while buyers are exclusively distributors.
MarketParts plays a pivotal role in connecting manufacturers and distributors globally. Manufacturers benefit from MarketParts’ extensive network of over 60 million offers, allowing them to reach a wide range of distributors. Distributors gain real-time information on part availability, thanks to MarketParts’ connections with hundreds of warehouses worldwide, streamlining their procurement process.
How did MarketParts enter the Indian market, and what role will myTVS play in the partnership?
Satya: MarketParts recognized the increasing globalization of businesses, with manufacturers expanding into new markets and looking for reliable data on vehicle parts, channels, and marketing strategies. myTVS, with its extensive network of over 80 warehouses across India, has become a strategic partner for MarketParts. This partnership enables MarketParts to ensure efficient stocking and distribution of products across India’s diverse regions, addressing the complexities of a country with 29 states and various documentation requirements.
What is MarketParts’ focus in India and how does it view the B2B and B2C markets?
Satya: MarketParts primarily focuses on the B2B market in India, with an indirect extension into B2B2C. Recognizing that India has yet to fully embrace a “do it yourself” culture for automotive repairs, MarketParts targets distributors and businesses rather than individual consumers.
Timing is crucial for success in the aftermarket industry. While some manufacturers were initially hesitant about embracing digitalization, the COVID-19 pandemic prompted a shift in mindset, highlighting the potential benefits of digital platforms. MarketParts launched just before the pandemic, and today, digitalization is widely recognized as a valuable channel for businesses, so we see very good potential in the Indian market.
What opportunities does MarketParts see in both European and Indian markets?
Christophe: MarketParts has identified two significant opportunities. A number of European and U.S. component manufacturers are interest in entering the Indian market. Meanwhile, since Chinese manufacturers faced production challenges during the pandemic, global markets are turning to India as an alternative source of parts. MarketParts aims to facilitate these opportunities by connecting global manufacturers with distributors in India and vice versa.
What challenges do you anticipate in India and how do you plan to address them?
Satya: MarketParts acknowledges challenges in India, including the time required for players to develop part numbers, potential changes in import-export norms, and minimum order quantity (MOQ) requirements. To overcome these challenges, we will work closely with reputable companies and ensure product quality and commitment. We will also collaborate with organizations like ACMA to ensure social responsibility in the aftermarket.
How do you address data security and privacy concerns?
Christophe: MarketParts takes data security seriously and complies with the legal requirements of the countries in which it operates. While we provide valuable data such as part availability, it is not related to individuals. MarketParts operates with the support of legal experts to ensure compliance, so we have all corners covered in this regard.
How has MarketParts been received in India? What are your future plans and targets?
Satya: MarketParts had a successful launch in Bengaluru, with strong interest and several sign-ups. We aim to demonstrate our platform’s value in the Indian market and intend to contribute to organizing the automotive aftermarket. While our short-term goal is to make the platform profitable in 24 to 30 months, we have a long-term vision of achieving substantial revenue and expanding our presence in India and globally.