The Canadian light-vehicle aftermarket is divided into five major types of brands:
- Original Equipment (OE) Brands: These parts, often identical to those used in new vehicles, are generally perceived as superior in quality and fit. They are mainly sold by dealers, often at a higher price point.
- Domestic (Canadian) Aftermarket Brands: Marketed by Canadian companies, these brands are highly recognized by consumers. They face the challenge of proving their quality and fit for the growing share of foreign nameplates on Canadian roads.
- Foreign Aftermarket Brands: Sourced from foreign manufacturers, they often focus on exceptional coverage and quality for foreign nameplates. They must expand their distribution to better serve domestic nameplates, which still generate significant volume, especially for older vehicles.
- Private Label Brands: Exclusive to certain distributors/retailers (like Canadian Tire, NAPA), they can be positioned as price-competitive or offer a tiered range of quality (‘good, better, best’).
- OE-Supplier Brands: These brands are rated highly for the specific parts they supply to OE, but need to broaden their distribution and perceived quality for a wider range of vehicle applications.
The Canadian market, with an aging vehicle population (14+ years) and increasing foreign nameplates, presents both challenges and opportunities. Integration with e-commerce will be crucial for the future success of all five brand types.
Text credit : Lang Marketing :
Picture credit : ADOBE STOCK
