In the world of manufacturers, especially in the field of agricultural machinery, the aftermarket plays a crucial role. This is the market for spare parts offered by the manufacturers themselves. But this market faces a powerful competitor - the so-called gray market. The unlicensed market for spare parts consists of spare parts manufacturers who offer parts that do not come directly from the original manufacturer. In this article, we will look at how manufacturers are dealing with this phenomenon and explain the importance of three key factors: identifying unofficial competitors, pricing and availability of their own products compared to those of the gray market.
The need to address the grey market
The after market, also known as the spare parts market or accessories market, refers to the trade in spare parts, accessories and services for products after they have been sold by the original manufacturer. It is an important part of the business model for manufacturers. Therefore, it is critical that they take a hard look at the grey market. Through this engagement, they will develop a deeper understanding of how this market affects their business activities and what opportunities and challenges are associated with it.
Identifying grey market competitors
To compete effectively against the grey market, manufacturers must first identify their competitors in this market. These grey market suppliers offer alternative replacement parts, which in most cases are less expensive than the original manufacturer parts. It is important that manufacturers know their competitors well in order to be able to develop suitable strategies and offer customers a better deal.
Pricing compared to the grey market
A key aspect of competition between manufacturers and the gray market is pricing. Manufacturers must carefully calculate their prices to remain competitive. They must analyze how their prices compare to gray market prices and whether customers are willing to pay the premium for genuine parts. Clearly communicating the benefits of original parts, such as quality and durability, can convince customers to accept the higher price.
Availability of own products compared to gray market
Spare parts availability also plays an important role in addressing the gray market. Customers often need spare parts quickly to minimize downtime of their machines. Manufacturers need to ensure that their own products are always available and, if necessary, optimize their supply chains to remain competitive. It may also make sense to offer services that enable customers to obtain spare parts quickly and reliably.
How price and market monitoring technology can help identify the gray market, pricing and availability of your own products in comparison
Effective price and market monitoring technology can help manufacturers better understand the gray market and develop targeted strategies. By regularly monitoring the pricing trends and market activities of gray market competitors, manufacturers can gain valuable insights. Our oraya insights software is used by manufacturers for automated product monitoring: it searches selected sales platforms and stores fully automatically and provides clear information and analysis options on all offers, price trends and suppliers.
oraya insights can help identify grey market competitors by automatically collecting data on their products, prices and sales channels. Manufacturers can thus analyze exactly which products and market players are challenging them.
In addition, oraya insights enables detailed pricing analysis. Manufacturers can track and compare the pricing strategies of their grey market competitors to adjust their own prices accordingly. It helps them offer competitive prices that simultaneously cover their costs and maximize their profits.
Another benefit of oraya insights price and market monitoring software is that it improves the availability of their own products compared to the grey market. Manufacturers can monitor their competitors' inventories and delivery times and ensure that their own products are available on time. This enables them to offer their customers a fast and reliable spare parts service that sets them apart from gray market competitors. In addition, a manufacturer can monitor its own online store to ensure that all of its own products are actually listed in the online store. It is precisely here that there is often untapped potential.
Targeted engagement with the grey market is of great importance for manufacturers, especially in the aftermarket, in order to achieve long-term competitive advantages and consolidate their market position. By identifying their grey market competitors, rethinking their pricing and improving the availability of their products, manufacturers can strengthen their position and offer added value to customers. Price and market monitoring technology can help manufacturers effectively defend the after market against the gray market. It is their responsibility to highlight the benefits of original parts and increase customer satisfaction.