Shift in growth patterns sparks product-volume changes through the five major distribution channels supplying the light vehicle aftermarket
Fort Wayne, Ind.—Do-It-For-Me (DIFM) and Do-It-Yourself (DIY) aftermarket growth patterns changed significantly between 2018 and 2023 compared to the previous five years. This triggered “dramatic” shifts in the product growth of the five major distribution channels across the U.S., according to the latest Lang Aftermarket iReport.
“DIFM volume generated a much smaller share of aftermarket product growth between 2018 and 2023 than in the previous five years,” states the analysis. “At the same time, the DIY market’s growth share soared. This sent product-volume changes sweeping through the five major distribution channels supplying the car and light truck aftermarket.”
The following are key takeaways from the report.
Record Changes in the DIFM and DIY Mix
COVID-19 substantially affected the light vehicle aftermarket in 2020, changing consumer vehicle repair in ways that shifted the balance of product volume among the DIFM and DIY aftermarket sectors to a degree not seen previously.
The full impact of the DIFM and DIY volume changes can be seen best through a five-year view of the aftermarket from 2018 to 2023.
2018 Aftermarket Product Mix
The DIFM market held an 81% product share in 2018. In contrast, the DIY sector accounted for only 19% of light vehicle product sales at user-price in 2018.
Product Growth Shift
COVID-19 reversed a 20-year trend in the DIFM and DIFM sales mix. The DIFM market experienced a sharp decline in 2020 market strength. It generated only 60% of aftermarket product growth between 2018 and 2023, down from nearly 90% over the previous five years.
The DIY market fared much better, rising up to 40% of light vehicle product growth between 2018 and 2023, four times its growth share in the previous five years.
Accordingly, the DIFM’s share of light vehicle aftermarket volume slipped from 81% in 2018 to 78% by 2023. In contrast, DIY’s share climbed from 19% to 22% of light vehicle product volume.
Channels Differences in DIFM and DIY Share
Each of the five major distribution channels supplying the car and light truck aftermarket derives different portions of its volume from the DIFM and DIY markets.
• Traditional Channel
The Traditional channel consists of Traditional Warehouses and Jobbers engaged in two- and three-step distribution. This channel was impacted by the DIFM downturn between 2018 and 2023. Due to its weak position in the DIY sector, the Traditional channel did not benefit from the increase in DIY volume following COVID-19.
The Traditional channel managed only about a $1.0 billion product gain between 2018 and 2023, less than 8% of aftermarket product expansion and only one-third of its 2023 sales share.
• Integrated Channel
Integrated distribution is characterized by products not changing ownership (or program affiliation) between their purchase from Manufacturers and sale to Installers or DIYers.
Among the five major channels, the Integrated channel was best positioned to benefit from the increase in DIY product sales generated by the 2020 onslaught of COVID-19. Integrated distribution has gained DIFM volume due to the Retail Auto Parts Stores’ expanding commercial market sales.
As a result, the Integrated channel accounted for over 75% of the aftermarket’s DIY increase and 58% of the gain in DIFM volume between 2018 and 2023. The Integrated channel generated nearly 62% of all light vehicle product growth between 2018 and 2023.
• Specialized Channel
Specialized distribution (characterized by its involvement in a particular segment of the aftermarket or with a limited range of products) declined in DIFM volume between 2018 and 2023.
However, its involvement in the Specialty Equipment Market (with its large portion of DIY volume) increased the Specialized channel’s DIY volume by nearly 15%. Nevertheless, the Specialized channel contributed less than 1% of the light vehicle product growth during this time.
• Import Channel
The Import channel consists of Import Warehouses and Jobbers focused on the foreign nameplate aftermarket. The Import channel has nearly 95% of its sales in the DIFM sector. This should have been a disadvantage, given the decline in DIFM share between 2018 and 2023.
However, the Import channel generated 12% of total light vehicle product growth and 17% of the increase in DIFM volume due to its focus on the rapidly expanding foreign nameplate aftermarket.
• OE Channel
The OE channel consists of Manufacturers and Distributors that supply Original Equipment products to car and light truck Dealers, who install these products in their bays and redistribute them to DIFM outlets and Do-It-Yourselfers.
Over 96% of the OE channel’s volume is DIFM activity. The OE channel performed well in the DIFM market between 2018 and 2023, boosted by the increasing technical nature of many repairs. Despite its inability to capitalize on the increase of DIY sales between 2018 and 2023, the OE channel’s expanding DIFM share enabled it to generate 18% of aftermarket product growth.
Impact of the Changing DIFM/DIY Mix
The Traditional and Specialized channels significantly underperformed the overall light vehicle aftermarket growth between 2018 and 2023. Their heavy involvement in the DIFM market greatly affected their aftermarket decline.
Over the past five years (2018 to 2023) the Traditional channel’s sales climbed at less than one-third of its annual growth rate during 2013 to 2018. The Specialized channel’s sales rose at less than one-twentieth the annual pace of the overall aftermarket in the last five years.
In contrast, the Integrated and Import channels generated over 73% of light vehicle product growth during this period.
The Integrated channel led the way among the five major channels, with strong performances in both the DIFM and DIY markets. Its sales increased at a 50% faster pace than those of the overall light vehicle aftermarket.
The Import channel recorded the highest annual rate of product growth over the past five years, slightly topping the Integrated channel’s yearly pace.
The OE channel exceeded the growth pace of the overall light vehicle aftermarket, expanding its product share in 2023 compared to 2017.
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