Electronic home shopping has had an impact on the retail industry, including automotive. A few aftermarket manufacturers have found a profitable niche in selling their products through infomercials, particularly the color-wax segment of the wax and polish category. A study released by the International Mass Retail Association (IMRA) says the growth of electronic home shopping will continue.

The IMA study, Navigating Through Changing Channels: American Consumers Take Control, was designed to help retailers focus on the consumer in predicting how electronic home shopping could reshape the industry. Electronic home shopping accounted for approximately $2.5 billion in sales in 1993, according to the report. "By the end of the decade, home shopping will be a $100-billion business," adds Frank McGonagle, president of Brenton Marketing Services, Swansea, MA. "It goes without saying the automotive aftermarket will be a part of that. It has to be."

The survey, taken by the Gallup Organization, was based on responses from nearly 600 consumers and 120 users in focus groups conducted by Leichliter Associates about why they use three types of electronic home shopping services (home shopping channels, infomercials and/or computer on-line services), and how they will use them in the future.

"Technology is changing the way consumers think, and retailers have to be on the cutting edge of their thinking," says Stephen Sibert, IMRA's director of member relations and program development.

The cutting edge, though, has more to do with making in-store shopping more comfortable, convenient and fun for consumers, say retail designers. They insist hope shopping will never totally replace the in-store shopping experience, and claim consumers will always want to touch merchandise before buying it.

"Most retailers are betting that shoppers will always want to touch the products," says Bernard F. Whalen, executive director of the National Association of Store Fixture Manufacturers. "The world's oldest profession isn't what most people think. Instead, it's selling consumer products directly to customers, and that isn't likely to change at the turn of the century."

What if a home-shopping channel is dedicated to the aftermarket? McGonagle and Stephen Alexander, president of Automotive In-Store Marketing, Pittsburgh, claim automotive accessories would be the perfect products to pedal via TV.

"I think it's a natural for people who are in the add-on, accessories and trim business," McGonagle says.

Adds Alexander: "Home shopping invites the consumer to interact immediately."

Steve Kirby, president of the San Diego-based Auto Parts Club, claims TV has a way of demonstrating an accessory product "that's far more effective than even the best in-store displays."

For instance, Kirby says a product such as a bug shield could be displayed multi-dimensionally through electronic home shopping. "In a short period of time, I could expose the consumer to a large number of vehicle applications with the product (via TV)," Kriby claims. "Right now, the best we can do in-store is have the product available with color photographs and a display that shows a one-dimensional view of the installed product."

Consumer Perceptions Consumers using shop-at-home services: 30% Wish more name-brand products were available. 28% Would make purchases if the stores they already shop at had their own home-shopping purchases. Consumers who have not yet used shop-at-home services: 17% Shop-at-home services don't offer products they are interested in. 15% Not enough in-depth information on products offered. 14% Don't like the delay of shipping the product after purchasing it. Source: International Mass Retail Association

Alexander and McGonagle point out that hard parts could be sold via electronic home shopping, although the presentation would have to be more elaborate.

"Carburetors could be sold that way," Alexander continues. "A show dedicated to hard parts, though, would need a very targeted audience with a presumed level of sophistication. The show would have to be executed quite expertly."

Says McGonagle: "(With hard parts), you get into the dynamics of having to have very skilled people on the phone (taking orders). You have to apply that knowledge interchange you get with counterpeople or store personnel who understand the technical aspects."

Kirby, though, doesn't expect home shoppers to purchase hard parts.

"Such products are readily available locally at discounted prices," he adds.

Kriby claims the jury is still out regarding home shopping and the aftermarket.

"In the long term, it may be a way for manufacturers to establish an alternative distribution system," he adds. "If they are trying to divert products away from the traditional distribution channels and capitalize on margins themselves, then it would not be a positive situation for the aftermarket."

COPYRIGHT NOTICE::"Reprinted with permission from Aftermarket Business, March, 1994. Copyright by Advanstar Communications, Inc. Advanstar Communications, Inc. retains all rights to this material." To subscribe to Aftermarket Business, call 1-218-723-9477 or email fulfill@superfill.com.

Stephen J. Alexander is an aftermarket consultant, speaker and monthly columnist for Aftermarket Business Magazine. To learn more about other in-store merchandising and marketing issues, contact Stephen Alexander, Automotive In-Store Marketing at 239-395-9203 or e-mail him at salexander@autoinstore.com.