Market History
After several years of market education and some degree of reluctance on the part of traditional bodyshops Smart Repairs are now moving up the UK and European Aftermarket agendas.
It has not always been easy to communicate the benefits of Smart Repair products and processes to potential users who have a vested interest maintaining the cost of accident repairs. Even in the UK where the sector is more advanced - arguably 20 years ahead of European counterparts - Body and Paint bodyshop repair networks have historically focused on the replacement of the part and the associated material and labour costs to guarantee their own commercial existence.
Now vehicle manufacturers, dealer groups, insurers, de-fleet organisations, auction houses and bodyshops are starting to see the real cost, time and revenue benefits Smart Repairs can deliver. This has combined with continuing pressure on financial returns in the Retail and After-Sales sectors and a need for improved productivity and profitability. Smart Repairs are finally being viewed as the route to additional revenue and increased customer care and therefore retention.
Environmental pressures have underpinned the 'Repair not Replace' strategy, which is growing in terms of understanding and adoption. Market penetration - while increasing - is still extremely low across UK and European sectors. Timing is therefore appropriate for Ronda Europe and its retail networks' entry into the sector.
Current Market Dynamics
In general the motorist is unaware of Smart Repairs. Minimal marketing activity/brand and product awareness has been undertaken in any of the European markets. Recent regional research in the UK suggested only 1 in 10 motorists had any knowledge of the products or their uses. Franchised mobile networks have conducted regional promotional campaigns but with little ATL activity.
Local promotion by individual dealers and mobile franchisees has resulted in fragmented awareness and some local sales activity.
The Future
The company invests heavily in new product development and research as previously indicated and has ongoing product and market development programmes under way in a number of key categories including scratch repair, water born paint systems, developments in PDR , windscreen repair innovations, alloy wheel repair and refinish processes, vehicle polishing system .
Across Europe the Smart Repair market is still new and significantly under exploited. The category sector is only at the start of its cycle as opposed to being in the middle or at the end. It is inevitable that the service will be improved and extended.
Customer feedback to-date has been extensive across all customer types and has shaped our strategies for the future.