[European Atlas]“We are far from the end of market concentration”

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Zepros : What is your assessment of 2018 for PHE (formerly Autodis) in Europe?
Stéphane Antiglio: With the recent acquisition of the French online sales site Oscaro, our turnover should increase to €1.7 billion (IFRS15). And by adding branded sales, we will pass the €2.1 billion mark. We are still in the top five. In the Netherlands, we are number three following the acquisition of Geevers Auto Parts (€67 million in sales in 2017). We strengthened our position in Benelux with the takeover of the Belgian company Verviers Freins (€21 million in sales) by our subsidiary Doyen Auto. We also consolidated our position as number two in Italy – €190 million annual cumulated turnover – by taking over G-Group in Naples, which has a turnover of €55 million, and two other smaller entities. And we may not have finished in France. Clearly, we remain well disciplined and constant in our strategy of setting up in the countries that border our historic base. And we will continue.
Have you already implemented synergies following your acquisitions in recent years?S. A. :Yes, they are operational. For example, iDGarages is deployed in Belgium. Similarly, Doyen Auto uses the services of Assistance Diag 24 [technical support, hotline] piloted by Grup Eina in Spain (PHE has been a shareholder since 2017). We are also starting to develop the Garage AD brand in Belgium. We use synergies where it seems to make sense. In fact, the whole point of a distributor going beyond its borders is to use its best know-how and replicate it when it can bring advantages to the new market. But we must also find ways to adapt to the specifics of the country. You have to test modestly.
By taking over Oscaro, you have also moved beyond your role as a traditional physical distributor for the trade. Do you plan to develop the site across Europe?S. A. :Autodistribution distributors have always done some consumer sales over the counter. Even though we suffered from competition from online spare parts sites, we never lost interest in the DIY consumer. Over the counter sales will continue to exist for distributors because they respond to a need. At the same time some individual customers will prefer e-commerce. All this will continue in France. As for exporting the model beyond our borders, we will do it if, again, that makes sense, but it is not one of our priorities. Note that in Spain, Oscaro generates little turnover (less than 10%).
The number three in the European market investing in a consumer sales site! Will that put pressure on other leaders?S. A. :Absolutely not. The big European competitors can happily live without online consumer sales. PSA has one (Mister-Auto), so do we now. In fact, this is really about opportunities.

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Your view on the concentration of the market in Europe in 2018?S. A. :The consolidation process has started. The market is still very fragmented in Europe and in some countries. While there is still plenty of room for independent players, the move to consolidation will continue. We are very far from the end of the question. Today, the top five in European distribution have less than 5% market share. It is a slow process that seems to me inevitable. If we have had the feeling of a pause this year, there is no doubt that the big groups will resume their onward march. We will be slower and more moderate, but we’ll continue to strengthen our positions.
We are talking more and more about the price corridor. Is it a reality?S. A.: The concept is eminently complicated to change. There are gaps in all directions, and they will of course always be there. Because of variable volumes, but also because of differences in GDP from one country to another with populations that do not have the same purchasing power.
In the battle for access to vehicle data, do you not think that two neutral platforms mean one more than needed in the face of the manufacturers’ lobby?S. A.: There is one platform that is more neutral than the other! * Beyond the question of different factions, the stakes are enormous. It is very difficult to follow today, but I am confident because the European Commission is basically in favour of free competition. It will regulate free access to vehicle information for the independent parts sector. For now, there is no point in speculating. Because we have not yet seen all the innovations that may happen, nor understood what may change. We are all exploring the business model. Which data is best to recover and how often? The subject of connectivity is still evolving. So neutral, not neutral? In fact, at this point, we don’t know what will emerge. So we remain attentive, we are testing a lot. We do not want to be late, so we'll be agile. Still, independent parts have always been able to adapt with the help of partners. We have time to do it, unlike manufacturers who are immediately impacted by these phenomena. So let’s not get carried away. Faced with all this, we must remain pragmatic.* Editor’s note: Carmunication, ADI is a memberCaroline Ridet