Online retailing of automotive spare parts transforming entire market: Co-founder, boodmo

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Saurabh Gupta | 28 Dec, 2017
Online retailing of automotive spare parts is rapidly revolutionising entire market, said Oleksandr Danylenko, Director of Operations and Finance, co-founder, boodmo. Founded in the year 2015, boodmo is the countryâs largest online marketplace for auto components where buyers and sellers use it as an interface.

Danylenko feels that fake parts is one of the main challenges before him. He said, "It is commonly known that they are about 20%-30% cheaper than genuine parts, and find easy access to the market. Counterfeit parts not only pose threat to a vehicleâs performance, but more importantly they jeopardize the vehicleâs safety, endangering lives."

Excerpts of the interview...

Please tell our readers about your group. What is 'boodmo'?
Oleksandr Danylenko: Founded in the year 2015, boodmo is the countryâs largest online marketplace for auto components where buyers and sellers use it as an interface. The platform makes it easier for the car owners to find genuine auto car spare parts. boodmo has a huge database of genuine and aftermarket replacement parts offered from suppliers across the nation. boodmo aims to organise Indian replacement parts market and makes shopping process easier and more convenient.

Our platform offers a trusted channel for both car owners and auto parts dealers to come under one roof in order to offer enriched basket of products and services. Customers can find the required automotive components using our online catalogue and can make their search through VIN, brand or part number. 100% customer satisfaction is our utmost priority. boodmo today, deal in high-quality genuine or aftermarket parts of over 3000 brands both national and international. Our expert team is dedicated to redefining Indian spare parts industry.

Why you two friends from a eastern Europe chose to be in India?
Oleksandr Danylenko: We came to India all the way from Ukraine to explore opportunities in the startup space. We were keen on an e-commerce entity, as we knew its potential. The market intelligence and our research led us to the idea of an automobile components marketplace, thus boodmo was formed .Further, our research led us to conclude that the spare parts auto industry is not well organised in India. Therefore, if the industry is digitised to offer timely products to the customers the auto component marketplace could grow many folds.

What were the challenges faced in adapting to Indian Market?
Oleksandr Danylenko: One of the main challenges has been to fight the problems of counterfeit products. Counterfeit parts not only pose threat to a vehicleâs performance, but more importantly they jeopardize the vehicleâs safety, endangering lives. It is commonly known that they are about 20%-30% cheaper than genuine parts, and find easy access to the market.

Unfortunately for auto industry, spare parts were seen as luxury goods and currently levied with 28% GST. So transition to higher taxes with old MRP was painful for distributors.

Another issue is MRP on spare parts products. For example, in distant areas compliant dealers will not sell bulky products at their loss due to high logistics expenses and increased tax. As a consequence drivers will have no choice as to pay over MRP to cover transportation cost.

How start-ups like boodmo are striving to revolutionise and evolve the spare part market in India?
Oleksandr Danylenko: boodmo focuses on providing the most comprehensive spare parts catalogues which includes almost all the brands in the market. boodmo also has an excellent retention rate of customers who have used the services earlier, which is an indication that customersâ satisfaction level has been quite high. A multitude of choices, that we offer, give confidence to customers.

At boodmo, all the complaints are addressed seriously, strengthening and enhancing the trust of customers. In addition, boodmo provides access to website usage without any subscription fees, which leads customers to believe that it is also a transparent platform. Besides, suppliers have their own interface to manage their products which give them a tool of empowerment to manage their inventories.

Counterfeiting is a serious global challenge, what is the state of genuine spare part market in India?
Oleksandr Danylenko: Counterfeiting can only exist if customer is willingly agree to pay for it or is deceived by dishonest seller or service provider. In first case deal is done by consent of two parties, the only negative sides for customer are higher risk of running the car and absence of customer protection â no return, no guarantee. In order to avoid second case of deliberated mislead customer has to be careful choosing a vendor and obtain some basic knowledge about product.

How you control counterfeiting at your platform?
Oleksandr Danylenko: We offer genuine parts without promoting any particular suppliers; all parts which are available on website are sorted by producersâ information and filtered by customersâ choice. But not all sellers are listed by default, before presenting goods online we physically visit vendorâs premises, collect all necessary documents. We source the products from the selected vendors with proper invoices, so that there is no chance of any counterfeiting. If any mistakes done by vendor boodmo offer 10 day assured return policy to protect the customer.

What government needs do to check illicit trade? Your views.
Oleksandr Danylenko: Government has to explain citizens about importance of proper documentation accompanying any sale. That it serves not only as protection of buyer but also imperative for building strong country via tax collection. There should be stringent punishment for violators.

What is the scope for foreign business men to start a venture in India?
Oleksandr Danylenko: India is a burgeoning market with growing domestic demand. Also, the country has the demographic dividend advantage which will push the consumer demand continually. Plus, currently, India is one of the fastest growing economies in the world and therefore, at the cusp of global attention because of the huge potential it offers to each entrepreneur from any part of the globe, for growth.

Why and how digitisation in Automobile industry is the need of the hour?
Oleksandr Danylenko: Digitization is the core business proposition of auto spare parts marketplace and connectivity facilitates new business opportunities. As the e-commerce automotive ecosystem is opening to powerful non-traditional players, digitisation is truly a disruptive trend right from procurement, payments to the entire supply and delivery chain.

Digitization is a stepping stone to promote transparency and curb counterfeit in the business. It helps to deliver superior solutions in an efficient way within this ecosystem. Also the payment system is streamlined and tax compliance has become modulated and easy.

What are your future plans?
Oleksandr Danylenko: Our plan for coming months is to significantly decrease delivery time. The primary goal is to consolidate the existing business and simultaneously, explore the expansion options.