Consumer Survey to examine attitudes to fake car parts conducted in Saudi Arabia.

The survey of car owners aimed to get the facts on the attitudes towards fake parts and the size of the problem within the Kingdom.

"The idea behind the survey was to obtain a better understanding of what exactly consumers know about fake car parts and what are the motivators for purchasing them. The reason we chose Saudi Arabia is that, for many of our members, it is a huge market with one of the highest number of car owners in the region. Unfortunately, we all know that fake parts are readily available throughout the region, not just in Saudi. Our members are constantly working with various government agencies to stop these goods coming in to the country and being sold.

However, we also need to look at why, after all the campaigns and seizures, fake car parts are present in such high levels in the market. With these questions in mind the survey had several aims; to identify who is more likely to use fake parts, to examine attitudes towards fake parts' to understand why people continue to buy fake parts, and to look at consumer awareness of car maintenance options.

We hope that the survey will also help governments in their fight against the scourge of fakes in general." said ABPC spokesperson Alyson Coady "The results are fascinating. While many of our suspicions were borne out, there were a few surprises. The Coalition and its members will use these results to tailor our activities so that they are more effective and hopefully affect consumer attitudes." she concluded.

Methodology

AC Nielsen conducted the survey on behalf of the Coalition. Using face to face interviews in three cities Riyadh, Dammam and Jeddah the interviewers spoke to

Nationals, Ex-pat Arabs & Asian males who are owners of cars made in or before 2002 and are the decision maker with regards to the cars maintenance.

The survey highlighted the following key issues:
1. Who is more likely to use fake parts?
Awareness of fake car parts and their availability was high, 92% of those asked knew about fake parts and 64% claimed they had never knowingly used fake part. Of the 64% who had not knowingly used a fake part reasons given included; need changing more often 35%, damages car 30%, poor quality 16%

While respondents showed a high awareness of the disadvantages of using fake parts; 36% admitted to knowingly using a fake part.

63% of those who had used fake parts where ex pats in lower income groups. Although on a smaller income, the respondents more likely to buy fake parts were educated professionals such as teachers/civil servants/owners of small businesses etc.

Usage of fake parts was higher in Jeddah and Dammam (49%) than Riyadh (11%).

66% of those who had used a fake part will use one again.

2. Attitudes
Attitudes toward fake parts and the other options available (aftermarket and 2nd hand) in the market place was mixed.

While people know fakes are of poor quality, many still seem unaware of the damage fake parts can do. 86% of respondents feel fakes are poor quality and more worryingly 49% who used fake parts admitted they were poor quality. However awareness of the dangers - substandard performance; damaged car systems; reduce value of car - was generally low.

Second hand parts
Second hand parts where generally perceived to be good quality - a third of those surveyed stated that second hand parts where a good alternative to genuine parts.

Aftermarket parts
When asked about aftermarket parts only a third of those interviewed where aware that these parts offered a safe alternative to "Genuine Parts". Awareness was higher in Riyadh at 55% and highest amongst ex pats. Of those who were aware of these parts, reasons given included: as good as the genuine (28%), they are cheaper 15%.

• 90% of respondents stated that genuine parts where high quality
• 46% of respondents stated that aftermarket parts where good quality
• 29% percent stated that 2nd hand parts where high quality

The main motivators for using fake parts highlighted by the survey where:
1. Cost:
The overriding reason for using fake parts was cost, 75% of those asked stated cost as the main driver.

2. Availability:
Those who used fake parts 6% stated that ease of availability was an important factor and 13% stated that the part satisfied an immediate need.

3. Lack of awareness of other value for money options:
The survey highlighted what appears to be a lack of consumer education and knowledge with regards to the maintenance options currently. The possible factors contributing to this could be lack of communications about these parts and the current way the spare part market is operated.

3. Purchasing and maintenance patterns
Purchasing
1. There is a high instance of used cars - 59% of respondents had bought their car second hand.

2. Not surprisingly, the most common places to buy fake parts are spare parts shops, large garages (i.e. not agency) and the souk.

3. 75% of respondents purchase their parts from spare parts shops and then take them to be fitted at the service centre or garage. This is a worrying trend as the quality of the parts cannot again be guaranteed. Nationals showed more inclination to buy parts from the agent.

Maintenance
1. Where car owners choose to have their car maintained might also be a factor in the use of fake parts. As the graph shows the majority (68%) of respondents use either large reputable garages purporting use genuine parts or unauthorised garage/souk outlets. In the current climate the only place that can guarantee genuine parts is the Agent. Worryingly only 20% of owners continue to use the main dealer.

• Large garages purporting to use genuine parts are the most popular place (68%) for car servicing across all nationalities
• Usage of the agency's service centre is higher amongst the Nationals
• Petrol Stations are quite popular amongst the Asians

Conclusions:
The survey shows, not surprisingly, there is a huge counterfeit car part problem in the Kingdom and that it will take a change in consumer attitudes as well as the continued action of the authorities to reduce the demand for these dangerous goods.

The main findings are:
• The spare parts market is currently lacking maturity in terms of consumer awareness and protection. The consumer is not offered or educated about the SAFE car maintenance options that are available to them.

• Consumers have a poor view of the options available to them with regards to safe maintenance. Consumer's have a choice between what they perceive to be "low quality aftermarket" and "low quality second hand parts" if they do not want to choose the Original parts. The numbers of respondents who do not use the agency (only 23% used the agency for maintenance compared to 61% who used reputable garages) for maintenance should be a worry as in the current climate they represent the only place you are guaranteed genuine parts.

• The survey shows that price is the sole motivating factor for many car owners, even when they are aware of the effects of fake car parts. 49% of those who had used fake parts will do so again.

• Counterfeiters also appear to have effective supply chains and their products' are perceived to be easily available in the market place, particularly in Jeddah and Dammam.

In summary the main drivers to using fake parts:
1. Cost
2. Lack of awareness of alternatives
3. Location of maintenance