Section XI-Distribution Channels INTEGRATED DISTRIBUTION PRODUCT GROWTH AND SHARE OF AFTERMARKET EXPANSION Integrated distribution has a unique characteristic: products do not change ownership (or franchise affiliation) from the time they are purchased from Manufacturers to the point of ultimate consumption or sale to an Installer (Service outlet or Do-It-Yourselfer). Integrated distribution averaged 3.1% annual light vehicle product growth between 2006 and 2016, while generating $10.7 billion in light vehicle aftermarket product expansion at user-price. There are some minor variations of this distribution pattern involving Gray Market Sources/Distributors as well as Internet/Mail Order operations. Integrated distribution generated 55.7% of car and light truck aftermarket product growth between 2006 and 2016, recording the greatest Domestic nameplate product growth share over this ten-year span and ranking second in total share of Foreign nameplate product expansion. SURGING PRODUCT SHARE Integrated distribution represented 38.2% of 2016 car and light truck aftermarket product volume, up from 33.8% share of 2006 sales. Integrated distribution achieved the most dynamic annual product growth of all aftermarket distribution channels from 2006 through 2016, reflecting its $1.2 billion 2016 increase, at user-price. Integrated distribution soared from $30.1 billion in 2006 aftermarket products to $40.8 billion during 2016 at user-price. INTEGRATED DISTRIBUTION 2006-2016 Product Volume Product Share 2006................................................................. $30.1.................................................33.8% 2012................................................................. $35.4.................................................37.0% 2013................................................................. $36.6.................................................37.2% 2014................................................................. $38.0.................................................37.4% 2015................................................................. $39.6.................................................37.7% 2016................................................................. $40.8.................................................38.2% Volume in $ Billions at User-Price © 2017 by Lang Marketing Resources, Inc. 151 www.langmarketing.comhttp://www.langmarketing.com