A Private Equity investor was considering an investment into a distributor of parts used in repair of major household appliances and retained 2nd St Strategy to assess the opportunity

Key investment considerations were: market size and growth opportunity assessment, repair tech customer selection criteria, and impact of the growth of Korean appliance OEMs on the repair market dynamics

Developed perspectives on the evolution of the household appliance market in the U.S. and the impact of the recent changes on the repair market

Interviewed repair techs, distributor competitors, and appliance OEM stakeholders to understand selection criteria, repair market evolution, and OEM expectations

Surveyed repair techs to gather quantitative perspectives on customer journey, and satisfaction with their distributors

The 2020 market for appliance part distribution in the U.S. is $1.1-1.5b, growing at a ~2.5% CAGR

A number of headwinds are tempering the growth of this market, most notably growth of Korean appliance OEMs in the U.S. which utilize a different approach to service than was traditionally used by domestic manufacturers

Repair techs work primarily with their local distributors as local part availability is critical to their ability to serve consumers