Why non-genuine parts are winning (and how OEMs should respond)
When a plant manager's critical equipment goes down at 2 a.m., they don't start by calling the original equipment manufacturer (OEM). They open Google, type in the part number and buy from whoever can confirm they have it in stock and can ship it today.
More often than not, that's a non-genuine parts supplier with clean catalog data, real-time inventory and one-click checkout.
The genuine OEM part exists somewhere in an authorized dealer network, but finding it requires navigating OEM’s website to find an authorized dealer, making phone calls and waiting for quotes. By the time the dealer responds, the non-genuine part is already in transit. This scenario plays out thousands of times daily across industrial manufacturing, and it represents a quiet erosion of one of the most profitable lines of businesses of an OEM.
This blog examines why substitution happens, what triggers it and how OEMs can address each friction point without bypassing their distribution partners.
The aftermarket margin opportunity at risk
Aftermarket parts represent a different economic model than new equipment sales. Where equipment margins are compressed by competition and commoditization, aftermarket parts can deliver up to four times higher margins.
This margin differential explains why many OEMs have adopted a "Gillette-style" strategy. Like Gillette, selling razors at low or near-cost prices to drive adoption, they price equipment aggressively upfront, then generate most of their profits from recurring, higher-margin sales — just as Gillette does with replacement blades.
The urgency factor amplifies every friction point in the genuine parts buying journey. When unplanned downtime costs industrial manufacturers $50 billion annually, , B2B buyers cannot afford to wait.
They will choose whoever can get them the part fastest, regardless of brand loyalty or long-term supplier relationships.
OEMs need to act fast as non-genuine providers are building buyer habits right now.
The three triggers of substitution for non-genuine parts
Substitution doesn't happen randomly. Buyers choose non-genuine alternatives at specific, identifiable moments when the genuine parts buying experience creates friction.
Understanding these trigger points is essential to designing effective responses.
Trigger 1: Discovery friction
The first substitution moment happens when buyers can't easily find or identify the right genuine part.
This friction manifests in several ways:
Poor search functionality on OEM and dealer sites that requires buyers to know exact part numbers rather than describing their need
Difficult fitment and compatibility guidance that assumes technical expertise buyers may not have
Inconsistent product catalog across the dealer network that force buyers to start the search process over with each potential supplier
The opportunity is lost when the buyer decides to search on the competitor's site instead of continuing through the fragmented OEM dealer network.
Trigger 2: Availability uncertainty
The second substitution trigger occurs when buyers can't get clear, immediate answers about stock and delivery.
This uncertainty can take different forms:
No real-time inventory visibility across the dealer network, forcing buyers to contact each dealer individually
Unclear or inconsistent lead times that make it impossible to plan around equipment downtime
Buyers will always choose the provider who can confirm stock and delivery immediately to keep the equipment running, and they will buy from whoever can make that happen fastest.
Trigger 3: Transaction complexity
The third substitution trigger occurs when buying genuine parts requires too many steps and too much friction.
This can happen in different ways:
Redirections from OEM sites to “where-to-buy” dealer locators
Fragmented purchasing experiences across dealers
Multiple touchpoints to complete one transaction and manual quote processes via phone or email
Inconsistent pricing visibility that makes it difficult to evaluate options
The substitution moment arrives when the purchase process feels harder than it should be, especially when compared to consumer-grade digital experiences.
The cumulative effect
Each friction point increases substitution probability independently, but the real damage occurs when multiple triggers are present simultaneously.
When a buyer can't easily find the right part, can't confirm availability and faces a complex transaction process, non-genuine alternatives become the path of least resistance.
At that point, the OEM is competing not on product quality or brand reputation, but on procurement convenience. That is a competition genuine parts providers are currently losing.
The channel conflict paradox
The channel conflict perspective — that OEM online commerce threatens distributor relationships by competing directly for end customer sales — has prevented them from investing in digital infrastructure out of fear that dealers will view it as a hostile move. But this framing misses the actual competitive dynamic.
The reality is that fragmented digital experiences drive buyers to non-genuine alternatives, and distributors lose more margin as a result than they would ever lose to an OEM-orchestrated digital platform.
When OEMs don't provide digital infrastructure, dealers face an impossible choice. They must either build expensive eCommerce capabilities independently, which most lack the resources to do at competitive quality levels, or accept losing digital-savvy customers to better online experiences and watch as non-genuine alternatives systematically capture their market share.
This creates a structural disadvantage for the entire authorized network, not just for the OEM. When a buyer develops a habit of purchasing from non-genuine suppliers, that buyer is lost to the entire ecosystem.
Reframing the channel conflict paradox requires shifting the question from "How do we avoid competing with dealers?" to "How do we keep buyers within the authorized genuine parts ecosystem?"
The goal is not to avoid going direct, but to ensure that when buyers are ready to purchase, they transact with someone in the authorized network rather than with a non-genuine alternative.
Whether that transaction happens through the OEM platform or directly with a dealer matters far less than preventing the buyer from leaving the ecosystem entirely.
What OEMs should do to protect aftermarket margins
Protecting aftermarket revenue means systematically addressing each of the three substitution triggers. This is not about improving existing processes but changing how buyers discover, evaluate and purchase genuine parts.
Own the digital discovery experience
The first requirement is to create authoritative product information that is accessible online without requiring buyers to contact dealers.
This means implementing robust search and fitment tools that match the capabilities of non-genuine providers, optimizing for search engines so OEM parts appear when buyers research their needs, and providing clear data that reduce uncertainty and build buyer confidence.
It also requires adapting for generative AI discovery, as large language models (LLMs) are increasingly mediating how buyers find technical information. Content that clearly explains what parts fit which equipment, why genuine parts matter and how to identify the right component will be surfaced by AI systems responding to buyer queries.
The goal is to make genuine parts easier to find than non-genuine alternatives.
Provide real-time inventory visibility
The second requirement is to aggregate inventory across the dealer network and make it visible to buyers in real time.
This eliminates the "contact for availability" friction that costs buyers time and forces them to make decisions with incomplete information.
By displaying product availability, lead times and delivery costs on their online product catalog, OEMs offer real-time visibility to their buyers, and the ability to make informed decisions about whether to wait for a genuine part or substitute with a non-genuine alternative.
This transparency benefits dealers as much as it benefits OEMs. When buyers can see that a dealer has a part in stock and can ship it today, that dealer wins the sale. When buyers have to call multiple dealers to find stock, they often give up and buy elsewhere.
Enable frictionless transactions
The third requirement is to create a unified digital storefront that allows buyers to transact in one flow while routing orders to dealers for fulfillment.
This means buyers can complete a purchase without being redirected to dealer sites, encountering inconsistent checkout experiences or managing multiple supplier relationships.
The experience should match B2C-grade expectations, with saved payment methods, transparent pricing, clear delivery estimates and order tracking.
While the OEM provides the technology infrastructure and customer experience layer, dealers remain central to the transaction.
Orchestrate your aftermarket business, don't compete
What if instead of ordering from a non-genuine alternative, the plant manager could view the price, availability and delivery estimates from different dealers on the OEM's platform? They could compare, choose and directly order the product online.
In this scenario, the platform approach positions the OEM as the enabler of dealer success rather than as a competitor.
By providing the technology infrastructure that dealers cannot build alone, they create a consistent brand experience, share customer data and insights with dealers and make the entire authorized network more competitive against non-genuine alternatives.
Mirakl Aftersales Platform has helped Toyota Material Handling achieve 220% year-over-year growth in online parts sales, attract 70% new customers to the platform and maintain a 98% fulfillment rate by enabling dealer fulfillment through a unified digital platform.
Protecting margin requires eliminating friction
Buyers don't choose non-genuine parts because they prefer them. They choose non-genuine parts because genuine parts are harder to discover, harder to confirm availability for and harder to purchase.
The opportunity is to recapture high-margin aftermarket revenue by investing in before substitution becomes ingrained buyer behavior, or accept continued market share loss to non-genuine providers who have already made that investment.
Download your roadmap to grow margins and learn actionable strategies from industry leaders who are successfully navigating the evolving aftermarket landscape and protecting their high-margin parts business.
