Market Snapshot

In February, the SEMA PADI improved 7 points, increasing from 36 in January to 43 this month. Youth market consumers, who are often referred to as Gen Y, helped to drive up the index by indicating plans to purchase racing and performance products more so than in January. And while purchase plans were down compared to this time last year, the jump from January to February does shed a little light on the “gloom and doom” often reported these days.

Every year automotive enthusiasts are surveyed by SEMA, dubbed the Automotive Lifestyles study, in order to learn about their accessorization trends and buying behaviors. When sufficient numbers of owners of particular vehicle models are surveyed, their specific personalization habits are profiled.

Automotive enthusiasts are most likely to purchase specialty equipment on an Internet retail store website, according to recent enthusiast survey results, but that is not to say that all accessories are purchased online. Alarm systems and window tinting were most often purchased at a custom shop, while the Internet and custom shops nearly tied with respect to stereo equipment (i.e., head units, amps or speakers) purchases.

SEMA recently visited two WD shows on opposite ends of the country in order to find out from jobbers how their businesses are holding up despite today’s down economy. While it was expected that many would claim sales are down, nearly one-third of the small sample of jobbers surveyed said business was flat while a surprising 28% said business was actually up.

Sway-A-Way’s SEMA Show display

Facebook, MySpace, Twitter, YouTube: What do these names all have in common?  They are all social networking sites that attract millions of users worldwide. In a fast-paced society that relies on such networking websites to relay information and keep up-to-date on anything from news to gossip, it is curious to wonder why more automotive companies have not used these websites to help promote and market their products. This is especially important for younger audiences. 

Some progressive SEMA members are engaging in these new forms of communication.

As the light-truck market grew beyond the scope of dedicated enthusiasts and proliferated into the mainstream, a number of SEMA member companies became more and more dependent on these sales to buffer their business. As the U.S. economic situation grew more difficult, these additional consumers stopped shopping for automotive performance parts and accessories. Their commitment to the lifestyle is more capricious than the hardcore hobbyist.

We are definitely in the age of mass customization. Today, consumers can get mainstream products designed specifically for them, such as:

Recent SEMA research highlighted owners who drive specific models of popular enthusiast vehicles, namely the Chevrolet Corvette. That spotlight resonated well with readers and has prompted similar features for future articles.

One trend BMW execs have noticed during this recession? Buyers are increasingly downsizing from larger models into smaller offerings, like the 1 Series shown here at the SEMA Show.