“I can’t lose with 22s,” hip-hop MC Ludacris declared in verse two years ago, and it looks like he was on the forefront of a trend. SEMA research shows that 22 inches is now the most popular wheel diameter among urban-lifestyle enthusiasts. Of nearly 1,800 responses from a recent SEMA survey on the urban-lifestyle market, 21% said they have purchased, or plan to purchase, 22-inch wheels.

Twenty-inch wheels still hold sway with 16% of enthusiasts surveyed, and 24-inch wheels round out the top three, with 12.5% preferring them.

Wheels were also the overwhelming favorite product category, with 77% of respondents having purchased them. Alarm systems, perhaps not surprisingly, followed (56.5%), then wash/wax/polishing products (54.6%), window tint/lamination (52.1%) and finally exhaust kits (pipe, tip and muffler), the first nod to performance upgrades among this segment at 45.2%

You can read more of the Urban-Lifestyle Market Update, produced by SEMA Market Research, in the July 2007 issue of SEMA News. Additionally, SEMA members can receive complimentary copies of various market reports as another benefit to being a SEMA member by visiting www.sema.org/research.

The Census Bureau of the Department of Commerce estimates the U.S. retail e-commerce sales for the second quarter of 2007, adjusted for seasonal variation and holiday and trading-day differences but not for price changes, was $33.6 billion, an increase of 6.4% from the first quarter of 2007. Total retail sales for the second quarter of 2007 were estimated at $1,012.6 billion, an increase of 1.3% from the first quarter of 2007. The second quarter 2007 e-commerce estimate increased 20.8% from the second quarter of 2006, while total retail sales increased 3.8% in the same period. E-commerce sales in the second quarter of 2007 accounted for 3.3% of total sales.

Results from SEMA’s 2007 Automotive Lifestyles survey of enthusiasts showed that Internet retail websites are the number-one outlet that these consumers choose to buy a majority of their specialty-equipment parts and accessories. Roughly 22% of respondents said that they buy over half of their specialty-equipment on Internet retail sites, 17% said that they purchase from manufacturer’s websites and 10% said that they purchase over half of their specialty-equipment through online auction websites. With this in mind, growth in retail e-commerce sales means more dollars are being spent on specialty-equipment parts and accessories.

As the average age of cars on U.S. highways increases, the restoration segment of the specialty-equipment industry is starting to include cars that don't necessarily fit the typical molds of "antique" or "classic." According to SEMA Research, sales at the manufacturer level in the restoration market have nearly doubled in the past 12 years, from $253 million to $475 million.

Despite the sales gain, actual market share within the industry has dropped slightly over 1% (from 4.63% in 1994 to 3.67% in 2006). Keep in mind that these figures represent only parts sales, not the labor involved in these often extensive restoration projects. SEMA research also estimates that there are approximately 300,000 restoration projects in various stages of completion across the United States at any given time, grouped primarily into four groups:

• antiques manufactured prior to 1920
• domestic vehicles manufactured from 1920 to World War II
• post-WWII domestic vehicles
• foreign vehicles

The number of amateur and professional restorations is likely to increase in the future as older cars continue to stay on the road longer than ever. According to R.L. Polk & Co., the number of vehicles 15 years old and older almost doubled from 1990–2002, growing from 20.6 million to 39.7 million. Additionally, the average age of cars on U.S. roads has increased to 9.2 years old, up from 8.3 years in 2000.

The restoration segment encompasses a wider variety of vehicles than any other niche of the specialty-equipment market. Consequently, there are a larger number of make/model parts required to meet the demands of this market. 

To read more about the restoration market niche, written by SEMA’s Market Research department, read the August 2007 issue of SEMA News by clicking here.

SEMA members can receive complimentary copies of SEMA Market Research reports as another benefit to being a SEMA member by visiting www.sema.org/research.

Good news for those in the exhaust segment: Consumer demand for catalytic converters is at a year high. Judging by online auction sales of the vital exhaust component, demand jumped 14% in the second quarter, according to data from Terapeak, a developer of market-focused research software that monitors online sales and auctions.

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FILLER

Tune into this informative customer-service focused webinar beginning today at 10 a.m. (PST):

"Correlating Parts Service to Customer Wants and Needs"
Thursday, September 13, 2007, 10 a.m. (PST)

Good customer care is critical to having a profitable business. Tune in today to "Correlating Parts Service to Customer Wants and Needs," presented by Gary Naples of Freelance Associates, to learn how to develop a winning tactic that will help transform one-time buyers into repeat customers and repeat customers into loyal advocates of your business.

FILLER FOR ISF 

SEMA Design Award Ballots Mailed

The ballots for the SEMA Design Awards have been emailed to eligible SEMA members. The awards honor the vehicles that a select group of voting members has chosen as the most accessory-friendly vehicles of the year.

Each individual who casts a Design Awards ballot has participated in one of the cooperative SEMA/OEM programs. Each of these programs brings the OEMs and SEMA members together, allowing the specialty-equipment manufacturers to increase their speed to market with products for the latest factory offerings while ensuring that the new vehicles have a wider range of accessories available from the moment they reach the dealership floors.

To be eligible for one of the four awards presented this year—Accessory-Friendly Hybrid, Accessory-Friendly Truck, Accessory-Friendly SUV and Accessory-Friendly Car—the vehicle had to be either all new or significantly redesigned.

The voting will be conducted over several weeks in September to allow for processing prior to the SEMA Show. For 2007, the winning vehicles were the Chevrolet Silverado Hybrid as Accessory-Friendly Hybrid, Ford Shelby GT500 as Accessory-Friendly Car, Jeep Wrangler as Accessory-Friendly SUV and Toyota Tundra as Accessory-Friendly Truck.

To read about the 2007 Accessory-Friendly Vehicles click here.

To find out more information about the many OEM programs and benefits offered by SEMA click here.

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