Mobile electronics and technology may be one of the fastest-growing segments within the automotive specialty-equipment industry. With products that interest a diverse consumer group, it is certainly an area that brings great business potential to many companies in the industry.
To view all of the companies exhibiting in the Mobile Electronics & Technology section of the 2007 SEMA Show click here. To view all of the sections and exhibitors of the 2007 SEMA Show, visit www.SEMAShow.com.
Dates and locations for several upcoming SEMA-sponsored shows and activities have been announced. Details are:
>> SEMA Webinar: The Future of Inventory Control-RFID, September 20, 10 a.m. (PST)
>> MRC Rep Conference, September 26–27, Phoenix
>> SEMA Show, October 30–November 2, Las Vegas
>> MPMC Media Trade Conference, January 22–24, 2008, Los Angeles
>> SEMA Spring Expo/SEMA Offroad, February 8–9, 2008, Indianapolis
>> SEMA National Education Conference, April 9–11, 2008 Nashville
>> SEMA Washington Rally, May 14–15, 2008, Washington, D.C.
>> PAACE Automechanika Mexico, July 9–11, 2008, Mexico City
For association-related travel, contact Manya Petropaki (manya.p@travelstoreusa.com) at Travel Store USA, 949/930-9268.
SEMA-member companies have posted several new listings for job opportunities at www.sema.org/classifieds. Working for a SEMA-member company has many advantages. In addition to working for a company that supports and contributes to the success of the overall industry, being employed by a SEMA-member company enable the employee to participate in webinars, access free market research, join SEMA committees and more. The newest classified listings posted under Positions Available include:
SEMA members: Have a job opening that you need filled? Members are invited to post classified ads on www.sema.org/classifieds free of charge. Categories available are: Positions Available, Positions Wanted, Rep Opportunities, WD Opportunities, For Sale, Items Wanted, Business Opportunities and Internships. Visit the site for details.
Camaro, Ford F-Series Powerstroke diesel and Mustang owners are most likely to buy performance transmissions, according to recent SEMA research. In SEMA's recent Automotive Lifestyles survey, 17% of enthusiasts surveyed purchased a performance transmission. Nearly 9% of those own a Camaro, while 6.5% own a Ford F-Series Powerstroke diesel. Five percent own a Mustang.
Performance transmissions are one area that SEMA members surveyed for the research indicated as a growth segment, along with fuel-injection applications and performance diesel products.
Purchasers of performance transmissions are overwhelmingly likely to own a GM vehicle.
For full details on the state of the racing and performance market, pick up a copy of the October issue of SEMA News. SEMA members can receive a complimentary copy of the 2006 SEMA Compact Performance Market Report as another benefit to being a SEMA member. Additional data, including performance-parts purchases, demographics and top vehicles purchased by this segment, can be found in this report, which may be downloaded by visiting www.sema.org/research.
More than half (55%) of automotive enthusiasts recently surveyed indicated that price was “very important” to them when considering the purchase of specialty-equipment parts and accessories. So how do consumers that purchase street rod accessories rank price? The following is a short excerpt from the 2006 Hot Rod Industry Report, which answers this very question:
Place-of-Purchase Profile
It is common for street-rod and custom product consumers to participate more directly in the project while the vehicle is under construction, which has a direct effect on where the products are purchased. Another factor in the place-of-purchase decision is the technical knowledge required to match engine and drivetrain components. It takes a high level of expertise and knowledge to properly match components for top performance. The parts for a given car may come from different parts of the country, may be a combination of original and newly produced equipment and may require a lot of legwork and Internet research to obtain.
Even though price is the factor considered most often when consumers are deciding where to purchase street-rod and custom products, availability and guarantee are a close second and third, respectively. The survey distributed to Hotrod & Restoration magazine subscribers included the question: “What are the biggest challenges businesses face in the hot rod and restoration market?” The question was open-ended, but several responses appeared often. These included:
Respondents were also asked whether they have seen increases or decreases in various segments of the market. For each of the four categories, more than 50% of respondents answered “yes” to experiencing increases.
SEMA members can receive a complimentary copy of the full-length 2006 Hot Rod Industry Report as another benefit to being a SEMA member. The report is filled with valuable facts and figures about the ever-growing hot-rod industry, and you may download the report by visiting www.sema.org/research.
According to SEMA’s Automotive Lifestyles survey of enthusiasts, more than three out of four BMW owners actively accessorize their cherished Bimmer. Of the 1.4% of respondents that said they owned a BMW, 77% had purchased specialty equipment. The top products purchased by these enthusiasts were not only the usual wheel and tire upgrades, but also performance products including air intakes, exhausts and brake kits (all three among the top five purchases).
Will a lesser priced sub-3 Series BMW car entice more enthusiasts to buy and customize it? BMW's new 1 Series will be priced under $30,000 and will offer two inline six-cylinder engines: the 128i model with 230 hp and the 135i with 300 hp.
“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:
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.
Sales from mid-July to mid-September are also on track to top Q1 and Q2 results; for the two-month period, sales are up 15% over the second quarter. Based on a sample of 400 sales listings, the average auction sale price was $159; the maximum price was $660.
How prevalent is Internet purchasing among specialty-equipment enthusiasts?
"The past two years, SEMA research has shown that the highest percentage of automotive enthusiasts indicate they purchased their performance parts and accessories over the Internet," says SEMA Research Analyst Ty Michael.
"Interestingly, roughly the same percentage of enthusiasts indicated that they purchased their parts at traditional brick-and-mortar shops. Thirty-nine percent of enthusiasts said they purchased on the Internet, compared to 31% who indicated they went to a physical location to make their purchases."
Terapeak's Motors P&A Research provides sellers with access to comprehensive research on the past year of online auction data and allows users to get in-depth research reports on the competition and themselves. More at www.terapeak.com/motors.