SEMA News—June 2019

INTERNATIONAL

By Linda Spencer

Connecting With Middle-East Buyers

SEMA Business Development Program Forges Valuable Relationships

First-time exhibitor Specialty Vehicle Engineering Inc./DBA Hamburger’s Superchargers Inc. attracted lots of attention among local buyers. Vice President of Marketing David Hamburger (second right) noted that he and Sales Manager P.K. Krwawecz (third right) enjoyed their first SEMA overseas business trip, especially explaining the features and benefits of Hamburger’s superchargers to potential UAE clients. The company will be also participate in the association’s upcoming trip to Australia.

One hundred and fifty-seven SEMA-member companies have traveled to the United Arab Emirates (UAE) with the association to take part in the SEMA Middle East Business Development Program and Custom Show Emirates trade show since the inaugural trip there in 2012. While certain trends, vehicle mixes and other factors have changed in the intervening eight years since the first trip, some fundamentals are consistent, including the following.

The Importance of Building Relationships Before Business in the Gulf

“Business in the Middle East is based on relationships,” said Mark Whitney, owner of Performance Analysis. “Coming over to the show and meeting the customers is the best way to build those relationships and grow your business in the market.” Added Ace Chatoo, regional sales manager and Middle East sales manager for MW Company: “The face-to-face meetings are invaluable in establishing customer relationships and securing a piece of the performance market in the UAE.”

Participating in SEMA Overseas Trips Is Designed for Those Visiting the Market for the First Time as Well as Those With Existing Customers in the Region

“For those with existing distribution in the market, traveling to the region allows for a review of relationships and time to strengthen partnerships,” said Bob Scheid, director of business development for McLeod Racing LLC. “The importance of being face-to-face with our customers in the Middle East each and every year was evident again this year. Only by being there can we see the market trends and how those trends can lead to increased sales of our products. SEMA has given us a great format to get a diverse view of the market in a very affordable and time-effective way.”

Josh Abbott, global sales manager for Borla Performance Industries, agreed. His company has participated on each of the SEMA overseas trips, including the eight to the Middle East. “We once again had the chance to meet a great selection of buyers from the region, conducted critical and very useful conversations with existing partners and had the opportunity to learn about the market itself,” he said. “The UAE continues to be one of the most rewarding territories in the Gulf Cooperation Council (GCC) for Borla Performance.”

Jeff Hermann is product manager for powered vehicles at FOX. His company also has distribution in the UAE. “The SEMA Middle East trip was an excellent opportunity to validate and strengthen our current business relationships in the region,” he said. “We were also able to speak directly to consumers at the show and get valuable firsthand feedback on trends and market requests specific to the region.”

Dan Muldowney, CEO of Motorsports Fuel and Equipment/RACE GAS, enjoyed visiting the market for the first time and saw potential for his company and other SEMA members. “We were very impressed with how enthusiastic and eclectic the car culture is in the Middle East,” Muldowney said. “We saw everything from supercars to sand buggies. If it has an engine, you will find a shop in that market that will want to make it go faster!”

In fact, 100% of the participants—both returning and new to the market—reported in a post-event survey that they developed leads and plan to actively seek to turn those leads into sales over the next 12 months.

The Growing GCC Racing Scene Provides Sales Opportunities fo U.S. Companies

The Gulf region receives worldwide attention for hosting F1 races on state-of-the-art circuits in Bahrain and the UAE, and rumors that Dakar racing might be coming to the region is also good news. But some of the best opportunities are with the more grassroots events that involve passionate car enthusiasts with various levels of expertise and vehicle customization, including drag racing; drifting; karting and many other types of on- and off-track racing; sand dragging; dune climbing; and desert rallies, such as the Abu Dhabi Desert Challenge. That translates into a great and growing opportunity for U.S. companies.

“The majority of engine, brake, suspension and other products to make vehicles in the Gulf region race-ready are coming from the United States,” according to Saeed Al Marzouqi, the CEO of Custom Show Emirates.

The Automotive Specialty-Equipment Market Continues to Evolve

Ron Scudder (center), international sales manager for BDS Suspension, met with local business representatives during the consumer and trade event. Each SEMA member was provided with a 3x3-m. turnkey booth at the three-day Custom Show Emirates.

One of the latest niches to explode is the UTV market, and it’s creating opportunities for U.S. manufacturers of aftermarket parts for those popular vehicles. Trucks (particularly the Nissan Patrol and Toyota Land Cruiser) have long been among the most popular off-road vehicles and are easy to spot on any trip into the desert, though sand cars, UTVs and ATVs are the fastest-growing segment.

“The UTV market in the gulf region is growing at a good pace,” said first-time exhibitor Saniya Bindrani, inside sales for Demon Powersports. “SEMA made it easier to connect with buyers and help us get an insight into the market. It is very exciting to be a part of an up-and-coming market and to be able to shape it like the first SEMA Shows did to the U.S. market.”

Custom Show Emirates Is the Largest Show in the Gulf and a Great Venue for U.S. Companies to Raise Brand Awareness, Strengthen Relationships With Exhibiting Customers and Meet Potential New Distributors

The SEMA delegation exhibited in turnkey booths at the Abu Dhabi-based show. More than 32,000 attended this year’s event, which featured local distributors in addition to the displays by the manufacturers, such as those in the SEMA section. This year, the show added new sections for RVs, UTVs/ATVs, sand buggies and power motorsports. The event also featured a wide array of competitions, including an “engine battle” between a U.S. and UAE company in which the company producing the most horsepower was named the winner. There was also a biker build-off and a custom car competition as well as drifting demonstrations in front of packed bleachers.

“By participating in the SEMA UAE Business Development Program and Custom Show Emirates, we were able to connect with key buyers in the region as well as learn about market-specific needs, challenges and expectations,” said Vitaliy Maksimov, founder and CEO of OBD Solutions.

n “The SEMA trip to the Middle East was a great experience,” said Josh Abbott (right), global sales manager for Borla Performance Industries Inc. “Thanks to the always amazing and very professional SEMA crew, we once again had the chance to meet a great selection of buyers from the region, conducted critical and very useful conversations with existing partners, and had the opportunity to learn about the market itself. For Borla Performance, the UAE continues to be one of the most rewarding territories in the Gulf region. The market consists of mostly young and middle-aged enthusiasts with a higher disposable income and immense love and passion for cars and modifications, which translates into strong business potential. We will sure go back next year to capitalize on future opportunities.

“The SEMA trip to the Middle East was a great experience,” said Josh Abbott (right), global sales manager for Borla Performance Industries Inc. “Thanks to the always amazing and very professional SEMA crew, we once again had the chance to meet a great selection of buyers from the region, conducted critical and very useful conversations with existing partners, and had the opportunity to learn about the market itself. For Borla Performance, the UAE continues to be one of the most rewarding territories in the Gulf region. The market consists of mostly young and middle-aged enthusiasts with a higher disposable income and immense love and passion for cars and modifications, which translates into strong business potential. We will sure go back next year to capitalize on future opportunities.”		“We had a good mix of trade buyers from several GCC countries present again this year who were ready to conduct business,” said David Reyna (right), international sales for DeatschWerks Fuel Systems.
“The SEMA Middle East trip was an excellent opportunity to validate and strengthen our current business relationships in the region,” said Jeff Hermann (left), product manager for powered vehicles at Fox Factory. “We were also able to speak directly to consumers at the show and get valuable firsthand feedback on trends and market requests specific to the region.”		“The UTV market in the gulf region is growing at a good pace,” commented Saniya Bindrani (not pictured), inside sales at Demon Powersports/Rugged ATV UTV Products/PD International. “SEMA made it easier to connect with buyers and helped us get an insight into the market. It is very exciting to be a part of an up-and-coming market and to be able to shape it like the first SEMA Shows did to the U.S. market. I think the biggest struggle today is finding the right customers to help us in that adventure.” Pictured above is Sarankan Sri (right), Demon Powersports R&D/sales representative.
Jay Crouch (left) attended the UAE show as director of global business development for Injen Technology. The California-based company has been actively developing their brand and distribution network in the Middle East. That effort includes regular trips to the region.		“The SEMA Middle East Business Development Program provides insights into a developing automotive market and customer base in the region,” said Bill O’Roake (left), international sales manager at Mickey Thompson Performance Tires & Wheels. “The SEMA group does a great job of organizing the entire experience, including potential new customer contacts. It is also a great show from an enthusiast’s perspective. If you want to sell more products in the Middle East, learn how to market in the region and meet the right types of distributors and dealers who will succeed in marketing your brand, I would recommend attending.”
CEO Rick Fung (second from right) and Vice President of Sales Bryan Ingram (right) attended the UAE event for MotoshieldPro. “We are grateful for our experience and time with SEMA in Abu Dhabi. As a result of being an exhibitor, we are now connected directly with distributors for our products. Overall the event has generated meaningful, impactful and strategic connections into the GCC. We look forward to exhibiting again next year,” commented Ingram, a first-time exhibitor.		“The yearly Middle East is a great opportunity for the entire MW Company portfolio of brands as well as other manufacturers within the automotive aftermarket to reach one of the fastest-growing international business populations,” said Ace Chatoo (right), regional sales manager at MW Company. “The face-to-face meetings are invaluable in establishing customer relationships and securing a piece of the performance market in the UAE.”
“By participating in the SEMA UAE Business Development Conference and Custom Show Emirates, we were able to connect with key buyers in the region as well as learn about market-specific needs, challenges and expectations,” said Vitaliy Maksimov (third left), CEO of OBD Solutions. “The program helped us uncover opportunities we would not have on our own.”		“I have found that the customers know what they want and are very intelligent about the products that are available,” said Mark Whitney (left), owner of Performance Analysis. “The customers that come up to your booth already know your product and are so happy to see you in their market.”
In addition to exhibiting in a turnkey booth, each participant visited specialty-equipment shops in Dubai and Abu Dhabi and were briefed by a panel of top buyers. Representatives of SEMA-member companies such as Joe Krivickas (left), site manager for Precision Turbo and Engine, also attended a market overview with U.S. government representatives in the region.		“We were very impressed with how enthusiastic and eclectic the car culture is in the Middle East,” said Daniel Muldowney (center right), CEO of Motorsports Fuel and Equipment Inc. “We saw everything from supercars to sand buggies. If it has an engine, you will find a shop in that market that will want to make it go faster!”
Chris Cosentino (center), chairman of Sherwood Innovations, and Alice Nassar (right), the company’s marketing coordinator. The company, which traveled with SEMA to the Middle East for the first time, will also be participating in the upcoming trip to Australia.		“The importance of being face to face with our customers in the Middle East each and every year was evident again this year,” said Robert Scheid (left), director of business development for McLeod Racing LLC. “Only by being there can we see the market trends and how those trends can lead to increased sales of our products. SEMA has given us a great format to get a diverse view of the market in a very affordable and time-effective way.”
“We were most gratified to see so much brand recognition for VP from the multiple countries in the region,” said Peter Coleman (right), business development manager for VP Racing Fuels. “We had the opportunity to discuss both our current distribution and potential to expand further, and SEMA’s actions in extending our influence in this lucrative market were very much appreciated.”		“The Middle East SEMA experience has provided us with increased opportunities for product development and sales of brake systems for SUVs, off-road and armored vehicles that we would not have been aware of without our participation in the event,” said Robert Roese (right), business development for Wilwood Engineering. “I cannot say enough about the positive experience of meeting so many new customers.”
The SEMA Middle East program provided participants with the opportunity to not only network with overseas buyers but also with each other. Pictured here, the group gathered for the opening session.		The 2019 SEMA Middle East event kicked off with a panel of top buyers. Among the topics discussed was the growing racing scene in the UAE and the Gulf region and how it is translating into increased sales for U.S. companies. The buyers of racing and off-road products talked about the challenges and opportunities of doing business in the region, the positive partnerships they have formed with U.S. companies, and their current needs for additional suppliers.
Liz Couch from the U.S. Department of Commerce’s headquarters in Washington, D.C., briefed the SEMA delegation on doing business in the region. She was joined by U.S. government representatives based in the UAE, Kuwait and Saudi Arabia.		Eight shops in Abu Dhabi and Dubai were included on a tour of specialty-equipment businesses this year. During one visit, Mark Link (right), president and COO of Race Gas, chatted with the general manager of a high-end racing/performance installer in Dubai.
Delegation members participated in one of two tours of shops. The first group selected the installers, retailers and distributors of products for car performance and racing (primarily drag racing and drifting), and the other visited shops specializing more in styling and engine performance for trucks and off-road racing. “It always brings a big smile to my face to see Wilwood products on American musclecars all over the world. Especially when they are on ones that have been restored to such a spec as this 6.2L supercharged SS,” commented Charles Dixie (left), who works in sales and engineer for Wilwood Engineering.		The delegation visited some of the leading UAE shops for specialty-equipment products, including a shop that offered installations, retail and online sales under one roof.

SEMA News—June 2019

INTERNATIONAL

By Linda Spencer

Connecting With Middle-East Buyers

SEMA Business Development Program Forges Valuable Relationships

First-time exhibitor Specialty Vehicle Engineering Inc./DBA Hamburger’s Superchargers Inc. attracted lots of attention among local buyers. Vice President of Marketing David Hamburger (second right) noted that he and Sales Manager P.K. Krwawecz (third right) enjoyed their first SEMA overseas business trip, especially explaining the features and benefits of Hamburger’s superchargers to potential UAE clients. The company will be also participate in the association’s upcoming trip to Australia.

One hundred and fifty-seven SEMA-member companies have traveled to the United Arab Emirates (UAE) with the association to take part in the SEMA Middle East Business Development Program and Custom Show Emirates trade show since the inaugural trip there in 2012. While certain trends, vehicle mixes and other factors have changed in the intervening eight years since the first trip, some fundamentals are consistent, including the following.

The Importance of Building Relationships Before Business in the Gulf

“Business in the Middle East is based on relationships,” said Mark Whitney, owner of Performance Analysis. “Coming over to the show and meeting the customers is the best way to build those relationships and grow your business in the market.” Added Ace Chatoo, regional sales manager and Middle East sales manager for MW Company: “The face-to-face meetings are invaluable in establishing customer relationships and securing a piece of the performance market in the UAE.”

Participating in SEMA Overseas Trips Is Designed for Those Visiting the Market for the First Time as Well as Those With Existing Customers in the Region

“For those with existing distribution in the market, traveling to the region allows for a review of relationships and time to strengthen partnerships,” said Bob Scheid, director of business development for McLeod Racing LLC. “The importance of being face-to-face with our customers in the Middle East each and every year was evident again this year. Only by being there can we see the market trends and how those trends can lead to increased sales of our products. SEMA has given us a great format to get a diverse view of the market in a very affordable and time-effective way.”

Josh Abbott, global sales manager for Borla Performance Industries, agreed. His company has participated on each of the SEMA overseas trips, including the eight to the Middle East. “We once again had the chance to meet a great selection of buyers from the region, conducted critical and very useful conversations with existing partners and had the opportunity to learn about the market itself,” he said. “The UAE continues to be one of the most rewarding territories in the Gulf Cooperation Council (GCC) for Borla Performance.”

Jeff Hermann is product manager for powered vehicles at FOX. His company also has distribution in the UAE. “The SEMA Middle East trip was an excellent opportunity to validate and strengthen our current business relationships in the region,” he said. “We were also able to speak directly to consumers at the show and get valuable firsthand feedback on trends and market requests specific to the region.”

Dan Muldowney, CEO of Motorsports Fuel and Equipment/RACE GAS, enjoyed visiting the market for the first time and saw potential for his company and other SEMA members. “We were very impressed with how enthusiastic and eclectic the car culture is in the Middle East,” Muldowney said. “We saw everything from supercars to sand buggies. If it has an engine, you will find a shop in that market that will want to make it go faster!”

In fact, 100% of the participants—both returning and new to the market—reported in a post-event survey that they developed leads and plan to actively seek to turn those leads into sales over the next 12 months.

The Growing GCC Racing Scene Provides Sales Opportunities fo U.S. Companies

The Gulf region receives worldwide attention for hosting F1 races on state-of-the-art circuits in Bahrain and the UAE, and rumors that Dakar racing might be coming to the region is also good news. But some of the best opportunities are with the more grassroots events that involve passionate car enthusiasts with various levels of expertise and vehicle customization, including drag racing; drifting; karting and many other types of on- and off-track racing; sand dragging; dune climbing; and desert rallies, such as the Abu Dhabi Desert Challenge. That translates into a great and growing opportunity for U.S. companies.

“The majority of engine, brake, suspension and other products to make vehicles in the Gulf region race-ready are coming from the United States,” according to Saeed Al Marzouqi, the CEO of Custom Show Emirates.

The Automotive Specialty-Equipment Market Continues to Evolve

Ron Scudder (center), international sales manager for BDS Suspension, met with local business representatives during the consumer and trade event. Each SEMA member was provided with a 3x3-m. turnkey booth at the three-day Custom Show Emirates.

One of the latest niches to explode is the UTV market, and it’s creating opportunities for U.S. manufacturers of aftermarket parts for those popular vehicles. Trucks (particularly the Nissan Patrol and Toyota Land Cruiser) have long been among the most popular off-road vehicles and are easy to spot on any trip into the desert, though sand cars, UTVs and ATVs are the fastest-growing segment.

“The UTV market in the gulf region is growing at a good pace,” said first-time exhibitor Saniya Bindrani, inside sales for Demon Powersports. “SEMA made it easier to connect with buyers and help us get an insight into the market. It is very exciting to be a part of an up-and-coming market and to be able to shape it like the first SEMA Shows did to the U.S. market.”

Custom Show Emirates Is the Largest Show in the Gulf and a Great Venue for U.S. Companies to Raise Brand Awareness, Strengthen Relationships With Exhibiting Customers and Meet Potential New Distributors

The SEMA delegation exhibited in turnkey booths at the Abu Dhabi-based show. More than 32,000 attended this year’s event, which featured local distributors in addition to the displays by the manufacturers, such as those in the SEMA section. This year, the show added new sections for RVs, UTVs/ATVs, sand buggies and power motorsports. The event also featured a wide array of competitions, including an “engine battle” between a U.S. and UAE company in which the company producing the most horsepower was named the winner. There was also a biker build-off and a custom car competition as well as drifting demonstrations in front of packed bleachers.

“By participating in the SEMA UAE Business Development Program and Custom Show Emirates, we were able to connect with key buyers in the region as well as learn about market-specific needs, challenges and expectations,” said Vitaliy Maksimov, founder and CEO of OBD Solutions.

n “The SEMA trip to the Middle East was a great experience,” said Josh Abbott (right), global sales manager for Borla Performance Industries Inc. “Thanks to the always amazing and very professional SEMA crew, we once again had the chance to meet a great selection of buyers from the region, conducted critical and very useful conversations with existing partners, and had the opportunity to learn about the market itself. For Borla Performance, the UAE continues to be one of the most rewarding territories in the Gulf region. The market consists of mostly young and middle-aged enthusiasts with a higher disposable income and immense love and passion for cars and modifications, which translates into strong business potential. We will sure go back next year to capitalize on future opportunities.

“The SEMA trip to the Middle East was a great experience,” said Josh Abbott (right), global sales manager for Borla Performance Industries Inc. “Thanks to the always amazing and very professional SEMA crew, we once again had the chance to meet a great selection of buyers from the region, conducted critical and very useful conversations with existing partners, and had the opportunity to learn about the market itself. For Borla Performance, the UAE continues to be one of the most rewarding territories in the Gulf region. The market consists of mostly young and middle-aged enthusiasts with a higher disposable income and immense love and passion for cars and modifications, which translates into strong business potential. We will sure go back next year to capitalize on future opportunities.”		“We had a good mix of trade buyers from several GCC countries present again this year who were ready to conduct business,” said David Reyna (right), international sales for DeatschWerks Fuel Systems.
“The SEMA Middle East trip was an excellent opportunity to validate and strengthen our current business relationships in the region,” said Jeff Hermann (left), product manager for powered vehicles at Fox Factory. “We were also able to speak directly to consumers at the show and get valuable firsthand feedback on trends and market requests specific to the region.”		“The UTV market in the gulf region is growing at a good pace,” commented Saniya Bindrani (not pictured), inside sales at Demon Powersports/Rugged ATV UTV Products/PD International. “SEMA made it easier to connect with buyers and helped us get an insight into the market. It is very exciting to be a part of an up-and-coming market and to be able to shape it like the first SEMA Shows did to the U.S. market. I think the biggest struggle today is finding the right customers to help us in that adventure.” Pictured above is Sarankan Sri (right), Demon Powersports R&D/sales representative.
Jay Crouch (left) attended the UAE show as director of global business development for Injen Technology. The California-based company has been actively developing their brand and distribution network in the Middle East. That effort includes regular trips to the region.		“The SEMA Middle East Business Development Program provides insights into a developing automotive market and customer base in the region,” said Bill O’Roake (left), international sales manager at Mickey Thompson Performance Tires & Wheels. “The SEMA group does a great job of organizing the entire experience, including potential new customer contacts. It is also a great show from an enthusiast’s perspective. If you want to sell more products in the Middle East, learn how to market in the region and meet the right types of distributors and dealers who will succeed in marketing your brand, I would recommend attending.”
CEO Rick Fung (second from right) and Vice President of Sales Bryan Ingram (right) attended the UAE event for MotoshieldPro. “We are grateful for our experience and time with SEMA in Abu Dhabi. As a result of being an exhibitor, we are now connected directly with distributors for our products. Overall the event has generated meaningful, impactful and strategic connections into the GCC. We look forward to exhibiting again next year,” commented Ingram, a first-time exhibitor.		“The yearly Middle East is a great opportunity for the entire MW Company portfolio of brands as well as other manufacturers within the automotive aftermarket to reach one of the fastest-growing international business populations,” said Ace Chatoo (right), regional sales manager at MW Company. “The face-to-face meetings are invaluable in establishing customer relationships and securing a piece of the performance market in the UAE.”
“By participating in the SEMA UAE Business Development Conference and Custom Show Emirates, we were able to connect with key buyers in the region as well as learn about market-specific needs, challenges and expectations,” said Vitaliy Maksimov (third left), CEO of OBD Solutions. “The program helped us uncover opportunities we would not have on our own.”		“I have found that the customers know what they want and are very intelligent about the products that are available,” said Mark Whitney (left), owner of Performance Analysis. “The customers that come up to your booth already know your product and are so happy to see you in their market.”
In addition to exhibiting in a turnkey booth, each participant visited specialty-equipment shops in Dubai and Abu Dhabi and were briefed by a panel of top buyers. Representatives of SEMA-member companies such as Joe Krivickas (left), site manager for Precision Turbo and Engine, also attended a market overview with U.S. government representatives in the region.		“We were very impressed with how enthusiastic and eclectic the car culture is in the Middle East,” said Daniel Muldowney (center right), CEO of Motorsports Fuel and Equipment Inc. “We saw everything from supercars to sand buggies. If it has an engine, you will find a shop in that market that will want to make it go faster!”
Chris Cosentino (center), chairman of Sherwood Innovations, and Alice Nassar (right), the company’s marketing coordinator. The company, which traveled with SEMA to the Middle East for the first time, will also be participating in the upcoming trip to Australia.		“The importance of being face to face with our customers in the Middle East each and every year was evident again this year,” said Robert Scheid (left), director of business development for McLeod Racing LLC. “Only by being there can we see the market trends and how those trends can lead to increased sales of our products. SEMA has given us a great format to get a diverse view of the market in a very affordable and time-effective way.”
“We were most gratified to see so much brand recognition for VP from the multiple countries in the region,” said Peter Coleman (right), business development manager for VP Racing Fuels. “We had the opportunity to discuss both our current distribution and potential to expand further, and SEMA’s actions in extending our influence in this lucrative market were very much appreciated.”		“The Middle East SEMA experience has provided us with increased opportunities for product development and sales of brake systems for SUVs, off-road and armored vehicles that we would not have been aware of without our participation in the event,” said Robert Roese (right), business development for Wilwood Engineering. “I cannot say enough about the positive experience of meeting so many new customers.”
The SEMA Middle East program provided participants with the opportunity to not only network with overseas buyers but also with each other. Pictured here, the group gathered for the opening session.		The 2019 SEMA Middle East event kicked off with a panel of top buyers. Among the topics discussed was the growing racing scene in the UAE and the Gulf region and how it is translating into increased sales for U.S. companies. The buyers of racing and off-road products talked about the challenges and opportunities of doing business in the region, the positive partnerships they have formed with U.S. companies, and their current needs for additional suppliers.
Liz Couch from the U.S. Department of Commerce’s headquarters in Washington, D.C., briefed the SEMA delegation on doing business in the region. She was joined by U.S. government representatives based in the UAE, Kuwait and Saudi Arabia.		Eight shops in Abu Dhabi and Dubai were included on a tour of specialty-equipment businesses this year. During one visit, Mark Link (right), president and COO of Race Gas, chatted with the general manager of a high-end racing/performance installer in Dubai.
Delegation members participated in one of two tours of shops. The first group selected the installers, retailers and distributors of products for car performance and racing (primarily drag racing and drifting), and the other visited shops specializing more in styling and engine performance for trucks and off-road racing. “It always brings a big smile to my face to see Wilwood products on American musclecars all over the world. Especially when they are on ones that have been restored to such a spec as this 6.2L supercharged SS,” commented Charles Dixie (left), who works in sales and engineer for Wilwood Engineering.		The delegation visited some of the leading UAE shops for specialty-equipment products, including a shop that offered installations, retail and online sales under one roof.

SEMA News—June 2019

BUSINESS

By Mike Imlay

Do Young People Still Love Cars?

Yes, Says a New SEMA Report—Just Differently

Cars and their accessorization are still very much a youthful passion, according to the newly released “SEMA Young Accessorizers Report,” which separates fact from media hype about the demographic’s automotive habits.

Is today’s younger generation giving up on driving, shunning car culture and turning away from vehicle accessorization? Far from it, says a new consumer study by SEMA’s Marketing Research department. In fact, the recently released “SEMA Young Accessorizers Report” suggests that this demographic is still as car crazy as ever—just in a different way.

Two years in the making, SEMA’s research initiative encompassed an online quantitative survey of more than 1,000 young accessorizers, followed by an online qualitative deep dive into the behaviors and attitudes of a representative subset. To be considered a “young accessorizer,” subjects had to fall within a specific age range; have a valid driver’s license; drive or own at least one vehicle and use it in some capacity; be at least somewhat involved in its maintenance, repair or modification; and have modified or upgraded it in the past year.

“For this study, we wanted to look at emerging drivers and emerging adults, so we focused specifically on 16- to 24-year-olds,” said Gavin Knapp, SEMA director of market research. “What we found is that most 16-year-olds don’t have a driver’s license. It’s hard for them. They have to worry about insurance and all the hoops of getting a license. There’s not free drivers’ education anymore, and so they wait. But they only wait until they’re 17, 18 or 19. Once they have their license and start driving—and especially once they get into their 20s—they need a car for work, school and socializing, and they want to make that car their own.”

Urban Myth-Busting

But what about all the news reports saying kids are no longer into cars, care only about their phones and digital devices, and would rather take Uber or Lyft than drive? According to Knapp, such reporting is likely based on the urban bias of the major media outlets doing the coverage.

“A lot of what’s coming out about vehicles in general comes from media and analysts who live in places like Manhattan and think the whole world is following the trends found there,” he explained. “One example is the idea that college-age kids in highly condensed urban areas aren’t owning cars. But that’s nothing new. If you look back 10 or 20 years, that same demographic also didn’t own cars. And just because someone may fit into that box now doesn’t mean that they’re going to act the same when they’re 30 or 35 and their life is completely changed.”

In fact, SEMA research indicates that young drivers actually accessorize at greater rates than the average aftermarket consumer.

“When we look at the broad spectrum of people, we find that only a quarter of drivers participate in our industry,” Knapp said. “With this young group, even when we factor in the 16- and 17-year-olds, it’s still a higher percentage that participates in our industry by accessorizing and modifying their vehicles. So this is actually a highly engaged group.”

The truth is that an estimated 7.9 million young people accessorize their vehicles, spending roughly $7.2 billion on upgrades and accessories last year and representing a sizable share of the $43 billion industry marketplace. Those teen and young-adult accessorizers say they derive a number of key personal benefits from their purchases, including a better-looking vehicle (39%), a sense of pride (37%), enhanced vehicle performance (34%), and greater automotive knowledge (33%). Moreover, today’s youth continue to see the automobile as a primary means to overcome isolation and explore new adventures with friends. Contrary to stereotypes, accesorizers in that demographic say they would rather give up their phones for a week than
their vehicles.

The vast majority of young accessorizers are males, who are influenced by exotic cars, trucks and SUVs. Female accesorizers skew more heavily toward trucks, SUVs and vehicles evoking utility and outdoor activities. But small/midrange vehicles and classics are the cars that each gender within this age group can love.

Whatever their dream car, males and females alike aim for a blend of performance and style. They seek convenience, reliability and environmental friendliness without skimping on looks, speed and safety. Yet despite all that, only 23% of male and 17% of female customizers say they can identify with the wider car culture.

Redefining Coolness

As teens age into their 20s, they are more likely to get a driver’s license, modify their vehicles and increase their spending on aftermarket parts and accessories.

“They’re creating their own car culture,” Knapp explained, adding that the ways the industry has traditionally defined car culture may actually be alienating these budding customizers. “One of the overriding themes of our report is that young people are social, no matter what they’re into. So if you’re marketing to the guy who sneaks off to the garage to have his alone time away from family, that’s not working for this group. This group is all about inclusion, friends, showing off and collaboration.”

“It’s about taking pictures of your car and putting them on Instagram,” echoed Kyle Cheng, the lead SEMA research manager for the report. “But money is also an issue for this group. Only half of this 16–24 age group would be considered hardcore enthusiasts. The types of big upgrades that our market associates with car culture are beyond them.”

According to Cheng, “nuts and bolts don’t speak to this demographic,” which grows into the hobby gradually over time. They see their cars less as projects and more as a means to connect with friends. If they do take on projects, they involve their peers, and most feel that they can handle only light to moderate upgrades.

“One thing that popped up when we were doing interviews was that young people have the idea that they want to get from A to B, but it’s a little more nuanced,” Cheng said. “It’s about getting from A to B in a safe way, not necessarily loading a vehicle with a ton of features. Also, while they’re more technically advanced than other groups, they aren’t necessarily looking for a lot of advanced technology like a lot of marketers think.”

“Given the types of [newer] cars they have available in which engine mods are not so easy to do, personalization is going to be key,” Knapp added. “We always find that wheels and tires are sort of the ‘gateway drug’ across all segments of modifiers, and they certainly are with this group, because wheels and tires deliver bang for the buck. This group wants to do something cool and get the picture up on social media. Even with engine mods, they want to do those they can take pictures of and look cool.”

Shopping Habits

Of course, all shopping starts with an inspiration, which for this generation begins online, usually via social-media platforms such as Instagram, Google images and YouTube. The images and videos they find there stir their emotions and encourage them to formulate dreams. Friends, family members (usually dad) and auto professionals are next in the line of major influencers—with an emphasis on friends.

The average young accessorizer has performed three types of modifications to his or her vehicle, with wheels being the single most common upgrade. Other appearance mods are also highly popular.

In the words of one 20-year-old survey participant, “I saw a friend driving with tints, and it made his car look sleek and modern. The older model no longer looked old, and it inspired me to make upgrades too.”

Another 24-year-old female respondent stated, “A friend posted pictures of her new covers on social media, and I thought I’d try it out.”

The percentage of buyers who purchase products only in stores increases with age. Just as noteworthy, young buyers who only purchase online still tend to visit brick-and-mortar locations as part of their shopping experience.

Ironically, even with all their reputation as voracious social-media users, the people in this age group are far less likely to venture into online forums or similar car-enthusiast sites for purchasing advice. Plus, according to Cheng, they have few inhibitions about brick-and-mortar stores.

“There’s the perception that people don’t shop in stores anymore, but if you look at how this group purchases parts, they are going into the shops,” he said. “People want to actually see and touch the stuff they’re going to put in their cars.”

In fact, about 66% of those canvassed for the SEMA market study reported buying at least some parts via brick-and-mortar stores, with 70% of store buyers picking their purchases up personally (as opposed to shipment to their home or another shop). That behavior changes somewhat when young enthusiasts become more immersed in the hobby and increasingly confident about making their parts decisions online. In those cases, 79% said they had their parts shipped to their homes.

“Obviously, some things are going to be easier in terms of shipping, others in terms of installation,” Knapp observed. “That said, the flip side, especially with products such as chemicals, is that we actually see more in-person purchases, because when you want it, you want it now.”

And although they’re budget conscious, they aren’t prone to fudge on quality. Whether doing a build themselves or having someone do it for them, the vast majority looks for the highest-quality, most reliable parts. What’s more, 82% say they have bought only new parts for their favorite automotive projects.

“We often hear people complain that young people don’t have any money, so therefore they’re not going to buy from our industry,” Knapp said. “We do see in this research that money is a barrier, but the flip side of that is that young people in that life stage spend whatever money they have. They’re not saving for retirement and probably aren’t paying a mortgage or supporting a family or spending extra on medical insurance. So if their hobby or passion is cars, that’s what they’re going to spend on.”

Key Purchases

When it comes to actual parts purchases, products with immediate visual appeal top the list. They include:

• Wheel and tire modifications (49%)
• Exterior and body mods (42%)
• Fluids, cleaners and synthetic oils (39%)
• Interior enhancements (36%)
• Lighting upgrades (33%)
• Tuning chips and electrical engine mods (29%)
• Suspension and brake upgrades (27%)
• Mobile-electronic products (24%)
• Internal engine mods (19%)
• Racks, truck shells, tonneau covers, hitches and winches (18%)

The above list may partially explain why so many industry veterans assume that younger modifiers have lost interest in car culture. Where are the ambitious build projects? Why aren’t they digging in under their hoods and getting their hands a little dirtier?

“When you compare them to past generations, you have to remember that the cars they deal with are totally different,” Knapp answered. “If you want to go back to the ’50s, ’60s and ’70s and talk performance, they’ve got way more performance coming right off the lot now than we ever had back then. Plus, when older generations were kids, cars weren’t as reliable. You didn’t have as many options to fix them, and they were easier to work on. All of those things have changed with the vehicles that are available to this generation. The idea of customization and personalization is still big for them, but the things they can do to their cars have naturally changed.”

“Older people in this industry often look back on car projects they shared with their dads,” Cheng added. “Some people still do that, but this generation is a little different in that they have social media and YouTube, where they can watch people build cars rather than rely on someone else to show them. Just because we don’t see the old way happening anymore doesn’t mean this generation doesn’t care about cars.”

Reaching Young Buyers

The “SEMA Young Accessorizers Report” offers a number of strategies for reaching the younger generation, and Knapp said that a good place to start is to drop the millennial moniker.

“The problem is that the Millennial label will go from ages 18 to 35, and I’m sorry, but 18- and 35-year-olds are nothing alike. So we want to get out of that labeling,” he asserted.

Given that only about one in five young accessorizers considers the auto industry something they fit into, helping them to see themselves in the community is crucial. Stores are ideal for creating that sense of community, because less-confident shoppers appreciate the knowledge that brick-and-mortar staffs provide. This is a generation ready to learn, so messaging, workshops and other outreaches that help them build their knowledge, confidence and empowerment can go a long way.

In regards to marketing, the report recommends pumping inspiration into social channels—notably YouTube, Facebook, Instagram, Snapchat and Reddit. Images and content should aim to show them possibilities while encouraging them to share their own mods with others.

Keep in mind also that this is an eco-friendly and budget-conscious demographic that defines performance beyond speed. For them, performance can also mean vehicle safety and efficiency enhancements.

Finally, demonstrate how modifications improve both enthusiast and non-enthusiast lifestyles with messaging that highlights the enjoyment derived from researching and executing their upgrades.

Ultimately, young people are like other specialty-equipment consumers in that they’re pursuing aspirations, just from a different angle. As Knapp summed up, “When they talk about what’s important for them socially, it’s about actually being with their friends. And how do you make that happen? You get in the car and you drive. And when they do get to the point of driving and having the car, suddenly all the cool activities and adventures you can do with cars, trucks and SUVs open up to them.”

SEMA News—June 2019

BUSINESS

By Mike Imlay

Do Young People Still Love Cars?

Yes, Says a New SEMA Report—Just Differently

Cars and their accessorization are still very much a youthful passion, according to the newly released “SEMA Young Accessorizers Report,” which separates fact from media hype about the demographic’s automotive habits.

Is today’s younger generation giving up on driving, shunning car culture and turning away from vehicle accessorization? Far from it, says a new consumer study by SEMA’s Marketing Research department. In fact, the recently released “SEMA Young Accessorizers Report” suggests that this demographic is still as car crazy as ever—just in a different way.

Two years in the making, SEMA’s research initiative encompassed an online quantitative survey of more than 1,000 young accessorizers, followed by an online qualitative deep dive into the behaviors and attitudes of a representative subset. To be considered a “young accessorizer,” subjects had to fall within a specific age range; have a valid driver’s license; drive or own at least one vehicle and use it in some capacity; be at least somewhat involved in its maintenance, repair or modification; and have modified or upgraded it in the past year.

“For this study, we wanted to look at emerging drivers and emerging adults, so we focused specifically on 16- to 24-year-olds,” said Gavin Knapp, SEMA director of market research. “What we found is that most 16-year-olds don’t have a driver’s license. It’s hard for them. They have to worry about insurance and all the hoops of getting a license. There’s not free drivers’ education anymore, and so they wait. But they only wait until they’re 17, 18 or 19. Once they have their license and start driving—and especially once they get into their 20s—they need a car for work, school and socializing, and they want to make that car their own.”

Urban Myth-Busting

But what about all the news reports saying kids are no longer into cars, care only about their phones and digital devices, and would rather take Uber or Lyft than drive? According to Knapp, such reporting is likely based on the urban bias of the major media outlets doing the coverage.

“A lot of what’s coming out about vehicles in general comes from media and analysts who live in places like Manhattan and think the whole world is following the trends found there,” he explained. “One example is the idea that college-age kids in highly condensed urban areas aren’t owning cars. But that’s nothing new. If you look back 10 or 20 years, that same demographic also didn’t own cars. And just because someone may fit into that box now doesn’t mean that they’re going to act the same when they’re 30 or 35 and their life is completely changed.”

In fact, SEMA research indicates that young drivers actually accessorize at greater rates than the average aftermarket consumer.

“When we look at the broad spectrum of people, we find that only a quarter of drivers participate in our industry,” Knapp said. “With this young group, even when we factor in the 16- and 17-year-olds, it’s still a higher percentage that participates in our industry by accessorizing and modifying their vehicles. So this is actually a highly engaged group.”

The truth is that an estimated 7.9 million young people accessorize their vehicles, spending roughly $7.2 billion on upgrades and accessories last year and representing a sizable share of the $43 billion industry marketplace. Those teen and young-adult accessorizers say they derive a number of key personal benefits from their purchases, including a better-looking vehicle (39%), a sense of pride (37%), enhanced vehicle performance (34%), and greater automotive knowledge (33%). Moreover, today’s youth continue to see the automobile as a primary means to overcome isolation and explore new adventures with friends. Contrary to stereotypes, accesorizers in that demographic say they would rather give up their phones for a week than
their vehicles.

The vast majority of young accessorizers are males, who are influenced by exotic cars, trucks and SUVs. Female accesorizers skew more heavily toward trucks, SUVs and vehicles evoking utility and outdoor activities. But small/midrange vehicles and classics are the cars that each gender within this age group can love.

Whatever their dream car, males and females alike aim for a blend of performance and style. They seek convenience, reliability and environmental friendliness without skimping on looks, speed and safety. Yet despite all that, only 23% of male and 17% of female customizers say they can identify with the wider car culture.

Redefining Coolness

As teens age into their 20s, they are more likely to get a driver’s license, modify their vehicles and increase their spending on aftermarket parts and accessories.

“They’re creating their own car culture,” Knapp explained, adding that the ways the industry has traditionally defined car culture may actually be alienating these budding customizers. “One of the overriding themes of our report is that young people are social, no matter what they’re into. So if you’re marketing to the guy who sneaks off to the garage to have his alone time away from family, that’s not working for this group. This group is all about inclusion, friends, showing off and collaboration.”

“It’s about taking pictures of your car and putting them on Instagram,” echoed Kyle Cheng, the lead SEMA research manager for the report. “But money is also an issue for this group. Only half of this 16–24 age group would be considered hardcore enthusiasts. The types of big upgrades that our market associates with car culture are beyond them.”

According to Cheng, “nuts and bolts don’t speak to this demographic,” which grows into the hobby gradually over time. They see their cars less as projects and more as a means to connect with friends. If they do take on projects, they involve their peers, and most feel that they can handle only light to moderate upgrades.

“One thing that popped up when we were doing interviews was that young people have the idea that they want to get from A to B, but it’s a little more nuanced,” Cheng said. “It’s about getting from A to B in a safe way, not necessarily loading a vehicle with a ton of features. Also, while they’re more technically advanced than other groups, they aren’t necessarily looking for a lot of advanced technology like a lot of marketers think.”

“Given the types of [newer] cars they have available in which engine mods are not so easy to do, personalization is going to be key,” Knapp added. “We always find that wheels and tires are sort of the ‘gateway drug’ across all segments of modifiers, and they certainly are with this group, because wheels and tires deliver bang for the buck. This group wants to do something cool and get the picture up on social media. Even with engine mods, they want to do those they can take pictures of and look cool.”

Shopping Habits

Of course, all shopping starts with an inspiration, which for this generation begins online, usually via social-media platforms such as Instagram, Google images and YouTube. The images and videos they find there stir their emotions and encourage them to formulate dreams. Friends, family members (usually dad) and auto professionals are next in the line of major influencers—with an emphasis on friends.

The average young accessorizer has performed three types of modifications to his or her vehicle, with wheels being the single most common upgrade. Other appearance mods are also highly popular.

In the words of one 20-year-old survey participant, “I saw a friend driving with tints, and it made his car look sleek and modern. The older model no longer looked old, and it inspired me to make upgrades too.”

Another 24-year-old female respondent stated, “A friend posted pictures of her new covers on social media, and I thought I’d try it out.”

The percentage of buyers who purchase products only in stores increases with age. Just as noteworthy, young buyers who only purchase online still tend to visit brick-and-mortar locations as part of their shopping experience.

Ironically, even with all their reputation as voracious social-media users, the people in this age group are far less likely to venture into online forums or similar car-enthusiast sites for purchasing advice. Plus, according to Cheng, they have few inhibitions about brick-and-mortar stores.

“There’s the perception that people don’t shop in stores anymore, but if you look at how this group purchases parts, they are going into the shops,” he said. “People want to actually see and touch the stuff they’re going to put in their cars.”

In fact, about 66% of those canvassed for the SEMA market study reported buying at least some parts via brick-and-mortar stores, with 70% of store buyers picking their purchases up personally (as opposed to shipment to their home or another shop). That behavior changes somewhat when young enthusiasts become more immersed in the hobby and increasingly confident about making their parts decisions online. In those cases, 79% said they had their parts shipped to their homes.

“Obviously, some things are going to be easier in terms of shipping, others in terms of installation,” Knapp observed. “That said, the flip side, especially with products such as chemicals, is that we actually see more in-person purchases, because when you want it, you want it now.”

And although they’re budget conscious, they aren’t prone to fudge on quality. Whether doing a build themselves or having someone do it for them, the vast majority looks for the highest-quality, most reliable parts. What’s more, 82% say they have bought only new parts for their favorite automotive projects.

“We often hear people complain that young people don’t have any money, so therefore they’re not going to buy from our industry,” Knapp said. “We do see in this research that money is a barrier, but the flip side of that is that young people in that life stage spend whatever money they have. They’re not saving for retirement and probably aren’t paying a mortgage or supporting a family or spending extra on medical insurance. So if their hobby or passion is cars, that’s what they’re going to spend on.”

Key Purchases

When it comes to actual parts purchases, products with immediate visual appeal top the list. They include:

• Wheel and tire modifications (49%)
• Exterior and body mods (42%)
• Fluids, cleaners and synthetic oils (39%)
• Interior enhancements (36%)
• Lighting upgrades (33%)
• Tuning chips and electrical engine mods (29%)
• Suspension and brake upgrades (27%)
• Mobile-electronic products (24%)
• Internal engine mods (19%)
• Racks, truck shells, tonneau covers, hitches and winches (18%)

The above list may partially explain why so many industry veterans assume that younger modifiers have lost interest in car culture. Where are the ambitious build projects? Why aren’t they digging in under their hoods and getting their hands a little dirtier?

“When you compare them to past generations, you have to remember that the cars they deal with are totally different,” Knapp answered. “If you want to go back to the ’50s, ’60s and ’70s and talk performance, they’ve got way more performance coming right off the lot now than we ever had back then. Plus, when older generations were kids, cars weren’t as reliable. You didn’t have as many options to fix them, and they were easier to work on. All of those things have changed with the vehicles that are available to this generation. The idea of customization and personalization is still big for them, but the things they can do to their cars have naturally changed.”

“Older people in this industry often look back on car projects they shared with their dads,” Cheng added. “Some people still do that, but this generation is a little different in that they have social media and YouTube, where they can watch people build cars rather than rely on someone else to show them. Just because we don’t see the old way happening anymore doesn’t mean this generation doesn’t care about cars.”

Reaching Young Buyers

The “SEMA Young Accessorizers Report” offers a number of strategies for reaching the younger generation, and Knapp said that a good place to start is to drop the millennial moniker.

“The problem is that the Millennial label will go from ages 18 to 35, and I’m sorry, but 18- and 35-year-olds are nothing alike. So we want to get out of that labeling,” he asserted.

Given that only about one in five young accessorizers considers the auto industry something they fit into, helping them to see themselves in the community is crucial. Stores are ideal for creating that sense of community, because less-confident shoppers appreciate the knowledge that brick-and-mortar staffs provide. This is a generation ready to learn, so messaging, workshops and other outreaches that help them build their knowledge, confidence and empowerment can go a long way.

In regards to marketing, the report recommends pumping inspiration into social channels—notably YouTube, Facebook, Instagram, Snapchat and Reddit. Images and content should aim to show them possibilities while encouraging them to share their own mods with others.

Keep in mind also that this is an eco-friendly and budget-conscious demographic that defines performance beyond speed. For them, performance can also mean vehicle safety and efficiency enhancements.

Finally, demonstrate how modifications improve both enthusiast and non-enthusiast lifestyles with messaging that highlights the enjoyment derived from researching and executing their upgrades.

Ultimately, young people are like other specialty-equipment consumers in that they’re pursuing aspirations, just from a different angle. As Knapp summed up, “When they talk about what’s important for them socially, it’s about actually being with their friends. And how do you make that happen? You get in the car and you drive. And when they do get to the point of driving and having the car, suddenly all the cool activities and adventures you can do with cars, trucks and SUVs open up to them.”

SEMA News—June 2019

BUSINESS

By Mike Imlay

Do Young People Still Love Cars?

Yes, Says a New SEMA Report—Just Differently

Cars and their accessorization are still very much a youthful passion, according to the newly released “SEMA Young Accessorizers Report,” which separates fact from media hype about the demographic’s automotive habits.

Is today’s younger generation giving up on driving, shunning car culture and turning away from vehicle accessorization? Far from it, says a new consumer study by SEMA’s Marketing Research department. In fact, the recently released “SEMA Young Accessorizers Report” suggests that this demographic is still as car crazy as ever—just in a different way.

Two years in the making, SEMA’s research initiative encompassed an online quantitative survey of more than 1,000 young accessorizers, followed by an online qualitative deep dive into the behaviors and attitudes of a representative subset. To be considered a “young accessorizer,” subjects had to fall within a specific age range; have a valid driver’s license; drive or own at least one vehicle and use it in some capacity; be at least somewhat involved in its maintenance, repair or modification; and have modified or upgraded it in the past year.

“For this study, we wanted to look at emerging drivers and emerging adults, so we focused specifically on 16- to 24-year-olds,” said Gavin Knapp, SEMA director of market research. “What we found is that most 16-year-olds don’t have a driver’s license. It’s hard for them. They have to worry about insurance and all the hoops of getting a license. There’s not free drivers’ education anymore, and so they wait. But they only wait until they’re 17, 18 or 19. Once they have their license and start driving—and especially once they get into their 20s—they need a car for work, school and socializing, and they want to make that car their own.”

Urban Myth-Busting

But what about all the news reports saying kids are no longer into cars, care only about their phones and digital devices, and would rather take Uber or Lyft than drive? According to Knapp, such reporting is likely based on the urban bias of the major media outlets doing the coverage.

“A lot of what’s coming out about vehicles in general comes from media and analysts who live in places like Manhattan and think the whole world is following the trends found there,” he explained. “One example is the idea that college-age kids in highly condensed urban areas aren’t owning cars. But that’s nothing new. If you look back 10 or 20 years, that same demographic also didn’t own cars. And just because someone may fit into that box now doesn’t mean that they’re going to act the same when they’re 30 or 35 and their life is completely changed.”

In fact, SEMA research indicates that young drivers actually accessorize at greater rates than the average aftermarket consumer.

“When we look at the broad spectrum of people, we find that only a quarter of drivers participate in our industry,” Knapp said. “With this young group, even when we factor in the 16- and 17-year-olds, it’s still a higher percentage that participates in our industry by accessorizing and modifying their vehicles. So this is actually a highly engaged group.”

The truth is that an estimated 7.9 million young people accessorize their vehicles, spending roughly $7.2 billion on upgrades and accessories last year and representing a sizable share of the $43 billion industry marketplace. Those teen and young-adult accessorizers say they derive a number of key personal benefits from their purchases, including a better-looking vehicle (39%), a sense of pride (37%), enhanced vehicle performance (34%), and greater automotive knowledge (33%). Moreover, today’s youth continue to see the automobile as a primary means to overcome isolation and explore new adventures with friends. Contrary to stereotypes, accesorizers in that demographic say they would rather give up their phones for a week than
their vehicles.

The vast majority of young accessorizers are males, who are influenced by exotic cars, trucks and SUVs. Female accesorizers skew more heavily toward trucks, SUVs and vehicles evoking utility and outdoor activities. But small/midrange vehicles and classics are the cars that each gender within this age group can love.

Whatever their dream car, males and females alike aim for a blend of performance and style. They seek convenience, reliability and environmental friendliness without skimping on looks, speed and safety. Yet despite all that, only 23% of male and 17% of female customizers say they can identify with the wider car culture.

Redefining Coolness

As teens age into their 20s, they are more likely to get a driver’s license, modify their vehicles and increase their spending on aftermarket parts and accessories.

“They’re creating their own car culture,” Knapp explained, adding that the ways the industry has traditionally defined car culture may actually be alienating these budding customizers. “One of the overriding themes of our report is that young people are social, no matter what they’re into. So if you’re marketing to the guy who sneaks off to the garage to have his alone time away from family, that’s not working for this group. This group is all about inclusion, friends, showing off and collaboration.”

“It’s about taking pictures of your car and putting them on Instagram,” echoed Kyle Cheng, the lead SEMA research manager for the report. “But money is also an issue for this group. Only half of this 16–24 age group would be considered hardcore enthusiasts. The types of big upgrades that our market associates with car culture are beyond them.”

According to Cheng, “nuts and bolts don’t speak to this demographic,” which grows into the hobby gradually over time. They see their cars less as projects and more as a means to connect with friends. If they do take on projects, they involve their peers, and most feel that they can handle only light to moderate upgrades.

“One thing that popped up when we were doing interviews was that young people have the idea that they want to get from A to B, but it’s a little more nuanced,” Cheng said. “It’s about getting from A to B in a safe way, not necessarily loading a vehicle with a ton of features. Also, while they’re more technically advanced than other groups, they aren’t necessarily looking for a lot of advanced technology like a lot of marketers think.”

“Given the types of [newer] cars they have available in which engine mods are not so easy to do, personalization is going to be key,” Knapp added. “We always find that wheels and tires are sort of the ‘gateway drug’ across all segments of modifiers, and they certainly are with this group, because wheels and tires deliver bang for the buck. This group wants to do something cool and get the picture up on social media. Even with engine mods, they want to do those they can take pictures of and look cool.”

Shopping Habits

Of course, all shopping starts with an inspiration, which for this generation begins online, usually via social-media platforms such as Instagram, Google images and YouTube. The images and videos they find there stir their emotions and encourage them to formulate dreams. Friends, family members (usually dad) and auto professionals are next in the line of major influencers—with an emphasis on friends.

The average young accessorizer has performed three types of modifications to his or her vehicle, with wheels being the single most common upgrade. Other appearance mods are also highly popular.

In the words of one 20-year-old survey participant, “I saw a friend driving with tints, and it made his car look sleek and modern. The older model no longer looked old, and it inspired me to make upgrades too.”

Another 24-year-old female respondent stated, “A friend posted pictures of her new covers on social media, and I thought I’d try it out.”

The percentage of buyers who purchase products only in stores increases with age. Just as noteworthy, young buyers who only purchase online still tend to visit brick-and-mortar locations as part of their shopping experience.

Ironically, even with all their reputation as voracious social-media users, the people in this age group are far less likely to venture into online forums or similar car-enthusiast sites for purchasing advice. Plus, according to Cheng, they have few inhibitions about brick-and-mortar stores.

“There’s the perception that people don’t shop in stores anymore, but if you look at how this group purchases parts, they are going into the shops,” he said. “People want to actually see and touch the stuff they’re going to put in their cars.”

In fact, about 66% of those canvassed for the SEMA market study reported buying at least some parts via brick-and-mortar stores, with 70% of store buyers picking their purchases up personally (as opposed to shipment to their home or another shop). That behavior changes somewhat when young enthusiasts become more immersed in the hobby and increasingly confident about making their parts decisions online. In those cases, 79% said they had their parts shipped to their homes.

“Obviously, some things are going to be easier in terms of shipping, others in terms of installation,” Knapp observed. “That said, the flip side, especially with products such as chemicals, is that we actually see more in-person purchases, because when you want it, you want it now.”

And although they’re budget conscious, they aren’t prone to fudge on quality. Whether doing a build themselves or having someone do it for them, the vast majority looks for the highest-quality, most reliable parts. What’s more, 82% say they have bought only new parts for their favorite automotive projects.

“We often hear people complain that young people don’t have any money, so therefore they’re not going to buy from our industry,” Knapp said. “We do see in this research that money is a barrier, but the flip side of that is that young people in that life stage spend whatever money they have. They’re not saving for retirement and probably aren’t paying a mortgage or supporting a family or spending extra on medical insurance. So if their hobby or passion is cars, that’s what they’re going to spend on.”

Key Purchases

When it comes to actual parts purchases, products with immediate visual appeal top the list. They include:

• Wheel and tire modifications (49%)
• Exterior and body mods (42%)
• Fluids, cleaners and synthetic oils (39%)
• Interior enhancements (36%)
• Lighting upgrades (33%)
• Tuning chips and electrical engine mods (29%)
• Suspension and brake upgrades (27%)
• Mobile-electronic products (24%)
• Internal engine mods (19%)
• Racks, truck shells, tonneau covers, hitches and winches (18%)

The above list may partially explain why so many industry veterans assume that younger modifiers have lost interest in car culture. Where are the ambitious build projects? Why aren’t they digging in under their hoods and getting their hands a little dirtier?

“When you compare them to past generations, you have to remember that the cars they deal with are totally different,” Knapp answered. “If you want to go back to the ’50s, ’60s and ’70s and talk performance, they’ve got way more performance coming right off the lot now than we ever had back then. Plus, when older generations were kids, cars weren’t as reliable. You didn’t have as many options to fix them, and they were easier to work on. All of those things have changed with the vehicles that are available to this generation. The idea of customization and personalization is still big for them, but the things they can do to their cars have naturally changed.”

“Older people in this industry often look back on car projects they shared with their dads,” Cheng added. “Some people still do that, but this generation is a little different in that they have social media and YouTube, where they can watch people build cars rather than rely on someone else to show them. Just because we don’t see the old way happening anymore doesn’t mean this generation doesn’t care about cars.”

Reaching Young Buyers

The “SEMA Young Accessorizers Report” offers a number of strategies for reaching the younger generation, and Knapp said that a good place to start is to drop the millennial moniker.

“The problem is that the Millennial label will go from ages 18 to 35, and I’m sorry, but 18- and 35-year-olds are nothing alike. So we want to get out of that labeling,” he asserted.

Given that only about one in five young accessorizers considers the auto industry something they fit into, helping them to see themselves in the community is crucial. Stores are ideal for creating that sense of community, because less-confident shoppers appreciate the knowledge that brick-and-mortar staffs provide. This is a generation ready to learn, so messaging, workshops and other outreaches that help them build their knowledge, confidence and empowerment can go a long way.

In regards to marketing, the report recommends pumping inspiration into social channels—notably YouTube, Facebook, Instagram, Snapchat and Reddit. Images and content should aim to show them possibilities while encouraging them to share their own mods with others.

Keep in mind also that this is an eco-friendly and budget-conscious demographic that defines performance beyond speed. For them, performance can also mean vehicle safety and efficiency enhancements.

Finally, demonstrate how modifications improve both enthusiast and non-enthusiast lifestyles with messaging that highlights the enjoyment derived from researching and executing their upgrades.

Ultimately, young people are like other specialty-equipment consumers in that they’re pursuing aspirations, just from a different angle. As Knapp summed up, “When they talk about what’s important for them socially, it’s about actually being with their friends. And how do you make that happen? You get in the car and you drive. And when they do get to the point of driving and having the car, suddenly all the cool activities and adventures you can do with cars, trucks and SUVs open up to them.”

By Fredy Ramirez

The SEMA Data Co-op (SDC) is “data central” for hundreds of specialty parts brands, representing millions of part numbers and tens of millions of vehicle applications. Created by SEMA, the SDC is the definitive, industry-owned and -operated centralized data repository, complete with a comprehensive set of online data management tools.

The product releases below are from SEMA members who are also part of the SDC at the the Bronze, Silver, Gold or Platinum level. Learn more about the SDC at www.semadatacoop.org.

SDC members are invited to submit new-product press releases for consideration to editors@sema.org.

STS Journal Bearing Turbochargers Holley announced the release of STS Journal Bearing Turbochargers. The turbos are now available individually in numerous sizes to accommodate a variety of applications. They can be mounted almost anywhere and are engineered to serve as the basis for a powerful, reliable, efficient system. STS Journal Bearing Turbochargers feature optimized T3/T4 housing combinations designed for maximum performance and 100% cartridge balancing for smooth operation. 866-464-6553 www.holley.com PN: Sts200
Hooker Blackheart Long Tube Headers Camaro SS ZL Holley announced the Hooker BlackHeart’s latest Long Tube Headers for the ’10–’15 Camaro SS ZL1. They with come with 2-in. primary tubes for handling supercharged and high-horsepower naturally aspirated engines. These 2x3 full-length headers are made of mandrel-bent 18-gauge stainless steel and come with long-transition 3-in. collectors with merge spears for maximum flow and increased exhaust velocity. 866-464-6553 www.holley.com PN: 70101302-RHKR
Amp’d Throttle Booster for ’20 Jeep Gladiator JT Edge products announced the release of Amp’d Throttle Sensitivity Booster for the ’20 Jeep. The booster is designed to improve throttle sensitivity and optimize driving in town and on the highway. It is said to have faster acceleration from stop and throughout the RPM band. 888-360-3343 www.edgeproducts.com PN: 48858-JT
Heatshield Armor Pipe Kit Heatshield Products introduces the Heatshield Armor Pipe Kit, engineered to reduce heat radiating from a vehicle exhaust system, while also increasing power and the efficiency of the exhaust system. Heatshield Armor Pipe Kit can also be painted to color-match the engine or engine bay. This Kit is designed to withstand 1,800 degrees Fahrenheit direct heat and 2,200 degrees intermittent heat. Kits are available for various exhaust pipe sizes. Heatshield Armor material can be trimmed easily for a custom fit for other lengths of exhaust pipe. 844-723-2665 www.heatshieldproducts.com PN: 172252
Frostbite Intercoolers Holley announced the release of Frostbite Intercoolers. The intercoolers are engineered to bring efficiency, durability and affordability to any turbocharger system. The universal air-to-air intercoolers come in 18 unique size and finish variations in the most popular sizes, and feature all-aluminum construction, welded-on universal mounting bungs, and slip-fit inlets and outlets. 866-464-6553 www.holley.com PN: Fb603b

By Fredy Ramirez

The SEMA Data Co-op (SDC) is “data central” for hundreds of specialty parts brands, representing millions of part numbers and tens of millions of vehicle applications. Created by SEMA, the SDC is the definitive, industry-owned and -operated centralized data repository, complete with a comprehensive set of online data management tools.

The product releases below are from SEMA members who are also part of the SDC at the the Bronze, Silver, Gold or Platinum level. Learn more about the SDC at www.semadatacoop.org.

SDC members are invited to submit new-product press releases for consideration to editors@sema.org.

STS Journal Bearing Turbochargers Holley announced the release of STS Journal Bearing Turbochargers. The turbos are now available individually in numerous sizes to accommodate a variety of applications. They can be mounted almost anywhere and are engineered to serve as the basis for a powerful, reliable, efficient system. STS Journal Bearing Turbochargers feature optimized T3/T4 housing combinations designed for maximum performance and 100% cartridge balancing for smooth operation. 866-464-6553 www.holley.com PN: Sts200
Hooker Blackheart Long Tube Headers Camaro SS ZL Holley announced the Hooker BlackHeart’s latest Long Tube Headers for the ’10–’15 Camaro SS ZL1. They with come with 2-in. primary tubes for handling supercharged and high-horsepower naturally aspirated engines. These 2x3 full-length headers are made of mandrel-bent 18-gauge stainless steel and come with long-transition 3-in. collectors with merge spears for maximum flow and increased exhaust velocity. 866-464-6553 www.holley.com PN: 70101302-RHKR
Amp’d Throttle Booster for ’20 Jeep Gladiator JT Edge products announced the release of Amp’d Throttle Sensitivity Booster for the ’20 Jeep. The booster is designed to improve throttle sensitivity and optimize driving in town and on the highway. It is said to have faster acceleration from stop and throughout the RPM band. 888-360-3343 www.edgeproducts.com PN: 48858-JT
Heatshield Armor Pipe Kit Heatshield Products introduces the Heatshield Armor Pipe Kit, engineered to reduce heat radiating from a vehicle exhaust system, while also increasing power and the efficiency of the exhaust system. Heatshield Armor Pipe Kit can also be painted to color-match the engine or engine bay. This Kit is designed to withstand 1,800 degrees Fahrenheit direct heat and 2,200 degrees intermittent heat. Kits are available for various exhaust pipe sizes. Heatshield Armor material can be trimmed easily for a custom fit for other lengths of exhaust pipe. 844-723-2665 www.heatshieldproducts.com PN: 172252
Frostbite Intercoolers Holley announced the release of Frostbite Intercoolers. The intercoolers are engineered to bring efficiency, durability and affordability to any turbocharger system. The universal air-to-air intercoolers come in 18 unique size and finish variations in the most popular sizes, and feature all-aluminum construction, welded-on universal mounting bungs, and slip-fit inlets and outlets. 866-464-6553 www.holley.com PN: Fb603b

By Kyle Cheng

American consumers spent more than ever modifying their vehicles, pushing retail spending on specialty-equipment parts to $44.6 billion.

Overall, 2018 proved to be a year of strength, resilience and growth for the specialty-equipment industry. American consumers spent more than ever modifying their vehicles, pushing retail spending on specialty-equipment parts to $44.6 billion. SEMA projects this growth to continue in 2019, despite ongoing trade uncertainty. To learn more about the size and shape of the specialty-equipment market, download the new 2019 SEMA Market Report.

Some insights from the report include:

• 27% of all dollars were spent upgrading and modifying pickups.
• 59% of specialty-equipment part sales are made in-store.
• A third of accessorizers are under the age of 30.
• More than 59 million passenger vehicles changed hands in 2018.

The 2019 SEMA Market reports provides a comprehensive look at how the products your company sells are purchased and installed. You’ll also find information on parts buyers, key industry trends and forecasts, economic indicators, and insights into the vehicles currently on the road.

Want to learn more?

Head to www.sema.org/research and download the 2019 SEMA Market Report today. You can also access our other research reports, including the SEMA Young Accessorizers Report, which examines young people’s relationship with cars and car customization.

By Kyle Cheng

American consumers spent more than ever modifying their vehicles, pushing retail spending on specialty-equipment parts to $44.6 billion.

Overall, 2018 proved to be a year of strength, resilience and growth for the specialty-equipment industry. American consumers spent more than ever modifying their vehicles, pushing retail spending on specialty-equipment parts to $44.6 billion. SEMA projects this growth to continue in 2019, despite ongoing trade uncertainty. To learn more about the size and shape of the specialty-equipment market, download the new 2019 SEMA Market Report.

Some insights from the report include:

• 27% of all dollars were spent upgrading and modifying pickups.
• 59% of specialty-equipment part sales are made in-store.
• A third of accessorizers are under the age of 30.
• More than 59 million passenger vehicles changed hands in 2018.

The 2019 SEMA Market reports provides a comprehensive look at how the products your company sells are purchased and installed. You’ll also find information on parts buyers, key industry trends and forecasts, economic indicators, and insights into the vehicles currently on the road.

Want to learn more?

Head to www.sema.org/research and download the 2019 SEMA Market Report today. You can also access our other research reports, including the SEMA Young Accessorizers Report, which examines young people’s relationship with cars and car customization.

By Kyle Cheng

American consumers spent more than ever modifying their vehicles, pushing retail spending on specialty-equipment parts to $44.6 billion.

Overall, 2018 proved to be a year of strength, resilience and growth for the specialty-equipment industry. American consumers spent more than ever modifying their vehicles, pushing retail spending on specialty-equipment parts to $44.6 billion. SEMA projects this growth to continue in 2019, despite ongoing trade uncertainty. To learn more about the size and shape of the specialty-equipment market, download the new 2019 SEMA Market Report.

Some insights from the report include:

• 27% of all dollars were spent upgrading and modifying pickups.
• 59% of specialty-equipment part sales are made in-store.
• A third of accessorizers are under the age of 30.
• More than 59 million passenger vehicles changed hands in 2018.

The 2019 SEMA Market reports provides a comprehensive look at how the products your company sells are purchased and installed. You’ll also find information on parts buyers, key industry trends and forecasts, economic indicators, and insights into the vehicles currently on the road.

Want to learn more?

Head to www.sema.org/research and download the 2019 SEMA Market Report today. You can also access our other research reports, including the SEMA Young Accessorizers Report, which examines young people’s relationship with cars and car customization.