In 2008 and 2009, the aftermarket for vehicle modification, as with most industries, saw a decline in revenue due to a decrease in consumer spending. Despite the general downturn, Frost and Sullivan’s 2008 research study, Analysis of the Attitudes and Behaviors of U.S. Vehicle Modification Enthusiasts, indicates that the key customer demographic for extensive vehicle modifications is expanding. Frost and Sullivan believes the expansion of this demographic offers a significant growth opportunity for body kit manufacturers, provided they overcome other industry challenges.
Body kit manufacturers will face several challenges relating to the changing face of vehicle modification. As expected, given the recent economic decline and its impact on the auto industry, the research study indicated that first-time participation in vehicle modification has declined from 2006 levels by 25 percent.
Also indicated are challenges to independent aftermarket installers who focus on the modification industry. Sixty-four percent of enthusiasts have their modification installed at a vehicle dealership, mainly because of the perception of greater quality in a dealership installation. Manufacturers focusing on “show” parts rather than “go” parts also face challenges, as only 26 percent of modification enthusiasts reported spending more on “show” parts than “go” parts.
The decline of first-time modification enthusiasts, the focus on dealerships as a purchase and installation channel, and the focus on “go” parts are all expected to challenge body kit manufacturers in the near term.
Despite these challenges, there is opportunity for body kit manufacturers through the growth of their core demographic. The number of enthusiasts describing their skill level as “advanced” has grown 50 percent since 2006, with 71 percent of those classified as “advanced” describing themselves as “extremely enthusiastic” about vehicle modification.
Just under half of the advanced modifiers have 10 or more years of experience modifying vehicles, and over half have modified 5 or more vehicles. This data suggests that a large portion of the total modification enthusiast population will be undeterred by the technical challenges present in installing body kits, which were previously believed to be a strong restraint to this product.
In fact, there is a 25 percent increase in the number of modifications which take over 21 hours to perform. Cost is also predicted to be a declining restraint in the body kit category, as 42 percent of enthusiasts spent $1,000 to $3,000, and 40% spent over $3,000 on vehicle modification. Body kits are also important in creating the “theme” of the modified vehicle. Eighty-three percent of modifiers create or develop a theme for their vehicle, and over half believe the body kit is important in developing that theme. This data suggests the growth of a strong core demographic that is willing to invest time and money in the modification of a vehicle as a form of personal expression. To this niche of consumers, body kits will remain in demand.
