Mary Beth Kellenberger, an analyst with global growth consulting firm Frost & Sullivan, says today's specialty aftermarket consumers include OE modifiers, who have bought new vehicles and are looking to accentuate them with either dealer or aftermarket accessories, as well as those who are working on "new to me" vehicles.
"This includes a lot of young kids who you won't see ownership transfer hands [to] necessarily, but they've become the primary driver in the family of that vehicle," she explains. "It used to be dad's car or mom's car, and it was handed down to them and they can accessorize with their own money. Before, it was mom's car and she said, 'Leave my car alone.'"
Those who accessorize their new vehicles often spend more money up front, as adding a couple of thousand dollars worth of accessories is not a big deal after spending $40,000 on a vehicle. But those working on their vehicles for the first time probably have less money to spend, and could accessorize more along appearance lines than performance aspects.
According to Frost & Sullivan research, 39 percent of specialty consumers are looking for modifications that will both improve their vehicle's appearance and performance, while just 22 percent are focused on the show aspect. Another 39 percent are focused solely on the performance side.
"People are telling me that they are going more for the performance than the appearance, at least for right now. I think it's part of the economy with things like inflation, gas prices, mortgages, it's all part of the function of the larger economy as well," says Stephen Spivey, industry analyst with Frost & Sullivan. "You'll see people more willing to pay for performance than pay for accessories. It might be temporary, at least on lighting."Kellenberger says those who are focusing on the performance side work on engine tuning, chip replacement, suspension modifications, air intakes, filters and exhaust.
Spivey adds that one vehicle SEMA reports as popular to modify is the Jeep Wrangler (especially with tires, trailer hitches, lights and suspensions). Other popular vehicles include the Chevy Silverado, Toyota Scion, Dodge Ram and smaller sport compacts.
"People are trying to come out and get back into the sport compact thing," he says. "The sport compact thing was hot for a while and then people moved into trucks."
Crossover vehicles, such as the Chrysler Pacifica, are forecasted to be the largest vehicle segment by the end of the decade, he says, leaving plenty of room for modification.
"To me it seems like the smart things to do just because that vehicle population is growing so fast. I would try to find out what people are putting on those...I think that obviously if you can figure out what's being put on there, you can see where some growth is going."
Taking in what is driving around the streets in your neighborhood also might be one way to see where the market is going, especially since so many manufacturers keep information close to protect their sales.
"It's their competitive advantage over everybody else in the marketplace," Kellenberger says. "If you can come in and steal the shows in a lot of these time-element products, you're pretty much working on a four to six-month lead time."
Whether you can sell parts to a consumer for them to install, or if they have to take the vehicle to an independent repair shop for installation, depends on the part. Kellenberger states that air intakes, lighting, seating, headlights, spoilers and wings are DIY items. However, tires and wheels often are installed in shops because of their expense and need for specialized equipment. Experience also comes in handy when installing power-draining electronics such as DVD players, game systems and other stereo equipment.
Experience among younger drivers also is growing, thanks to the increasing number of magazines, videos and use of the Internet. To reach these customers, Spivey says quality is an important competing factor.
"You've got to let people know you have these products to draw them into your store, and they've got to see that it's available," Kellenberger notes. They've got to see how cool it looks on a car, how easy it is to install."
