Personalization gives aftermarket a boost
With a little help from The Fast and the Furious trilogy and cable TV shows like Pimp My Ride and Overhaulin’, the aftermarket parts segment of the automotive industry is experiencing record sales this year, the Specialty Equipment Market Association said in a report released early in the week.
The report, commissioned by the trade organization that represents nearly 7,000 companies in the automotive specialty-equipment industry, said spending on automotive accessories was up 7 percent last year to $36.7 billion. It added that an average yearly growth of 7.4 percent over the past 10 years was recorded, spanning the whole range of the aftermarket parts business from tires and wheels to engine system components.
It might be chrome wheels the size of hula hoops for a 1985 Chevy, a lift kit on a 4X4, high-compression heads for a Honda, or a supercharger designed to give the car extra power. Whatever the vehicle, aftermarket products are available for any individual’s taste and car designs. And the aftermarket business, including new-car dealerships, are paying close attention, expanding their lineup of parts and cashing in on the personalization trend that has presently seeing considerable growth.
“Lifting is huge. We’re doing a ton of that, and (our shops are) staying booked up a couple weeks out. When a person is chasing that off-road look, it’s going to lead them to (buy) wheels, tires, grab-handles and steps to get into it,” said company manager Brad Stevens of the Rick’s Pro Truck.
Aftermarket tuning, for both looks and performance, is a practice as old as the Model T. But its popularity has been supercharged in the past decade, reaching beyond the dedicated car culture. Peter MacGillivray, SEMA vice president of communication and events, said Americans love to personalize.
“This latest business (for the automotive aftermarket) is represented by mainstream consumers buying into the notion of customization. TiVo lets people customize their television watching, cell phones with custom ring tones and backgrounds and think about Starbucks’ ability to make coffee exactly to your taste,” he said.
“Performance can be addictive, like a drug. You’ll have guys come in and want an exhaust system, then nitrous, then everything else. A lot of guys are do-it-your-selfers. They want to build up their cars to their own specs. Some guys will come in one weekend and drop $1,000 on parts then be back the next weekend wanting more,” he said.
The trick to operating the aftermarket business, Inman said, is knowing what products people will want and to give them installation advice. The wall behind his checkout counter is covered in sandwich-sized bags of blue metal fittings.
“Those are replacement parts for nitrous systems. And we sell a lot of them. Some might be $5 and some might be $30, but guys installing a system might drop $250 on fittings alone,” he said. “They may be little parts, but people depend on us to have them in stock. Our customers need to be able to walk in and get it or else they can’t go racing that night.”
Another significant part of the aftermarket’s business comes from dress-up parts, such as stick-on chrome fender portholes, jewel-box tail lamps and exhaust tips. Fashion-conscious buyers might pick out a set of plus-sized wheels, chrome door handles or a custom grille at an outlet such as Big 10 Tires and Accessories.
As increased gas prices have hurt the truck market—and consequently the truck aftermarket—Glenn Powels, manager at Big 10’s State Street Jackson location, keeps his stock balanced between truck and car accessories.
“We see the market turning toward cars, particularly the Dodge Charger and Chrysler 300. People still want a full-sized vehicle but one with better gas mileage,” he said. “You see this more selling to the 20- to 40-year-old demographic. I’d say it’s 70 percent male, 30 percent female.”
The aftermarket has become so personalized Powels stocks different wheels, knowing what look will appeal to men and what will catch a woman’s eye. Area dealers are increasingly offering new and used cars with aftermarket add-ons. A majority of the cars on his lot have some aftermarket upgrade— anywhere from window tint to a lift kit—some of which are installed by dealership mechanics. Other work is subcontracted to aftermarket shops.
“It not really everything you need, its everything you want,” he said. “It taps into a passion of people.”