Report: New Vehicle Buyers Spend $18B on Accessories
Nearly half of all new retail vehicles sold in the US will be accessorized within two years of delivery, yielding $18 billion in new vehicle accessory spending, according to a new report from Michigan automotive insights firm, Foresight Research.
Foresight’s most recently published US Accessory Immersion Report found that over 6.2 million new vehicles are accessorized in the first year of ownership, representing over $12 billion in spending. Another $7 billion in accessory spending occurs within the two-year period from delivery.
No longer is the focus on just a few truck accessories, or on wheels and floor mats, says Steve Bruyn, Foresight’s CEO. “The top installed accessories are connectivity-based, with Bluetooth, iPods, cell phone holders and charging devices topping the list. This is a whole new direction for the automotive accessory business, and it is right in line with what is going on in the industry. Appearance and protection accessories are also top performers.”
Foresight’s Accessory Sales & Marketing Report also found that successful accessory marketing plans are rooted in advance market planning. Accessory buyers perform significant self-research in advance, gathering accessory information from digital media, brochures and print articles, as well as during visits to their local auto show. These are the “low handing fruit” that automakers can and should actively support. And with today’s increasing digital car buying, these advance consumer research channels will likely play an even more important role moving forward.
The report also found that only half of all new vehicle buyers recall having a discussion about accessories with their dealer, and the majority of those discussions were initiated by the consumer themselves. Since the average buyer is spending $1,000-plus on accessories in the aftermarket, these are sales dealers are surrendering by not proactively selling. And with limited dealer vehicle inventories, accessorizing at the dealer will be an even more important part of the dealer revenue in the coming year, the report said.
Click here for more information.
