Chris Kersting is the president of SEMA.
What are some of the biggest trends the specialty aftermarket will see in 2008?
One of the biggest trends we've seen in recent years is the increased interest in automotive specialty-equipment products from dealers. We expect this trend to continue in 2008, along with an increased interest from overseas. The automotive markets in China and Mexico, in particular, are stronger than ever, and consumers in those countries are catching on to the notion of personalization.More and more repair shops are installing specialty parts at customers' requests. How can their jobbers and WDs take advantage of this?
Consumers are demanding personalization more and more, and they're hoping to get these products in the most convenient outlets. This is opening up the doors for cross marketing opportunities with the repair and replacement shops. Jobbers and WDs would be wise to forge relationships with these types of shops.
Do you think the traditional aftermarket and specialty aftermarket are coming closer together? Why or why not?
As businesses look to sell more through new markets, I think that we'll see more of the traditional repair and replacement businesses look to the specialty aftermarket for add-on sales opportunities.
Are Web-based businesses boosting specialty parts sales? If so, how will this affect the overall specialty aftermarket?
Research indicates that consumers are continuing to purchase more parts online. Just like any other change, SEMA has been helping members by providing industry-specific educational seminars on this development. Members are learning how they can profit from this trend.
How have high gas prices and a tight economy affected the specialty parts industry?
Looking back, the automotive specialty parts business has grown even during slower economic times. One theory is that core auto enthusiasts will continue to put discretionary dollars into their hobby. While they may find ways to save money in other places that they are less passionate about, they will continue to invest in their vehicles. Another theory is that, even in tight economic times, consumers hold onto their vehicles longer and will be eager to personalize their cars and trucks. And because there are specialty parts at both ends of the price scale, there is something for everyone in the market.
Of course, we have to be realistic and recognize that the tough economic cycle, coupled with increased fuel prices, is having a negative impact on our market.
What are the biggest regulatory hurdles for the industry (local laws prohibiting certain types of lighting, exhaust, etc.)?
The legislative and regulatory trend sees a shifting of the winds. We can anticipate greater degree of legislative activity regarding vehicle safety and vehicle emissions. We are also giving careful attention to matters which will affect global trade, including intellectual property protection.
