Millennials now represent the greatest opportunity for the accessory industry, according to the newly published 2015 Accessories Immersion Report from Foresight Research.
“First, millennials are returning to new car purchasing in droves, so there are more of them,” said Chris Stommel, president of Foresight. “Second, they install accessories at a 42 percent higher rate, and spend 61 percent more on accessories than the average new auto purchaser.”
A closer look at the pickup segment shows the breadth of accessories installed and magnitude of spending among these folks is accessory-provider payload. “It’s no surprise that new pickup buyers are heavy accessorizers, but a very healthy 72 percent of new pickup buyers already installed/plan to install over $250 worth of accessories on their new vehicle,” said Stommel. “On average, new pick-up buyers spend over $1,500 on accessories; about evenly split between money spent since delivery and intended spending within the first two years of ownership. That’s more than twice the average spending across all segments.”
Although pickups represent the highest accessory install rates and accessory spending, these buyers represent the biggest challenge for dealers hoping to capture a bigger share of the estimated $33 billion automotive accessory market from the aftermarket. Compared to other segments, pickup buyers most often perceive dealers at a disadvantage versus aftermarket sources (especially Internet sources) on all four key purchase criteria (price, in-stock availability, quality and installation).
“We see this as a big opportunity for pickup brand dealers, and alternatively, an area to defend and nurture for retail and digital aftermarket accessory outlets,” Stommel says. “Additionally, while we would expect truck buyers to install trailering-related accessories at higher rates, they also install non-endemic segment accessories at higher rates, including tinted windows, custom bumpers and grills and bug deflectors.”
The Foresight 2015 Accessories Immersion Report is one of five published in 2015. The other four explore new auto purchaser influence and experience related to auto shows, dealerships, motorsports and promotions. For more information, visit www.foresightresearch.com.
