Tuner market drives car-care segment
A proliferation of new car-care products and expansion into this category by suppliers in other after-market segments would seem to equate to a booming market for vehicle appearance products. But industry sources and suppliers both confirm this $750 million category was flat last year, with 2004 revenue up just slightly.
So why all the fuss about a category with unpredictable sales potential? It's because appearance is one of the few automotive segments that can benefit from impulse sales and buck the trend of declining do-it-yourself maintenance and repair.
"For a lot of manufacturers it's an easy category to get into, but it's hard to get consumer acceptance. That's the struggle they have," said Mike Riba, team leader for Shell Lubricants, which makes Black Magic and Rain-X appearance products.
Tom Seboldt, director of merchandise for O'Reilly Auto Parts, said sales of car-care products were up for O'Reilly last year, due in part to getting products out earlier in February in advance of the prime season that runs from spring through late summer. Seboldt noted strong sales growth in products that save consumers time in vehicle care or are premium-positioned, such as waxes catering to the tuner market.
A big hit last year was the Mr. Clean AutoDry car wash system from Old World Industries. This product that promoted a spot-free shine with no hand drying is now expanding to a pro series kit that features extra jet spray pressure to remove tough dirt along with an ergonomic soft-grip handle and carrying case. Rivals have taken notice, with Shell unveiling its own self-dry car wash system under its Rain-X brand to sell for $9.99 as opposed to the $19.99 retail for Mr. Clean.
Premium appearance products marketed to tuners and auto enthusiasts have been another emphasis of suppliers. Turtle Wax recently launched its Platinum Series of appearance products, Meguiar's its new NXT Generation line and Mothers debuted its FX brand--all of which target this loyal and finicky market segment.
"The tuner market is leading the way for new products coming out," said Krista Pennington, national sales field director at Meguiar's. "They want the best of the best, no matter what it costs."
Upscale packaging in part sells these new lines, while the formulations in the products are intended to deliver optimum results as a "best" offering in car-care products. Engineered synthetic polymers are a new ingredient in some of the latest premium waxes, offering advanced protection and a deeper, longer-lasting shine.
<< Home