When you mention interior style for vehicles, it's common to gloss over the seats and interior finish and go straight to the electronics. Interior modifications require a broad range of skills from simple replacements to custom installations. Frost & Sullivan's research into vehicle modifiers indicates that modifier skills, the time invested in vehicle modification and the caliber of the project modifier attempts all are rising.
In 2008, 24 percent of enthusiasts reported completing a seat installation personally. An additional 23 percent completed the work with the assistance of manuals, online sources and friends. The ability to perform do-it–yourself (DIY) installations is extremely important to modification enthusiasts. What will continue to sustain the industry is its ability to grow the interest and the skill level of the participants.
Replacement products such as shifter knobs, gauges, pedal pads and seats are high-profile items with strong sales volumes. In 2007, shifter knobs and pedal pads alone generated manufacturer level revenues in excess of $23 million. Carpeting, dash replacement and seat coverings are typically high-ticket custom project items where labor represents a greater portion of the product's overall cost.
How a vehicle looks, known as its "show" value, continues to be very important to enthusiasts, as more than 45 percent of enthusiasts have a "vision" for their vehicles. In 2008, Frost & Sullivan notes that 26 percent of enthusiasts tend to spend more money on "show" features than "go" modifications. After paint, interior modifications are the most important element in helping to determine the vehicle's theme.
Among the general vehicle-owning population, only 6 percent report installing interior modification products on their vehicles in the last 12 months. This is in sharp contrast to the 36 percent of enthusiasts who report installing interior accessories in that same time.
The big consumers of interior modification products are the owners of pickup trucks and those in high-income brackets with annual salaries in excess of $90,000. Approximately 75 percent of the time, enthusiasts install the product themselves. When enthusiasts perform a DIY installation, they are using additional resources — typically a friend to assist — about 50 percent of the time. Female vehicle owners do tend to lag behind males in their participation in vehicle modification, mainly because of the lack of a female-oriented social structure among enthusiasts.
The overall outlook for the vehicle modification industry is good. Vehicle owners are reporting increased participation and strong intentions to continue to participate. Issues such as rising fuel costs, rising insurance costs, rising parts costs and the resulting threat impacting disposable incomes are issues for the modification parts industry.
Some products are forecast with flat or declining unit sales; however, Frost & Sullivan's research finds that it is the intention of modification enthusiasts to spend the same or more on vehicle modifications than reported in 2006.
Mary-Beth Kellenberger is a consultant with Frost & Sullivan's North American Automotive and Transportation practice. She focuses on monitoring and analyzing emerging trends, technologies and market behaviors for services, personnel and component sales in the North American Automotive Aftermarket. For more information about Frost & Sullivan, visit
www.frost.com.
FEATURED products
1 Steering wheels
Billet Specialties has introduced a new take on billet steering wheel design with its new "Stiletto" wheel. Featuring a new look that will add award-winning detail to a hot rod's interior, the company says, the Stiletto's new 3-D machined Profile Collection Steering Wheels are engineered to work with Billet Specialties Large Horn Buttons, Leather Half-Wraps and steering column adapters only. Not for use with simulated burl wood or carbon fiber half-wraps.
2 Upholstery
Katzkin Leather Interiors Inc. introduces Barracuda Leather, a unique black leather with square perforations that reveal colors on the underside for a subtle two-tone appearance. The upholstery is available in five view-through colors, according to the company.
