Rochester, MI March 31, 2016 – Auto accessories are a burgeoning business, and the return of the 18-34 Millennial buyers to the new auto purchasing landscape could catapult growth even more, according to Foresight Research, publishers of the annual Channel Immersion and Perspectives Study™ (CHIPS) among new auto buyers.
“Millennials jumped from a 5-year low of 10% of new auto buyers in the 2014 CHIPS study, up to 20% in 2015,” said Nancy Walter, VP Business Development at Foresight Research. “About four in ten new car buyers purchase any accessories, but well over half (54%) of 18-34 year olds individualize their vehicles with accessories.”
These younger buyers also spend a lot more on accessorizing. The average Millennial new car buyer already spent/intends to spend $1,216 in accessories, which is almost 50% higher than the average buyer and over 70% higher than the average Boomer buyer. The CHIPS study also defines a group of Accessorizers as those who spent or plan to spend $250 on accessories in the first two years of ownership. The Millennial Accessorizers spend a whopping $2,220 on accessories on average.
“Since buyers recently purchased their vehicle, we ask about accessories that they already have on the car, as well as those they intend to purchase within the first two years of ownership. About half of anticipated Millennial spending is already spent and the other half is planned, while Boomers have already spent over 70% of their anticipated total accessory purchases with only 30% planned in the first two years after purchase. “
“One of the most important findings about accessories is the effect of dealerships attempts to sell on accessory purchases during the new vehicle shopping process,” Walter said, “and there is a definite positive correlation between dealership sales efforts and accessory purchases and spending. So, while Millennial interest in accessories is attributed to this group’s desire to personalize possessions and reflect individuality, another contributing factor may be that Millennials are 50% more likely than Boomers to report that dealerships actively sold them accessories.”
All in all, accessories represent a great opportunity for Millennials to convey their individuality…and for accessory makers and dealerships to grow sales.
Foresight will publish the 2016 Accessory Immersion Report TM in July. The report will include a demographic analysis of accessory installation incidence and spending, as well as install rates for 72 key automotive accessories, installation and spend rates by brand, segment, and geographic groups, and much more.
About Foresight Research – www.foresightresearch.com
Foresight Research specializes in syndicated and custom studies focusing on key influencers of purchase decisions in the automotive industry. Since 2008, Foresight Research publishes syndicated reports each year that provide information, strategies and best practices to help auto companies, their partners, and auto dealers to build, position, and support marketing insights and actions.
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