The U.S. Market for Automotive Aftermarket Products: Volumes I & II - 4th Edition

 
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Published Sep 1, 2002 | 656 Pages | Pub ID: LA778550

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The U.S. market for automotive aftermarket products, already worth over $120 billion at retail, still has tremendous growth potential. Even the fact that automobile parts last longer, thus requiring less maintenance and less frequent replacement, encourages people to keep their vehicles longer. The high price of new and used cars makes investing in what one owns seem the better bargain, secure in knowing that cars maintain their value much better than formerly. And cars have evolved, thanks especially to continuing developments in electronics, from simple means of transportation to extensions of the home and workplace. Accordingly, people may well be willing to spend more time and money on their vehicles (like their homes) than ever before. The Automotive Aftermarket Industry Association says there is approximately $64 billion in unperformed maintenance left on the table each year by U.S. consumers. This two-volume Packaged Facts report explores the potential of automotive aftermarket products in depth, organizing the products into three categories: hard parts (including tires and batteries), accessories, and chemicals (both operational and appearance).

The U.S. Market for Automotive Aftermarket Products Volume I— Market Overview
This volume presents a detailed overview of the market, tracing sales since 1997 and offering projections, with supporting evidence, through 2006. It profiles the leading marketers in each category, including AlliedSignal, Ford, GM, Goodyear, Johnson Controls, American Racing Equipment, Pioneer Electronics, Ashland, Castrol, Clorox, Pennzoil-Quaker State, and Turtle Wax. Also part of Volume I is an overview of marketing and new product trends, developments in distribution and at retail, and consumer behavior.

The U.S. Market for Automotive Aftermarket Products Volume II— Market Focus: Hard Parts, Accessories, and Chemicals
Volume II devotes separate chapters to each of the three categories—Hard Parts (including hard parts, tires, and batteries), Accessories (covering 13 segments including electronics, custom wheels, truck accessories, lighting, air fresheners, and safety equipment), and Chemicals (motor oil, fluids, additives, and appearance chemicals)—providing a detailed look at sales, marketing, new products, distribution, and retail trends. Each category focus chapter also contains extensive data on, and analysis of, consumer behavior.

Volume I

Chapter 1: Executive Overview

Chapter 2: Market Overview

  • The Products
  • Market Definition
  • Basic Market Distinction: OE vs. Replacement Parts

Three Product Categories

  • Hard Parts, including tires and batteries
  • Accessories
  • Chemicals, including operational chemicals and appearance chemicals
  • Exclusions: body parts; electronic office and entertainment products powered by connecting to a passenger vehicle’s cigarette lighter; racing tires and tires for vehicles other than passenger cars and light trucks; batteries other than 12-volt lead-acid replacement batteries

The Market

  • Growth of U.S. automotive aftermarket product sales by category and subcategory, 1997-2001
  • Size of market in 2001, growth over 2000, since 1997
  • Market difficult to quantify
  • 2001 sales and sales history for each category and subcategory

Factors in Market Growth

  • Positive Factors
  • Aging of U.S. vehicle fleet a major driver
  • Growth in number of vehicles
  • Average annual mileage per vehicle continues to increase
  • New vehicle sales, particularly sales of light trucks
  • Decline in passenger vehicle leasing
  • Specialty tools, including sophisticated diagnostic tools, now available to DIYers
  • Stricter emission standards
  • Creative marketing and new product development, especially in accessories
  • Growth of Hispanic population
  • Consumer education
  • Negative factors
  • State of the economy
  • Status of state vehicle inspections
  • Newer engines have fewer parts, require fewer fluids
  • Greater durability of original equipment parts
  • Advent of longer-lasting synthetic motor oils
  • Extended dealer warranties
  • Downward pressure on prices because of intense competition
  • Projected Market Growth

Marketer Overview

  • Hundreds of companies compete
  • Despite diversification, most marketers remain specialists
  • Big-three automakers dominate hard parts subcategory
  • Specialists Goodyear, Bridgestone, and Michelin dominate tires
  • Specialists and automaker vie in batteries
  • Leading accessories marketers vary by segment: Pioneer, American Racing Equipment, etc.
  • Leading chemicals marketers vary by segment and subcategory: Pennzoil-Quaker State, AlliedSignal’s Prestone, Clorox’s STP, and Clorox’s Armor All

Table of Selected Marketers and Brands

Competitive Overview

  • Competitive pressures intensifying
  • Automakers target aftermarket
  • Competitive overview: hard parts
  • Competitive overview: accessories
  • Competitive overview: chemicals

Competitive Profiles: Hard Parts

  • AlliedSignal
  • Ford Motor Co.
  • General Motors
  • Goodyear Tire
  • Johnson Controls

Competitive Profiles: Accessories

  • American Racing Equipment
  • Audiovox Corp.
  • Pioneer Electronics
  • Rally Manufacturing
  • Snap-On Corp.

Competitive Profiles: Chemicals

  • Ashland Inc.
  • Castrol Inc.
  • Clorox Co.
  • Pennzoil-Quaker State
  • Turtle Wax Inc.

Marketing and New Product Trends

  • Electronics--the advent of computerized automotive systems--the key trend in hard parts and accessories
  • Trend toward self-sealing and run-flat designs in tires
  • Trend toward higher-voltage modular batteries
  • Truck/SUV products rule accessories
  • Chemicals: trend toward longer-lasting and synthetic motor oils
  • New one-step and tire-care appearance products

Table of Selected New Product Introductions

Distribution

  • Background of complex distribution structure, 1920s-1960s
  • New trends emerge in 1970s and 1980s: specialty repair shops, warehouse clubs, growth of auto parts chains
  • 1990s bring restructuring and trend toward two-step distribution
  • Warehouse distributors
  • The top-10 automotive aftermarket wholesalers, with table showing number of stores operated by each
  • Program distributors, with 18 major ones listed
  • NAPA, the largest program distributor
  • Jobbers, WDs, and programmers
  • The leading jobber chains
  • Jobbers and remanufactured hard parts; jobber margins for “remans”
  • Distribution to retailers

Retail Structure

  • Preliminary distinction: DIY -- do-it-yourself vs. DIFM -- do-it-for-me
  • DIY and service businesses merging
  • Service-oriented retail outlets
  • New car dealerships
  • Service specialists’ role increasing
  • Tire dealers expand service offerings
  • Independent repair garages hang on
  • Gas stations’ role in aftermarket shrinking
  • Auto parts stores serve the “serious” DIY customer and the professional installer
  • Mass merchandisers/General merchandise retailers serve the “leisure” DIY customer
  • The Internet
  • Performance shops offer products for high-performance vehicles, performance-enhancing products for ordinary vehicles
  • Food stores, drugstores, and convenience stores

At the Retail Level

  • AutoZone the leading retailer
  • Table of top 10 aftermarket retailers, 2001
  • Consolidation reshaping ranks of retailers
  • Number of retail outlets keeps growing
  • Wholesalers have become retailers, too
  • Auto parts stores lead in DIY retail sales
  • General repair shops lead in DIFM sales
  • Auto parts stores carrying more hard parts
  • Trend to larger stores
  • Trend to stores using a single supplier per subcategory or segment
  • Retailers paying more attention to merchandising
  • Number of hard parts SKUs carried
  • Accessories and chemicals a growing part of retail assortments
  • Margins average 30%-50%
  • Chemicals lead in number of turns

The Consumer

  • Note on Simmons Market Research Bureau
  • Percentage of Americans owning a vehicle
  • Repair/shops garages are preferred service outlet
  • Table: consumer ownership of vehicles by type, 2001
  • Table: percent of Americans who have their car serviced: by retail outlet type, 2001

Volume II

Chapter 1: Executive Overview

Chapter 2: Hard Parts

The Products

  • Category scope: replacement products primarily—hard parts, tires, and batteries
  • Improved quality of hard parts
  • Remanufactured parts
  • Metals and other materials used in hard parts
  • Three basic types of tires
  • Radials now the dominant type
  • High-performance tires emphasize traction
  • Treads are classified by weather compatibility
  • Retreads confined mostly to truck market
  • Tire raw materials increasingly high-tech
  • Tire recycling and disposal
  • Tire rating and labeling
  • Battery design and materials
  • Batteries more sensitive to heat than cold
  • Trend to “maintenance-free” over “low-maintenance” batteries
  • Trend toward dual-capacity batteries
  • Other battery designs
  • Battery warranties now run between five and seven years
  • Battery recycling

The Market

  • Figure: U.S. Automotive Aftermarket Sales of Hard Parts by Subcategory, 1997-2001

Market Size and Growth

  • Methodology
  • 2001 sales and table with five-year sales history broken out by subcategory

Market Composition

  • Sales of hard parts subcategory by retail outlet
  • Unit tire sales, 1997-2001
  • Aftermarket accounts for bulk of tire shipments
  • Nearly all tires sold are radials
  • Passenger tires dominate unit sales
  • All-season tires most popular, with table of unit sales by tread design
  • Blackwalls favored for sidewall design
  • Performance tires gain in popularity
  • Tire sales by retail outlet—independent tire dealers lead—with table
  • Battery sales by retail outlet—Sears and mass merchandisers lead—with table
  • Battery sales are seasonal

Factors in Market Growth

  • Positives
  • Proliferation of makes and models a plus
  • Growing size and age of vehicle fleet
  • More miles being driven
  • Today’s parts cost more
  • Innovations in hard parts subcategory
  • Trend to front-wheel drive a plus for brake replacements as well as for steering/suspension/drive train sales
  • Filters enjoy good prospects
  • Headlamps a trendy customization item
  • New lighting technologies bode well for aftermarket
  • Oxygen sensors have strong growth potential
  • Popularity of trucks and SUVs drive tire sales
  • Oil prices affect tire
  • Growth in electronic components a plus for batteries
  • Advanced battery technology will grow market
  • Electric vehicles: an elusive boon
  • Prospects for tougher vehicle inspection
  • Negatives
  • Competition and overcapacity exert downward pressure on prices
  • Development of more durable hard parts, tires, and batteries also inhibits growth
  • Exhaust systems need less frequent replacement
  • Future vehicles to contain fewer parts
  • Spark plugs’ future cloudy
  • Shocks/struts face bumpy road
  • Global overcapacity affects U.S. tire market

Projected Market Growth

  • Growth of market to 2006

The Marketers

  • About 25 major players among hundreds of marketers
  • Hard parts subcategory: most marketers stick to one or two segments
  • Big-three automakers dominate overall aftermarket
  • Leading hard parts specialists: Dana/Echlin, Standard Motor Products, Federal-Mogul
  • Leading hard parts generalists: AlliedSignal, Arvin Industries, Tenneco
  • Leading hard parts service specialists: Midas International, GKN North America, AAMCO Transmissions, NAPA
  • Hard parts market share rankings by segment based on consumer usage surveys
  • Six major tire marketers: Goodyear, Bridgestone/Firestone, Michelin, Cooper Tire, Continental AG, TBC Corp.
  • Second-tier marketers keep pressure on
  • Ranking of tire marketers, with estimated shares of aftermarket sales, complete with table
  • Batteries: top three marketers -- Johnson Controls, Exide, GM’s ACDelco -- control at least 90% of business
  • Majority of other marketers’ batteries made by top three
  • Table: Selected Marketers and Brands of Hard Parts, Tires, and Batteries

Competitive Overview

  • Competitive pressures intensifying in each subcategory
  • Automakers target the aftermarket
  • Automakers enjoy big production advantage plus superior marketing capabilities
  • Yet many consumers resent automakers’ higher prices
  • Other hard parts marketers have advantages, of which lower price is primary
  • Sophisticated marketers offer superior problem-solving parts
  • Aftermarketers target hard parts for imported vehicles
  • Acquisitions a major survival strategy for hard parts marketers
  • Trend to “preferred vendors” -- partnering of manufacturers and program distributors
  • Retail price competition squeezes margins
  • Hard parts marketers improving their efficiency
  • Parts proliferation a continuing problem
  • Advertising a largely overlooked resource
  • Hard parts “competitive capsules”: filters, spark plugs, starters/alternators
  • Overcapacity and falling prices beset tire market
  • Strong tire marketers get stronger via mergers and joint ventures
  • Advances in tire manufacturing processes up competitive ante
  • Downward pressure on battery prices
  • Private-label battery contracts help market share but hurt profitability
  • Johnson Controls and Exide go head to head
  • Exide focuses on aftermarket brand strength
  • OE relationships give Johnson a leg up on product development
  • Delco trades on strength of name
  • GNB Technologies a leading battery recycler
  • Interstate Batteries sells batteries on consignment
  • Competition from Japan

Marketing and New Product Trends

  • Trend to high-performance hard parts, tires, and batteries
  • Hard parts trends generally follow OE market, but aftermarketers sometimes innovators
  • Electronics -- computer-controlled systems -- changing hard parts market
  • Hybrid -- gas/electric -- vehicles could change it further
  • Continuing trends toward longer-lasting and all-season tires
  • Truck and SUV tire sales growing
  • Specialty tires (for wet road handling or high-speed highway driving) a growing segment
  • Other trends in tread design
  • Trends in sidewall design
  • Advances in tires, including self-sealing and run-flat designs
  • Trend to branding in batteries
  • Trend to two-battery or larger-battery vehicles
  • Lighter-weight batteries
  • “Smart” batteries—batteries with electronic control module
  • Use of non-liquid electrolyte in batteries to eliminates acid leaks
  • Cylindrical coils replace plates, permitting smaller batteries
  • Smaller, sealed design makes new placement possible
  • Table of Selected New Product Introductions of Hard Parts, Tires, and Batteries

Distribution and Retail

  • Move to two-step distribution in hard parts
  • Warehouse distributors hang on, in part by specializing and by acquiring stores
  • Programmers may also become two-steppers, selling direct to certain channels
  • Manufacturers sell direct to retailers
  • Tires typically follow three-step distribution
  • Batteries: direct shipment to large retailers vs. warehouse distribution

The Retail Arena

  • Case studies in hard parts retailing: Detroit Gasket, AutoZone
  • Independent auto parts stores survive
  • Retail competition in tires is fierce
  • Larger tire outlets displace smaller retailers
  • Ford enters retail tire arena through “Around the Wheel” program
  • Consolidation is key survival strategy for tire retailers
  • Forming purchasing co-ops is another strategy
  • Tire dealers add other services
  • Leading tire chains, with store counts and table
  • Leading tire dealers among general merchandisers

At Store Level

  • Retailers average half their sales in hard parts
  • Hard parts margins average 30%-40%
  • Stores stock average of 34,000 hard parts SKUs
  • Spark plugs and related tune-ups
  • Filters average 33%-41% margins, four turns
  • Cooling system parts are big sellers
  • Brake parts offer high margins
  • Shock and strut sales increasing
  • Water pumps have high margins
  • Bearing occupy little space, offer average margins
  • Fuses offer high margins, high turns
  • Ditto for headlamps
  • Average gross margins for batteries have improved
  • Retailers carry one or two brands of batteries
  • Battery SKUs continue to drop
  • Floor space for batteries also shrinking

The Consumer

  • Note on Simmons
  • Purchase rates for types of hard parts covered in most recent survey
  • Prevalence of DIY vs. DIFM installation
  • Demographic profile of DIYer
  • Brake vs. muffler DIYers
  • Where hard parts are purchased
  • Brands purchased and brand user profiles for oil filters, air filters, spark plugs, mufflers, shocks/struts
  • Purchasers of passenger car tires and light truck/SUV/van tires by: type, sidewall design, outlet where purchased, brand, amount spent
  • Profiles of heavy, medium, and light users
  • Profiles of passenger care tire purchasers and light truck tire purchasers
  • Brand user profiles for car tires: Goodyear, Michelin, Firestone
  • Brand user profiles for light truck tires: Goodyear, BFGoodrich, Michelin
  • Percent of adults who purchase batteries
  • Battery purchaser profile
  • Majority are DIY purchasers
  • General merchandisers are preferred battery retailers
  • Brand popularity and brand user profiles
  • Heavy vs. light users

Chapter 3: Accessories

The Products

  • Breadth of category, encompassing 13 segments

The Market

  • Figure showing U.S. aftermarket sales of automotive accessories, 1997-2001

Discussion of sales history followed by table

  • Market size estimates vary enormously; accessories is most elastic aftermarket category

Market Composition

  • Electronics the largest segment, accounting for 42% of sales by PF estimate
  • Custom wheels the second largest
  • Truck accessories
  • Hand tools, windshield wipers, lighting, and air fresheners are next largest segments
  • Table: estimated sales of auto accessories by product type, 2001, and % change vs. 2000

Factors in Market Growth

  • Market affected by economy, demographic trends, lifestyles, weather, product trends
  • Lifestyles: vehicles becoming extensions of the home
  • Truck popularity portends growth
  • More accessories offered as OE, yet aftermarket accessory sales still growing
  • Crime, avoiding traffic law enforcement are factors in electronic accessory sales
  • Wheels one of few customization possibilities left
  • New products grow the market
  • Projected Market Growth

The Marketers

  • Hundreds of marketers, vast array of products
  • Most marketers are specialists
  • Major autosound marketers: Pioneer, Aiwa, Audiovox, Blaupunkt, Bose, Boss, Clarion, Jensen, JVC, Kenwood, Kraco, Sansui, Sanyo, Sony
  • Ford spinoff Visteon is focusing on multimedia systems
  • Leading electronic security system marketers: Audiovox, Clifford Electronics, Code-Alarm, Directed Electronics
  • Leading radar detector marketers: Whistler Corp., Escort, Bel-Tronics, Uniden America, Cobra, Valentine Research
  • Sunpro a leader in diagnostic scanners
  • Major custom wheel marketers: American Racing Equipment, BBS of America, Borbet, Fittipaldi, Momo
  • Snap-On one of several strong tool manufacturers
  • Anco leads in windshield wipers
  • Lighting leaders
  • Medo tops in air fresheners
  • Rubber Queen reigns over floor mats
  • Saddleman leads in automobile coverings
  • AutoVentshade leads in bug deflectors
  • Nichols, Haynes publish repair manuals
  • Generalist Rally strong in several segments
  • Superior, Carrand-Chieftain, Peterson also compete in several segments
  • Table of Selected Accessory Marketers and Brands

Competitive Overview

  • Dynamic category
  • Few brands have established themselves, apart from autosound brands
  • Marketers develop various approaches to the “merging aftermarket”
  • Windshield wiper marketers use advertising as well
  • Small players seek alternative outlets
  • Competitive Focus: Autosound
  • Competitive Focus: Electronic Security
  • Competitive Focus: Radar Detectors
  • Competitive Focus: Custom Wheels
  • Competitive Focus: Truck Accessories
  • Competitive Focus: Hand Tools

Marketing and New Product Trends

  • Truck and SUV accessories a continuing trend
  • Explosion of vehicle-specific accessories
  • Interior accessories focus on convenience
  • Technology is name of game in autosound
  • Automotive electronics becoming increasingly sophisticated
  • Next-generation electronic security
  • Mobile video also gaining ground
  • Integrating systems through electronic interface
  • Intelligent transportation systems coming
  • Multiplicity of designs in custom wheels
  • Windshield wiper trends
  • Luxury accessories are perennial niche sellers
  • Table of Selected New Product Introductions: Accessories, 2001-2002

Distribution and Retail

  • Accessories boast broadest distribution in aftermarket
  • Internet sources for accessories
  • Accessories account for more than 25% of auto retailers’ sales
  • Special ordering addresses explosion of vehicle-specific accessories
  • Margins average 35%

The Consumer

  • Simmons note
  • Summary coverage of automotive air fresheners, floor mats, headlights/lamps, windshield sun shades, tire inflator/sealers, steering wheel covers, seat covers, vacuum cleaners, fog lamps, automobile covers, front-end covers, and “other” accessories
  • Overall profile of accessory purchaser plus purchaser profiles by product type

Chapter 4: Chemicals

The Products

  • Category embraces operational chemicals and appearance chemicals
  • Operational chemicals: motor oil
  • Operational chemicals: fluids, including antifreeze, transmission, brake, etc.
  • Operational chemicals: additives, including fuel, oil, engine treatments, sealants
  • Appearance chemicals: waxes and polishes
  • Appearance chemicals: touch-up paints and body fillers
  • Appearance chemicals: protectants
  • Appearance chemicals: washes

The Market

  • Figure: U.S. sales of automotive chemicals by subcategory, 1997-2001

Market Size and Growth

  • Discussion of five-year sales history, with table showing sales broken out by subcategory and segment
  • Operational chemicals: sales by retail channel, 2001
  • Appearance chemicals: sales by retail channel, 2001, with table

Factors in Market Growth

  • Motor oil has steady growth prospects
  • Motor oil a global business affected by foreign markets
  • Longer drain intervals on newer vehicles inhibit growth
  • Synthetic motor oils—longer lasting—could also slow growth
  • Slow growth expected for fluids subcategory
  • Additives’ prospects
  • Appearance chemicals: new, easier-to-use products drive growth
  • Fewer motorists caring for car’s appearance themselves

Projected Market Growth

  • Sales projected to 2006, discussed by subcategory and segment.
  • Table: projected sales, 2001-2006, broken out by subcategory and segment

The Marketers

  • Operational chemicals: at least 200 marketers of all sizes
  • Larger marketers compete in every segment
  • Marketers difficult to rank
  • Pennzoil-Quaker State is number one in operational chemicals, followed by Ashland, Castrol, Exxon Mobil, Prestone, and STP
  • Smaller marketers
  • Pennzoil-Quaker State also leads motor oil segment
  • Three marketers vie for lead in synthetic motor oils
  • Fluids segment is fragmented
  • Prestone leads in antifreeze/coolant, but private-label brands making inroads
  • Pennzoil-Quaker State also a leader in “other fluids”
  • A handful of leading marketers in additives segment
  • Scores of marketers of appearance chemicals
  • Clorox became number one via acquisitions, Turtle Wax ranks second
  • Leading marketers in waxes/polishes segment
  • Sherwin-Williams’ Krylon brand leads touch-up paint/body filler segment, followed by Plasti-Kote
  • Bondo the top brand of body filler
  • Other major players in segment include Pennzoil-Quaker State’s Blue Coral unit
  • Table of selected leading marketers and brands of automotive chemicals

The Competitive Situation

  • Competition growing, but chemicals marketers enjoy several advantages over hard parts marketers

Competitive Focus: Motor Oil

  • Specialists vs. oil companies
  • Specialists lead and have made competitive gains
  • Oil companies face severe competitive pressures
  • Private labels vie for shelf space
  • Moving to capture the DIFM market
  • Developing higher-end niche products
  • Developing specialty motor oils for specialty vehicles or driving conditions

Competitive Focus: Automotive Fluids

  • AlliedSignal’s Prestone dominates
  • Ashland’s Zerex follows Prestone’s lead; offers comprehensive line
  • Sierra the leading brand of propylene glycol antifreeze
  • Clorox’s STP also competes in segment
  • Texaco’s Havoline antifreeze entry
  • “Green” marketers: Amrep, International Lubricants
  • Private labels force prices down

Competitive Focus: Automotive Additives

  • STP has leading share; longstanding relationship with NASCAR
  • Pennzoil-Quaker State in second with Slick 50; Pennzoil’s Blue Coral unit competes with 4x4 and Gumout
  • Valvoline’s Pyroil competes on price
  • Turtle Wax enters segment
  • Impact of private label
  • Segment attracts newcomers, but may be overcrowded
  • “As-Seen-on-TV” lines: Prolong, Granatelli

Competitive Focus: Appearance Chemicals

  • Mergers and acquisitions strengthen top brands
  • Field becoming crowded with newcomers and line extensions
  • Clorox’s Armor All competes with plethora of new offerings
  • Turtle Wax backs line extensions with licensing and distribution agreements
  • Nu-Finish a strong secondary brand
  • Progress of Simoniz’s comeback
  • No Touch seeking sales through tire dealers
  • Blue Coral targets several demographic groups and price ranges
  • Mother’s Polish pursues upscale strategy

Marketing and New Product Trends

  • Trends to synthetic, niche, and high-performance products
  • Improving conventional motor oils
  • Recycled motor oil a niche product
  • Educating consumers about new motor oils
  • Motor oil marketers targeting the youth and Hispanic markets
  • Motor oil marketers offer retailing support
  • Shift from rebates to everyday-low-price strategy in motor oil/fluids/additives
  • Motor oil/fluids/additives marketers expanding into other categories
  • Easy-on/easy-off remains important feature of appearance chemicals
  • New appearance chemicals mirror trends in personal care, such as “clear” and organic
  • Pleasing scents arriving
  • More products oriented toward women
  • Touting the suitability of appearance chemicals for household use as way to boost sales
  • Stressing protection from environmental damage as selling point
  • Leather-care products popular
  • Tire dressing a whole new segment
  • Table of Selected New Product Introductions: Chemicals, 2001-2002

Distribution and Retail

  • Automotive chemicals enjoy wide distribution
  • Car dealers compete in oil change business, offer lifetime free oil changes
  • Motor oil margins average 22%
  • Motor oil frequently sold as loss leader
  • Antifreeze offers 28% margins
  • Additives offer higher margins, require less space
  • Fluids, too, also sold through food stores and drug stores
  • Appearance chemicals offer 40%-50% margins and frequent turns
  • Appearance chemicals getting more display space and higher SKU counts

The Consumer

  • Extensive coverage on purchasing of motor oil, antifreeze/coolant, gasoline additives, oil additives, and car wax/polish.
  • Limited coverage on purchasing of leather/vinyl protectants and tire cleaners/protectants. User profiles by brand and usage level.
  • Info from Aftermarket Business’ 2001 DIY consumer survey on motor oil, antifreeze/coolant, additives, engine treatment, wax and polish, and car wash products.