Study: Women vehicle owners determining aftermarket strategy

MOUNTAIN VIEW, Calif. (June 10, 2016) — Demographic shifts in the North American vehicle market are necessitating how the automotive industry operates, especially in the downstream activities of vehicle repair and maintenance, a recent study by research firm Frost & Sullivan found.

“The automotive industry has traditionally been a male-dominated sector — from manufacturing plants to repair facilities — and, historically, this did not pose a challenge for the industry in appealing to its customers, who were also predominantly male,” the firm said in its study, “Strategic Analysis of Women as Customers in the Automotive Aftermarket.”

However, current statistics show that more than 50 percent of license holders in North America are women. The number skews even higher toward women (53 percent) when considering Gen Y drivers, a consumer segment that Frost & Sullivan said “is poised to become the biggest target demographic for any business.”

Because of improvement in employment and income levels, women are also increasingly having a greater say in how vehicles are purchased, according to the firm. It noted that research shows 91 percent of car purchase decisions are now influenced by women. “Consequently, the automotive industry is waking up to an untapped market — female car owners.

“Despite this shift in trend of ownership by gender, data also points toward not just a dearth of female staff at the dealership and repair shop level, but also severe shortcomings in how technicians and shop personnel interact with women.”

Frost & Sullivan said in order for repair shops and businesses to remain viable, there needs to be a shift in aftermarket strategy.

The increasing purchasing power may be challenging for women, but they also present opportunities, according to observations from the firm's research. The study — which used Web-based responses from 1,500 male and female vehicle owners in the U.S. gathered during a late-2015 survey — points to several differences between how men and women maintain their vehicles. Frost & Sullivan highlighted some key separators it observed from its analysis:

• Women are more likely to drive vans and SUVs compared with men.

• Women drive older vehicles and earn less than their surveyed male counterparts.

• Women are less likely to follow maintenance schedules and generally tend to have less knowledge about their maintenance schedules.

• Women tend to be loyal both to car dealerships as well as independent aftermarket technicians. They are also more reliant on their advice.

• Women are also schooling themselves before walking into a dealership or garage by researching on the Internet or among their peer groups — 53 percent of women rely on information from friends/word of mouth compared to 49 percent of men who seek advice.

“These and other differences between men and women point toward the fact that competitors need to differentiate between these customer sets and create specific strategies to make their own particular sales channel or service shop more attractive to women,” the research firm said.

“In fact, some dealerships and workshops are already taking the lead in this area and striving to make themselves more women-friendly.”

Frost & Sullivan pointed to a case in hand — Nissan Motor Co. Ltd.'s “Ladies First” concept — as an initiative to launch womencentric auto dealerships in Japan, each with a stylish interior, children's play area, nursing room, and female staff on sales and repair teams.

“Similar examples are found in the independent aftermarket,” the company said, noting that Philadelphia-based tire and auto service chain Pep Boys — Manny, Moe & Jack “has rolled out a few concept stores in the U.S. market that have female-friendly staff, comfortable waiting lounges with amenities such as Wi-Fi, and beverages that may appeal to female customers.”

Apart from the physical sales environment, Frost said focus should also be paid to staff education. “Research results show that women value technical information, but, at the same time, tend to remain unaware of parts brands.

“Educating the customer could serve as a strategic starting point for suppliers and big-name parts retailers with private labels. By empowering female customers with knowledge about the products they are buying and having installed in their cars, suppliers and retailers can more readily ensure long-term brand loyalty and presence.”