LAS VEGAS (Nov. 1, 2016) — Dollar sales in the automotive aftermarket are expected to dip 1.9 percent in 2017, according to an analyst with NPD Group Inc.
The projected decline, the first after several years of modest growth, is due to several factors that have been trending this year, Nathan Shipley, director of industry analysis for NPD, told attendees at AAPEX in Las Vegas.
Retail prices have declined as unit sales have increased, less expensive private label products have become more popular among consumers, miles driven is declining and unseasonably warmer weather across the country has negatively impacted sales of some products, he said.
Over the next 10 years, the automotive aftermarket will be further impacted as baby boomers start retiring and driving less while millennials get older and plan to drive more. Retailers will have to find ways to attract these millennials, who will become the target market, he said.
Millennials look to the internet for research and purchases more so than the older generations, he noted. About 44 percent do about half their overall shopping online, a third use the Internet to find retailer and product reviews and about 80 percent visit YouTube daily, with many using the video website to learn how to do automotive repairs and maintenance.
Even if they do not purchase automotive products online, they are learning and researching the products online, he said.
So if your company is not involved in e-commerce, he said, “make sure you have a presence online from a research standpoint.”