Car Accessories - UK - March 2006

Table of Contents

• Introduction and Abbreviations
• Definitions
• Consumer research
• ACORN
• Advertising data
• Abbreviations
• Executive Summary
• UK car parc continues to rise
• Arrival of Sat Nav boosts market
• Sat Nav dominates convenience and styling sector
• Supply structure is highly fragmented
• Advertising spend on the rise as Sat Nav moves into mainstream
• Signs of some consolidation in distribution
• Middle-aged men the key targets
• Technology to become more integrated
• Market Drivers
• Rising car parc increases potential sales
  • Figure 1: Trends in the UK car parc, byvolume, 1995-2004
  • Figure 2: Expenditure on cars, by type,1995-2005
• Growing number of female and older drivers
  • Figure 3: Full driving licence holders, byage and gender, 1985/96-1999/2001
• PDI and consumer expenditure
  • Figure 4: PDI and consumer expenditure, atconstant 2000 prices, 2000-10
• Improved specification and developments in technology
• Distances travelled decreasing
• Brits on holiday at home provide some hope
• Market Size and Trends
• Arrival of new technology provides welcome boost to market
  • Figure 5: UK retail sales of caraccessories, 2000-05
• Convenience and styling segment grows to dominate overall sales
  • Figure 6: UK retail sales of caraccessories, by product type, 2001-05
• Market Segmentation
• Convenience and styling accessories
  • Figure 7: UK retail sales of convenienceand styling accessories, 2000-05
• The Sat Nav boom
  • Figure 8: UK retail sales of convenienceand styling accessories, by product type, 2001-05
• A sizeable market in its own right
  • Figure 9: UK retail sales of satellitenavigation/safety camera units, 2002-05
• Other convenience/styling accessories showing some growth
• Car mats
• Roof bars/boxes and cycle carriers
• Decoratives
• Styling and other accessories
• Safety/emergency accessories
• A more challenging market
  • Figure 10: UK retail sales ofsafety/emergency accessories, 2000-05
• Supply Structure
• Highly fragmented supply base
• Companies and brands
• Halfords
  • Figure 11: Halfords, company turnover,2004
• TomTom
• Garmin
• Navman
• Blackspot Interactive
• Distribution
• Halfords dominates distribution
  • Figure 12: Retail distribution of the caraccessories market, by outlet type, 2003 and 2005
• Halfords
• Motorworld
• Wilco Motor Spares
• Others
• The Internet
• Advertising and Promotion
• Advertising expenditure expands with the arrival of Sat Nav
  • Figure 13: Main monitored mediaadvertising expenditure on car accessories, 2001-05
  • Figure 14: Main monitored mediaadvertising expenditure on car accessories, by outlet type, 2000-05
• Press advertising dominates Halfords spending
• TomTom focuses on outdoor and radio
• Garmin invests in TV, while Navman prefers the press
• Halfords remains the biggest spender despite entrance of Sat Navmanufacturers
  • Figure 15: Advertising expenditure on caraccessories, by leading suppliers, 2001-05
• The Consumer
• Average miles driven per year
  • Figure 16: Average miles personally drivenper year, 2001-05
• Men and middle-aged drivers travel long distances
• Minimal use for the youngest and oldest
• Out and about with the family
• Safety/emergency accessories
  • Figure 17: Car accessories/tools owned forsafety/emergency use, October 2005
• Under 35 and under-prepared
• C2Ds ready to pop the bonnet
• Convenience/styling accessories
  • Figure 18: Car accessories/tools owned forconvenience and styling use, October 2005
• Music accessories high on the agenda
• Youngest consumers are the key targetsStyling accessories have substantial appeal
• Exterior styling -- the preserve of boy racers?
• Families maximise space
• The Consumer -- Detailed Demographics
  • Figure 19: Average miles personally drivenper year, by gender, age, socio-economic group, presence of children,marital status, working status, household size, region, lifestage andMintels Special Groups, 2005
• Safety/emergency accessories
  • Figure 20: Ownership of caraccessories/tools for safety/emergency use, by gender, age,socio-economic group, region, working status and marital status, October2005
  • Figure 21: Ownership of caraccessories/tools for safety/emergency use, by presence of children,lifestage, Mintels Special Groups and media usage, October 2005
  • Figure 22: Ownership of caraccessories/tools for safety/emergency use, by ACORN category,supermarket usage and commercial TV viewing, October 2005
• Convenience and styling accessories
• Interior accessories
  • Figure 23: Ownership of interioraccessories, by gender, age, socio-economic group, region, workingstatus and marital status, October 2005
  • Figure 24: Ownership of interioraccessories, by presence of children, lifestage, Mintels Special Groupsand media usage, October 2005
  • Figure 25: Ownership of interioraccessories, by ACORN category, supermarket usage and commercial TVviewing, October 2005
• Exterior styling/other external accessoriesFigure 26: Ownership of exterior stylingand other external accessories, by gender, age, socio-economic group,region, working status and marital status, October 2005
  • Figure 27: Ownership of exterior stylingand other external accessories, by presence of children, lifestage,Mintels Special Groups and media usage, October 2005
  • Figure 28: Ownership of exterior stylingand other external accessories, by ACORN category, supermarket usage andcommercial TV viewing, October 2005
• The Future
• OE or not OE?
• Technology key to market growth
• Portability and integration
• Adapting to change
• Internet and grocery multiples to increase their shares
• Forecast
  • Figure 37: Forecast of the UK retail caraccessories market, 2005-10
• Technology drive
• Comfort and convenience to dictate market growth
• Safety/emergency accessories to continue decline
  • Figure 38: Indexed growth of caraccessories, by sector, 2005-10
• Factors incorporated in the forecast