Abstract
Steady Prices Key to Lowering Price Competitiveness in Vehicle Organizer Aftermarket
As the dominance and multiplicity of mass merchants and retailers grows, the price sensitivity in
the vehicle organizer aftermarket is on the rise. In the external organization segment, the
prominent role of mass merchants and retailers combined with the sectors retail-oriented nature is
contributing to price competition. The internal organization category is also witnessing intense
rivalry for similar reasons along with the evolving importance of warehouse clubs. Participants must
ensure that prices remain stable regardless of the growing demand to safeguard against end user and
distributor price sensitivity.
This Frost & Sullivan strategic analysis covers the North American organizer aftermarket. The
study provides a comprehensive overview of market categories -- cargo bars, ratcheting cargo bars,
cargo bars with storage nets, saddlebags, exterior cargo nets, soft-sided trunk organizers, folding
trunk organizers, trunk nets, soft-sided seat organizers, headrest organizers, truck cab organizers,
and storage nets. Vital information on the competitive environment and revenue forecasts has also
been included.
Price Differentiation Cultivates Intense Competition
End user focus on pricing over technical benefits is fostering a strong competitive environment
in the organizer aftermarket. The stress on pricing is furthered by the growing power of mass
merchants and retailers. This price rise is expected to divert consumer attention to lower-priced
alternatives, which could function as effective substitutes.
"Offshore manufacturing is another solution that can stabilize and lower product pricing,
especially in the external organizing accessories market," says the analyst of this research.
"In addition, manufacturers must work toward providing end users with an economically priced
and diverse product line compared with the existing products in order to diffuse price
sensitivity."
Vehicle Organizing Aftermarket to Witness Price and Unit Shipments Increase
Prices and unit shipments are expected to increase in the interior and exterior organizer
aftermarket sectors resulting in revenue growth and rising profit margins. "However, with the
market maturing, prices are anticipated to remain nominal, particularly in categories like
saddlebags," observes the analyst. "The domination of certain categories in the retail
channels also aids in maintaining reasonable pricing."
View Cart
