Car Aftermarket - Small Parts - UK - December 2006

Table of Contents

• Issues in the Market
• Definition
• Market in Brief
• Market stuck in first gear
• Longer warranties just one factor hindering development
• Factors which could accelerate the market
• Preferences for third-party servicing are high
• Indirect routes to market dominate
• Mixed performance for individual components
• Future
• Internal Market Environment
• Breaking the market -- extended warranties and service intervals
• Not just new car market
• The price of progress
• Changes in vehicle preferences
  • Figure 1: UK new car registrations, by fuel type, 2001-05
• Spreading to the service market
• Decline in home servicing presents threat
  • Figure 2: GB car servicing, by destination, 2002 and 2004
• Distance driven not such a big factor
  • Figure 3: Average number of miles personally driven per year, percentage change 2002-06
• Increase in second and third car ownership
  • Figure 4: Household ownership of cars, percentage change 2002-06
• Profile of the business sector is also an issue
• Ageing car parc hints at need for more replacement parts
  • Figure 5: When obtained (only car or most recently obtained car), 2002-06
• Second-hand sector important in its own right
  • Figure 6: Obtained new or second-hand (only car or most recently obtained car), 2002-06
• Broader Market Environment
• New legislation may have negative impacts
• Rising costs of motoring
  • Figure 7: Average annual retail motor fuel prices*, 1996-2006
• Ageing population hints at trend towards at DIFM
• Rising PDI and socio-economic status
• Competitive Context
• Other means of transport
  • Figure 8: Agreement with selected attitudinal statements, 2002-06
• Low on the priority list
  • Figure 9: Most important spending priorities, 2005 and 2006
• Holidays and home
• Changing distribution
• Is the Internet a threat?
• Will part improvements have the reverse effect?
• Trading up
• Accelerating car costs
• Currency movements and raw material costs
• Strengths and Weaknesses in the Market
• Market Size and Forecast
  • Figure 10: UK sales of car replacement parts, 2001-06
• Servicing and repair spend
  • Figure 11: Consumer expenditure on car purchasing, servicing and repair and motoring expenses, at current prices, 2001-06
• Future
• Forecast
  • Figure 12: Forecast of UK sales of car replacement parts, 2001-11
• Factors used in the forecast
• Segment Performance
• A highly fragmented market
  • Figure 13: UK car replacement parts market, by segment, 2001 and 2006
  • Figure 14: UK car replacement parts market, by segment, percentage change 2001-06
• Clutch components
  • Figure 15: Clutch components replacement market, 2001-06
• Brake components
  • Figure 16: Brake components replacement market, 2001-06
• Exhausts
  • Figure 17: Exhaust replacement market, 2001-06
• Batteries
  • Figure 18: Battery replacement market, 2001-06
• Filters
  • Figure 19: Filter replacement market, 2001-06
• Sparkplugs
  • Figure 20: Sparkplug replacement market, 2001-06
• Market share
• Companies and Products
• Strategies similar for most manufacturers
• Branding important although end-user promotion is low
• Bosal International
• Bosch
• Delphi
• Federal-Mogul
• Hella
• Tenneco
• TRW
• Valeo
• Visteon
• Brand Communication and Promotion
• Above-the-line promotion shows significant fluctuations
  • Figure 21: Main monitored media expenditure on small car parts, 2001-06
• A market characterised by high degree of fragmentation
  • Figure 22: Main monitored media spend, by advertiser, 2001-05
• Components dominate with major replacement parts also significant
  • Figure 23: Main monitored media spend, by product, 2001-05
• Press dominates adspend
• Channels to Market
• A market of many channels
• Traditional retailers
  • Figure 24: Market structure for car small parts, 2006
• Halfords
• Motorworld
• Wilco Motor Spares
• Fast-fit specialists
• Dealerships and garages
• Forecourts
• The role of wholesalers
• The Internet
• Loyalty to particular channels in decline
  • Figure 25: Consumer attitudes towards car servicing, by age, 2006
• The Consumer -- Driving Habits and Buying Car Parts
• Short-distance drivers pose challenge to parts manufacturers
  • Figure 26: Average annual mileage, July 2006
• Purchases of car parts focuses on a few key products
  • Figure 27: Parts purchased in the last 12 months, July 2006
• Is the purchase of car parts in decline?
  • Figure 28: Purchasing of car batteries and sparkplugs in the last 12 months, 2002-06
• High-distance drivers are most important purchasers
  • Figure 29: Average annual mileage, by parts bought in the last 12 months, July 2006
• Market polarisation
• Increased mileage stimulated purchases
• Consumer -- Attitudes Towards Replacement and Repairs
• Do it for me please!
• DIY
  • Figure 30: Attitudes towards car repairs, July 2006
• Women -- Do-it-for-me Focus
• Fathers and sons
• Increasing indifference towards DIY repairs
• Increasing services putting market in reverse
  • Figure 31: Agreement with selected lifestyle statements, 2002-06
• Appendix
• Introduction
• Consumer research
• ACORN
• Advertising data
• Abbreviations
• Internal Market Environment
  • Figure 35: Trends in UK population and car parc, 2001-11
• Broader Market Environment
  • Figure 36: Total UK population, by age group, 2001-11
  • Figure 37: Trends and projections in total UK population, by socio-economic group, 2001-11
  • Figure 38: PDI and consumer expenditure, at current and constant prices, 2001-11(fore)
• Driving habits and the purchase of car parts -- Detailed demographics
  • Figure 39: Average annual milage, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN categories, technology usage, daily newspaper readership, commercial TV viewing, supermarket usage, household size and car usage, July 2006
  • Figure 40: Car parts bought in the last 12 mionths, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN categories, technology usage, daily newspaper readership, commercial TV viewing, supermarket usage, household size and car usage, July 2006
• Attitudes towards repairs and replacement parts -- Detailed demographics
  • Figure 41: Agreement with attitudes towards car repairs and buying replacement parts for your car, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN categories, technology usage, daily newspaper readership, commercial TV viewing, supermarket usage, household size and car usage, July 2006
  • Figure 42: Agreement with the statement ' I' m interested in the car' s mechanics (engine, etc)' , by gender, age, socio-economic group, presence of children, marital status, working status, household size, region, lifestage and Mintel' s Special Groups, 2006
  • Figure 43: Agreement with the statement ' I do small repair jobs on my car' , by gender, age, socio-economic group, presence of children, marital status, working status, household size, region, lifestage and Mintel' s Special Groups, 2006
  • Figure 44: Agreement with the statement ' I' m not interested in the car, and I have as little as possible to do with it' , by gender, age, socio-economic group, presence of children, marital status, working status, household size, region, lifestage and Mintel' s Special Groups, 2006
• Further Analysis -- Detailed demographics
  • Figure 45: Consumer types, by gender, age, social grade, marital status, lifestage, age of own children, Mintel' s Special Groups, working status, tenure, region, ACORN categories, daily newspaper readership, commercial TV viewing and supermarket used, July 2006
  • Figure 46: Consumer typologies, by parts purchased, November 2006