Automotive Specialty Equipment Business

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Automotive Specialty EquipmentBusiness
Technology Trends

• Chris Kersting
• President
• Specialty Equipment Market Association

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SEMA

• Founded in 1963
• 4,600 member companies
• Offices
• Diamond Bar CA
• Washington DC
• Mexico City
• Tokyo
• Germany

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SEMA Market

• Our members are the producers and marketers of
  specialty products and services for the
  automotive aftermarket.
• Performance Parts
• Accessories

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Market Trend
1986 1987 1988 1989 1990 1991 1992 1993
1994 1995 1996 1997 1998 1999 2000 2001
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Membership Profile

• All channels for automotive performance parts and
  accessories market (such as)
• Manufacturers 1,790
• Warehouse Distributors 471
• Dealer/Retailer 997
• Restyler/Installer 343
• Manufacturers Rep 207
• Service Providers 353

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Typical Manufacturer Member

• Founded and operated by an enthusiast
• Average number of employees 50
• Average sales volume 5 million
• Target market very narrow niche
• Light trucks
• Compact performance
• Off-road
• Restoration
• Hot rods

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Automotive Aftermarket

• Repair/replacement Parts - NEED
• Preventative Maintenance - PREVENTION
• Performance Parts and Accessories WANT

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Distribution Channels
AutoManufacturer
CarDealer
TireStore
Manufacturer
WD
Jobber
SpecialtyInstaller
Consumer
12 VoltRetailer
Auto PartRetailer
DiscountStores
Exporter
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Top Retail Channel Shares

• Specialty Installation Outlets 16.9
• Mail Order 15.2
• Auto Parts Chains 15.0
• New Vehicle Dealers 11.4
• Direct from Manufacturers 7.6
• Independent Auto Parts Stores 7.5
• Speed Shops 6.8
• Discount Chains 6.0

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Member Technology Trends

• Types of computers have in workplace
•  
• Type 2001 1999 1997
• IBM Compatible 91.6 85.7 71.0
• Macintosh 15.3 11.4 18.0
• Mainframe 8.3 7.5 11.0
• Mini 4.9 4.0 n/a
• None 1.3 0.6 2.5

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Member Technology Trends

• Internet access uses
•  
• 2000
• Use 2001 1999 1997 Babcox
• Email 94.9 92.0 29.0 64.0
• Research 87.6 87.6 30.0 68.0
• To sell product 58.7 57.3 17.0
• To buy product 55.5 35.1 10.0 38.0
• Entertainment 23.1 11.0 36.0
• Advertise/market prod. 1.4 n/a

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Member Technology Trends

• Companies with a web site
•  
• 2001 82.9
• 1999 74.5
• 1997 54.0
• 1996 24.0

1996
1997
1999
2001
13
Companies Selling Over Internet
1997
1999
2001
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Future Technology Challenges

• IT in the business place
• Internal
• Inventory control
• Distribution tracking
• Sales tracking
• External
• Electronic Catalog
• Electronic Commerce - EDI

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Business-to-Business E-Commerce

• 1999 0.145 trillion
• 2000 0.403 trillion
• 2001 0.953 trillion
• 2002 2.180 trillion
• 2003 3.950 trillion
• 2004 7.290 trillion
• Source Gartner Group Inc.

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External IT

• Need for electronic catalogs
• Delay due to investment risk
• No driving motivator
• Current business growth without them
• Need to be electronic commerce capable
• Delay due to investment risk
• No overriding motivator
• Variety of protocols
• Hype that failed

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Member Technology Trends

• Companies have an electronic catalog
•  
• 2001 1999 Babcox
• Response Percent Percent comparison
• Yes 36.9 30.3 25.0
• No 63.1 69.7 75.0
• Total 100.0 100.0 100.0

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Member Technology Trends

• Companies transacting some business
  electronically
• With Suppliers 22.9
• With Customers 27.4

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Member Technology Trends

• Electronic connection with business
  partners-suppliers
• Direct (modem) 45.5
• VAN 13.0
• Internet 41.4

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Member Technology Trends

• Electronic connection with business
  partners-customers
• Direct (modem) 39.6
• VAN 13.0
• Internet 47.4

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Member Technology Trends

• Manufacturer business averages
• Number of SKUs 1,946
• Monthly Customers 539
• Monthly Transactions 4,570

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Transaction Standardization

• Bar Coding
• AWDA Guidelines
• Electronic Document Format
• Electronic Catalog Standards

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Future of the Aftermarket
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