Accessory biz accelerates - automobile accessories

Discount Store News, April 5, 1999 by Debbie Howell

In the ever-frantic, time-crunched '90s, consumers are taking their fast-paced lives on the road. As a result, vehicles have become mobile offices, equipped with items ranging from paperwork organizers to high-tech gadgetry such as cell phones and global positioning systems.

The mobile office boom has attracted more than just electronics manufacturers, though. Automotive product manufacturers also are enjoying a nice, tidy business--to the tune of an estimated $146 million in mass merchant sales.

A stroll down the automotive accessories aisle would probably amaze most shoppers as to the selection of products dedicated to comfort and convenience, ranging from Looney Tunes-themed backseat organizers for kids to adjustable, lighted cup holders and hands-free cellular phone attachments. In short, there's a gadget to suit just about every need imaginable while on the road.

"Life magazine called the minivan the family room of the '90s. We have tuned right into that concept. We're trying to make it as comfortable as possible," said Chris Conkling, advertising manager for Axius, a leading auto accessories manufacturer.

Wholesale sales of automotive accessories doubled from 1991 to 1997, according to the Specialty Equipment Manufacturers Association. Within the category, interior accessories accounted for $146.5 million in mass merchant sales last year, according to the NPD Group, a reported market research firm.

Among the accessories that had the largest sales growth were phone or radar accessories, seat belt comforters, snack trays, sun visors and CD/cassette cases, NPD reported.

Axius, which makes more than 200 skus in auto accessories, has been particularly successful with its licensed Looney Tunes line of organizers, seat belt comforters, sun shades and steering wheel covers. The colorful cartoon characters adorning Axius' auto accessories are a perfect example of a trend affecting the category--the move toward more fashionable, bold colors and materials in both product and packaging. While accessories traditionally have been in colors such as black, gray and brown, it's not unusual now to see organizers, floor mats and cup holders in bright colors such as purple, burgundy or blue.

Leading the pack in making auto accessories a fashion statement is Target, which at a store in Rockwall, Texas, prominently devoted both sides of an aisle to such comfort items.

"I think Target has done some very innovative, exciting things related to automotive accessories--things you wouldn't find at other retailers," said Scott McEvoy, vice president of sales and marketing for Classic Accessories Inc.

McEvoy said Target selects a color scheme for the department after conducting market research. Vendors like Classic and Axius are more than happy to make their products to fit that scheme, which last year included forest green, deep blue and grayish charcoal. This year it's metallic purple and rich blue. The result is an eye-catching presentation of matching accessories destined, in part, to reel in more female shoppers.

The color blitz also is intended to draw more traffic into the highly impulse-driven auto accessories department.

"I think the consumer has become sophisticated and they want something aesthetically pleasing in addition to being functional," said Dave Tan, marketing services manager for Hopkins Manufacturing Corp., which makes Spillmaster cup holders and other accessories.

Some retailers, such as Kmart, have tried heavily promoting private label products in accessories, with limited success. Mike Briggs, category manager of automotive accessories for Kmart, said the company is discontinuing its low-price On the Road auto accessory line and will concentrate on its higher-margin private labels in Penske maintenance products and First Auto higher-end accessories, such as floor mats and seat covers.

With the low profit margins associated with smaller accessories that sell between $1 and $3, Briggs said, it makes more sense to market a name brand. On the expansion side, however, Kmart will broaden its test offering of cell phone accessories to make it a basic program in all stores, which Briggs said was an area of sales that was explosive last year.

Other items that have sold well are organizers, floor mats, seat covers, sun shades, electronic gadgets and items that personalize a vehicle, he said.

Axius, the leading manufacturer of sun visor accessories, has noted sales increases every year since it was founded in 1984. Besides Looney Tunes items, other products that had huge sales gains last year were organizers, sun shades and steering wheel covers, Conkling said.

In organizers, Axius is building on the interest in sport utility vehicles by making trunk organizers with multiple pouches, a roof rack and now a spare tire cover with storage pockets. At Wal-Mart stores, Axius did an exclusive packaging promotion of such accessories last year featuring a graphic of an SUV in a mountainlike setting.

One of Classic's sales leaders has been its fleece line of seat belt pads, visor wallets and steering wheel covers. Steering wheel covers, which had been a dormant category the past few years, came back to life with the popularity of the one-piece, easy-to-install Snap-On product. Overall, McEvoy estimated the company's auto accessory sales rose 20% last year.