The automotive customization industry is a $31 billion a year industry centered on modifying cars to improve performance and/or style. Consumers in this industry want their vehicle to look unique when they are on the road. This is a niche market, but its consumers are passionate and knowledgeable. Tapping into this market by opening an automotive franchise store could prove fruitful going forward, and we have highlighted four benefits below to consider.
- Passionate consumers – As briefly mentioned above, consumers within the automotive customization industry are incredibly passionate. They want their cars to both run better and look better than the typical factory-produced vehicle. They achieve this by purchasing aftermarket products and either installing them themselves or having a professional install them. These consumers are very knowledgeable about their cars, but also seek advice and recommendations for products and services. An owner of an automotive franchise could profit from this unique consumer group.
- Monetary potential – As we stated at the beginning, the automotive customization market is a $31 billion a year industry. A majority of those sales (57.5%) come from the sale of accessories and appearance products. This would include things such as audio systems and window tinting. What’s notable for potential franchise owners is that only 17% of all accessory sales are captured by dealerships. This leaves 83% of sales to be captured by businesses like Tint World® who can provide a variety of aftermarket products that aren’t available from a dealership. There are billions of dollars to be made in this industry, and it’s these aftermarket customization stores that are best positioned to fill consumers’ needs.
- Stability – During the recent recession, the automotive industry as a whole suffered greatly. Giants in the manufacturing business had to be bailed out by the federal government, and consumer confidence was incredibly low. However, the automotive restyling market remained relatively stable. While aftermarket performance sales suffered during the recession, consumers remained willing to personalize the appearance of their vehicles. This seems to suggest that automotive franchise owners, particularly those that provide customization, retained a good deal of their customers’ discretionary spending during this period, something that will only increase as the economy continues to recover.
- Franchise structure – Automotive franchises are best positioned to take advantage of these previously mentioned benefits in the industry. Tint World®, for example, boasts tremendous relationships with the top manufacturers and vendors in the industry. This allows us to tap into automotive retail markets with unbeatable prices. We are able to attract and keep an already existing and passionate customer base with these low prices. Our franchise owners are then able to benefit from higher profit margins than those found at a typical automotive center.
If you would like further information on Tint World® Automotive Styling Centers™ franchise opportunities, contact us today!