SEMA 2009

At an open meeting of SEMA members, there was an extensive discussion about how the Internet has changed each member’s business. Commerce has shifted, and new technologies have empowered consumers like never before. In keeping with SEMA’s mission statement of helping its members prosper, an idea was formed to bring an industry-specific day of Internet knowledge to life. Subsequently, there was standing-room only in a theater-style classroom early one Saturday morning after the annual SEMA Installation Banquet & Gala Fundraiser. The room was crowded with truck guys, retailers, WDs, media and, of course, manufacturers. They were all there to see if they were missing essential details in their quest to stay at the top of their markets.

The opening speaker showed graphs that illustrated how the Internet had grown from a few users back in the ’70s to nearly 70% of the U.S. population. Search-engine providers spoke about pay-per-click advertising; attorneys answered questions about protecting a brand in cyberspace; and demonstrations of virtual stores riveted the gathering. Attendees had never witnessed this type of participation and interest from such a large group.

After circulating questionnaires to the participants at last year’s event, the Street Performance Council (SPC) has created a much larger scale endeavor for 2009. Taking place August 1, 2009, in Pasadena, California, again in conjunction with the annual SEMA Installation Banquet & Gala Fundraiser, this year’s event is multitracked.

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Automotive enthusiasts are most likely to purchase specialty equipment on an Internet retail store website, according to recent enthusiast survey results, but that is not to say that all accessories are purchased online. Alarm systems and window tinting were most often purchased at a custom shop, while the Internet and custom shops nearly tied with respect to stereo equipment (i.e., head units, amps or speakers) purchases.In February of this year, automotive enthusiasts were surveyed and asked if and where they have purchased automotive accessories. More than 1,200 responses were gathered from a survey targeted at automotive magazine subscribers and automotive website/forum visitors. Late last year, this population of enthusiasts was polled via SEMA’s annual Automotive Lifestyles Survey, where the top 11 accessory purchases and top retail channels for purchase were accessed. During the more recent survey given last month, enthusiasts were given a choice among the top retail channels and asked where they purchased, if any, the accessories listed in the table below.

Of the retail channel categories listed above, Internet retail websites were most popular among enthusiasts that purchased specialty equipment over the last year.

In most cases, Internet retail websites were the top choice for these enthusiasts to purchase select accessories. Some items, such as window tinting and alarm systems, usually require an expert installer, so custom shops were preferred. Highlighted figures in gray and orange above show the number-one product, from the top 11 list above, purchased in each retail channel category.

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SEMA members continue to request information on social media, online communities and websites where consumers spend their time. While some people still prefer face-to-face communication and tangible resources, the undeniable swing towards internet-based social interaction cannot be ignored.

Car clubs, magazines, companies and, most importantly, consumers are not only online but located throughout the unending maze of websites—truly a “web” where interconnectedness can be convoluted—that many people visit each day. Moreover, some people visit popular sites multiple times throughout the day with live feeds.

According to Facebook, more than 4 billion minutes of face time is spent on the site each day (worldwide) and 30 million people update their profile status at least once in the course of 24 hours. That's a lot of time connecting with people and associations they care about.

While Facebook is the new behemoth—it has surpassed MySpace, after all—it is not the only venue for social interaction online and not the single resource consumers use to connect with their friends or hobbies. Web surfers often have multiple identities online to depict their personalities.

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SEMA recently launched its annual Membership Satisfaction survey to engage members about the resources available to them and inquire about the services, news items and topics that they would like to see more regularly. The survey is still open and available to all employees of member companies, but from the responses given so far, some research topics are already rising to the surface.

Consumer online behavior and eCommerce strategies are very popular. Manufacturers, retailers and those along the distribution channels want more information about Internet-related topics and, as a result from the feedback, SEMA will work with members of the industry to provide the content its members have requested.

As highlighted in “Selling Out,” an article from customer-service-centric publication Customer Relationships Management (CRM), some retailers have abandoned the techniques that earned them customers the first time around. Economic conditions are driving customers to become more critical, and merchants might be changing their behavior incorrectly.

Retailers need to understand the current consumer psyche as it evolves within the framework of the economic environment. Not only have disposable incomes decreased as consumers face higher levels of unemployment, tightened credit and budget cuts, but people are discouraged socially from excessive spending, even those capable of staving off economic troubles.

Carl Prindle, CEO of Furniture.com, outlined the hesitations to CRM.

“Consumers are reluctant to spend," he said. "In fact, many feel guilty if they do. They’re being told not to buy. They need some excuse to push them, to do something they’re being told not to do.”

Much of the apprehension is tied to long-term perspectives. Seventy percent of consumers fear the recession will last three years or more. There are solutions to these problems, however.

Technology has enabled a shift in power. Consumers are in more control of their choices than ever before and are seeking products on their terms. In years past, people would rely heavily on local sources—close friends, newspapers—for information. Now they are more empowered and practically forced by economic conditions to use every resource available to understand their complete range of choices.

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