Making Time to Know the Trends
by Ruth Klein
Kwik Kar Auto Lube, a Texas-based company which started as a car wash business in 1964, today offers customers oil changes, fluid checks, and dry-cleaning services, and the company still washes cars.Such diversification has become the norm for auto service specialists, according to The Auto Service Specialist Aftermarket, a new report from the New York City-based consulting and research firm, FIND/SVP.In 1996, the market saw sales of $8.5 billion, up from $6.7 billion in 1991, a compound annual growth rate of 5% over the period.
The complex technology used to build and service today's vehicles is a prime factor driving growth of the auto service specialists aftermarket, the study reports.Jobs once done by doityourselfers (DIYers) - such as tune-ups and brake adjustments - now require trained specialists. The vast and highly fragmented arena is becoming even more fiercely competitive as mass merchandisers, car dealers, auto parts superstores and other non-traditional service operators contend for a share of the lucrative market.
Marketing Trend:
The study notes that as baby boomers approach middle age they are less likely to perform their own auto maintenance and repairs.Generation X - more educated and cost-conscious than other consumers - are expected to be wary of slick sales techniques, and more concerned with preventative maintenance and thorough diagnostic work.
Juvenile Furniture Market Grows Up
The $4 billion-plus juvenile furniture and nursery accessories market has been undergoing an intense transformation, according to The U.S. Market for Juvenile and Nursery Accessories, says a timely report by Packaged Facts.
Factors behind this transformation include changes in consumer lifestyles, new attitudes toward child safety, technological advances in design and materials, and the economy and its wide-ranging effects on corporate and consumer spending.
The recent boom in the market and its perceived potential for strong future growth has continued to attract marketers in related businesses (home furnishings, children's wear, ready-to-assemble furniture, textiles, electronics, and durable household goods).At the same time, low-end importers have put pressure on price points and profit margins, while topline importers have upped the ante on design and sophistication.
Marketing Trend:
Many long-time players eager to compete more effectively with upstarts and importers have been restructuring their organizations, updating manufacturing facilities, and purchasing smaller companies with proven track records in different areas of the industry.Many have also extended their core lines to include a wider assortment of products at a greater range of price points.
Web Use Grows
A recent IDC/LINK study offers some interesting projections on technology and small business:
At the end of 1996, there were nearly 7.1 million small businesses.By the year end 2001, the number will reach 7.8 million (a small business is defined as a company with fewer than 100 employees).
Small businesses have shown particular interest in local-area networks (LANs), computer-telephone integration and communication tools.The Internet is playing a more important role in the daily activities of small businesses as electronic commerce offers companies a unique way to expand geographically.
The number of small businesses with Web sites will increases from 147,000 in 1996 to 1 million in 2001, representing a compound annual growth rate of 47.3 percent.Other technologies being adopted include multifunction peripherals, scanners and voice mail.
The fastest-growing segment in the small business universe will be those companies with fewer than 10 employees.
Marketing Trend:
Small business will continue to use the Internet to increase its virtual "workforce" and size.The Internet continues to be used for research, information, and communication.
