January 2012 sales for aftermarket car audio, video and navigation took a downward turn, falling 14 percent in dollars and 4 percent in units from January a year ago, according to NPD.*
Car speakers and amplifiers saw moderate growth in units (up 6%), but still sales in this segment were down in dollars by mid-single digits, compared to last January.
Head unit sales also felt the pinch with a 9 percent fall in units and a 14 percent drop in dollars.
NPD analyst Ben Arnold says the aftermarket still stands to benefit from two main factors.
“As the economy gets better, we can see people focusing more on their cars,” and this will include upgrading infotainment systems. He said of recession, “my hypothesis is it hits the vehicle [including the aftermarket] more than the TV.”
He also sees the continued focus on connectivity and apps in the car as lifting car audio sales.
“This is a story we talk about a lot, but I think connectivity really has the power to change some of this. We’ve seen a greater adoption of CD players with Bluetooth and that’s an interesting step to welcoming connected digital devices in the car,” Arnold told us.
He also believes the CD player isn’t going anywhere just yet. NPD research finds that people still use their CD player, “but bringing in apps and the ability to communicate will be enhanced by some whole car connectivity. That’s an area that can really grow for this market,” Arnold said.
Source: CEoutlook
*These NPD figures exclude portable navigation devices (PNDs). They include:
| In-Dash Players |
| Car CD Changers |
| Car Stereo Speakers |
| Amps and Equalizers |
| Mobile Multimedia |
| CD Controllers |
| Satellite Radio Boxes |
| Fixed Navigation |
Barry,
Jumpin gee willickers !!! We ain’t dead yet. Save the epithet for the funeral which occurs after the autopsy, which occurs after the breath stops and the brain stops functioning. Well maybe your are not so far off target regarding brain funbction. That being said…
Retailers can find suppliers who conduct business in a fashion that is consistent with the Profit, Identity and Predictability required to thrive. Courage does reside at some suppliers. Some even demonstrate it. Other suppliers may have their courage in a suspended state and maybe require a kick in the shins from some strong retailers.
Is business tough? Of course. Can it be conducted successfully? Of course. Those of us, retailers and suppliers, who want to get it done can do it. Suppliers deliver relevant product to market in a fashion that is consistant with the Profit, Identity and Predictability required for success. Retailers seek out and do business with those suppliers who conduct business in a fashion consistent with your methods and goals.
Ray Windsor
German Maestro
Ben\’s assessment is mostly correct as usual. The only truly sad part is that the (continued) decline in sales and price erosion is completely unnecessary and can be fixed. But only with work, conviction, courage, and foresight. In other words; unlikely. We (the 12V industry) are famous for our shortsightedness and lack of courage.