National Oil & Lube News

February 2017

Digital issues of National Oil & Lube News, the trade magazine for the preventive maintenance industry

Issue link: http://noln.uberflip.com/i/779457

Contents of this Issue

Navigation

Page 25 of 67

FINAL THOUGHTS It's crucial to look to the future and adapt to the coming generation, so you don't get left be- hind. Think about what drives millennials, and consider shifting your marketing techniques to attract them. The moral of the story is adapta- tion. Keep an eye on gas prices, as well. If they do go up, the au- tomotive aftermarket maintenance sector will do what it does best — help people take care of their cars and save money at the pump. S More miles driven means more service need- ed. 2012, 2013 and 2014 all stayed about the same when referencing gas prices. 2015 was a different story, as gas prices were low and allowed consumers to travel more. 2016 was similar until the fourth quarter when gas pric- es began to rise back up a bit. "e low gas prices freed up approximately 34 billion dollars in spending money, but much of this money went toward the significant rise in health care costs," Shipley explained. "Mon- ey that we were saving at the pump was going right into healthcare spending." New car sales are also a factor, as they really help those in the accessories lines but hinder those in the motor oil, maintenance and DIY divisions due to warranty programs. "e new car sales trend for 2016 was actual- ly below that of 2015," Shipley said. So what does all of this mean for the year ahead of us? WHAT'S TO COME IN 2017? Due to the immense number of new cars being sold year over year, there is a big opportunity in 2017 to take advantage of all of the poten- tial customers whose cars are no longer under warranty. is is a great area to capitalize on. "ere is also a transformation coming over the next 10 years," Shipley said. "e baby boomer generation will no longer be the prima- ry target. Millennials who are in the age range of 18-34 will become the primary target. is is a generational shift in the core consumer." e boomer generation is just under 75 mil- lion strong with an average age of 52-70. e average retirement age is currently 63 years old. Generalizing, on average, the boomer gen- eration will be completely retired over the next 10 years and with their retirement will go their mentality of living to work. "On the flip side of that, millennials grew up with technology, and the Internet was always around them," Shipley explained. "e idea of terrorism is commonplace to millennials, along with student debt and their mentality of working to live rather than living to work. Ecommerce is also big in that they can push a button and have a product on their doorstep in a very short time." Why is this important? Because this age group will actually get larger before it ever gets smaller. Are you wondering how that's possi- ble? It's possible due to immigration. More people in this age group are coming into this country. "Close to 50 percent of people in this age range do not own a vehicle," Shipley said. "is is a good thing to know, but not something that can be altered. Business owners, there- fore, need to focus on the percentage of millen- nials who do own vehicles." Business owners and operators need to adapt and understand how to educate and at- tract this new consumer. Shipley shared a few interesting statistics about this generational shift: • 44 percent of millennials do at least half of their shopping online • Part of that 44 percent do all of their shop- ping online • Over one-third always seek out online re- views before purchasing a product • 80 percent go to YouTube at least once per week • 50 percent go to YouTube at least once per day • Over one-third spend at least two hours on social media per day Close to half of millennials say they watch vid- eos to learn how to fix and install things on their cars "Over 40 percent of those between the ages of 18-24 said they go to Amazon.com simply to research the products they are interested in before ever considering making a purchase," Shipley continued. "Over 30 percent go to retailer sites to research products, as well as Googling reviews." A FEW INTERESTING FACTS When asked what consumers will purchase on- line for their vehicles in 2017, the highest re- sponse rate was car accessories like floor mats, sun shades, tires and under-car parts. Online tire sales are more prevalent than ever, as con- sumers can generally save quite a bit of money by purchasing their tires online. ey can then take those tires to their local shop to have them mounted and balanced for a cheaper rate. e less likely to buy online category for 2017 included wheels, wiper blades, air fresh- eners and appearance chemicals. Finally, the lowest likelihood category for online purchasing was batteries, fuel additives, motor oil and antifreeze. 26 NOLN | www.noln.net

Articles in this issue

Links on this page

view archives of National Oil & Lube News - February 2017