Increased Media Coverage and Interest in Sport Compacts Drive Exterior Accessories Sales

SAN JOSE, Calif., Aug. 11, 2003 -- Sport compact exteriors is a rapidly growing market, driven by flash and glitz. As more opportunities arise for enthusiasts to display their vehicles, they are gaining recognition from their peers and Hollywood execs alike. As mainstream USA is becoming exposed to the exterior accessories market, people are spending more than ever on acquiring trendy accessories.

New analysis from Frost & Sullivan (www.frost.com ), Sport Compact Exterior Appearance Aftermarket, reveals that the market generated $742.3 million in 2002. This is expected to rise to $2.7 billion by 2009.

Frost & Sullivan will host a live analyst briefing August 21 at 3 p.m. ET/12 p.m. PT on the Sport Compact Exterior Appearance Aftermarket. To participate in this free presentation please e-mail nkadri@frost.com with your name, title, company, and contact information.

"Since sport compact is all about unique designs, a great deal of time and effort goes into product development and original designs have very few barriers to entry on the manufacturing side," says Frost & Sullivan Industry Analyst Mary-Beth Kellenberger.

However, the fad-like nature of sport compact market puts intense pressure on manufacturers to shorten their product development cycles. This affects manufacturer inventory capabilities management and production schedules.

"Sport compact was once a secure niche market for many participants but growth has brought recognition and competition. Increasing numbers of products and the daily emergence of new participants emphasizes the need to be ever cognizant of competitor's performance," notes Kellenberger.

The initial trend of most end users is toward low-cost, low-quality products. The exteriors are upgraded whenever enthusiasts can afford more modifications. In 2002, enthusiasts are participating longer and are seeking higher quality, more unique components. Differentiation strategies allow manufacturers to meet the needs of a broader range of enthusiasts and gain pricing flexibility for various levels of the distribution channel.

The increasing number of sport compact shows and contests encourages the influx of younger enthusiasts. Shows that reward innovation and high-quality workmanship are expected to continue stimulating growth in exterior appearance aftermarket units and prices.

Frost & Sullivan is a global leader in strategic growth consulting. This ongoing growth opportunity analysis is part of the Aftermarket Subscription, which also includes market insights on Sport Compact Performance Parts, Steering, Brake Parts, and Ignition Parts. Frost & Sullivan also offers custom growth consulting to a variety of national and international companies. Executive summaries and interviews are available to the press.

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