while christmas is pretty close it’s also time for getting the right presents :-) while waiting for my car to be repaired at the local VW dealer I was walking around in the showroom recently discovering all the accessorie products a VW/AUDI dealer sells beside cars.
and this is the case for almost every automotive brand in the market today. while one might guess that this might be a market niche simply promoting the core brand the opposite is the truth. BMW with an accessorie portfolio of some 3.500 products is reported to be have gained a turnover of 80 million euros last year. also mercedes is running their accessories division as a profit center to be expected to generate a positive operating profit.
however experts say that only companies with strong brands are qualified to get a sustainable position in the market. accessories are a premium market and an expensive watch is easier to be sold through the porsche than the fors brand (at least here in europe).
while the accessories were originally invented to support the main brand the opposite effect can be noted with caterpillar for example. the market perception of the earth moving equipment manufacturer of vehicles and tools is nowadays closer associated to be in the fashion business that in its core segment. asked about ‘caterpillar’ most teenagers think e.g. of outdoor clothing and robust shoes than of excavators or bulldozers.
after all this area is a good example where design and design managers can take the lead. the creative and smart management of this area shouldn’t be left to marketing only. it should belong to the design manager’s core competencies to identify such market opportunities and bring them to reality.
if you’re interested in the topic and if can read german look at the full article in the online edition of “Die Welt” >>>
