What's the bright idea? Because of shrinking revenues from h
Posted: Tue Aug 28, 2018 7:01 amWhat's the bright idea? Because of shrinking revenues from headlamps, retailers adjust product mix to increase sales"THE MARKET IS experiencing shrinking revenues due to considerable production over capacity, increasing competition, rising imports and longer-lasting original equipment parts. Manufacturer revenues for the lighting aftermarket are estimated at approximately $227 million in 1998 and are estimated to decline to $185.2 million by the year 2005," according to Frost & Sullivan's 1999 North American Automotive Lighting Aftermarket study.
FOR MORE INFORMATION: https://medium.com/@carspeakerland/how-to-choose-top-best-car-speakers-on-the-market-c1f141e4706Meenakshi Ganjoo, an industry analyst with Frost & Sullivan, said headlamp revenues have declined causing tighter profit margins to manufacturers. Even though headlamp revenues have dropped, manufacturer revenues from miniature lamps have risen and are expected to rise for the next three years or so. Then, she expects revenues from miniature lamps to decline.
Ganjoo anticipates at least one manufacturer quitting the lighting market because of declining revenues and production over capacity taking its toll. She did not refer to any specific manufacturers who might get out of the business.Things may sound bleak for manufacturers, but it doesn't get much better for retailers and jobbers."You have lower revenues for everyone in the distribution channel and margin squeezing going on everywhere," said Doug Thomson, Federal-Mogul Corporation's manager of general lighting - aftermarket.The advantage for retailers and jobbers is that they can adjust their product mix to pick up revenues. Thomson recommends having a good, better and best line, so customers can upgrade. Retailers also should adjust the mix in order to keep up with technology changes.Most vehicle headlamps now come standard with halogen capsules, so incandescent sealed beams are not as prominent as they used to be. OEMs are providing high intensity discharge (HID) systems on luxury vehicles like Mercedes, Audi and BMW.Ganjoo said HID uses 35 watts and has about 3,000 hours of bulb life compared to halogen, which uses 55 watts and lasts 700 hours. Other benefits of HID include better light distribution and high light output. She added, the color of light from an HID system is shown to reflect road markings and signs better than conventional lighting.
RELATED ARTICLE: Best car speakers 6x9, 6x8, 6.5, 4 inch Frank Bohanan, SEMA technical consultant, said people adding HID to their vehicle sometimes run into legal problems from police who are quick to blame. They claim HID aftermarket systems cause glare, even though they are no different than OEM systems."If somebody doesn't aim their headlights properly with an OEM system then you're going to have just as much a problem as you have if an aftermarket system is not properly installed," said Bohanan. "There're more people putting on standard headlights and not aiming them properly than there are people with HIDs."Until the high price tags ($1,500-$2,000) for HID systems drops, only people who can afford luxury vehicles will be the ones buying these lighting systems. Some people like "the look" HID gives, so some manufacturers have come out with blue-tinted bulbs or ionized lenses. Blue-tinted bulbs have been especially popular with 18-25 year olds."What people are doing now is putting blue-tinted bulbs in standard headlights and what you're getting is a lot of people are getting flagged as being HID when in reality they're just colored bulbs," said Bohanan.He said some people are using bulbs with higher output that are meant for racing or off-road use only. He explained it's not the technology that's bad; it is the poor installation from people who are "trying to pretend they have something they don't have."While adjusting the product mix, Federal-Mogul's Thomson also advises jobbers and retailers to look at higher margin niche markets, such as heavy duty, import, agricultural and off-road.
"As an example, if you're already going after your oil or oil filters in the ag, off-road or whatever, just piggyback with lighting," said Thomson.Mack Gregory, sales manager of WD sales for Petersen Mfg., has noticed automotive aftermarket retailers and jobbers selling trailer lighting in the heavy duty market. Gregory, who attended a Canadian automotive show last month, said light-emitting diode (LED) lighting is now the hottest thing in trailer lighting because of its advanced technology as well as its visual appeal.He said LEDs are rated at 100,000 hours, which equals about 12 years of continuous use. Incandescent lighting last 1,500-5,000 hours.LEDs only come in amber and red for safety lighting. Currently LEDs are used for third brake lights and taillights for higher priced vehicles. White LED lighting is being developed for license plates, back up lights and forward lighting, he said.Gregory said retailers gain high-end sales with LEDs than with incandescents. "For instance at retail pricing, an incandescent taillight, which is used on 90 percent of the trailers out there, would cost the average consumer $7.50," he explained. "The average consumer buying the same light with LEDs would spend 10-12 times that much, $72."SEE ALSO: https://www.youtube.com/watch?v=kvdX_9IyZ_sHe explained light-duty trailer manufacturers most likely would not add LED to their boat trailers, livestock trailers, utility trailers, etc., because LEDs would add $350-$400 to a product that costs $1,500-$3,500.But, an owner/operator of a heavy-duty truck is willing to spend the money. The owner/operator can
FOR MORE INFORMATION: https://medium.com/@carspeakerland/how-to-choose-top-best-car-speakers-on-the-market-c1f141e4706Meenakshi Ganjoo, an industry analyst with Frost & Sullivan, said headlamp revenues have declined causing tighter profit margins to manufacturers. Even though headlamp revenues have dropped, manufacturer revenues from miniature lamps have risen and are expected to rise for the next three years or so. Then, she expects revenues from miniature lamps to decline.
Ganjoo anticipates at least one manufacturer quitting the lighting market because of declining revenues and production over capacity taking its toll. She did not refer to any specific manufacturers who might get out of the business.Things may sound bleak for manufacturers, but it doesn't get much better for retailers and jobbers."You have lower revenues for everyone in the distribution channel and margin squeezing going on everywhere," said Doug Thomson, Federal-Mogul Corporation's manager of general lighting - aftermarket.The advantage for retailers and jobbers is that they can adjust their product mix to pick up revenues. Thomson recommends having a good, better and best line, so customers can upgrade. Retailers also should adjust the mix in order to keep up with technology changes.Most vehicle headlamps now come standard with halogen capsules, so incandescent sealed beams are not as prominent as they used to be. OEMs are providing high intensity discharge (HID) systems on luxury vehicles like Mercedes, Audi and BMW.Ganjoo said HID uses 35 watts and has about 3,000 hours of bulb life compared to halogen, which uses 55 watts and lasts 700 hours. Other benefits of HID include better light distribution and high light output. She added, the color of light from an HID system is shown to reflect road markings and signs better than conventional lighting.RELATED ARTICLE: Best car speakers 6x9, 6x8, 6.5, 4 inch Frank Bohanan, SEMA technical consultant, said people adding HID to their vehicle sometimes run into legal problems from police who are quick to blame. They claim HID aftermarket systems cause glare, even though they are no different than OEM systems."If somebody doesn't aim their headlights properly with an OEM system then you're going to have just as much a problem as you have if an aftermarket system is not properly installed," said Bohanan. "There're more people putting on standard headlights and not aiming them properly than there are people with HIDs."Until the high price tags ($1,500-$2,000) for HID systems drops, only people who can afford luxury vehicles will be the ones buying these lighting systems. Some people like "the look" HID gives, so some manufacturers have come out with blue-tinted bulbs or ionized lenses. Blue-tinted bulbs have been especially popular with 18-25 year olds."What people are doing now is putting blue-tinted bulbs in standard headlights and what you're getting is a lot of people are getting flagged as being HID when in reality they're just colored bulbs," said Bohanan.He said some people are using bulbs with higher output that are meant for racing or off-road use only. He explained it's not the technology that's bad; it is the poor installation from people who are "trying to pretend they have something they don't have."While adjusting the product mix, Federal-Mogul's Thomson also advises jobbers and retailers to look at higher margin niche markets, such as heavy duty, import, agricultural and off-road.
"As an example, if you're already going after your oil or oil filters in the ag, off-road or whatever, just piggyback with lighting," said Thomson.Mack Gregory, sales manager of WD sales for Petersen Mfg., has noticed automotive aftermarket retailers and jobbers selling trailer lighting in the heavy duty market. Gregory, who attended a Canadian automotive show last month, said light-emitting diode (LED) lighting is now the hottest thing in trailer lighting because of its advanced technology as well as its visual appeal.He said LEDs are rated at 100,000 hours, which equals about 12 years of continuous use. Incandescent lighting last 1,500-5,000 hours.LEDs only come in amber and red for safety lighting. Currently LEDs are used for third brake lights and taillights for higher priced vehicles. White LED lighting is being developed for license plates, back up lights and forward lighting, he said.Gregory said retailers gain high-end sales with LEDs than with incandescents. "For instance at retail pricing, an incandescent taillight, which is used on 90 percent of the trailers out there, would cost the average consumer $7.50," he explained. "The average consumer buying the same light with LEDs would spend 10-12 times that much, $72."SEE ALSO: https://www.youtube.com/watch?v=kvdX_9IyZ_sHe explained light-duty trailer manufacturers most likely would not add LED to their boat trailers, livestock trailers, utility trailers, etc., because LEDs would add $350-$400 to a product that costs $1,500-$3,500.But, an owner/operator of a heavy-duty truck is willing to spend the money. The owner/operator can