Car Accessories Business 101: A guide to getting started

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Introduction

According to statistics on the car accessory market, the global car accessory market was around USD 415 billion in 2019. The market value is expected to grow at a rate of a CAGR of 7% and is expected to reach USD 646 billion in 2026.

The car accessory market is a promising industry for entrepreneurs to invest in. To start a proper car accessory business, one needs to gain the right knowledge and strategy in order to execute the business successfully.

In this guide, you will learn about the car accessory industry in India, how to create a business plan for your business, and the different types of marketing strategies to help develop your business.

Automotive Accessories Market Size

The car industry is one of the fastest-growing industries in the country. More premium cars are being introduced into the market and more people are in desire to modify their cars to look and feel luxurious.

The current Indian car accessory market value is approximately USD 2 billion. With the entry of big players such as Bosch, Pioneer, Kenwood, Alpine, etc, the industry is only expected to increase bigger.

Creating a Business Plan for Car Accessories

In order to start a thriving car accessory business, an entrepreneur needs a solid business plan. The business plan serves as a written blueprint of the whole structure of the business including finance, operations, and marketing. It also helps to analyze the business realistically and find out any weakness within the organization to help form a solution for it.

This guide will help you form a proper business plan for your car accessory business. The following are some of the important topics that need to be included in the business plan.

Executive Summary

The executive summary is the first section present in the business plan and the most important one. It gives an overview of the contents of the business plan. The executive summary is often the key element that is important when looking for investors for the business. So the executive summary must be written in such a way that it holds the interest of the investor.

The executive summary must contain information and achievements of your business that will hook the reader’s interest and keep them reading further. Below is an example of how to write the executive summary for a car accessory business:

“Richmond Car Accessories is a startup car accessory shop. The company is engaged in installing, modifying, and repairing technological accessories used in new-end cars. Richmond Car Accessories has rented a 5000 sq. ft. space where all the repair and installation works will be done in the best condition possible that is on par with the value of the customer’s money.”

Decide On Products

The success of any good business is based on how well it satisfies its customers with its products and services. The products must be something that is in need by the target audience. A good product without anybody wanting to buy it is as good as waste. A thriving business is always one step ahead of the customer, trying to find out their needs and presenting the products to them on a budget that they can afford.

The business plan must contain a list of all such products that the business plans to sell to its customers. The following are some of the example products that a car accessory business than for its target audience:

  • Blind Spot Mirrors
  • Phone Mount
  • Stinger
  • Car Tool Set
  • Hydraulic Jack
  • Jump Starter
  • Car Vacuum Cleaner
  • Bluetooth Key Finder
  • Seat Cushion
  • Microfiber Cloth and more

The list must contain products that are not just in demand but also are feasible to the financial budget of the business. So care must be taken to research and select the kind of products that the business aims to sell.

💡 “Don’t find customers for your products. Find products for your customers.” — Seth Godin

Marketing Strategy

A marketing strategy is another integral part of the business plan and is important for the success of the business. A good marketing strategy helps the business to stand out from the competition in the market. Careful research and market study must be performed before designing the marketing strategy of the business since the marketing activities of a business are one of the most expensive ones.

One of the most effective steps in forming a good marketing strategy is to study the marketing plans and strategies of competitors. It helps to find out key elements that help in engaging with customers and also parts of the marketing strategy that do not work in achieving the goals of the business.

A well-built marketing strategy is based on current trends in the market and proper market research. Market research helps to analyze the target audience of the business, create a user persona for the business, and find the right channel to connect with the target audience.

The marketing strategy of any business depends upon the budget that has been allotted for performing the marketing duties of the business. Print media, television ads, internet ads, radio ads, etc are different modes that can be used to market your car accessory business. Here are a few example strategies that car accessory businesses can implement:

  • Telecast television ads that resonate with the target audience
  • Create a website for your business
  • Sponsor an event to get your brand name out to consumers
  • Create a brand image and story to match your business
  • Invest in content marketing (YouTube videos, Instagram content, blogs, etc)

💡 “People don’t buy what you do, they buy why you do it.” — Simon Sinek.

Management Of The Car Accessory Business

Any business is operational only when it has the manpower to function. The number of employees required, their job roles, and the functions of each role must be designed. The proper designation of each role is required in order to avoid any confusion.  A car accessory business may require the following manpower:

  • Store Manager
  • Cashier
  • Sales and Marketing Manager
  • Cleaners
  • Mechanic

💡 “One machine can do the work of fifty ordinary men. No machine can do the work of one extraordinary man.” — Elbert Hubbard

Competitor Analysis

The car accessory business is a highly competitive industry. Performing competitive analysis helps to find out the competition in the industry and compare the strengths and weaknesses of your business in comparison with that of the competitors.

To out win competitors, a business must figure out in what unique way they can win customers that competitors have failed to do so. The following are some of the ways to perform competitor analysis:

  • Perform a SWOT analysis of your business in comparison to other top players in the industry
  • List out all the unique products and services that your business has but not your competitors
  • List out the benefits and value that customers gain from buying your products such as warranty, discounts, etc
  • Find out established and emerging car accessory businesses in your niche
  • Figure out how your pricing stands in comparison to established and emerging accessory businesses

💡 “Control your expenses better than your competition. This is where you can always find the competitive advantage.” — Sam Walton

Finding the Right Distributor

Selling quality products to the customers is the key to gaining trust and earning loyal customers that come back to you again the next time they want to buy a car accessory. So your business needs to find the right distributor that can give you quality products on a budget that can help you make profits. It is also important not to rely just on one distributor since any dispute or uncertainty may cause a delay in the distribution of the products.

Sometimes one distributor may not have certain products and hence it is necessary to be on the lookout for other distributors that may have them. The business plan must list out all the distributors that they are going to procure the required goods and tools, their addresses, the cost of transactions, etc.

License and Registration

Businesses need proper licenses and registration to function legally. The types and number of licenses and registrations required for your business depend on a number of factors:

  • The type of services provided by the business is an important factor for the type of license required. For example, a business that is just going to sell car accessories is going to require a different license than a business that both sells and installs the accessories
  • Importing or exporting accessories may require a special license in order to perform the function
  • Car accessory franchises may require another separate license
  • If your business plans to manufacture a specific accessory it may require a separate license for it
  • Your business must be registered based on the type of ownership such as sole proprietorship, partnership, private limited, or public limited firm
  • The registration required may also depend on the locality of the business such as state registrations

All the possible licenses and registrations that your business requires to function as a legal entity and the cost of procuring them must also be listed in the business plan.

Location and Storage Space

The location of a business can make or break it. The location is vital in attracting the target audience for the business. The location of the business can be offline like a retail store and repair workshop where customers can buy the accessories and have them installed by the company or an online store where customers can buy the accessory but have it installed by another company or mechanic.

When it comes to the car accessory business, customers may prefer an offline store with workshop space where experts may install the parts for them. The store must have space where they can work on the cars that have come for accessory installation. Accessory stores must also be located in a place where the usage of cars is more like in a city than in a town where car usage is sparse.

Financial Plan

The financial structure of a business is its backbone for it. The financial plan decides what part of the capital is going to be invested by yourself and what percentage of it is going to be sourced from another entity. The outer financial source may be a friend, relative, bank loan, private financial institutions, etc. The details of the sources and the amount of money must also be mentioned in the business plan.

Types of Car Accessories

Car accessories are of different types. In this section, we will discuss popular cad accessory brands and the most useful and unique car accessories that are in demand in the market.

Most Popular Car Accessory Brands

The following are some of the most popular car accessory brands in India:

  • Auto Furnish
  • Coozo
  • Elite Industries
  • Elixir Soltek
  • Goradia Industries
  • NTF Group
  • Rajatdeep Overseas
  • Sheeba
  • Speedfreaks
  • Woodman

Most Useful Car Accessories

The following are some of the most useful cad accessories in India:

  • Car Driving Wheel Desk
  • Universal Dash and Window Mount Holder
  • Recovery Traction Tracks
  • Car Windshield Sunshade Cover
  • Universal Car Back Seat Headrest Hook
  • Mini Car Trash Bin Can Holder
  • Pet Seat Cover
  • Backseat Organiser
  • Car Emergency Kit
  • Aromatherapy Car Hanging Diffuser
  • Car Emergency Seat Belt Cutter and Window Hammer Assistance Tool

Most Unique Car Accessories

The following are some of the most unique car accessories in India:

  • Air Ioniser
  • LED Wheel Lights With Tyre Pressure Monitor
  • Solar Fan
  • Solar Sunshade
  • Anti-Gravity Battery
  • LED Sign Boards
  • Portable Cooker
  • Smartphone HUD
  • Anti Glare
  • Laser Lamps

Conclusion

Any successful business has a well-laid foundation on which it is built. In most cases, the foundation is a well-researched and planned business plan. The business plan is the backbone of the business upon which other strategies such as marketing strategy, financial strategy, recruitment strategy, etc are based. A well-designed business plan is also important to gain finance for funding the business.

With increasing disposable income available to the general population in India, and the increasing craze for cars, more people are now willing to invest in luxurious car accessories that may make their car look unique and more useful than they already are. If you’re looking for a good business opportunity then a car accessory business is a great place to start and take advantage of the budding industry.

Before making the final decision make sure you check out other options. There are a variety of car business ideas for you to choose from.

This post is also available in: English

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