Competition In The Import Market Place

Posted by NITRO on August 29, 1998 at 22:01:18:

With Summit and Jegs "jumping" into the import arena, I suspect that they'll put the hurts on alot of businesses. Their prices have driven every chain of "speed shops" out of business. Even if you're a WD, you can purchase anything at near "cost" from these mail order giants.
You can also look forward to seeing a lot of new "hard" parts, as these guys make rods, heads, blocks, etc.
It'll be interesting to see how it all will shake out. The customers will all be winners, but the guys that are currently in the Asian aftermarket are going to have it tough. Both Summit and Jeg's sell so many domestic parts, that they can "low-ball" any market they want. We've designed many heads over the years with TrickFlow, and their stuff is impossible to beat for performance and price. Both companies sponsor ProStocks, and both also sell blowers and accessories. As I said, things are going to become interesting very quickly.

Re: I'd say that Jeg's and Summit are still 5 or more years away.

Posted by brian g ( on August 30, 1998 at 00:42:51:
In Reply to: Representation posted by body on August 29, 1998 at 23:50:05:

Nitro I believe your predictions of doom and gloom are a might premature. With most rice racers there is an inherent distrust for people involved in domestic car modification that will hinder Summit, Jeg's or any company chiefly involved with domestic performance. Also last I checked the import performance market only contributed about 15% of the total performance market, so I am sure it will be a while before Summit and Jeg's put anything more than a moderate effort into the import scene. As a final point I believe the average High School grad can modify a Chevy small block with a moderate amount of knowledge and experience and make it faster, but I have always felt that if you give the average VTEC owner $1000 to modify his engine, and he does the work himself, it will be at least a 1/2 second slower in the 1/4 mile. It is tough to buy an installation by mail order.

brian g

Re: I'd say that Jeg's and Summit are still 5 or more years away.

Posted by NITRO on August 30, 1998 at 10:46:46:
In Reply to: Re: I'd say that Jeg's and Summit are still 5 or more years away. posted by body on August 30, 1998 at 00:42:51:

If the mail order houses carry the same components that the established dealers sell, the cost is less, and there's no sales tax, you're trying to tell me that people arn't going to buy??
The SEMA organization targeted the import market about 8 months ago in letters they sent to all members and manufacturers. The Wall Street Journal came out with an article that said "either jump into the import market or get left behind". That article in particular was enough "ammunition" for me to justify ENDYN's limited participation with greater things following.
If you think that once the domestic manufacturers gear up for a 15% and growing market that the components they manufacture will be junk, you're underestimating the domestic aftermarket.
They currently do about 14 billion per year in business, and 15% more makes that "large" number even greater.
You may also think that everyone that's not of Asian heritage only understands "carburetors", but most in your age bracket understand ECU's as well, and rest assured that the domestic companies will simplify everything they sell, to make it more user and installer friendly.
One last thought, and it is fact...the members of SEMA have in the past, and will in the future, lobby state and federal law makers to pass legislation to effectively shut down businesses that they felt were "in the way". They represent a big money, "want it all" threat, and you may think that the Old One and I are trying to scare people, but all I'm saying is that we've seen this over and over, and there's no reason to think that the outcome will be different here. All the traditional businesses just should watch the situation carefully. Summit didn't place the multi page display in the latest SCC for nothing, and although they don't have that much equipment, have you ever run one of the clutches they carry?? You'll be seeing a greater selection as time passes. I also believe that, regardless of their sales, they will continue to advertise so the customers will become more familiar with their names.
This will become even more interesting as time passes, as they are closely tied to NHRA = Peterson = Super Street = NIRA.

Bye bye to the small, no-name, import parts guy...

Posted by The Demon on August 30, 1998 at 14:07:20:
In Reply to: Re: I'd say that Jeg's and Summit are still 5 or more years away. posted by body on August 30, 1998 at 10:46:46:

As more large, established companies get involved in producing parts for the import market, I think that those who will suffer are the little no-namers who are making generic items such as air filter piping, and tips, etc. I'm glad that the "big guys" would get involved because they will bring along with them teams of experienced and trained engineers and designers, and they'll come up with new solutions to "old" problems. They'll develop new and improved parts...and at reduced prices. Sure, a lot of the little guys will realize that they either have to start designing and producing USEFUL parts instead of junk, otherwise they'll be biting the big one. A beautiful example of Darwinism at work...What it'll all lead to is the introduction, production, and availability of good performance parts, and the weeding out and elimination of what I'd affectionately call CRAP. Ultimately, the winners will be the consumers. :)

The Demon
BTW, yeah...I was bored!
Interesting info about the dimpling of surfaces to increase flow efficiency: