Window film companies know that business is boomingâbecause many shops are as busier as ever. The data bears that out as well, even though research shows that consumer sentiment still has some recovering to do. Nick St. Denis, director of research at Key Media & Research (WINDOW FILM magazineâs parent company), discussed demand and trends in the window film and paint protection film market during a recent presentation held during the International Window Film Conference and Tint-Offâ˘.
St. Denis noted that consumer sentiment in the U.S., according to the University of Michiganâs longstanding survey of consumers, in the second and third quarters of 2020 was at its lowest point in nearly a decade.
âConsumer sentiment is a strong indicator to look at regarding aftermarket accessories and alterations to vehicles, as well as improvements to a home or building,â he said. âWhen consumers are comfortable with their financial standing and the economy in general, theyâre more likely to spend on discretionary things such as PPF for their vehicle or window film on their home.â
The Index of Consumer Sentiment, which measures this, has partially recovered as of the second quarter of 2021 but still has a ways to go.
Fortunately, several other indicators closer to the industryâincluding personal consumption expenditures of motor vehicles and parts, as well as retail sales of automotive parts and accessoriesâhave been booming since late 2020 and through the first quarter of 2021. Additionally, new vehicles sales have improved to start the year.
St. Denis discussed data related to residential improvements. He said that despite the economic downturn last year due to the pandemic, homeowner improvements and repairs remained strong throughout 2020, improving nearly 6% year-over-year with a similar expected increase in the year ahead. This, he said, is a good sign for architectural window film.
St. Denis wrapped up the session discussing some anecdotes from articles and qualitative research by KMR and Window Film magazine, looking back at the pandemicâs impact. âFor many dealers in the industry, elevated sales in the first quarter of 2020 and a rebound in the third and fourth helped offset the downturn that mainly impacted the second quarter,â he said. âBut those in areas with stricter restrictions had a more difficult time making up for losses.â
Some dealers also reported an uptick in demand due to nearby competitors shutting down. âThere was a general increase in residential work with people working from home, he said. âAnd businesses also took the opportunity to upgrade with window film while employees were away.â
Looking ahead, a rise in sales of vehicle accessories and residential improvements should bode well for window film, and continued increase in consumer awareness along with an increase in new car sales provides opportunity in PPF.
âSecurity film for downtown businesses may be a strong prospect for dealers moving forward,â he added.
