Research
Interview Synopsis

Truck Hero – H2 2021 demand outlook & product penetration growth

  • Credit
  • Consumer
  • North America

Truck Hero Inc is one of the most prestigious companies of its kind, according to a former VP at the firm who was interviewed by Third Bridge Forum to discuss demand trends and product growth.

Click on the hyperlink below to access the full Forum transcript.

Truck Hero well positioned to capture business from rising prices

The Interview started with an overview of the aftermarket truck accessories segment. “Some of the trends that… are going to be strong… is the price of trucks going up, so the quality of products that people are wanting, they’re willing to pay a little bit of a higher dollar.” Although the specialist expects the private label industry to continue growing, this should not stifle Truck Hero, which “does such a great job of marketing” and has a strong brand. 

After sharing their views on how demand is expected to trend across the product categories Truck Hero plays in, the former VP discussed the company’s client base and Truck Hero’s relationships with its jobbers. While the specialist doesn’t expect significant change on the horizon, “there’s a little bit of concern at the jobber level with the accessory side of Truck Hero due to lower prices” from overseas brands and Amazon.

With overseas players targeting lower-cost customers, the expert is confident that Truck Hero will “win every time” if it continues to focus on new truck sales and “being the superior product”. The threat from brands such as WeatherTech was also discussed.

The expert also shared their views on whether Truck Hero’s top-line growth over the next couple of years is likely to be primarily through acquisitions or organic. “I think both directions are key for them,” they said. Supply-chain issues and product shortages — expected to last until Q1 2022 — were noted as medium-term challenges for the industry at large. Additionally, we heard that cost inflation is more likely to affect Truck Hero’s accessories business than tonneau cover sales, with the former expected to face stronger headwinds than the latter overall. 

Over-discounting was flagged as an industry-wide problem and the expert does not believe that cutting OPEX will yield further gains for Truck Hero – it could, in fact, be detrimental. 

To access all the human insights in Third Bridge Forum’s Truck Hero – H2 2021 demand outlook & product penetration growth Interview, click here to view the full transcript.

The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.

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