Download
1 / 10
100 likes | 105 Views
Integrating Indoor and Outdoor Living. Retailers in the outdoor living sectors – furniture, swimming pools, spas, hot tubs and barbecue equipment – have reasons to be optimistic about 2016, with increasing employment and wages, home sales, homeowner equity and disposable income.
E N D
Integrating Indoor and Outdoor Living • Retailers in the outdoor living sectors – furniture, swimming pools, spas, hot tubs and barbecue equipment – have reasons to be optimistic about 2016, with increasing employment and wages, home sales, homeowner equity and disposable income. • According to the 2015 Houzz Landscaping & Garden Trends Study, “recently purchased a home,” at 33%, and “finally have the means to do it,” at 32%, were the top two triggers for homeowners to plan and start major outdoor living projects. • The study found that the majority, 64%, wants to improve their backyards; and of all outdoor projects completed, current or planned, 29% were a complete overhaul, 58% a substantial renovation and just 13% minor updates.
Beautifying the Backyard • As reported in Casual Living’s December 2015 issue, the outdoor market as the magazine defines it – grills, dining sets, chat groups, shade products, other seating and other outdoor furniture – totaled $6.895 billion for 2015, a 4.5% increase. • Of those product sectors, grills accounted for the largest share of the market, at 36%; followed by dining sets, 30%; chat groups, 16%; shade products, 9%; other seating, 5%; and other furniture, 4%. • Retail sales of dining sets for 2015 totaled $2.102 billion, a 3.3% increase. Discount department stores had the largest share of the market, at 27.5%; followed by home improvement centers, 26.4%; specialty stores, 11.8%; and furniture stores, 11.3%.
Heads Barely Above Water • According to AQUA magazine’s Retail State of the Industry report in the May 2015 issue, 36% of retailers said their future was bright, 43% were concerned about their long-term viability because of Internet competition and 21% said business was flat. • Of the pool contractors responding to PoolPro’s survey for the spring 2016 issue, 60% thought industry revenues for 2016 would be flat; however, 53% expected them to increase for their stores and 47% predicted flat store sales. • Despite the pessimism and some optimism among dealers, one industry analyst thinks that rebounding home equity for middle-income Americans could fuel new growth. During 2016, total home equity is expected to reach $12.1 trillion, doubling since 2011.
Where Consumers Prefer to Shop for Grills by Age Group, 2015
Let’s Take the Conversation Outdoors • Of the 6 product categories in Casual Living’s Outdoor Market report in its December 2015 issue, chat or conversation groups had the largest sales increase, or 6.4%, from $1.021 billion for 2014 to $1.087 billion for 2015. • During 2014, the top three consumer-spending ranges for chat groups were less than $200, 29%; $200 to $299, 19%; and $600 to $999, 17%. • According to Casual Living’s 2015 Fabric Survey, 55% of outdoor furniture purchased at retailers during 2015 had off-the-floor fabrics, 40% had custom/special-order fabrics and 5% were materials customers provided.
Targeting Baby Boomer Bucks • It should be no surprise that the prime markets for outdoor living products are Baby Boomers and affluent consumers of any age group. According to a 2014 Casual Living survey, 71% of Baby Boomers had an outdoor room. • Of those Baby Boomers who had an outdoor room, 74% included a grill; 51%, other chairs; 51%, a bench; 49%, 5-piece dining set; 46%, outdoor lighting; 46% chat/conversation group; and 33%, outdoor accessories. • During 2014, 19% of affluent households bought a chat room and accounted for 65% of all retail dollars. For dining sets, affluent households were 28% of all buyers and spent 37% of all retail dollars.
Advertising Strategies • All retailers offering outdoor living products should target Baby Boomers as their primary consumers, which makes TV a must-use medium since older Americans are the largest group of viewers. • A commercial appealing to Baby Boomers could offer a free hour of consultation with a casual designer or having him or her work with the homeowner’s outdoor project contractors. Spots should also emphasize product durability and ease of maintenance. • With more Millennials expected to buy homes during 2016 and beyond, outdoor living retailers can attract them with specially priced “starter” products or offer an upgrade discount for their next purchase, as a means to maximize long-term customers.
Social Media Strategies • Pinterest is a must-use social media site for outdoor living retailers since the site attracts many women. Create pins that emphasize style, color and fabric choices; pool, hot tub and spa sizes and uses; and how to integrate a grill or outdoor kitchen into the living space. • Invite Millennial homeowners to upload photos or videos of backyards in need of an outdoor living project and ask others to make suggestions. Respond to those suggestions by sharing information about store products that match the suggestions for those new living spaces. • Ask a local casual living designer to contribute to a blog in exchange for the exposure, sharing design ideas and choices. Barbecue equipment retailers could invite a local chef or barbecue competitor to write blog posts about insider secrets, recipes and grilling tips.
