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Finding Growth Opportunities in the 21st Century Economy

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Presentation on theme: "Finding Growth Opportunities in the 21st Century Economy"— Presentation transcript:

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2 Finding Growth Opportunities in the 21st Century Economy
The estimated moderate increases in the GDP, retail sales and home sales will also affect the outdoor living sector during 2019, but, according to Casual Living’s State of the Industry report, many of those in the industry are upbeat about business for this year. A 2019 International Casual Furnishings Association survey reported 47% of the 1,000 participating US adults said they plan to purchase at least one piece of outdoor furniture or accessory and 71% said their current outdoor furniture is old and must be replaced. Well-established outdoor living retailers face new competition from e-tailers and furniture stores. In addition, designers are a larger presence, as 84% helped their clients choose and purchase outdoor furnishings during 2018.

3 A Backyard Boon for Remodelers
According to Qualified Remodeler’s 2018 survey, 82% of remodelers said they completed at least one outdoor project during 2018 – and very likely because 49% said they actively market their outdoor services, increasing from 34% for 2016. The largest percentage of remodelers’ 2018 outdoor projects, or 22.7%, were $5,000 to $15,000, but 30.1% were more than $50,000 and 18.2% were $15,000 to $25,000 and $25,000 to $50,000. Remodelers’ clients’ most requested outdoor element was decks, railings and post caps, 56.0%; followed by hardscape patio, pavers and concrete, 42.5%; shade structures, including gazebos, pergolas and trellises, 37.5%; and fire pits and fireplaces, 37.5%.

4 Outdoor Living Across the US
According to 2018 data from Qualified Remodeler, the outdoor living market has expanded from simple decks and patios of 20 years ago to many new products and design ideas that are often different from region to region. Although remodelers are accepting more outdoor living projects than previously, those in the West and the South are much more likely to market their services, at 45% and 44%, respectively, compared to 31% each in the Northeast and North Central states. The #1 motivation for an outdoor living project in all 4 regions was to add entertaining space: Northeast and West 35% each; South, 34%; and North Central, 28%.

5 Let’s Gather Around the Barbie
According to Hearth & Home’s 2018 Barbecue Buyer’s Guide, there were 2,387 barbecue specialty retailers in the US, with the largest group, 39%, generating revenues from barbecue products and accessories in the range of $25,000 to $99,999. On average, they carry 4 barbecue brands, 36% of their sales are to previous customers and 37% host cooking demos at least once per week. Of the complementary products barbecue specialty retailers offer, fire pits is #1, at 88%; followed by outdoor fireplaces, 85%; patio heaters, 46%; outdoor furniture, 27%; and outdoor refrigerators, 24%.

6 Smaller Markets Drive Hearth Sales
According to Hearth & Home’s 2018 Hearth Buyer’s Guide, there were 2,906 barbecue specialty retailers in the US, with the largest group, 17%, generating hearth products and accessories in the range of $25,000 to $149,999. Almost two-thirds, or 63%, of hearth specialty dealers derive customers and sales from markets with a population of less than 250,000, with 26% in the 100,000–249,000 range and 19% in the 50,000– 99,000 range. During 2017 (the latest data), almost one-half, or 49%, of hearth specialty retailers’ hearth business was vented gas appliances; followed by 28%, wood appliances; 12%, pellet appliances; 6%, vent-free gas appliances; and 3%, electric appliances.

7 Outdoor Living by Design
Brown Jordan Outdoor Kitchens, in its 2019 Outdoor Living Report, reveals that the foodie culture is motivating consumers to add specialty appliances, such as Argentinian grills, smokers, side burners, pizza ovens and kegerators and wine fridges. The most popular 2019 colors for outdoor living products include teak and cherry flame among wood grains; boysenberry and mica in the moody hues + neutrals category; and metallic bronze matte and champagne 304 metallic in the metallic pop category. According to Zillow® data of four million homes sold from January 2016 to December 2017, outdoor kitchens increased the selling price almost 25%.

8 Advertising Strategies
May, June and July include excellent advertising/promotional opportunities for outdoor living retailers, as May is National Barbecue Month, June is Great Outdoors Month and July is National Grilling Month. One of many promotions for outdoor living retailers is various bundles of accessories included at a special discounted price or free when customers make a purchase of a specific limit, possibly different bundles for different price points: $250, $500 and $1,000. Confer with your station’s promotions and/or news directors about featuring a barbecuing/grilling lesson during a lifestyle and/or news broadcast from a sponsoring retailer and a special offer good during the next weekend only.

9 New Media Strategies Outdoor living retailers can ask customers and visitors to their social media sites to offer their tips about cleaning outdoor furniture, barbecuing and grilling and family activities at an indoor fireplace and/or outdoor fireplaces/firepits. A similar theme for use on Instagram and Snapchat, specifically, is asking younger customers and adults to share tips about how they enhance a romantic evening at a fireplace or fire pit: best wine, snacks, music, etc. Outdoor living retailers can partner with a restaurant and its chef that specialize in grilled foods to record short videos of tips about grilling certain cuts of meat, vegetables and food items one wouldn’t normally think of grilling.

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