July 27, 2007
Exploring the Great Outdoors
By Tom Ryan
According to research from The NPD Group, eight in 10 consumers prefer outdoor entertaining over indoor, weather permitting.
The main reason (cited by 84 percent of those surveyed) is that they simply enjoy entertaining outdoors. Three quarters agreed, “It feels more laid back than formal entertaining.”
Mark Delaney, NPD Group director, home improvement, pointed out, “This indicates that consumers like the more casual entertaining approach the outside has to offer, but they still want to make their outdoor space more formal by giving it an added sense of ambiance and comfort.”
The survey comes as many households have been busy upgrading their outdoor living spaces not only to increase the value of their homes but also to serve as primary socializing places for the home. The cream of the crop feature built-in barbecues and fireplaces and ceiling-mounted heaters for year-round entertaining.
“The formal living room is an endangered species,” said A.J. Riedel, senior partner of Riedel Marketing Group, in a home goods study prepared for the International Housewares Association.
According to the NPD survey of homeowners, 23 percent owned a fire pit or outdoor fireplace, with another 14 percent saying they plan to purchase one. Nearly one-third of consumers reported owning or planning to buy a gazebo or canopy, while another 14 percent either own or plan to buy an outdoor refrigerator.
Other popular outdoor items include umbrellas for privacy, wind chimes or trickling fountains, patio heaters, mosquito zappers, hot tubs, as well as a bevy of food and drink products accompany outdoor grilling.
Asked to rate retailer’s efforts in providing a good selection of outdoor entertaining products, the majority of answers ranged from “good” to “fair.” NPD believes this indicates retailers may be missing some opportunities.
“In order to appeal to consumers ‘trendy outdoor living approach,’ retailers need to carry more of the higher quality or ‘trendy’ items and re-examine how they push summer items out of their stores so early in the season,” adds Mr. Delaney. “It seems by the Fourth of July most stores are clearing out their inventory and selection is limited, thereby frustrating the consumer. Keeping their shelves well stocked even after the Fourth of July weekend is crucial if they want to maximize on their return.”
Discussion Question: Do you think retailers are not fully capitalizing on the shift towards outdoor eating and entertaining? What else could retailers be doing to capitalize on this trend??
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Millions of people watch the home improvement cable TV shows (HGTV, etc.) and see beautiful outdoor kitchens next to waterfalls streaming into lit swimming pools. When they see it, they want it. The pictures are very romantic, and the fastest growing places in the US (Florida, Nevada, etc.) are great places to be outdoors most of the year, particularly in the evening. The home improvement cable TV shows are the retailers’ best friends and allies. Their pictures make customers’ mouths water.
Outdoor living is and will continue to be the “in” thing. As the generational demographics change the upcoming generations are family community bbq get together types. The variety and quality of product needs to change at most retailers. Outdoor furniture and decor items usually don’t hold up well and are almost a one season buy.
Many retailers look at summer as a three month shelf life item maybe this survey will help them look at it in a different way.
Many stores at present are treating the outdoor-entertainment category as strictly for holidays and summer. Goods and supplies for outdoor entertainment needs permanent placement in supermarkets, even in winter climates, because most of the 84% that prefer outdoor entertaining, also desire informal disposable indoor entertainment when weather does not permit. People are busy and they want a nice variety of disposable goods for informal entertaining and throw-away.
This trend, while not new, is only now gaining “mass appeal.” It presents a wonderful opportunity for a select group of retailers to dominate this business.
As Tom points out, many retailers choose to treat the product in a seasonal way, clearing it out mid summer to make way for the next seasonal event. Outdoor relaxation and entertainment is, in many locations, is nearly a year round activity.
There are some, however, who could turn this into a competitive advantage and come to dominate the business. Smith & Hawken, Home Depot and Lowe’s could decide to make themselves such a headquarters and while others are clearing out their summer inventories, they could be transitioning their inventories in concert with the seasons.
It is definitely an underplayed category and one that no single retailer, as far as I have seen, fully understands or has exploited. To the victor awaits the spoils!
The biggest mistake traditional retailers make in this area is to underestimate the quality consumers are looking for and their willingness to pay for it. The $99 patio set with a “Li’l Smokey Joe” grill doesn’t cut it any more. Outdoor lifestyles are both upscale and permanent, not seasonal throw-aways.
Catalog retailers like Frontgate and Hammacher-Schlemmer set the standard, along with specialty store fronts in upscale communities. For those inclined to be involved in outdoor living in more depth, the outdoor superstores (Cabela’s; Bass Pro/Outdoor World) are expanding their traditional “away from home” outdoor living to include “at home” furniture, grills, etc.
When it’s 10 degrees Fahrenheit and snowing outside, I just don’t get that thrill of the outdoors. My local retailer (whoever it is) can stock as many outdoor products as they want–I’m not buying. That’s the reason retailers treat these products as seasonal–because that’s what they are. They know from long years of experience when these products sell. And Liatt’s comment concerning “green” thinking will become more prevalent in the future.
This trend bears watching for retailers. But outdoor living spaces carry some practical and societal contradictions that will have to play out if they are to go beyond the simple and traditional backyard bar-b-que and beer fests we all know and love.
The idea of stylish and coordinated disposable glasses, cups, plates, silverware, and napkins that make outdoor entertaining such a breeze butts right up against the “green” movement which eschews using throwaway products that clog the landfills. Then, according to a recent article, many homeowners who design and erect amazing outdoor “kitchens” and dining areas–that can cost $20,000 and more–ultimately find they are so difficult and time consuming to keep clean, (think spider and mildew-free) they end up rarely using them for this reason. In a recent conversation with two residential real estate professionals I discovered that (like pools, koi ponds and outdoor hot tubs) elaborate outdoor dining facilities and patios can be either a big turn-on OR turn-off for potential buyers depending on their personal views of nature, gardening, and what they want to see outside their back windows.
Outdoor eating is a seasonal affair. And the problem every retailer faces is being stuck with seasonal that doesn’t sell. Store managers and directors never look forward to the drudgery of repacking and storing seasonal items. So I can understand why stores are hesitant in buying heavy on seasonal. That said, entertaining outdoors is a growing trend and every year there seems to be more and more product available but again, it’s in limited quantities. Buyers and vendors need to do a better job estimating inventory levels. Don’t discount what the store manager tells you! Chances are he/she knows the business better than the buyer.
One area that hasn’t been mentioned yet in this discussion is the retailer’s role in providing meal solutions for consumers. Supermarkets and others can do more to offer “easy to grill” or “great for barbeque” meal choices, with clear cooking directions, times and safe temperatures to reach. Offering a variety of healthful choices is important too.
As for the non-food products, I agree with the comments made that the quality of the items offered by many retailers can be improved.
I agree with the central question posed: retailers have yet to embrace outdoor products as the huge market they could be. I do see Kmart and Target offering some good outdoor products (as well as NAMCO–although they tend to be pricey). My wife and I are big outdoor BBQ fans, and it definitely feels more informal. Retailers should expect this trend to continue to grow, and adjust accordingly.
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Millions of people watch the home improvement cable TV shows (HGTV, etc.) and see beautiful outdoor kitchens next to waterfalls streaming into lit swimming pools. When they see it, they want it. The pictures are very romantic, and the fastest growing places in the US (Florida, Nevada, etc.) are great places to be outdoors most of the year, particularly in the evening. The home improvement cable TV shows are the retailers’ best friends and allies. Their pictures make customers’ mouths water.
Outdoor living is and will continue to be the “in” thing. As the generational demographics change the upcoming generations are family community bbq get together types. The variety and quality of product needs to change at most retailers. Outdoor furniture and decor items usually don’t hold up well and are almost a one season buy.
Many retailers look at summer as a three month shelf life item maybe this survey will help them look at it in a different way.
Many stores at present are treating the outdoor-entertainment category as strictly for holidays and summer. Goods and supplies for outdoor entertainment needs permanent placement in supermarkets, even in winter climates, because most of the 84% that prefer outdoor entertaining, also desire informal disposable indoor entertainment when weather does not permit. People are busy and they want a nice variety of disposable goods for informal entertaining and throw-away.
This trend, while not new, is only now gaining “mass appeal.” It presents a wonderful opportunity for a select group of retailers to dominate this business.
As Tom points out, many retailers choose to treat the product in a seasonal way, clearing it out mid summer to make way for the next seasonal event. Outdoor relaxation and entertainment is, in many locations, is nearly a year round activity.
There are some, however, who could turn this into a competitive advantage and come to dominate the business. Smith & Hawken, Home Depot and Lowe’s could decide to make themselves such a headquarters and while others are clearing out their summer inventories, they could be transitioning their inventories in concert with the seasons.
It is definitely an underplayed category and one that no single retailer, as far as I have seen, fully understands or has exploited. To the victor awaits the spoils!
The biggest mistake traditional retailers make in this area is to underestimate the quality consumers are looking for and their willingness to pay for it. The $99 patio set with a “Li’l Smokey Joe” grill doesn’t cut it any more. Outdoor lifestyles are both upscale and permanent, not seasonal throw-aways.
Catalog retailers like Frontgate and Hammacher-Schlemmer set the standard, along with specialty store fronts in upscale communities. For those inclined to be involved in outdoor living in more depth, the outdoor superstores (Cabela’s; Bass Pro/Outdoor World) are expanding their traditional “away from home” outdoor living to include “at home” furniture, grills, etc.
When it’s 10 degrees Fahrenheit and snowing outside, I just don’t get that thrill of the outdoors. My local retailer (whoever it is) can stock as many outdoor products as they want–I’m not buying. That’s the reason retailers treat these products as seasonal–because that’s what they are. They know from long years of experience when these products sell. And Liatt’s comment concerning “green” thinking will become more prevalent in the future.
This trend bears watching for retailers. But outdoor living spaces carry some practical and societal contradictions that will have to play out if they are to go beyond the simple and traditional backyard bar-b-que and beer fests we all know and love.
The idea of stylish and coordinated disposable glasses, cups, plates, silverware, and napkins that make outdoor entertaining such a breeze butts right up against the “green” movement which eschews using throwaway products that clog the landfills. Then, according to a recent article, many homeowners who design and erect amazing outdoor “kitchens” and dining areas–that can cost $20,000 and more–ultimately find they are so difficult and time consuming to keep clean, (think spider and mildew-free) they end up rarely using them for this reason. In a recent conversation with two residential real estate professionals I discovered that (like pools, koi ponds and outdoor hot tubs) elaborate outdoor dining facilities and patios can be either a big turn-on OR turn-off for potential buyers depending on their personal views of nature, gardening, and what they want to see outside their back windows.
Outdoor eating is a seasonal affair. And the problem every retailer faces is being stuck with seasonal that doesn’t sell. Store managers and directors never look forward to the drudgery of repacking and storing seasonal items. So I can understand why stores are hesitant in buying heavy on seasonal. That said, entertaining outdoors is a growing trend and every year there seems to be more and more product available but again, it’s in limited quantities. Buyers and vendors need to do a better job estimating inventory levels. Don’t discount what the store manager tells you! Chances are he/she knows the business better than the buyer.
One area that hasn’t been mentioned yet in this discussion is the retailer’s role in providing meal solutions for consumers. Supermarkets and others can do more to offer “easy to grill” or “great for barbeque” meal choices, with clear cooking directions, times and safe temperatures to reach. Offering a variety of healthful choices is important too.
As for the non-food products, I agree with the comments made that the quality of the items offered by many retailers can be improved.
I agree with the central question posed: retailers have yet to embrace outdoor products as the huge market they could be. I do see Kmart and Target offering some good outdoor products (as well as NAMCO–although they tend to be pricey). My wife and I are big outdoor BBQ fans, and it definitely feels more informal. Retailers should expect this trend to continue to grow, and adjust accordingly.