Lawn and Garden Power Tools - US - August 2007

SCOPE AND THEMES
What you need to know
Definition
Abbreviations and terms
Abbreviations
EXECUTIVE SUMMARY
Positive factors cannot outweigh housing slump
Housing slump upends market
Homeownership shifts to ethnicities, younger buyers
Growing male population aids sales
Increases in disposable personal income (DPI)
Greater home sizes in some regions, shrinking in others
Media influence
Market shifts from DIY to professional services
Regional, seasonal considerations
Market size directly affected by burst of housing bubble
Two segments divided into several overall subsegments
Five leading manufacturers; supply chain marked by acquisitions
Advertising and promotion
Retail landscape
Consumer ownership of OPE, attitudes, and preferences
Key consumer groups—hobbyists, enthusiasts, and eco-gardeners
What the future holds
Home sales continue to decline
Green living, air quality regulations threaten market
MARKET DRIVERS
Introduction
Changes in home sales, homeownership profiles directly affect market
Housing bubble bursts
Figure 1: U.S. existing home sales, 1996-2007
Homeownership becomes more ethnically diverse
Figure 2: Homeowners by race and Hispanic origin, 1995-2005
Homeownership shifts slightly to younger generations
Figure 3: Homeowners by age, 1995-2006
Disposable personal income (DPI)
Figure 4: U.S. disposable personal income, 2002-07
Ownership of lawn and garden power tools by income and ethnicity
Income
Figure 5: Ownership of lawn and garden equipment, by income, May 2007
Figure 6: Median household income by age of householder, 2005
Ethnicity
Figure 7: Ownership of lawn and garden equipment, by race/ethnicity, May 2007
Figure 8: Median income in the U.S., by race/ethnicity, 1975-2005
Figure 9: Population, by race and Hispanic origin, 2002-12
Surge in home sizes and shrinking lots
Popularity of outdoor living spaces spurs interest in power tools
Improving “curb appeal”
TV programs and magazines dedicated to gardening and outdoor living fuel sales
DIY gives way to professional services
MARKET SIZE AND TRENDS
Introduction
Figure 10: Total U.S. retail sales of lawn and garden power tools, at current and constant prices, 2002-07
Market trends
Zero-turning-radius mowers
Reduced emission levels
Ergonomics
Robotic lawn mowers
MARKET SEGMENTATION
Lawn and garden power tools, segmented by end-user and product type
Figure 11: Unit shipments of lawn and garden power tools, segmented by end-user and type, 2005 and 2007
Walk-behind/push mowers
Figure 12: Unit shipments of walk-behind/push mowers, at current and constant prices, 2002-07
Riding equipment: rear-engine mowers, lawn tractors, and garden tractors
Figure 13: Unit shipments of riding equipment, at current and constant prices, 2002-07
Rear-engine riding mowers
Lawn tractors
Figure 14: Unit shipments of lawn tractors, at current and constant prices, 2002-07
Garden tractors
Figure 15: Unit shipments of garden tractors, at current and constant prices, 2002-07
Other large-wheeled garden power tools: tillers, snow blowers
Tillers
Snow blowers
Figure 16: Unit shipments of snow blowers, at current and constant prices, 2002-07
Handheld products: trimmers, chainsaws, and blowers
Figure 17: Unit shipments of handheld products, at current and constant prices, 2002-07
Trimmers
Figure 18: Unit shipments of trimmers, at current and constant prices, 2002-07
Chainsaws
Figure 19: Unit shipments of chainsaws, at current and constant prices, 2002-07
Blowers
Figure 20: Unit shipments of blowers, at current and constant prices, 2002-07
Other tools and attachments
Commercial lawn and garden power tools
Figure 21: Unit shipments of commercial lawn and garden power tools, at current and constant prices, 2002-07
Commercial intermediate walker mowers
Figure 22: Unit shipments of commercial intermediate walker mowers, at current and constant prices, 2002-07
Commercial riding mowers
Figure 23: Unit shipments of commercial riding mowers, at current and constant prices, 2002-07
SUPPLY STRUCTURE
 INTRODUCTION
 COMPANIES AND BRANDS
Deere & Co.
Husqvarna
The Toro Company
MTD Products
Briggs & Stratton
ADVERTISING AND PROMOTION
Introduction
John Deere
Toro
Figure 24: Toro lawn and yard power tools TV spot—outdoor living
Briggs & Stratton
Husqvarna
Black & Decker
Figure 25: Black & Decker GrassHogXP TV spot—easy start; vertical adjustment; high-powered electric motor
Figure 26: Black & Decker 18-volt cordless handheld tool series TV spot—easy start; vertical adjustment; high-powered electric motor
RETAIL DISTRIBUTION
Introduction
Figure 27: Preferred retail locations for purchases of lawn and garden power tools, by age, May 2007
Home improvement centers
The Home Depot
Lowe’s
Department stores
Sears Holdings Corporation
Hardware stores
Ace Hardware
THE CONSUMER: OWNERSHIP OF LAWN AND GARDEN POWER TOOLS
Introduction
Summary
Lawn and garden tools ownership, user purchase habits and attitudes
Ownership
Figure 28: Ownership of specific lawn and garden power tools, by age, May 2007
Figure 29: Ownership of specific lawn and garden power tools, by income, May 2007
Figure 30: Ownership of specific lawn and garden power tools, by marital status, May 2007
Figure 31: Ownership of specific lawn and garden power tools, by household size, May 2007
Figure 32: Ownership of specific lawn and garden power tools, by number of children in household, May 2007
Figure 33: Ownership of specific lawn and garden power tools, by region, May 2007
Preferred retail locations for lawn and garden power tool purchases
Figure 34: Preferred retail locations for purchases of lawn and garden power tools, by age, May 2007
Figure 35: Preferred retail locations for purchases of lawn and garden power tools, by income, May 2007
Figure 36: Preferred retail locations for purchases of lawn and garden power tools, by region, May 2007
Attitudes towards powered lawn and garden tools
Figure 37: Preferred attributes of lawn and garden power tools, by gender, May 2007
Figure 38: Preferred attributes of lawn and garden power tools, by income, May 2007
Amount spent in two years on lawn and garden power tools
Figure 39: Amount spent in two years on lawn and garden power tools, May 2007
Attitudes towards specific TV shows
Figure 40: Viewing levels of specific TV programming, May 2007
THE CONSUMER: COHORT ANALYSIS
Hobbyists, Gardening Enthusiasts and Eco-gardeners: A comparison of consumer cohorts
Figure 41: Overlap between Hobbyists, Enthusiasts and Eco-gardeners
Figure 42: Lawn and garden cohort profiles, May 2007
Summary
Lawn and garden tools ownership, user purchase habits and attitudes among cohorts
Ownership
Figure 43: Ownership of specific lawn and garden power tools, by cohort, May 2007
Amount spent in two years on lawn and garden power tools among cohorts
Figure 44: Amount spent in two years on lawn and garden power tools, by cohort, May 2007
THE CONSUMER: RACE AND ETHNICITY ANALYSIS
Summary
Lawn and garden tools ownership among ethnicities
Figure 45: Ownership of specific lawn and garden power tools, by race/ethnicity, May 2007
Attitudes towards specific TV channels
Figure 46: Viewing levels of specific TV programming, by race/ethnicity, May 2007
FUTURE AND FORECAST
 FUTURE TRENDS
Home sales continue to slide
Triple threat: green living, gas prices, and regulation
Figure 47: U.S. gasoline retail prices, 2002-07
Noise pollution
 MARKET FORECAST
Lawn and garden power tools market
Figure 48: Forecast of total U.S. retail sales of lawn and garden power tools, at current and constant prices, 2007-12
Figure 49: Forecast of retail sales of lawn and garden power tools, at current and constant prices, 2007-12
Walk-behind/push mowers
Figure 50: Forecast of U.S unit shipments of walk-behind/push mowers, at current and constant prices, 2007-12
Riding equipment: lawn tractors and garden tractors
Figure 51: Forecast of U.S. unit shipments of riding equipment, at current and constant prices, 2007-12
Forecast factors
APPENDIX: TRADE ASSOCIATIONS