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Patio Living - US - March 2011

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
After a pause during the recession, market returns to growth
Broader economic factors tell a mixed story for outdoor furniture
Patio prioritized over other home furniture expenditures during recession
Segments based on materials used; metal dominant
Most marketing focuses on the trade
A majority of adults own outdoor furniture
Replacement the primary purchase motivator for current owners
Dining pieces most commonly owned, more room for growth in relaxation
Gen-Xers, Boomers combine outdoor improvements and furniture
Just like another room in the house
Big boxes dominate the patio furniture retail landscape
Seeing (and sitting) is believing
INSIGHTS AND OPPORTUNITIES
Picking up the pace
Humanity
Fun and games
Skins
Creativity
Trade-ins
Leasing
Getting more social
INSPIRE INSIGHT
Trend: Home of the Senses
MARKET SIZE AND FORECAST
Key points
Market set for post-recession growth
Other takes on the market
Figure 1: Total U.S. sales of outdoor furniture, at current prices, 2005-15
Figure 2: Total U.S. sales of outdoor furniture, at inflation-adjusted 2010 prices, 2005-15
MARKET DRIVERS
Key points
Consumer sentiment makes halting gains
Figure 3: ICS, January 2006–February 2011
Housing market continues to slide
Figure 4: Sales of existing and new single-family homes, 2001-10
Home ownership slips
Figure 5: Grill ownership, past-year outdoor furniture purchase, and past-year home improvements, by home ownership, July 2009– Sept. 2010
Figure 6: U.S. home ownership rate, 1960-2010
Homeowners in smaller houses may place greater emphasis on outdoor space
COMPETITIVE CONTEXT
Key points
Furniture becoming less of a priority among other household expenses
Figure 7: Distribution of household expenditures, by consumer unit, 2006-09
Spending on furniture not a top-of-mind priority
Figure 8: Where consumers spend extra money, July 2008–July 2010
Patio prioritized over other home furniture expenditures during recession
Figure 9: U.S. sales of select home furnishings categories, 2008-10
Patio furniture performing better than barbecue grills
SEGMENTS
Segments based on materials used
Import trends suggest that metal matters
Figure 10: Imports of outdoor furniture, by major material as a percent of world total, 2009
Metal market continues the move to cast aluminum
Plastic goes green
Wicker as popular a choice as ever
Wood maintains high-end niche
Umbrellas
LEADING COMPANIES
 SUPPLIERS OF OUTDOOR FURNITURE IN MIXED MATERIAL
Agio (Shianco)
Brown Jordan
Furniture Brands International
 SUPPLIERS OF OUTDOOR FURNITURE IN RESIN
Keter Group
Grosfillex
 SUPPLIERS OF OUTDOOR FURNITURE IN METAL
Hanamint
Tropitone
INNOVATIONS AND INNOVATORS
Eco-friendly options expand
Firing up the patio
Sunbrella pushes innovation in fabric durability and design
Kmart and Sears help online shoppers “plan the perfect patio”
MARKETING STRATEGIES
Overview
Focus on the retail and design trade
Show time
Co-branding
Big box home centers rely on web to promote outdoor furniture
Home Depot promotes patio furniture alongside lawn and garden care
Walmart offers savings and expanded selection
Sunbrella and other suppliers use social media to connect with the trade
OUTDOOR FURNITURE OWNERSHIP
Key points
Boomers most likely to own outdoor furniture
Figure 11: Outdoor furniture ownership, by age, November 2010
Ownership levels peak among higher-income households
Figure 12: Outdoor furniture ownership, by household income, November 2010
Suburbanites most likely to own outdoor furniture
Figure 13: Outdoor furniture ownership, by region and type of location, November 2010
WHY DO PEOPLE BUY NEW OUTDOOR FURNITURE?
Key points
Replacement the primary purchase motivator for current owners
Purchases guided by blend of emotional and rational factors
Younger adults more open to sales, or something new and different
Figure 14: Primary reason for purchasing new outdoor furniture, by age, November 2010
Higher-income owners no more likely to buy on a whim
Creative ideas for outdoor space may spur new purchases
Figure 15: Primary reason for purchasing new outdoor furniture, by household income, November 2010
TYPE OF OUTDOOR FURNITURE OWNED
Key points
Dining the most common theme in outdoor furniture
Relaxation also a factor
Beyond the basics: Creating an environment
Figure 16: Type of outdoor furniture owned, by age, November 2010
Higher-income households own a broader array of outdoor living items
Figure 17: Type of outdoor furniture owned, by household income, November 2010
Regional preferences and tastes
Figure 18: Type of outdoor furniture owned, by region and type of location, November 2010
LIFE EVENT TRIGGERS
Purchase of new home can trigger outdoor improvements and furniture purchases
Figure 19: Purchase of outdoor furniture, home improvements, or outdoor grill, by life events, in last 12 months, July 2009–Sept. 2010
OUTDOOR FURNITURE SPENDING
Key points
Boomers more likely to combine outdoor improvements and furniture purchases
Figure 20: Household purchased outdoor furniture, did outdoor home improvements in the last 12 months, by age, July 2009–Sept. 2010
Likelihood to spend on outdoor space increases with income
Figure 21: Household purchased outdoor furniture, did outdoor home improvements in the last 12 months, by household income, July 2009–Sept. 2010
Average expenditure about $250; Boomers are heaviest spenders
Figure 22: Amount spent on lawn/porch/patio furniture in the last 12 months, by age, July 2009–Sept. 2010
Higher-income households spend more
Figure 23: Amount spent on lawn/porch/patio furniture in the last 12 months, by household income, July 2009–Sept. 2010
Indoor still the furniture spending priority
Figure 24: Outdoor furniture spending habits, by age, July 2009–Sept. 2010
USES OF OUTDOOR AREAS
Key points
Just like another room in the house…unless it’s raining
Changing the weather
Figure 25: Uses of outdoor areas, by age, November 2010
Midwesterners’ use of outdoor space most constrained by weather
Figure 26: Uses of outdoor areas, by region and type of location, November 2010
WHERE CONSUMERS BUY OUTDOOR FURNITURE
Key points
Big boxes dominate the patio furniture retail landscape
Big boxes compete through (online) selection and branding
Indoor furniture stores and department stores attracted to the category
Figure 27: Furniture purchase locations, by age, November 2010
Mass merchants appeal to all but highest-income groups
Figure 28: Furniture purchase locations, by household income, November 2010
WHERE OUTDOOR FURNITURE SHOULD BE PROMOTED
Key points
Seeing (and sitting) is believing
Online more important for younger shoppers
Figure 29: Influential outdoor furniture advertising venues, by age, November 2010
IMPACT OF RACE AND HISPANIC ORIGIN
Key points
Blacks, Asians significantly less likely to own patio furniture
Figure 30: Outdoor furniture ownership, by race/Hispanic origin, November 2010
Blacks, Hispanics less likely to have purchased or renovated
Figure 31: Household purchased outdoor furniture, did outdoor home improvements in the last 12 months, by race/Hispanic origin, July 2009–Sept. 2010
Different types of furniture owned point to different preferences
Figure 32: Type of outdoor furniture owned, by race/Hispanic origin, November 2010
Only a few differences in attitudes toward outdoor space usage across groups
Figure 33: Uses of outdoor areas, by race/Hispanic origin, November 2010
CUSTOM CONSUMER GROUPS
Big spenders: amount spent on outdoor furniture in the last three years
Figure 34: Demographic profile of adults who have spent $2,000+ on patio furniture in last three years, November 2010
Heavy spenders actively engaged in outdoor space
Figure 35: Primary reason for purchasing new outdoor furniture, by amount spent on patio furniture in last three years, November 2010
Heavy spenders go for all the extras
Figure 36: Type of outdoor furniture owned, by amount spent on patio furniture in last three years, November 2010
Heavy spenders more likely to call outdoor space their favorite area
Figure 37: Uses of outdoor areas, by amount spent on patio furniture in last three years, November 2010
Heavy spenders don’t limit patio furniture shopping to specialty stores
Figure 38: Furniture purchase locations, by amount spent on patio furniture in last three years, November 2010
Patio furniture is everywhere they look
Figure 39: Influential outdoor furniture advertising venues, by amount spent on patio furniture in last three years, November 2010
CLUSTER ANALYSIS
Regulars
Demographics
Characteristics
Opportunity
Irregulars
Demographics
Characteristics
Opportunity
Exposers
Demographics
Characteristics
Opportunity
Cluster characteristics
Figure 40: Patio furniture clusters, December 2010
Figure 41: Primary reason for purchasing new outdoor furniture, by patio furniture clusters, December 2010
Figure 42: Uses of outdoor areas, by patio furniture clusters, December 2010
Figure 43: Influential outdoor furniture advertising venues, by patio furniture clusters, December 2010
Cluster demographics
Figure 44: Patio furniture clusters, by gender, December 2010
Figure 45: Patio furniture clusters, by age group, December 2010
Figure 46: Patio furniture clusters, by household income, December 2010
Figure 47: Patio furniture clusters, by race, December 2010
Figure 48: Patio furniture clusters, by Hispanic origin, December 2010
Cluster methodology
APPENDIX: OTHER USEFUL TABLES
Figure 49: Spending on outdoor furniture in past three years, by gender, November 2010
Figure 50: Spending on outdoor furniture in past three years, by age, November 2010
Figure 51: Spending on outdoor furniture in past three years, by household income, November 2010
Figure 52: Spending on outdoor furniture in past three years, by region and type of location, November 2010
Figure 53: Amount spent on lawn/porch/patio furniture in the last 12 months, by region, July 2009–Sept. 2010
Figure 54: Amount spent on outdoor home improvements in the last 12 months, by age, July 2009–Sept. 2010
Figure 55: Amount spent on outdoor home improvements in the last 12 months, by household income, July 2009–Sept. 2010
Figure 56: Amount spent on outdoor home improvements in the last 12 months, by region, July 2009–Sept. 2010
Figure 57: Uses of outdoor areas, by household income, November 2010
Figure 58: Furniture purchase locations, by region and type of location, November 2010
Figure 59: Furniture purchase locations, by race/Hispanic origin, November 2010
Figure 60: Influential outdoor furniture advertising venues, by gender, November 2010
Figure 61: Influential outdoor furniture advertising venues, by household income, November 2010
Figure 62: Influential outdoor furniture advertising venues, by head of household age, November 2010
APPENDIX: TRADE ASSOCIATIONS

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