Market information Affordable garden treats
Achieving sales these days can be hard work, but being aware of emerging consumer trends – and making the most of the opportunities they offer – can really help boost your business. Remember how the desire for authenticity and self sufficiency translated into sales of grow-your-own products? According to Future Foundation, an emerging trend is set to be the demand for affordable treats. In a recent survey of 5000 UK adults, they found that six in 10 people agree with the statement: ‘It’s really important that I can treat myself when I want.’ There are many examples of products and retailers who have turned this consumer attitude into a success. Ten years ago, the Italian sparkling wine Prosecco was barely known outside of wine buff circles, but in the years since
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...consumers want the satisfaction of achieving a premium-quality experience at a bargain price’
the economic gloom took hold sales have increased. Last December, the Guardian reported that both Waitrose and Tesco had seen rocketing sales of Prosecco. Meanwhile, Mintel data suggests that champagne sales in the UK have fallen since 2007. So, it seems that rather than calling a halt to celebrations, consumers are choosing to trade down within luxury categories. The need to feel good is greater than ever, but consumers want the satisfaction of achieving a premium- quality experience at a bargain price. It could be argued that garden retailers have already seen the benefits of this in the growth in popularity of garden centre cafés. The authentic, home-cooked quality food and drink they offer perfectly fits the bill of
an affordable treat. It’s not considered to be a ‘meal out’ but it’s certainly enjoyable and high quality. The rise of farm food ranges in garden centres also illustrates the trend. The chart (shown below) shows that between 2011 and 2012 sales of food hall/farm shop ranges in garden centres increased in each of the last three months of the year. Compared with 2011, over this last three-month period, growth in food hall/farm shop sales was 4%. Few would argue that going to the garden centre for a luxury Christmas pudding is cheaper than going to a supermarket, nonetheless, it does represent an affordable luxury in the context of wider Christmas expenditure.
Translating trends into sales
So what might that mean in 2013 for major categories such as plants? It’s difficult to predict, but we know from consumer interviews and surveys conducted over the past three years that consumers don’t see most plants as expensive. In the words of one participant in our focus groups in 2010: ‘The thing with bedding is that the outlay’s not massive, they are reasonably cheap…’ Another participant typifies how much of a treat plants can be: ‘I love spring. I think it is so brilliant when you
have all the snowdrops and crocuses coming out after all the drab winters we have been having. It is just a brilliant time for me in the garden.’ So if consumers already associate plants with a sense of affordable joy, it may well be that the opportunity in 2013 is to position ranges such as bedding as colourful, affordable, high quality treats, not commodities to be sold at the lowest possible price. Of course, different consumers will want different things and we’re certainly not saying there’s no place for price promotions. Over-use of such discounting, though, may risk devaluing the product in the eyes of the consumer. But does this hold true for shrubs and trees, which tend to have higher selling prices? There is some (by no means conclusive) evidence that at least some consumers see shrubs and trees as a ‘higher risk’ purchase. One participant in an HTA focus group commented: ‘If you put a tree or a shrub in and that dies, then you’ve lost a lot of money, but it doesn’t matter if your tubs dry out and your bedding dies, because it hasn’t cost you a lot.’ We might speculate that one way in
which consumers may start to behave is by looking for smaller specimens that they can grow on themselves to full size, and which represent a bargain when displayed next to larger plants of the same type. This might mean ensuring mid- or small-sized specimens are priced in such a way as to maximise margins from any customers downsizing within a category. And, of course, plant guarantees potentially play a part here in assuring the consumer about the value of their purchase. All in all, 2013 promises to be another tough year, but not one without opportunities for us to delight our customers with affordable treats.
Value of garden centre sales of food hall/farm foods 2011 and 2012
2011 2012
Oct ct
Nov
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