Volume 19 I ssue 3 | SUMMER 2022 www.insideoutdoor.com E-BIKE’S BRIGHT OUTLOOK Polyester Goes Circular Shrinking Theft’s Impact BTS/Holiday 2022 DTC BRANDS CHANGE THE CHANNELS
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Cover image courtesy of Aventon InsideOutdoor | SUMMER 2022 4 24 E -bikes Change the Channels D2C boom could be good news for non-bike shops By Martin Vilaboy 28 E -bike Add-ons With the new crop of e-bike riders comes a new need for cool and convenient bike accessories BRAND WATCH 30 Adaptive course for all 30 Big win for America Outdoors 30 Alchemy’s vacation value-add 31 LG unveils ‘GuideBot’ INGREDIENTS 32 Polyester goes circular 34 Plant-based is the new black 34 PFAS-free for footwear START ‘EM UP 36 Better bike insurance 36 Solar, portable trailer 37 Pole, filter, pump combo 38 SFIA start-up finalists 6 Editor’s Letter 8 Data Points 10 Rep News & Notes 38 Ad index BUYER’S SIDE 12 Shrink Rap Tips to protect your store from retail theft By Brady Hicks IN-SEASON 16 T he Holiday Rush, or Wait Shoppers face opposing pressures as they head into BTS, Holiday 2022 By Martin Vilaboy 20 A Guide for Gifting Holiday ideas for active enthusiasts C O N T E N T S SUMMER 2022 INSIDEOUTDOOR MAGAZINE Volume 19 I ssue 1 | SPRING 2022 www.insideoutdoor.com SO MUCH SUMMER MME SUPPLY CHAIN SHIFTS WOOL PIONEERS Monetize Your Wi-Fi Campers Disperse rs S/S ’23 NEW PRODUCT SHOWCASE H 24 12 16 Volume 19 I ssue 2 | SUMMER 2022 www.insideoutdoor.com E-BIKE’S BRIGHT OUTLOOK H SUPPL CHAIN SHIFTS Polyester Goes Circular r C r Shrinking Theft’s Impactc BTS/Holiday 2022 DTC BRANDS CHANGE THE CHANNELS E H L
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InsideOutdoor | SUMMER 2022 6 SUSTAINABILITY’S PERCEPTION PROBLEM A new report recently released by the University of East Anglia and University of Leeds made some recommendations that could be unsettling to marketers and retailers of outdoor specialty products – or at least those concerned with sustainability. The research, published in the Journal of Advertising, “suggests that companies looking to promote their latest environmentally friendly product should downplay its green credentials if they want consumers to buy it,” said the University of East Anglia’s media announcement. Citing a consumer perception that green products equate to lower performance, the researchers recommend marketers use “implicit” messaging to tout a product’s sustainable aspects when consumers have more concerns about a product’s performance. Prominent or “explicit signals” of a product’s greenness led to lower performance evaluations and purchase intent for products that are less commonly associated with green, they continued. Of course, one could argue that the typical outdoor consumer has a better understanding of how sustainable ingredients can match the performance of much less-friendly options. And many outdoor vendors and component brands supply sustainable options that have performed for those outdoor consumers. Even so, when it comes to growing and expanding the user base of outdoor participants, the findings from the University of East Anglia are more than a bit disheartening. “Given consumers’ perceptions of poorly performing green products, persuading them to alter their consumption habits remains a difficult task for marketer,” said Dr. Bryan Ursey, a lecturer in marketing at the University of East Anglia and lead author of the study. “While firms have often attempted to enhance their environmental credentials by emphasizing a new product’s green attributes,” he continued, “we show that this may in fact have negative consequences.” Does that mean, however, outdoor brands and retailers necessarily should pull back from their sustainability bullhorns or “understate” a performance product’s greenness, as the research recommends? Or rather does it mean that more education and awareness is needed regarding advancements in material sciences and sacrifices to margins that are being made to provide more eco-conscious offerings? We know that if a prestigious research university came asking about the performance levels of eco-friendly outdoor components, clothes and gear, we’d be able to point them in plenty of directions. And while there may not exists a green product for every application a core outdoor enthusiast might encountered, more often than not, outdoor consumers have the option of make eco-conscious shopping decisions. Ultimately, for sustainability efforts to achieve their long-term goals, customers must not only weigh sustainability as part of a shopping decision; they must actively seek and make sustainable choices. That’s less likely to happen through “implicit signals.” The business advice being offered by Dr. Ursey and his team might be the best in terms of ROI and P&L statements. But given the outdoor industry’s history of leading the charge to positive change through education and adoption, we expect the industry’s sustainability messaging to remain explicit. From the Editor Martin Vilaboy Editor-in-Chief martin@bekabusinessmedia.com Bruce Christian Contributing Editor bruce@bekabusinessmedia.com Brady Hicks Contributing Editor brady@bekabusinessmedia.com Percy Zamora Art Director percy@bekabusinessmedia.com Rob Schubel Digital Manager rob@bekabusinessmedia.com Jen Vilaboy Ad Production Director jen@bekabusinessmedia.com Berge Kaprelian Group Publisher berge@bekabusinessmedia.com Anthony Graffeo Publisher anthony@bekabusinessmedia.com Beka Business Media Berge Kaprelian President and CEO Jim Bankes Business Accounting Corporate Headquarters 10115 E Bell Road, Suite 107 - #517 Scottsdale, Arizona 85260 Voice: 480.503.0770 Email: berge@bekabusinessmedia.com © 2022 Beka Business Media, All rights reserved. Reproduction in whole or in any form or medium without express written permission of Beka Business Media, is prohibited. Inside Outdoor and the Inside Outdoor logo are trademarks of Beka Business Media
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Shoppers say print is best, yet retailers favor social media Source: Vericast Yoga Studio Numbers by theYear Source: BoldData.nl Percent who repor on fraud, crime and Source: National Retail Federa YOY Customer Frustration Rate by Month: Nov-Feb Source: Quantum Metric Source: McKinsey & Co. 2 NOV DEC JAN 41% FEB 3 4 5 2020-21 2021-22 Frustration rate (%) PRINT SOCIAL MEDIA ONLINE COUPONS DIRECT MAIL 28% 34% 17% 67% 23% 37% 24% 36% CONSUMERS RETAILERS CONSUMERS RETAILER CONSUMERS RETAILERS CONSUMERS RETAILERS 1600 1500 1400 1300 1200 1100 1000 9000 8000 7000 6000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 I will be buying more high-quality items that can last longer Strongly agree I will be repairing fashing items more rather than buying new ones I will be throwing out fashing items less often 7% 7% 50% 11% Overall Workplace violence Organized retail crime Shoplifting Employee theft Cargo theft YOY Conversion Ra NOV 7 0 2.5 5 7.5 10 NOV 14 NOV 21 NOV Conversion rate (%) 4 3 3 3 3 1 Shoppers say print is best, yet retailers favor social media Source: Vericast Perc on fr Source: YOY Customer Frustration Rate by Month: Nov-Feb Source: Quantum Metric Source: McKinsey & Co. 2 NOV DEC JAN 41% FEB 3 4 5 2020-21 2021-22 Frustration rate (%) PRINT SOCIAL MEDIA ONLINE COUPONS DIRECT MAIL 28% 34% 17% 67% 23% 37% 24% 36% CONSUMERS RETAILERS CONSUMERS RETAILER CONSUMERS RETAILERS CONSUMERS RETAILERS I will be buying more high-quality items that can last longer Strong agree I will be repairing fashing items more rather than buying new ones I will be throwing out fashing items less often 7% 7% 11% Or YOY 10 InsideOutdoor | SUMMER 2022 8 Channels Crossed More than half of retail marketers plan to increase their spending in social (54%) and digital (53%), compared to the 40% planning to increase spending on print channels. But consumers have a different perspectives when it comes to the best ways to introduce and consider new products or brands, show findings from Vericast. Shoppers still say print (direct mail, catalogs, magazines) is their number one channel for brand and product discovery. Customers Remaining Chill Airline horror stories notwithstanding, retail customer frustration remained surprisingly low through the first quarter of this year, suggests data from Quantum Metric. Comparing January 2021 and 2022, the data showed a 41% drop in “frustration rate,” defined as the aggregated percentage of consumers who expressed frustration during their session, during a specific period of time, compared against the total sessions. Profile of NewCampers The new camper profile in 2021 tends to be somewhat similar to what was observed in 2020, in terms of being younger, more diverse and wealthier than campers traditionally, but, in other ways, new campers in 2021 had less variability to the more experienced camper than in 2020, said researchers at KOA. 2021 New Campers by the Numbers Want to try RVing 57% Prefer tent camping 56% Millennials 54% Non-white campers 54% Want to go glamping 51% Took a glamping trip in past year 47% HH incomes >$100,000 39% Started camping due to COVID 36% Took 3+ trips in 2021 32& Source: Kampgrounds of America DATA POINTS NUMBERS WORTH NOTING 56% Percent of Gen Z digital buyers who will use a buy now, pay later (BNPL) service at least once this year, per eMarketer estimates. This despite concerns that BNPL is just another way for Gen Z to get into debt; 43% of Gen Z consumers missed a payment at least once in the past year (compared to 31% of millennials and 26% of Gen Xers).
Holey Footwear If there is one thing footwear brands can do to extend the lifespan of their athletic shoes, it’s make sure the uppers are durable and don’t form holes. According to a consumer survey by Arris Composites, the largest segment of respondents said they replace their athletic shoes “whenever holes form.” Four in 10 replace their athletic shoes after a year or less. Yoga Slowdown Yoga studios have become a common part of the American street scene, with the trend impacting sport and fashion. During the past 10 years, the number of studios has grown by 166%, according to findings from BoldData. In 2016 alone, 1,499 yoga entrepreneurs opened their own yoga school. But 2020 seems to be a tipping point for the popularity of yoga, from this moment the growth slowed, down to 2%. DATA POINTS NUMBERS WORTH NOTING DATA POINTS NUMBERS WORTH NOTING 86% Percent of U.S. adults who think it is helpful that they and their families have access to the outdoors and nature during stressful times, including more than three in five who find this very or extremely helpful, according to the National Recreation and Park Association. Source: Vericast Yoga Studio Numbers by theYear Source: BoldData.nl ONLINE COUPONS DIRECT MAIL 28% 34% 17% 67% 23% 37% 24% 36% CONSUMERS RETAILERS CONSUMERS RETAILER CONSUMERS RETAILERS CONSUMERS RETAILERS 1600 1500 1400 1300 1200 1100 1000 9000 8000 7000 6000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 How often are Americans replacing athletic shoes? Source: Arris Composites 4% 13% 23% 11% 13% 7% 29% Every 3 months Every 6 months Every year Every 1.5 years Every 2 years Every 3+ years Whenever holes form Yoga Studio Numbers by theYear Source: BoldData.nl 1600 1500 1400 1300 1200 1100 1000 9000 8000 7000 6000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 How often are Americans replacing athletic shoes? Source: Arris Composites 4% 13% 23% 11% 13% 7% 29% Every 3 months Every 6 months Every year Every 1.5 years Every 2 years Every 3+ years Whenever holes form Percent who reported the COVID-19 pandemic resulted in an increa on fraud, crime and overall risk on their company Source: McKinsey & Co. I will be buying more high-quality items that can last longer Strongly agree Agree Disagree Strongly disagree I will be repairing fashing items more rather than buying new ones I will be throwing out fashing items less often 7% 7% 50% 35% 8% 11% 60% 25% 4% 58% 29% 6% Overall Workplace violence Organized retail crime Shoplifting Employee theft 48.6% 20.8% 33.3% 34.7% 33.3% 33.3% 69.4 Tot 27.8% 61.1 22.2% 56.9 16.7% 50.0 11.1% 44.4 Durability Matters The pandemic has driven a do less with more approach, argue analysts at McKinsey & Co, as consumers plan to purchase more durable fashion items and are open to keeping items for longer. Nearly three-quarters of consumers surveyed said they plan to buy more high-quality items that last longer, while 71 percent claim they will be throwing out fashion items less often. InsideOutdoor | SUMMER 2022 9
InsideOutdoor | SUMMER 2022 10 Outdoor Market Alliance (OMA), a collective of 25 independent sales and marketing agencies representing more than 175 different brands in the outdoor, resort, run and bike markets in the Rockies region, recently wrapped up its first Summer Market Week with an impressive showing from retail buyers, said the organization. Throughout the week of June 13, more than 250 individual specialty retail buyers met up in OMA’s new showroom space in Lakewood, Colo., where they visited OMA’s rep agencies and brands to preview new product, merchandise assortments and place orders. Conveniently located in Colorado’s front range, the Summer Market Week proved to be a draw for retailers to do business in a cost-effective and efficient way, said show organizers. “This first market week underscored exactly what we’re trying to achieve with this alliance,” said Keith Reis, founding board member of OMA. “It’s offering ultimate convenience and efficiency for doing business. This is the busiest time of year for many outdoor retailers and when buying can be done with so many brands and agencies in one place and with minimal travel, our retail partners win.” The recently formed Outdoor Market Alliance was created “from a need for space,” said OMA, with the founders creating a board and non-profit to ensure that education, inclusivity and succession would be a shared focus. Beyond sharing fresh showroom space, resources, knowledge, best practices and access to B2B platforms such as NuORDER and Elastic Suite, the OMA supports community initiatives through its non-profit association. Each OMA agency commits time and monetary support to the environment, diversity and inclusivity in the outdoor markets. “OMA isn’t just a bunch of reps sharing rent. We knew we wanted to create a new and compelling format and vision for the future of outdoor retail,” said Reis, upon announcing the formation of the event. By the numbers, Summer Market Week reached more than 400 attendees during five days with more than 90 donuts and eight gallons of coffee consumed. Elastic Suite provided numerous tutorials of its platform, and Big City Mountaineers was on-site to engage attendees with its mission to provide outdoor access to urban youth. OMA will hold a Winter Market Week this fall at a date to be announced. Seattle-based Industrial Revolution announced the addition of Virginiabased Taku Agency to represent the brand in the Mid-Atlantic region. The Taku Agency is led by Beaty Jackson, an outdoor industry veteran who has spent more than 20 years working with specialty outdoor shops in a variety of roles, including management, buying, staff training and independent sales. Taku will represent Industrial Revolution brands UCO Gear, Pedco, Morakniv and Esbit in the MidAtlantic, covering Pennsylvania, New Jersey, Delaware, Maryland, Virginia and West Virginia. “As a company that has not had representation in this territory since the start of the pandemic, we are thrilled to tap into Beaty’s strong personal relationships to get our brands in front of Mid-Atlantic retailers,” said Chris Clark, Industrial Revolution’s vice president of sales and marketing. Jackson and the Taku Agency can be reached at 865.300.8439 or sellingoutside@hotmail.com. Oberalp Expands Sales Management Team The Oberalp Group, which owns Salewa, Dynafit, Pomoca, Wild Country and Evolv, has added Phil Hoffman as sales manager and Mike Sohasky as key account sales manager and promoted Steve Goddard to specialty sales manager. Hoffman has been working in the vertical market in the sport and rope access space for the better part of 20 years and has held positions as sales manager for Misty Mountain Threadworks; NSP sales manager for the Vertical Supply Group; owner and operator of specialty outdoor retail store Looking Glass Outfitters; and sales rep for Top Gun sales where he represented Oberalp brands, including Evolv, Wild Country and Salewa. He will serve as a sales manager for two of the Oberalp Group’s premiere brands: Wild Country and Evolv. Sohasky joins Oberalp with more than 15 years of sales management experience that is primarily focused on the cycling industry. He represented Cannondale, GT, Schwinn and Mongoose during a nineyear tenure at Pacific Cycle where he held a variety of sales management positions and was specifically tasked with key account management. In addition to Goddard’s promotion to specialty sales manager, the company announced the promotions of Michael Casarrubia to community marketing manager and Eric Poore to territory manager. Outdoor Market Alliance Wraps Up First Summer Buying Show Industrial Revolution Adds Taku Agency to Rep Force
InsideOutdoor | SUMMER 2022 11 Elevate Outdoor Announces New Global Sales Structure Elevate Outdoor Collective has announced a shift in its global sales team structure with a focus on amplifying independent brand growth. The change, which went into effect in June 2022, will move the current sales structure from a fragmented, regional one to a single team in each region supporting all 12 EOC brands, which include K2 Ski, K2 Snowboarding, Völkl, Marker, Dalbello, Line, Ride, BCA, Tubb Snowshoes, Atlas Snowshoes, Madshus and K2 Skates brands The structure will shift to a category offense in each region and align globally to strengthen go-to-market capabilities and service provided to key partners, said the company. In practice, this means that each of the global regions will have a single commercial sales leader with category leads supporting them over the ski, snowboard and outdoor brands. These regional leaders will report directly to the CEO along with becoming part of the senior leadership team. For the U.S. business, Greg Grip steps up into the new role of vice president of U.S. sales across all Elevate Outdoor Collective brands. Grip will be working directly with the Global HQ teams to scale the opportunity in the United States. Dominic McKenna moves into a similar role as Canada GM over all brands. He will continue to work in parallel with the U.S. business strategically and drive success across all brands as momentum and execution capabilities build. Sea to Summit has partnered with Greenville, S.C.-based Outdoor Sports Marketing (OSM) to manage and expand brand sales across the Southeastern United States. Effective immediately, OSM will represent Sea to Summit across all Southeastern sales channels providing sales management and retail support by fostering relationships for the brand among key outdoor retailers and their staff. OSM brings a team of 10 outdoor sales veterans covering a vast territory from Florida to Delaware and west to Missouri. “We view this as a significant moment to share Sea to Summit’s roots as an authentic Australian adventure brand while bringing their best-in-class products to our trusted retail network,” said Nolan Davis, OSM co-owner. Sea to Summit Partners with OSM in Southeast
The reality can be unsettling. Every day, retailers have their merchandise stolen from them. Whether falling victim to a small-time, petty thief or a massive, organized criminal ring, your outdoor retail business is under constant threat in a dangerous, high-priced game. In this scenario, the villain takes off with your precious, premium equipment, using it either for personal gain or to transport and sell for profit. You need to constantly shift and adapt to keep your wares safe. After all, data published by Outdoor Sports Insurance (OSI) indicates that retail theft insurance claims are up by a staggering 50 percent since 2020 alone, with the size of claims up 37 percent. From 2019 to 2021, 16 percent of all Outdoor Sports Insurance claims are theft related. And to make matters worse, one-fifth of those claims appear to be the work of coordinated crime rings. “With the pandemic, there has not only been a spike in outdoor recreation but a spike in the theft of outdoor gear,” said OSI managing director, Rob Martin. “Implementing best practices and taking another look at security protocols can go a long way toward mitigating the problem.” What steps can you take to keep your precious inventory safe? According to Martin, a combination of common-sense habits and savvy investment provides the best strategy. Know the Enemy According to OSI, about one-fifth of theft claims likely stem from a coordinated team of criminals, such as the widespread retailer bike shop theft ring that was recently shut down in Colorado. In this case, a syndicate of thieves would use moving trucks to break through physical gates and storefronts in order to steal the high-end merchandise and export it to Mexico and other countries for sale. By Brady Hicks Tips to protect your store from retail theft Shrink Rap Buyer’s Side InsideOutdoor | SUMMER 2022 12
InsideOutdoor | SUMMER 2022 14 While crime sprees such as this can be difficult to prevent, Martin recommends removing any of your higher-ticketed items from prominent display, whether physically outside or viewable through your storefront window – especially at night. Placing this inventory toward the back of the store – potentially even behind an additional, dedicated lock and key system – can help to dissuade criminals before they even strike. “The bikes may be out front during the day, and maybe they’re chained or maybe they’re not,” noted Martin. “A lot of shops want to put the fanciest bike in the front window. And so we see a lot of smash and grabs there. We’re trying to get them to move those bikes to the back, at least at night.” Sound Tech Investment Despite the costly nature of modern physical security technology, OSI and others believe it can leave your merchandise far better off, long term. Whether you’re employing an intricate RFID/sensor system, networked alarms or the tried-and-true security camera, the key is to catch (and, ideally, help identify) criminals in the act. In many cases, physical security measures may even make thieves second-guess their efforts and walk away in favor of an easier target. Conscientious Store Layouts For today’s retailer, organization can be your best friend. By keeping your merchandise clearly labeled and tucked away in neat, clear aisles, you can theoretically keep your goods safer. Businesses gain an end-to-end view over their physical store. This allows them to keep a better lookout for suspicious behavior, monitor inventory, assist legitimate customers and dissuade potential criminal acts. OSI also recommends prominent security signage – warning visitors that they are being watched – and mirrors to eliminate blind spots and increase your overall store view. Consider What’s Irreplaceable Sure – many of these practices can help prevent shrinkage. What happens, though, when your highcost merchandise is stolen? Is it replaceable, or have recent supply chain snafus rendered that loss far more permanent? “In a normal circumstance, you have a theft claim. You order up whatever was stolen from your suppliers and then it’s back in your inventory to sell,” said Martin. “Now, you simply just can’t get a replacement from the suppliers. That’s loss of revenue.” In other words, consider the availability of new inventory for order when prioritizing what you protect and how you secure it. Employ Risk Management Above all else, OSI suggests a proactive risk-management approach that seeks to answer: Where is there opportunity for theft? How can I rectify that? “It’s about not having too much parked out front, having enough staff and being able to see all four corners of the store,” continued Martin. “We’ve had people, for example, get on bikes and ride right out the front door. Obviously, we don’t want employees chasing people down and getting into altercations and getting hurt. That’s even worse. “It’s really,” he continued, “Just about putting on that risk-management cap.” Insurance for ‘Peace of Mind’ Although not preventative, the policies offered by carriers such as Outdoor Sports Insurance offer a degree of comfort in the face of overwhelming threat. “We’re able to put, for example, bike shops that do rentals and demos on a business owners’ policy, which is the least expensive and most comprehensive way to cover a small business,” said Martin, “versus the alternative where people get a separate liability policy, [which] gets really expensive.” Sure, your rates can theoretically go up with frequent claims, but that is exactly why so many of these other considerations factor in. And in an ideal world, a sound insurance policy – combined with some of the aforementioned practices – can make all of the difference. Sometimes, the simplest answers are the best ones. Sound, commonsense habits such as pulling outside inventory indoors (and out of sight), taking care to lock your exits, employing a networked alarm system and potentially even a metal window gate can go a long way. “I think it’s just getting these shop owners and managers to think, ‘I’m locking up for the night. Is this place secure’?” noted Martin. “Is there opportunity for theft?” Because if there is, the opportunistic criminal may be lurking nearby. m Percent who reported the COVID-19 pandemic resulted in an increase on fraud, crime and overall risk on their company Source: National Retail Federation “2021 Retail Security Survey” Source: McKinsey & Co. Overall Workplace violence Organized retail crime Shoplifting Employee theft Cargo theft Slight increase Significant increase YOY C nversion Rate by week: Nov - Feb Source: Quantum Metric NOV 7 0 2.5 5 7.5 10 NOV 14 NOV 21 NOV 28 DEC 5 DEC 12 DEC 19 DEC 26 Week f JAN 2 JAN 9 JAN 16 JAN 23 JAN 30 FEB 6 FEB 13 FEB 20 2020-21 2021-22 Conversion rate (%) TrafficVolumes by Device: Nov 2021 - Feb 2022 Source: Quantum Metric Mobile Desktop 0 200 400 600 NOV DEC JAN FEB 150% 50% Traffic volume (millions) 48.6% 20.8% 33.3% 34.7% 33.3% 33.3% 13.9% 69.4% Total 27.8% 61.1% 22.2% 56.9% 16.7% 50.0% 11.1% 44.4% 6.9% 20.8% Buyer’s Side
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16 InsideOutdoor | SUMMER 2022 After a crazy couple of years of shutdowns, shortages and mounting inflation, there’s plenty of uncertainty as to where shoppers’ heads are at heading into back-to-school/ holiday 2022. It’s not that pundits and retail executives are worried. Most expect the full return to classrooms to spur small gains in BTS dollars this fall after the massive year-over-year growth in sales in 2021, while remaining pent-up demand to celebrate post-COVID will drive enough holiday spending, or “revenge buying.” eMarketer predicts an average, if not modest, 3.3 percent growth year-over-year in holiday spending following the double-digit growth experienced last year. What’s less clear heading into the big shopping seasons is how reactions to new realities along with the memories of recent pain points will impact shopping behavior this autumn and winter. In other words, “retailers need to prepare for the ‘next normal’ in holiday shopping and consumer expectations that are still changing,” said Rose Spicer, global head of retail marketing at Oracle. By Martin Vilaboy Shoppers face opposing pressures as they head into BTS, Holiday 2022 The Holiday Rush, or Wait In-Season
17 InsideOutdoor | SUMMER 2022 It’s safe to expect a continued acceleration toward digital channels, which received a boost when stores were forced to shut down and/or access was limited. It’s also quite likely shopper expectations have increased now that they’ve experienced the impressive accommodations and adjustments retailers made due to the unprecedented circumstances of the pandemic. And it’s safe to assume that higher costs for gas and groceries will forces consumer to be more discerning with their dollars than in the recent past. According to eMarketer, for instance, 84 percent of shoppers expect to see higher prices heading into the fall, with more than four in 10 back-to-school shoppers planning to do more comparative shopping online or shop for sales more often. But in some ways, shopper behavior is simultaneously being pulled in completely opposite directions by current trends, headlines and economic conditions. While at the same time, the journey from discovery through purchase (and onto post-purchase) appears to be getting increasingly sophisticated, shopper surveys suggest. On the one hand, shoppers could be feeling pressure to spend early and buy quickly. Certainly, inventory levels have greatly improved since the peak of the pandemic, with U.S. Census Bureau figures from earlier this year showing retail inventories at their highest levels since March 2018. NPD Group’s analysis of specialty retail channels, meanwhile, found that inventory levels as of April 2022, were 44 percent higher than they were pre-pandemic in 2019. Even so, recent supply chain struggles, labor shortages and delivery delays experienced during the past two years are still bouncing around in consumers’ memories, and many shoppers across the country regularly encounter open spaces on grocery shelves that historically are filled with options. In turn, shoppers may be inclined to start their shopping even earlier than in the past and quickly pull the trigger on a purchase before that product is unavailable. “Concerns about items being out-of-stock are continuing to drive consumers to shop earlier than ever, with 29 percent saying inventory concerns have caused them to shop for items at least a month before they need it,” said researchers at Quantum Metric, a provider of customer experience data analytics. That goes not only for dorm room supplies and Christmas gifts, “but for everything from Easter candy to Mother’s Day cards,” continued Quantum Metric, in its recent BTS retail benchmark report. “For back-to-school items, consumers are buying even earlier. In fact, 41 percent have either already started or plan to start before this school year even wraps,” the report continued. “Comparing traditional K-12 shoppers to college shoppers, we see that those looking for college essentials are more likely to start earlier.” As of early July, more than half (56 percent) of shoppers had started shopping for school and college supplies, according to the National Retail Federation. The pressure to purchase also is reflected in conversion rates, said Quantum Metric, which were consistently higher around last year’s holiday shopping season compared to the year before. YOY Shopping Season Estimates, $ Billions 2021 % Change 2022 % Change Retail BTS season sales $67.01 14.3% $67.46 0.7% E-commerce BTS season sales $26.39 10.2% $28.19 6.8% Overall holiday sales $1,221.82 16.1% $1,262.14 3.3% E-commerce holiday sales $204.20 10.4% $235.86 15.5% M-commerce holiday sales $93.73 14.6% $112.03 19.5% Source: Insider Intelligence; eMarketer
18 InsideOutdoor | SUMMER 2022 Inflationary pressures also could encourage hasty purchasing. With annualized prices rising every month on both wholesale and consumer goods, a gift for a loved one could be considerably cheaper to purchase and ship in September than in December. “In order to accommodate tighter wallets, consumers will be on the lookout for deals early and often,” said analysts at Retail Touchpoints. We can expect these early bird shoppers to be enticed by end-ofsummer and pre-Black Friday promotions, with a good chunk of their spending getting gobbled up by the heavy discounting that’s expected by big-box chains and department stores looking to clear out inventory before the holidays really heat up. Indeed, eMarketer researchers expect the “Cyber Five’s” (Thanksgiving Day, Black Friday, Small Business Saturday, Cyber Sunday and Cyber Monday) share of holiday ecommerce sales will decline again in 2022, from 16.9 percent last year to 16.4 percent – well below the 2019 high-water mark of 20 percent. Equal but Opposite? Then on the other hand, inflation’s bite into discretionary spending and the higher costs of some goods could extend the time from search to sale, forcing shoppers to be more patient in their purchasing. If dollars are at a premium come holiday, it stands to reason that consumers will be taking more care to ensure those dollars are being spent wisely. The temptation to “find a better deal” or “wait for a discount” could be strong. The good news heading into the holidays comes via a recent Kearney Consumer Institute survey, which found that while 31 percent of consumers said inflation impacts them “very much” so far, consumers are focused on the price changes in categories such as groceries (88 percent) and gas (69 percent). By contrast, only 2 percent of consumers say they feel the biggest impact in popular gift categories such as toys, sporting goods and games. Even so, analysis by Quantum Metric suggests shoppers are increasingly doing their homework before buying. More often than not, they journey across multiple channels in order to make a single purchase and are taking more time to actively seek information that validates their decisions. The bigger the ticket of the item, the more the purchase decision is being scrutinized. For a plurality of respondents, patience is viewed as a virtue, as 46 percent say they now need more time to make a purchase. “For another 43 percent of consumers, it comes back to finding that lower price and waiting until they are offered some sort of discount code to make the purchase,” said Quantum Metric researchers. All told, 76 percent of consumers say they are starting their shopping earlier specifically so that they can identify items they want and wait for them to go on sale, while a quarter said they are most likely to wait to purchase general classroom items until the very last minute. In turn, shoppers are hungry for product and comparison information, data from Quantum Metric suggests, and they are willing to jump across channels and platforms to make sure they are getting the most for their money. A typical pathway to purchase nowadays could include discovery of an item on a mobile device that moves to a desktop for further research, followed by some price comparison back on the mobile and is completed instore or back on the desktop. Make no mistake, the shift toward YOY Conversion Rates by week: Nov - Feb Source: Quantum Metric NOV 7 0 2.5 5 7.5 10 NOV 14 NOV 21 NOV 28 DEC 5 DEC 12 DEC 19 DEC 26 Week of JAN 2 JAN 9 JAN 16 JAN 23 JAN 30 FEB 6 FEB 13 FEB 20 2020-21 2021-22 Conversion rate (%) TrafficVolumes by Device: Nov 2021 - Feb 2022 Source: Quantum Metric Mobile Desktop 0 200 400 600 NOV DEC JAN FEB 150% 50% Traffic volume (millions) Mobile Desktop Conversion Rates by Device: Nov 2021 - Feb 2022 Source: Quantum Metric 0 2.5 5 7.5 10 12.5 Conversion rate (%) NOV DEC JAN FEB Percent who reported the COVID-19 pandemic resulted in an increase on fraud, crime and overall risk on their company Source: National Retail Federation “2021 Retail Security Survey” Overall Workplace violence Organized retail crime Shoplifting Employee theft Cargo theft Slight increase Significant increase YOY Conversion Rates by week: Nov - Feb Source: Quantum Metric NOV 7 0 2.5 5 7.5 10 NOV 14 NOV 21 NOV 28 DEC 5 DEC 12 DEC 19 DEC 26 Week of JAN 2 JAN 9 JAN 16 JAN 23 JAN 30 FEB 6 FEB 13 FEB 20 2020-21 2021-22 Conversion rate (%) TrafficVolumes by Device: Nov 2021 - Feb 2022 Source: Quantum Metric Mobile Desktop 0 200 400 600 NOV DEC JAN FEB 150% 50% Traffic volume (millions) 48.6% 20.8% 33.3% 34.7% 33.3% 33.3% 13.9% 69.4% Total 27.8% 61.1% 22.2% 56.9% 16.7% 50.0% 11.1% 44.4% 6.9% 20.8%
19 InsideOutdoor | SUMMER 2022 omni-channel shopping has accelerated. According to Quantum Metric’s analysis of online shopping experiences, mobile devices dominate traffic volumes, particularly around the holidays. When it comes to conversion rates, however, month-tomonth rates for desktops is nearly twice as high as mobiles. Desktops also have a lower cart abandonment rate than mobiles. “What we are seeing is that mobile shopping isn’t a clean one-stop experience. It is part of the much larger customer journey,” said the Quantum Metric report. “With consumers now taking more time to research and plan their shopping, we are seeing mobile used as a tool along the way.” Even when an item is placed in a cart, and it would seem the heavy lifting is done, monthly cart abandonment rates have been up compared to year prior rates. Analysts at Quantum Metric also are seeing more and more shoppers beginning to build wishlists of purchases they intend to make later. When asked, 39 percent of consumers estimated they build one to two wishlists a month, and 28 percent say they build one to two lists per week. And while the intent to purchase is certainly better than none at all, when an item sits on a wishlist, there’s certainly a chance the shopper is keeping an eye out for a better price somewhere else or a better deal on something similar. “The majority of consumers building wishlists have some intent or interest in purchasing the item, just not right away,” said the report. “For 43 percent of consumers the decision to make a purchase depends on what they can afford, a trend we will continue to see as a major factor in light of recent inflation.” One thing is for certain, retailers are in for a long BTS-to-holiday shopping season. Activity will start earlier than ever while consumers also could be more patient than ever. Clearly, there are reasons why shoppers might want to grab what’s on the shelf before it’s gone or something like a railroad strike further strangles supply chains. But talk of inflation, recession and layoffs will pressure shoppers to wait for endof-season deep discounts or new information that might verify their decisions or change their minds. Either way, shoppers certainly are utilizing the choices of channels and platforms that are available to them in the new omni-channel realm. Retailers that provide adequate information across all channels and work to instill confidence that a product is worth the price will increase their chances of having happy holidays. That’s largely why three-quarters of retailers surveyed by marketing analytics company Vericast said they need to give consumers stronger reasons to purchase. A full 81 percent of retailers said consumers are looking more for deals and discounts. “People are willing to spend,” said Vericast analyst, “but retailers need to give them a reason to splurge — now more than ever.” m Source: Quantum Metric NOV 7 0 2.5 5 7.5 10 NOV 14 NOV 21 NOV 28 DEC 5 DEC 12 DEC 19 DEC 26 Week of JAN 2 JAN 9 JAN 16 JAN 23 JAN 30 FEB 6 FEB 13 FEB 20 2020-21 2021-22 Conversion rate (%) TrafficVolumes by Device: Nov 2021 - Feb 2022 Source: Quantum Metric Mobile Desktop 0 200 400 600 NOV DEC JAN FEB 150% 50% Traffic volume (millions) Mobile Desktop Conversion Rates by Device: Nov 2021 - Feb 2022 Source: Quantum Metric 0 2.5 5 7.5 10 12.5 Conversion rate (%) NOV DEC JAN FEB
InsideOutdoor | SUMMER 2022 20 A Guide forGifting Holiday ideas for active enthusiasts Fifty-Nine Parks National Parks Coloring Book The Art of the National Parks Coloring Book features poster-sized and stylized line-art renderings from the popular Fifty-Nine Parks print series. Using a contemporary take on the famous W.P.A. posters of the 1930s, each coloring image is an original rendition of the artist’s unique perspective on a park, resulting in one-of-a-kind illustrative tributes to the majesty of each national park. The Art of the National Parks Coloring Book includes all 63 U.S. National Parks. SRP is $19. Outside Inside Travel Axe Throwing Connect with your inner lumberjack and be a part of a growing trend with this lightweight and compact axe throwing game. The blade of each foam axe is fitted with a “gripper” strip that sticks to the target. A suction cup and hanging loop make for easy mounting, indoors or out. The collapsible target and four foam axes compact down into a travel sack for easy portability. ROLL Recovery R1 Travel-Friendly Massage Device Endurance athletes can now take their therapy on the road or to the trailhead. The small and compact R1 delivers a premium experience with its surprisingly quiet motor and long-lasting (7+ hours) of battery power. Wrapped in a sleek and attractive package, it’s built with high-quality materials and boasts a compelling set of features (including four massage heads and four speeds) at an accessible SRP of $129. While there is some uncertainty surrounding how inflationary pressures will impact holiday spending, one thing is for certain this year and every year: holiday shoppers are always looking for, and greatly appreciate, suggestions for unique and personalized gift ideas. And that includes gift suggestions for the active outdoor enthusiasts or adventurous family members on their lists. With that in mind, here are some traditional and non-traditional gifts suggestions for a cross-section of outdoor consumers that are sure to please both young and old and keep your endcaps interesting this holiday season.
InsideOutdoor | SUMMER 2022 21 Pocket Shot Circular Slingshot A new twist on an old classic, the Pocket Shot circular slingshot-style shooter users to load and shoot different projectiles at two to three times the rate of a regular slingshot. Sized right for storage in a pocket, tackle box or backpack, the Pocket Shot is more powerful than y-shaped toy slingshots, and a handle can be added to provide more stability for shooting arrows. It’s sold as a standalone item and as part of a survival kit. Joovy National Park Kids Collection Kids brand Joovy recently unveiled a National Park collection in partnership with the National Park Foundation that includes fun and educational products featuring endangered animals that live in national parks. Products include high-chairs, walkers, tricycles and bikes, as well as interactive placemats for family mealtime, fact-based board books, and plush toys that can help teach children empathy and emotional connections. Each purchase will help support the National Park Foundation, which works to protect wildlife and park lands. In addition to the Sol, the Southern Sea Otter gift package shown here, characters in the collection also include Loosi, the Black-Footed Ferret; Ben, the Sonoran Pronghorn; and Brody, the Hawaiian Hoary Bat. Salt Stick Electrolyte Fast Chews Wellness-oriented gifts are another hot holiday category, and the buzz around the benefits of electrolytes has never been louder. While Tropical Mango and Mixed Berry flavors of Salt Stick’s Electrolyte Fast Chews have only been around for a few months, they have quickly become a favorite among customers, said Salt Stick. EZQuest DuraGuard Charging Cables For the rugged adventurer that has everything, EZQuest offers a durable charging cable that’s built to handle anything nature throws at it. DuraGuard cables have a Kevlar core and a durable nylon braided outer sheath and are designed to have a 50,000-bend lifespan. DuraGuard’s are available in USB-C to USB-C and USB-C to USB-A.
InsideOutdoor | SUMMER 2022 22 Gamakatsu USA 9-Inch Pliers Tools are a common holiday gift idea, so why not a tool for the angler on a gift list? Similar to Gamakatsu’s popular 6-inch and 7-inch pliers, the 9-inch pliers have an added 45-degree angle to provide a comfortable, ergonomic position for various tasks. The Gamakatsu pliers have precise crimping jaws to fit various sizes of sleeves. When big-game fishing, anglers will appreciate the crimps for hard-to-work-with heavy mono. Anglers will also enjoy the precision split ring feature on the needle nose tool. This feature will cut down the time anglers spend changing or replacing split rings. These pliers also feature a multi-tasking jaw that utilizes an outside cutter to cut braid, mono or fluorocarbon. The Total Bicycling Manual A personalized gift for bicyclists, both beginner and advanced, The Total Bicycling Manual: 268 Ways to Optimize Your Ride, from publisher Weldon Owen, covers everything from choosing the right bike and rules of the road to maintenance and customization. Now available in paperback, the book includes practical, expert advice from Bicycle Times magazine, which reaches hundreds of thousands of everyday cyclists. Author Robert F. James is an endurance cyclist, retired U.S. Navy sailor, bicycle shop staffer, professor of literature and professional writer. Cobra Electronics Kid-Friendly Walkie Talkies Of course, you don’t have to be a kid to have fun playing with walkie talkies. But the four-pack of Cobra RX100 walkie talkies is designed for families and friends to use in any outdoor environment. With a range of up to 16 miles, these walkie talkies are no toys, featuring 22 communication channels, NOAA weather alerts, waterresistant design, built-in LED and micro-USB Y charger for the rechargeable batteries. The line consists of multiple options ranging from $35 to $120. BruTrek Adventure Dog Bowls Pet gifts are expected to be a hot category this holiday, including pet wellness. Known for its durable coffee gear and drinkware for the outdoors, BruTrek has expanded its line to include its first dog products. The new BruTrek Dog Bowl is made of double-wall insulated stainless steel, so it’s sturdy enough for any adventure with your pup, indoors or outdoors. The BruTrek Dog Bowl is available in four colors and two sizes for around $40 retail.
InsideOutdoor | SUMMER 2022 23 Knog PWR Solar 10W Panel Make sure that bikepacking or overlanding trip never runs out of power. The PWR Solar 10W Panel is a high quality and compact solar panel that provides power to a phone, smartwatch, tablet or Go-Pro, and can store energy in an external PWR Bank for future use. Weighing in at just under 16 oz, this compact unit utilizes smartly placed magnets to fold up to the size of a smartphone when not in use. The entire unit is coated with ETFE, an industrial coating that offers protection from heat, water, salt, oil and dirt. The charger also has a handy D-ring attachment, which allows for convenient storage or premium placement for maximum sun absorption. SRP is $100. NEBO Handheld Pocket Light Few gadget lovers want more from their gear than reliable performance in a slick form factor. The Inspector 500+ offers these and more. The compact LED-based handheld pocket light provides 500 lumens of light, is rechargeable, waterproof and features four light modes and an expandable light area. It comes with a sturdy pocket clip for secure, everyday carry and has a magnetic base for hands-free use, all while featuring Flex-Power Technology, allowing it to be powered by rechargeable or AAA batteries. Cold Steel Engage Folding Knives Cutlery remains one of outdoor and sporting good’s most popular gift ideas, and we can attest first-hand that knife aficionados will not be disappointed by the power and precision of the Engage EDC (everyday carry) series of knives. The Engage series of folders are exceptional in that they represent the introduction of Cold Steel’s innovative, patent-pending Atlas Lock, a locking mechanism that provides impressive levels of strength and safety. The blades feature line grain, two-tone satin polished finishes and a shallow indent on the spine that makes for a comfortable place for your thumb or index finger when using the knives for precision work. The handles are ergonomically contoured for a secure grip and include large integral lanyard holes. The pocket clips are reversible for left or right-handed use. Dr. Bronner’s All-One Chocolate Bars Enjoy a holiday treat without any (or at least most of) the guilt. Magic All-One Chocolate bars are organic, fair trade and vegan. With chunky bites and smooth and decadent fillings, the bars as based in 70% dark chocolate from cocoa beans grown from regenerative organic practices and sweetened with lower-glycemic coconut sugar. Tempting flavors include Roasted Whole Hazelnuts, Crunchy Hazelnut Butter, Salted Whole Almonds, Salted Almond Butter, Salted Dark Chocolate and Smooth Coconut Praline.
InsideOutdoor | SUMMER 2022 24 In-Season D2C boom could be good news for non-bike shops tween the mass merchant/entry-level segment at the wide bottom of the pyramid (say $1,000 and below) and the specialty store price points at the much skinnier top (say $3,500 and above). “D2C brands like Rad Power or Aventon are dominating at the $1,500 price point,” said Ed Benjamin, eCycleElectric founder, in an interview with Bicycle Retailer and Industry News. And those brands increasingly are creeping into price points that sit at the lower end of independent bike shops’ e-bike offerings. Some of the success of D2C sales can be attributed to shoppers becoming more-savvy about buying direct, largely due to the pandemic. “The rise of sophisticated B2C brands selling at or near what has traditionally been bike shop price territory is a signal that more Americans are ready to make a quality e-bike purchase without benefit of a test ride, assembly or after-sale service from the supplier,” wrote Rick Vosper, a BRAIN columnist and head of Rick Vosper Marketing Services. But Benjamin believes D2C e-bike brands also are getting better at taking care of their customers. “Their service is getting better, and so are the products they offer in terms of service and The recent Eurobike event, held live in July in Frankfurt Germany, all but confirmed things: e-bikes are still booming and remain an opportunity. “This year you’d have been forgiven for thinking Eurobike was an e-bike show,” reported Will Jones for Cyclingnews. Indeed, after the initial burst of global e-bike sales during the past few years, projections for annual growth rates in the coming years range from around 9 percent to 12 percent, with the market expected to reach as much as $118 billion by the end of the decade. And according to data from eCycleElectric, which tracks imports of e-bikes, the direct-to-consumer (D2C) channel has been grabbing some serious market share and at a rather thick part of the sales pyramid. Look somewhere beE-bikes Change the Channels By Martin Vilaboy Image courtesy of Aventon
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