Table of Contents
- Scope and Themes
- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Executive Summary
- Market size drops to $5 billion in 2008 as broader macroeconomic woes
compound housing crisis
- In 2009, furniture is low priority in discretionary spending
- From 2006-08, metal, wicker and wood segments show gains as plastic
continues to lose ground
- Mass merchandisers and home centers are dominant retail channels
- Major retailers offer exclusive, imported collections and highlight value
in 2008-09 offerings
- Lack of new homebuyers has significant impact on outdoor furniture demand
- Broad-based recession affects consumers across income brackets
- Interest in outdoor living and staycations offers "silver lining"
- Green living trend will play growing role in product choices and shaping
market
- Fragmented supply structure with direct imports dominating market at the
expense of smaller, domestic suppliers
- Brand qualities
- Major areas of innovation: green living, new designs, branding and
flexibility with retailers
- Advertising and promotion: Suppliers' print ads showcase beauty & style,
retailers' highlight value, special offers, and eco-friendliness
- Consumer findings: Regional climate variations shape the amount of time
spent outdoors
- Consumer findings: While outdoor furniture has broad appeal, Baby Boomers
and high-income consumers spend the most
- Consumer findings
- Boomers own the most furniture, and tiered branding/pricing warranting
- Seating products dominate, while product interest varies with lifestage,
income and region
- Having screened-in or covered outdoor areas varies regionally and
increases time spent outdoors
- Diverse retail channels
- Couples with children spend more time outdoors, but favor basic products;
couples without children favor enclosed, more luxurious outdoor rooms
- Market Size and Forecast
- Key points
- Sales drop in 2008 as broader macroeconomic woes compound housing crisis
- Figure 1: Total U.S. retail sales of outdoor furniture, at current
prices, 2003-13
- Figure 2: Total U.S. retail sales of outdoor furniture, at inflation
adjusted prices, 2003-13
- Competitive Context
- Key points
- As consumers prioritize necessities, expenditures on non-necessities drop
in 2007 and 2008
- Figure 3: Distribution of household expenditures, by consumer unit,
2003-08
- Furniture is low on priority list for consumers with extra money
- Figure 4: Where consumers spend their "extra" money, July 2008
- Overall Segment Performance
- Key points
- Segmentation on the basis of material used
- Figure 5: Sales of casual furniture market, segmented by material, 2006
and 2008
- Metal is dominant segment, with recycled and recyclable products being
showcased
- Plastic continues to lose share, despite innovations in color, texture and
"green" processes
- Wicker is widely used and heavily imported--now seen in collections across
price points
- Wood segment is boosted by interest in natural, eco-friendly options
- Umbrellas are integral to major collections
- Retail Channels
- Key points
- Mass merchandisers and home centers are dominant retail channels
- Figure 6: Place of purchase of outdoor furniture, February 2009
- Larger retailers and online stores tending to fare better in the downturn
- Figure 7: U.S. retail sales of outdoor furniture, by channel, 2006 and
2008
- Major retailers offer exclusive, imported collections and highlight value
in 2008-09 offerings
- Walmart
- Home Depot
- Lowe' s
- Target
- Kmart
- Online retailers multiply, offering consumers more options
- Market Drivers
- Key points
- Home ownership and the housing market are key drivers for the outdoor
furniture market
- Home ownership
- Figure 8: Bought lawn/porch/patio furniture in the past 12 months, by
home ownership, July 2007-September 2008
- Figure 9: Outdoor home improvements in the past 12 months and grill
ownership, by home ownership, July 2007-September 2008
- Buying and selling of homes propels purchasing of outdoor furniture
- Figure 10: Bought lawn/porch/patio furniture in the past 12 months, by
recent purchasing of home, July 2007-September 2008
- New and existing home sales fall for third consecutive year
- Figure 11: Sales of new and existing homes, 2003-08
- Macroeconomic downturn compounds housing woes
- Higher-income households purchase more outdoor furniture
- Figure 12: Purchased lawn/porch furniture in the past 12 months, by
income, July 2007-September 2008
- Figure 13: Amount spent by HH on lawn/porch furniture in the past 12
months, by income, July 2007-September 2008
- Figure 14: Household income distribution and spending on outdoor
furniture and all home improvement in past year, 2007
- Home values and equity values serve one-two household wealth punch
- Figure 15: S&P Case-Shiller Home Price Index, January 2000-January 2009
- "Outdoor rooms" and "staycations" generate some sales
- Broader interest in "outdoor rooms" and improvement of outdoor areas
- Figure 16: Amount spent on lawn, porch or patio furniture, and on all
home improvements in the past 12 months, 2002-07
- Figure 17: Total U.S. shipments of barbecue grills, 2003-08
- "Staycations" seen as positive aspect of economic downturn
- Suppliers seek to balance offering quality with bringing down prices
- "Green" movement drives demand in outdoor furniture
- Broader green living trends spur demand for "green" products and practices
- Figure 18: Degree of concern relative to environment, October 2008
- Figure 19: Belief that shopping habits make a difference in the world,
October 2008
- Figure 20: Took or plan to take green factors into account when
purchasing furniture, October 2008
- Leading Companies and Brand Share
- Key points
- U.S. suppliers face overseas competition, post flagging sales in 2008
- Figure 21: Estimated retail sales of outdoor furniture in the U.S., by
manufacturer, 2006 and 2008
- Suppliers of outdoor furniture collections in mixed material
- Agio (Shianco)
- Brown Jordan International Inc.
- Flanders Industries (Lloyd/Flanders)
- Furniture Brands International (Laneventure and Thomasville)
- Homecrest Industries Incorporated
- Meadowcraft Incorporated
- Tropitone
- Suppliers of resin-based plastic furniture
- Grosfillex
- Keter Group (Resin Partners, Inc., US Leisure, Sunterrace)
- Vassallo Industries (Syroco)
- Brand Qualities
- Key points
- Agio
- Brown Jordan
- Homecrest
- Laneventure (FBI)
- Lloyd/Flanders
- Meadowcraft
- Thomasville (FBI)
- Tropitone
- Innovation and Innovators
- Key points
- "Green" Innovations
- Major retailers showcase eco-friendly product lines
- Suppliers expand "green" offerings and practices
- Smaller manufacturers develop innovative green products in 2008-09
- Eagle One' s Greenwood Line
- Braun Horticulture' s products made of jute
- NatureDura' s FireFly collection
- Brentano Eco-Fabrics
- Design Trends and Innovations
- Select innovations in color, texture and finishes by major suppliers
- Brown Jordan introduces stackable modern collection, leather-like weaves
- Homecrest' s offerings include new table tops, new designs, new seating
heights
- Telescope Casual' s new colors, textures and finishes
- Tropitone' s TropiKane weave, new colors, Stoneworks looks
- Family Brands' new hand-painted finishes
- Whitecraft' s Woolrich new fabrics and collections
- Glen Raven' s Sunbrella styles, textures and water-repellent fabrics
- Design innovations from smaller manufacturers
- iRoc Rocker Collection
- Array Collection
- Skyline Designs
- Innovative branding strategies
- Taking "indoor" brands outdoors
- Stores that shuttered in 2007-08 introduce branded products in 2009
- Agio: Cross-branding with Disney
- Glen Raven: Refreshed branding and extended warrantees
- Innovations in working with retailers: expediting shipping and extending
credit
- Advertising and Promotion
- Key points
- Suppliers' advertising and marketing strategies
- Print media heavily used to promote brands and introduce collections
- Luxury retailer Agio highlights pleasure, elegance and style
- Brown Jordan makes beautiful, fashionable models the centerpiece of print
ads
- Other marketing opportunities
- Websites become a vital retailing tool and marketing platform
- Licensing and celebrity images used to define brands and market products
- National retailers' advertising and promotional strategies
- Figure 22: Media expenditures, largest outdoor furniture retailers, 2007
- Value and promotion of "outdoor living" are key themes in websites of
largest retailers
- Five largest retailers' websites and online promotions highlight marketing
strategies and showcase exclusive brands
- Walmart emphasis on value, even in eco-friendly offerings
- Target offers value, but also highlights style and exclusive designers
- Kmart showcases exclusive Martha Stewart brand, Sears highlights outdoor
entertaining
- Home Depot emphasizes broader outdoor living projects and highlights
savings
- Lowe' s showcases outdoor living in "Explore Spring" program
- Time Spent "Living Outdoors"
- Key points
- Climate drives regional differences in time spent outdoors
- Figure 23: Time spent "living outdoors," February 2009
- Figure 24: Time spent "living outdoors," by region, February 2009
- Purchasing and Amount Spent in the Past 12 Months
- Key points
- Incidence of purchase spread across all ages
- Figure 25: Purchased outdoor furniture in the past 12 months, by age,
July 2007-September 2008
- Amount spent lowest among 18-24s, highest among 55-64s
- Figure 26: Amount spent by HH on outdoor furniture, by age, July
2007-September 2008
- Income drives likelihood of purchase and amount spent
- Figure 27: Purchased lawn/porch furniture in the past 12 months, by
income, July 2007-September 2008
- Figure 28: Amount spent by HH on lawn/porch furniture in the past 12
months, by income, July 2007-September 2008
- Ownership of Outdoor Furniture
- Key points
- Ownership high among over-35s
- Figure 29: Ownership of outdoor furniture, February 2009
- Figure 30: Ownership of outdoor furniture, by age, February 2009
- Income drives ownership, but tiered pricing warranted
- Figure 31: Ownership of outdoor furniture, by income, February 2009
- Types of Outdoor Furniture Owned
- Key points
- Seating and dining sets most popular, with strong interest seen in range
of patio living products
- Figure 32: Type of outdoor furniture owned, February 2009
- Product preferences vary with lifestage
- Figure 33: Type of outdoor furniture owned, by age, February 2009
- High-income households seek dining sets, luxury seating products and
greater array of outdoor living products
- Figure 34: Type of outdoor furniture owned, by income, February 2009
- Some regional product preferences
- Figure 35: Type of outdoor furniture owned, by region, February 2009
- Amount Spent
- Key points
- Figure 36: Amount spent on outdoor furniture, February 2009
- Covered or Exposed Outdoor Living Area?
- Key points
- Regional climate shapes demand for covered outdoor living area
- Figure 37: Outdoor living areas that are covered or enclosed, by region,
February 2009
- Having enclosed outdoor spaces increases year-round outdoor living
- Figure 38: Time spent "living outdoors," by exposure of outdoor space,
February 2009
- Having enclosures leads to increased use and appreciation of outdoor areas
- Figure 39: Attitudes towards and usage of patio, deck, pool area,
screened porch or other outdoor living area, by exposure of outdoor space,
February 2009
- How Do You Feel About Your Outdoor Living Area?
- Key points
- Over-55s show most frequent use of outdoor living areas
- Figure 40: Attitudes towards and usage of patio, deck, pool area,
screened porch or other outdoor living area, by age, February 2009
- Place of Purchase of Outdoor Furniture
- Key points
- Home centers and mass merchandisers are dominant retail channels
- Figure 41: Place of purchase of outdoor furniture, by gender, February
2009
- Under-25s use greater range of retailers
- Figure 42: Place of purchase of outdoor furniture, by age, February 2009
- Home centers, club stores and specialty stores favored by upper-income HHs
- Figure 43: Place of purchase of outdoor furniture, by income, February
2009
- Online or Catalog Purchase of Outdoor Furniture
- Key points
- About one in 10 respondents use online and catalog retailers
- Figure 44: Online or catalog purchase of outdoor furniture, by gender,
February 2009
- Under-45s show higher use of internet and catalogs
- Figure 45: Online or catalog purchase of outdoor furniture, by age,
February 2009
- Upper-income HHs show higher use of internet and catalogs
- Figure 46: Online or catalog purchase of outdoor furniture, by income,
February 2009
- Children also drive use of internet and catalogs
- Figure 47: Online or catalog purchase of outdoor furniture, by presence
of children, February 2009
- Race and Ethnicity
- Key points
- Non-white ethnicities less likely to have purchased furniture in past 12
months
- Figure 48: Purchased lawn/porch fuirniture in the past 12 months, by
Hispanic origin/race, July 2007-September 2008
- Whites show highest use of outdoor areas, blacks the lowest
- Figure 49: Time spent "living outdoors," by race/ethnicity, February 2009
- Figure 50: Attitudes towards and usage of patio, deck, pool area,
screened porch or other outdoor living area, by race/ethnicity, February 2009
- Appendix: Trade Associations
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