Report: The U.S. Market for Outdoor and Casual Furniture, Grills and Accessories TOC

Chapter 1: Executive Summary

Scope and Methodology
Market Parameters
Report Methodology
Figure 1-1: U.S. Retail Sales of Outdoor and Casual Furniture and Accessories, 1999-2008 (in millions of dollars)
The Market
Outdoor/Casual Furniture Market at Nearly $8 Billion in 2008
Metal at 42% of Market
Barbecue Grill Sales Up 7% in 2003
Mass Outlets Rebound to 57% of Market
Figure 1-2: Share of U.S. Retail Sales of Outdoor and Casual Furniture by Category, 2003 (percent)
Most Purchasing Among High-Income Households
New and Old Homes Focus on gOutdoor Roomh
Waiting for the Promised Rebound
The Marketers
Hundreds of Marketers
Marketers Compete in Multiple Materials and Segments
Leaders in Outdoor Furniture and Accessories
Manufacturers Cultivate Foreign Ties
Market Follows Shifts in Economic Trends
Marketing and Retail Dynamics
Innovation and Diversification—Still Keys to Success
Quality and Durability Critical in Todayfs Economy
Segmentation by Consumer Group
Targeting Younger Consumers Through Price and Style
Appealing to Condo and Apartment Dwellers
Tapping into the Juvenile Furniture Market
Targeting the Environmentally Concerned
Working with Retailers
New Colors and Textures for Furniture and Grills
$18 Million Spent on National Consumer Advertising
Intensive Trade Activity
Mass-Market Outlets Dominate Market
Specialty Outlets Feel Pressure from Economy, Imports
The Consumer
Recent Purchasers of Lawn/Porch Furniture
Income Also Top Indicator for Outdoor Grill Purchasing
Trends & Opportunities
Slow Economy a Potential Plus

Chapter 2: The Products

Product Overview
Scope of Report
Furniture, Grill, and Accessory Categories
Products Not Covered
Three Types of Furniture Products
Seating Products: Five Forms
Chairs
Three Alternative Seating Options
Chair Styles
Love Seats and Settees
Other Seating Products: Benches, Stools, and Ottomans
Cushions
Four Main Types of Textiles
Tables: Several Styles
Table Styles
Umbrellas: Components and Variations
Umbrella Shade Sizes and Styles
Four Major Product Materials: Metal, Plastic, Wicker/Rattan, Wood
Metal: Two Major Segments
Aluminum
Steel and Iron
Plastic: Two Major Segments
Resin
Polyvinyl Chloride
Four Plastic Molding Processes
Wicker/Rattan
Rattan: A Material and a Type of Furniture
Wicker: Furniture Made from Rattan and Other Materials
Wood
Barbecue Grills
Gas
Charcoal
Electric
Accessories
Other Outdoor Appliances and Accessories
The Outdoor Kitchen
Year-Round Rooms
Two Distribution Classes: Mass and Specialty

Chapter 3: The Market

Market Size and Composition
Manufacturersf Shipments of All Furniture at $70 Billion
Table 3-1: Furniture and Related Products: Value of U.S. Manufacturersf Shipments, Inventories, and New Orders, 1997-2002 (in millions of dollars)
Figure 3-1: U.S. Retail Sales of Outdoor and Casual Furniture and Accessories, 1999-2003 (in millions of dollars)
Outdoor Furniture Shipments Slip in 2002
NAICS Data Indicate Declines for Metal and Wood Outdoor Furniture
Table 3-2: Metal Porch, Lawn, Outdoor, and Casual Furniture: Value of U.S. Manufacturersf Shipments, 1997-2001 (in thousands of dollars)
Table 3-3: Wooden Outdoor, Unpainted, and Ready-to-Assemble Furniture: Value of U.S. Manufacturersf Shipments, 1997-2001 (in thousands of dollars)
Retail Sales Difficult to Quantify
Outdoor Furniture and Accessories Market Approaches $6 Billion in 2003
Table 3-4: U.S. Retail Sales of Outdoor and Casual Furniture and Accessories, 1999-2003 (in millions of dollars)
Retail Outdoor/Casual Furniture Market at $3.2 Billion in 2003
Table 3-5: U.S. Retail Sales of Outdoor and Casual Furniture, 1999-2003 (in millions of dollars)
Metal and Plastic Categories Exceed $1 Billion
Table 3-6: U.S. Retail Sales of Outdoor and Casual Furniture by Category, 2003 (in millions of dollars)
Metal at 42% of Market
Figure 3-2: Share of U.S. Retail Sales of Outdoor and Casual Furniture by Category, 2003 (percent)
Seating Products at Three-Fifths of Market
Barbecue Grill Shipments at 15.2 Million
Table 3-7: U.S. Barbecue and Grill Unit Shipments, 1998-2002 (units)
Grill Sales Up 7% in 2003, Gas Grill Dominate Category
Table 3-8: Retail Sales of Barbecue Grills and Accessories, 1999-2003 (in millions of dollars)
Sales Strongest in Spring and Summer
Mass Outlets Rebound to Claim 57% of Market
Figure 3-3: Share of U.S. Outdoor and Casual Furniture Market by Retail Outlet Type, 2003 (percent)
Outdoor Furniture Taps an Older Demographic Than Grills
Table 3-9a: Indices for Household Purchase of Lawn/Porch Furniture or Outdoor Grill in Last 12 Months: By Age Bracket, 2003 (U.S. adults)
Table 3-9b: Indices for Household Purchasing of Lawn/Porch Furniture or Outdoor Grill in Last 12 Months: By Age Bracket, 2003 (U.S. adults)
Non-Hispanic Whites Largest Consumers
Table 3-10: Indices for Household Purchasing of Lawn/Porch Furniture or Outdoor Grill in Last 12 Months: By Race/Ethnicity, 2003 (U.S. adults)
Outdoor Furniture Biggest in Northeast, Grills in Midwest
Table 3-11: Indices for Household Purchasing of Lawn/Porch Furniture or Outdoor Grill in Last 12 Months: By Region, 2003 (U.S. adults)
Most Purchasing Among High-Income Households
Table 3-12a: Indices for Household Purchasing of Lawn/Porch Furniture or Outdoor Grill in Last 12 Months: By Household Income Bracket, 2003 (U.S. adults)
Table 3-12b: Indices for Household Purchasing of Lawn/Porch Furniture or Outdoor Grill in Last 12 Months: By Household Income Bracket, 2003 (U.S. adults)
Purchasing Directly Related to Household Size
Table 3-13: Indices for Household Purchasing of Lawn/Porch Furniture or Outdoor Grill in Last 12 Months: By Household Size, 2003 (U.S. adults)
Factors to Market Growth
Recession, War, Unemployment Stifle Growth
Housing Start Trends
Table 3-14: U.S. New Privately Owned Housing Starts, 1991-2002 (in thousands)
Home Sales Hit Record Levels
New and Old Homes Focus on gOutdoor Roomh
Decks and Patios Growing Larger. More Complete
Americans Staying Close to Home
At-Home Vacations, Outdoor Entertaining Drive Sales
Focusing on New Markets
Blurring of Indoors and Out
Products Appeal to Wide Range of Budgets
Aluminum Continues to Drive Metal Category
New Plastic Formulations Grab Attention
Wicker/Rattan Gaining from Home Decorating Trends
Mixed-Media Offers Value, Quality, Novelty
Cross-Competition Dampens Wood Furniture Sales
High-Tech Designs, Health Concerns Drive Umbrella Sales
Grills Hot at Retail
Hybrid and Electric Models Attract New Grillers
Attention to Style Draws New Grillers
Promoting Year-Round Sales
Romancing the Outdoor Life
Expanding Distribution
Low-Cost Imports Squeeze Domestic Manufacturers
Market at the Mercy of the Elements
Figure 3-4: Projected U.S. Retail Sales of Outdoor and Casual Furniture and Accessories, 2003-2008 (in millions of dollars)
Projected Market Growth
Sales to Reach $8 Billion by 2008
Table 3-15: Projected U.S. Retail Sales of Outdoor and Casual Furniture and Accessories, 2003-2008 (in millions of dollars)

Chapter 4: The Marketers

Marketer Overview
Hundreds of Marketers
Four Groups of Marketers
Diverse Companies Compete
Regional and Niche Marketers a Vital Force
Marketers Compete in Multiple Materials and Segments
Leading Mass Marketers
Leading Specialty Casual Furniture and Accessories Marketers
Leading Specialty Retailers and Direct Marketers
Table 4-1: Selected U.S. Marketers of Outdoor and Casual Furniture and Accessories
The Competitive Situation
Leaders in Outdoor Furniture and Accessories
Table 4-2: Estimated Sales for Leading U.S Outdoor and Casual Furniture and Accessories Marketers, 2001/2002 (in millions of dollars)
Top Barbecue Grill and Accessory Marketers
Mass Historically a Commodity Market
Leading Marketers Wield Production-Through-Marketing Control
Imports Challenge Marketers at All Levels
Manufacturers Cultivate Foreign Ties
Capital Investment Requirements Deter Market Entry
Competition Fierce in a Changing Industry
Mergers and Acquisitions Frenzy Slows Down
Shifting Attitudes, Demographics Prompt New Growth
Synergy Between Mass and Class
Market Follows Shifts in Economic Trends
Technology Boosts Durability in Furniturec
cAnd Perpetual Sales in Barbecue Grills
Private Label and Partnerships
Few Specialty Marketers Thriving in Current Economy
Mass-Oriented Companies Moving into Specialty Arena
Material Categories and Market Segments Increasingly Fluid
Greater Expectations in Furniture Form and Function
Increased Competition at High End for Grills
Emphasizing Year-Round Use, Inside and Out
Branding Not Yet a Major Force in Furniturec
cBut Often Critical in Grills
Trade Promotions/Shows Adapt to Changing Times
Waiting for the Promised Rebound
Competitive Profile: Barlow Tyrie Limited/Barlow Tyrie, Inc.
Company Overview
History of Barlow Tyrie
Ensuring a Teak Supply
Commercial Projects Include Central Park Zoo
New Lines Highlight Contemporary Styles, Mixed Media
Barlow Tyrie Expands Online Services
Competitive Profile: Char-Broil, Inc.
(W.C. Bradley Home Leisure Group)
Company Overview
Char-Broil No Stranger to Accolades
A Grill for Every Home
New Electric Grill Right on Target
Grill2Go Runs Hot and Cold
Charcoal/Gas Combos the Wave of the Future
Competitive Profile: The Coleman Company
(American Household, Inc.)
Company Overview
History of Coleman
Recent Entry to Grill Game
Coleman, Lowefs Ink Licensing Deal
Wave of New Grills for 2003
Coleman Completes the Outdoor Room
Competitive Profile: Ethan Allen, Inc.
Company Overview
Company History
CEO Honored for Vision, Innovation
Recent Activity Focuses on Changing Lifestyles
Company Capitalizes on the Internet
Ethan Allen Reinvents Itself Again
Competitive Profile: Fiskars Corp./Syroco, Inc.
Company Overview
Syroco Leads in Lawn & Garden Group
Leading Outdoor and Casual Furniture Products
Comfort Is Keyc
cBut Consumers Want Style, Too
Competitive Profile:
Flanders Industries, Inc./Lloyd Flanders Industries, Inc.
Company Overview
Company History
A Master in Resin Wicker
Other Segments Keep on Growing, But Wicker Still King
Lloyd Looks at Mixed Media
Competitive Profile: Furniture Brands International/
Lane Furniture Industries (Laneventure)
Company Overview
Key Product Lines
Company Aims to Fill the Outdoor Room
Creating the World of Outdoor Living
Competitive Profile: Grosfillex, Inc.
Company Overview
Casual Furniture Focus for Outdoor Products
Products Focus on Comfort and Safety
Competitive Profile: Homecrest Industries, Inc.
Company Overview
Manufacturing Woes Under Control
Action and Strength are Key
Major Makeover to Celebrate Anniversary
Website Offers gDesign a Deckh
Competitive Profile: Kingsley-Bate Ltd.
Company Overview
Environmental Efforts
Comfort the Focus of New Products
Markets and Projects
Competitive Profile: Meadowcraft, Inc.
Company Overview
Meadowcraft Emerges From Bankruptcy
Furniture Sold Through Dealers
Benefits of Wrought Iron
Finishes Boast Technological Advancements
Cushions and Fabrics Constructed with Quality
Competitive Profile: Telescope Casual Furniture, Inc.
Company Overview and History
Torch Passed to Next Generation
Variety of Furniture Products Offered
New Products Focus on Technological Innovation
Competitive Profile: Trivest, Inc./WinsLoew Furniture, Inc.
(Brown Jordan Co., Inc./Casual Living Worldwide)
Company Overview
Brown Jordan a Major Force in Specialty Sector
CLW a Leading Private-Label Supplier
Brown Jordan Prevails in Dispute with Former Officer
BJI Scores Tommy Bahama Deal
Competitive Profile: Tropitone Furniture Co., Inc./
The Veneman Collection
Company Overview
Company History
Products Sold Exclusively Through Dealers
Expansive Product Lines Include Aluminum, Teak
Company Wins Design Awards
New Products for 2004
Veneman Collection Targets High End of Market
Basta Sole Shade Innovates in Umbrellas
Competitive Profile: Weber-Stephen Products Co.
Company Overview
Website a Helping Hand for Grillers
More Help Through Hotline, Partnerships
From Classic Kettle to Weber Q
Emphasis on Ease of Setup, Use

Chapter 5: Marketing and Retail Dynamics

Marketing Trends
Innovation and Diversification—Still Keys to Success
Quality and Durability Critical in Todayfs Economy
High-Cost Luxury Never Out of Style
Mass-Oriented Marketers Target First-Time Buyers
Specialty Marketers Cater to Other Tastes, Lifestyles
Segmentation by Consumer Group
Targeting Younger Consumers Through Price and Style
Appealing to Condo and Apartment Dwellers
Tapping into the Juvenile Furniture Market
Targeting the Environmentally Concerned
Segmentation Based on Lifestyle Positioning
Breaking Down Barriers Between Inside and Out
Trade Helps Marketers Spread the Word
Offering Full Product Lines to Increase Add-On Sales
Grill Popularity Drives Year-Round Use of Outdoor Room
Expanding Distribution a Cautious Endeavor
Working with Retailers
Specialty Marketers Prefer Exclusivity
Ethnographic Research Offers Hope for New Products
New Product Trends
Styles Aim to Capture Mood and Sense of Place
Playing Off Environmental Awareness
Careful Attention to Quality Frame Construction and Detail
Deep Seating Plays to Outdoor Entertainers
Grills Get a Facelift
New Colors and Textures for Furniture and Grills
Mixed-Media a Hot Trend in Furniture
Products Offer Resistance to the Weather
Seating Fabrics from Floral to High-Tech
Sling Seating Still a Winner
Cast Aluminum a Best-Seller
Wicker Still Making Steady Gains
Increasing Diversity of Wood Styles
Hybrids Take the Outside In, and Vice Versa
Larger Dining Tables a Must-Have
Reaching Out to Apartment Dwellers
Umbrellas Go High-Tech
Accessories Are In
Gas Grills Still on Top, Combo Models Rising
New Cooking Surfaces and Methods
Heating Devices an Emerging Segment
Refrigerators, Coolers Essential Grill Companions
New Products Represent Wide Range of Activity
Table 5-1: The U.S. Outdoor and Casual Furniture Market: Selected Product Introductions, 2002 - Winter 2003
Advertising and Promotion
Methodology for Estimates of Consumer Advertising Expenditures
$18 Million Spent on National Consumer Advertising
Five Companies Account for Measured Advertising Expenditures
Table 5-2: Marketer Shares of National Consumer Advertising for Outdoor and Casual Furniture, 2002 (percent)
Consumer Advertising Positions Products Comfortably
Catalogs Bring the Message Home
Internet Presence More Important
Consumer Promotions Not the Norm
Intensive Trade Advertising
Trade Shows Important for Showcasing Wares
Growing Number of Marketers Offer In-Store Display Assistance
Co-op Advertising
AFMA Launches Industry-Wide Campaign
Retail Trends
Most Sales Are Direct
Wholesalers Used by Smaller Marketers and Retailers
Direct to Consumers
Two Types of Major Outlets
Table 5-3: Share of U.S. Outdoor and Casual Furniture Market: By Retail Outlet Type, 2001 vs. 2003 (percent)
Mass-Market Outlets Dominate Market
Specialty Outlets Feel Pressure from Economy, Imports
Alternative Outlets Well Positioned to Increase in Sales
The Role of the Internet
Retail Focus: Mass-Market Outlets
Winners and Losers
Retailers Emphasize Value-Pricing and One-Stop Shopping
Location and Display Are Often Haphazard
Displays Grow More Sophisticated
But Floor Space Still Scarce
Product Assortment and Imports
Margins Heading Lower
Supermarkets Struggling to Compete with Leaders
Mass-Merchants More Female Friendly
Prices Depend on Material and Product
Resin Pricing
Other Material Pricing Structures
Grill and Accessory Prices
Casual Furniture Still a Seasonal Business
Retailers Optimistic About Outdoor and Casual Furniture
Rainy Spring Dampens Some Enthusiasm
Retailer Advertising and Promotion
Retail Focus: Specialty Outlets
Specialty Outlets Garner One-Third of Sales
Specialty Stores Offer Wide Product Assortment
Pressure from Cheap Imports and Mass-Market Retailers
Patio and Pool Stores Benefit from Increased Demand
Barbecue Specialists Emerge
General Household Furniture Stores Slower to Rally
Average Space Allotted Varies on Storefs Emphasis
Product Assortment Often Limited
Brown Jordan Among Popular Brands Carried
Margins Low for Specialty Resin, Improving for Other Products
Location and Display a Function of Selling
Select In-Store Offerings, But Limitless Custom-Order Opportunities
Other Merchandising Strategies Based on Price, Season
Pricing Depends on Outlet, Material, and Product
Seasonal Business Depends on Location and Storefs Focus
Specialty Retailers Focused on Service and Quality
Advertising and Promotion Activity Is Common

Chapter 6: The Consumer

Consumer Overview:
Recent Purchasers of Lawn/Porch Furniture
The Simmons Survey System
9% of Adults Are Recent Purchasers
Income Is Top Indicator for Lawn/Porch Furniture Purchasing
The Kid Factor
The Regional Factor
Table 6-1: Demographic Characteristics Favoring Household Purchase of Lawn/Porch Furniture in Last 12 Months, 2003 (U.S. adults)
Table 6-2: Top Consumer Indices for Household Purchasing of Lawn/Porch Furniture in Last 12 Months: By Expenditure Level, 2003 (U.S. adults)
Consumer Focus: Recent Purchasers of Lawn/Porch
Furniture by Expenditure Level
Largest Block Spend $50-$149
Northeastern Skew for Heavier Spenders
Figure 6-1: Number of Adults Reporting Household Purchasing of Lawn/Porch Furniture in Last 12 Months: By Expenditure Level, 2003 (in thousands)
Table 6-3: Demographic Characteristics Favoring Household Purchase of Lawn/Porch Furniture in Last 12 Months by Expenditure Level: $1,000 or More, 2003 (U.S. adults)
Table 6-4: Demographic Characteristics Favoring Household Purchase of Lawn/Porch Furniture in Last 12 Months by Expenditure Level: $500-$999, 2003 (U.S. adults)
Table 6-5: Demographic Characteristics Favoring Household Purchase of Lawn/Porch Furniture in Last 12 Months by Expenditure Level: $250-$499, 2003 (U.S. adults)
Table 6-6: Demographic Characteristics Favoring Household Purchase of Lawn/Porch Furniture in Last 12 Months by Expenditure Level: $150-$249, 2003 (U.S. adults)
Table 6-7: Demographic Characteristics Favoring Household Purchase of Lawn/Porch Furniture in Last 12 Months by Expenditure Level: $50-$149, 2003 (U.S. adults)
Table 6-8: Demographic Characteristics Favoring Household Purchase of Lawn/Porch Furniture in Last 12 Months by Expenditure Level: Under $50, 2003 (U.S. adults)
Table 6-9: Top Consumer Indices for Household Purchasing of Lawn/Porch Furniture in Last 12 Months: By Expenditure Level, 2003 (U.S. adults)
Consumer Focus: Recent Purchasers of Outdoor Grills
Income Is Top Indicator for Outdoor Grill Purchasing
Income and Kids Are Top Factors
Table 6-10: Demographic Characteristics Favoring Household Purchase of Outdoor Grill in Last 12 Months (U.S. adults)

Chapter 7: Looking Ahead

Trends & Opportunities
Slow Economy a Potential Plus
Bigger Pieces for Bigger People
Fewer Flowery Fabrics
Mixed Media Keeps Prices Low, Boosts Resin Reputation
Grills Continue Beyond Basic Black Box
Technology Still Critical
Style to Become a Major Factor
Masculine Fabrics, Feminine Grills?
Outdoor Appliances Poised for Growth
Mergers, Partnerships Cross the Line
Appendix: Addresses of Selected Marketers