Summer - InsideOutdoor Magazine

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Gas Data Points NUMBERS WORTH NOTING CONFIDENT BUT WORRIED Consumers are an interesting bunch. Nearly half (47.8 percent) of those surveyed in July contend they are very confident/confident in the chances for a strong economy, rising four points from June (43.9 percent) and more than eight points from 2006 (39.5 percent), according to BIGresearch. How do you feel about the following statement? “I am saving enough to meet my future needs.” All HH Income Less Than $49,999 HH Income $50,000 or More At the same time, 40.4 percent assert that personal finances cause them the most stress. Just over a third (33.8 percent) say they will focus on reducing debt in the next three months, BIGresearch reports. Those planning to increase their savings is 26.9 percent, while those planning to decrease overall spending is just 29.3 percent. Fewer than one in five (19.7 percent) plan to pay with cash more often. With gas prices on the decline since spiking in May, 26.1 percent say that prices at the pump aren’t affecting their spending. However, 39.7 percent say they are defraying fuel costs by driving less, 36.9 percent are shopping closer to home, and 31 percent are comparison shopping for sales more often, BIGresearch says. TCB WITH PCS Teenage spending is expected to increase from $189.7 billion in 2006 to $208.7 billion in 2011, despite an estimated 3 percent decline in the number of youths 12 to 17 years old over the same time period, according to Packaged Facts. 20 | InsideOutdoor | Summer 2007 Males How will these teens be spending their money? Largely online. Most of today’s teenagers do not know life without a PC and their dependence on it will continue to grow as the Web becomes more interactive and integrated with other devices. The Business Software Alliance and Harris Interactive reported in March that 41 percent of teens consider the home computer the most important consumer electronic device used on a regular basis. Cell phones ranked second at 29 percent, and television barely resonated at all, with just 8 percent of teens naming it most important. Those numbers are in sharp contrast to tweens (kids aged 8-12), whose preferences are more evenly distributed. The home computer also ranked number one with tweens, but just 27 percent ranked it most important — the same number who ranked the home video game system number one. Television, likely behind the strength of Disney programming, still resonates with this group, as well, with 22 percent ranking the TV most important. Females Strongly Agree 7.8% 5.5% 9.8% 9.0% 6.6% Agree 23.0% 15.5% 29.6% 27.2% 19.0% Uncertain 28.5% 28.2% 28.3% 28.2% 28.9% Disagree 19.2% 20.3% 18.7% 17.6% 20.7% Strongly Disagree 21.5% 30.4% 13.6% 17.9% 24.8% Source: BIGresearch Most Important Consumer Electronic Device Used on a Regular Basis (Internet Users) Tweens Teens Total Home computer 27% 41% 35% Cell phone 8% 29% 20% Video game system 27% 9% 17% TV 22% 8% 14% iPod or other MP3 player - - 8% Source: Business Software Alliance/Harris Interactive; eMarketer E-SPENDING According to a recent survey by Internet Retailer, 78.2 percent of respondents plan to increase their spending on e-commerce applications and services this year. The poll surveyed 195 chain retailers, catalog companies, virtual merchants and consumer brand manufacturers. Among store-based merchants, the top replacement priority this year is a new e-commerce platform (32.7 percent), followed by new site search software, order management software and a content management system, each at 11.5 percent. Among all respondents, 51 percent ranked adding customer reviews as a top priority this year, and one-third of respondents indicated a desire to add functionality to their websites that allows shoppers to see information when they “mouse over” an image. Which of the following are your new e-commerce technology priorities for this year? Mobile commerce 15.1% Video casts 27.6% Customer reviews/ratings 51.0% Content delivery network 30.2% Links to more shopping comparison sites or portals 29.7% The ability to display information when a shopper “mouses” over an image Source: Internet Retailer 33.3%
Gas CALIFORNIA GOLDEN Not surprisingly, the nation’s three most populous states were in the top three in 2006 specialty outdoor retail sales, with California ranking first in both sales ($960.4 million) and population. In terms of regions, the West contributed 39.2 percent of overall retail sales in 2006 at $2.7 billion, followed by the South at 24.4 percent, or $1.68 billion. Total specialty outdoor retail sales for the nation was $7.62 billion, according to the Outdoor Industry Association. The West produced four of the top six states, nationally, with Washington, Colorado and Oregon showing their outdoor recreation muscle behind outstanding per capita figures. All three states contributed sales disproportionate to their total populations, suggesting gear purchases across multiple categories by the local population, as well as gear purchased in-state by visitors seeking quality outdoor experiences across multiple pursuits. Top 10 Contributing States to Overall Specialty Outdoor Retail Sales % of U.S. Population State $M National Rank Sales California $960.4 13.9% 1 New York $423.8 6.1% 3 Texas $362.9 5.3% 2 Washington $347.4 5.0% 14 Colorado $308.1 4.5% 22 Oregon $292.9 4.2% 27 Pennsylvania $267.3 3.9% 6 Florida $259.2 3.8% 4 North Carolina $247.7 3.6% 10 Michigan $227.5 3.3% 8 Source: Outdoor Industry Association, Leisure Trends Group; U.S. Census Bureau LOW RATE E-MAIL While a recent Internet Retailer survey indicates that merchants are working to improve the effectiveness of their e-mail marketing campaigns, many apparently are not paying close enough attention to conversion rates. Nearly a third (29.5 percent) of survey respondents said they don’t know their conversion rates from e-mails. E-Mail Open Rate And of those that do, just 4.5 percent of retailers have an e-mail conversion rate of more than 10 percent. The majority (53.3 percent) have conversion rates of less than 4 percent, with 27.9 percent of those under 1 percent. Part of the problem could be mass e-mailings rather than strategically segmented and targeted e-mails that offer specific incentives to particular groups. According to the survey, 56.6 percent of retailers segment their e-mail lists into groups, such as age, sex, annual income and past purchase histories. E-Mail Click Through Rate SNOW IN JULY The Pacific states, led by California, had the highest dollar totals in retail sales of snowsports equipment and apparel, totaling more than $541 million during the 2006-07 U.S. winter sports season, according to SnowSports Industries America. The Mountain region followed closely with about $502 million in retail receipts. 2006-07 Snowsports Retail Sales by Region Region Total $ Pacific Mountain Middle Atlantic East North Central New England South Atlantic West North Central West South Central East South Central All Regions All respondents 1-2.5% 10.3% 12.1% 2.51-5% 23.0% 15.5% 5.1-10% 19.2% 17.2% 10.1-15% 9.6% 5.2% 15.1-25% 8.2% 8.6% 19.1-25% 12.8% 13.8% >25% 8.9% 17.2% Don’t know 20.8% 24.2% Source: Internet Retailer Store-based merchants $541.9 million $501.9 million $291.1 million $269.0 million $225.3 million $205.3 million $133.7 million $127.4 million $35.4 million $2.33 billion All respondents Store-based merchants Source: SnowSports Industries America < 1% 2.8% 1.7% 1-5% 11.4% 12.1% 5.1-10% 8.3% 5.2% 10.1-15% 9.0% 8.6% 15.1-19% 13.5% 13.8% 19.1-25% 12.8% 13.8% >25% 24.2% 24.1% Don’t know 18.0% 20.7% Source: Internet Retailer Late snowfall helped keep New England behind this season, with total sales dropping about 20 percent to $225 million. Nationally, the snowsports market was fairly neutral, gaining 1.8 percent thanks to robust apparel sales and the Mountain and Pacific regions making up for New England’s losses, reports SIA. In all, total snowsports retail sales for the season topped $2.33 billion. Summer 2007 | InsideOutdoor | 21
Page 1 and 2: www.insideoutdoor.com Summer 2007 R
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