As we head towards the start of a new year it is a time for reflection and hope. In this article, in GTN's December issue, we have gathered thoughts and opinions of representatives from across the industry looking back over the strangest of years as well as looking forward with hopes and aspirations for 2021.
Additional feedback from Mark Osborne, Chairman of LOFA and Sales Director of Outback International (UK): "WHAT A YEAR !
"One of the good things to come out of this year is the fact that everyone has gone gardening crazy. Not being able to travel or leave our homes for any length of time has meant that the garden has been the place to be.
"The garden products category has performed well with retail expanding by 18.6% over the past 4 years to £6.32billion.
"It seems our sector in particular has had one of the best trading years ever which is great news for LOFA and its members.
"The Garden Leisure sector has been the least affected by the Covid-19 emergency. This was because many adults were staying at home and using gardens/outdoor spaces during lockdown. While this will limit growth prospects during 2021 as the UK economy recovers, this sector will continue to be one of the most dynamic, reflecting the increased emphasis on garden and outdoor spaces within the home environment. Although the market is dominated by DIY and garden centres there is evidence that the role of the internet will and has increased.
"Exposure to online sales has been boosted during lockdown and it is expected that many more retailers will increase their online presence to offer more garden products online for home delivery going forward. The shift towards online means that we are opening up our industry to a whole new audience, in particular younger consumers. A younger audience means that there is a need for specialists to provide more information and interaction in the way they are most used to retrieving content and advice.
"Online is crucial for this younger demographic and without dedicated services and resources store-based specialities face losing this consumer base to either non-specialists or online-only retailers. Specialist garden centre stores and suppliers should be helping this new demographic in their search for gardening products.
"With 27% of more consumers buying and shopping locally there is a possibility that smaller more niche retailers in local areas will start to look at and home in on garden products. Meaning this is another route to market that needs to be tapped into.
"Travel restrictions also had a major impact and working from home is now the new norm for some, being unable to leave home other than to exercise elevated the importance of personal outdoor space. Spending patterns on home and garden products rose 13% during lockdown, such a positive view towards expenditure suggests that investment both in the short and longer term on garden products is set to grow. Segments of the market such as garden leisure are best placed to benefit from this trend as consumers increasingly look at outdoor space for leisure and other activities.
"Covid is a global crisis and has had a major impact on supply chains, it affected every stage including production, wholesale, trade, distribution channels and retail. Major suppliers, such as China suffered as borders were closed with this impacting on delivery of products to the UK and across the world. LOFA members were concerned about demurrage and detention costs in the early part of the year but there is still also some concern about the return to normality in 2021. Any loss of scaling back in production, or disruption to trade, may well impact on stock availability for distributors or retailers. We are seeing the effects of this now as the amount of goods being shipped are causing the opposite effect that was encountered at the beginning of the year, with shippers increasing their rates as well as the ports not being able to handle the influx of products.
"Overall spending has fallen as a result of Covid due to the impact of the lockdown and the impact on household finances. 43% of consumers were cutting back on non-essential spending however, in terms of spending on the home and garden this is a category not as significantly impacted as others. As lockdown eased there was a willingness to spend and knowing that restrictions may be in place for some time a growing number of consumers made the decision to invest in their home and garden where they have been spending a considerably amount of time. The warmer weather in April, May, June also played a huge part in the uplift of sales, coupled with the restrictions on travelling abroad.
"Gardens and outdoor spaces are areas for relaxation and wellbeing and furniture and cooking products appear better placed to achieve this balance appealing to a much broader range of adults. Building on this upsurge in interest on the use of gardens for leisure garden furniture and bbqs performed exceptionally well.
"This year also highlighted the importance of environmental matters for many adults and the visible impact of Covid on traffic and pollution, environmental issues are assuming greater priority especially among young adults. The important issues like reducing the use of plastic, or carbon footprints from manufacturer to customer is very important.
"Environmental responsibility is important for many consumers when shopping from a garden product retailer. Adopting a commitment to the reduction of plastics is especially important overall, with 39% ranking this as a top three factor, while offering products made from sustainable materials is a top three ranking with 34%.
"A lot of manufacturers are addressing this issue but it will be a continual process and something that should be a priority for all manufacturers."
GTN's December issue is winging its way to readers in the post right now and includes the 2021 edition of GTN's Sustainability Directory.