Health economies and healthy communities: new opportunitesin the outdoor industry
April 5, 2017 3pm ET
©2016, OUTDOOR INDUSTRY ASSOCIATION. All rights reserved.
OUTDOOR INDUSTRY ASSOCIATION | Together we are a force.
Speaker
s
RICH HARPER, MANAGER OF INTERNATIONAL TRADE, OUTDOOR INDUSTRYSASSOCIATION (OIA)
SAMANTHA SEARLES, DIRECTOR OF RESEARCH, OUTDOOR INDUSTRY ASSOCIATION (OIA)
2
©2016, OUTDOOR INDUSTRY ASSOCIATION. All rights reserved.
OUTDOOR INDUSTRY ASSOCIATION | Together we are a force.
Outdoor Industry Association (OIA)
•National trade association of 1,200 outdoor retailers, manufacturers, suppliers and distributers •The outdoor industry generates $646 billion in consumer spending and supports 6.1 million American jobs • Innovative products reaching all corners of the globe and enriching people’s lives by supporting healthy and active lifestyle
3
©2016, OUTDOOR INDUSTRY ASSOCIATION. All rights reserved.
OUTDOOR INDUSTRY ASSOCIATION | Together we are a force.
OIA’s Trade Program
•Diverse membership: from the largest companies in the world to small, family owned
businesses
•Outdoor companies manufacture in the USA AND utilize global value chains •Highly technical and innovative outdoor apparel, footwear and equipment designed to withstand rigors of outdoor recreation •OIA works to ensure that U.S. federal trade policy fosters and promotes a stable and predictable environment for all outdoor industry businesses •Ultimate goal: lower costs for outdoor businesses and their customers, new markets
4
©2016, OUTDOOR INDUSTRY ASSOCIATION. All rights reserved.
OUTDOOR INDUSTRY ASSOCIATION | Together we are a force.
Balanced Trade Agenda
The core of OIA’s Trade Program
OIA seeks the elimination of trade barriers, including tariffs, on outdoor products that have no commercially viable domestic production in the US. For those products that are manufactured domestically, OIA supports federal policies that aid US manufacturers and help them transition to competition in a global
economy.
5
©2016, OUTDOOR INDUSTRY ASSOCIATION. All rights reserved.
OUTDOOR INDUSTRY ASSOCIATION | Together we are a force.
6
THE TRUMP ADMINISTRATION:
AN AMERICA FIRST
TRADE POLICY
©2016, OUTDOOR INDUSTRY ASSOCIATION. All rights reserved.
OUTDOOR INDUSTRY ASSOCIATION | Together we are a force.
A new direction on trade
President Trump will push an “American First” trade policy: Renegotiate North American Free Trade Agreement (NAFTA) •Withdraw from Trans-Pacific Partnership (TPP) and focus on bi-lateral trade agreements: United Kingdom, Japan • Threaten retaliatory tariffs on companies that offshore jobs, “unfair” trading partners (China) •Set up team at USTR/Commerce/White House with focus on exports and trade
enforcement
7
©2016, OUTDOOR INDUSTRY ASSOCIATION. All rights reserved.
OUTDOOR INDUSTRY ASSOCIATION | Together we are a force.
An opening for Colombia?
•While President Trump will soon order a review of existing free trade agreements, currently NAFTA is the only free trade agreement slated for “re-negotiation” •TPP is dead –highly unlikely to be revived during a Trump administration •New bi-lateral trade agreements still years away and will focus on more developed countries like Japan and United Kingdom •Now is the time to utilize and take advantage of existing, and permanent, free trade agreements like US-Colombia •Immediate duty-free treatment/yarn-forward rule of origin
8
©2016, OUTDOOR INDUSTRY ASSOCIATION. All rights reserved.
OUTDOOR INDUSTRY ASSOCIATION | Together we are a force.
9
Global sourcing trends in the
outdoor industry
©2016, OUTDOOR INDUSTRY ASSOCIATION. All rights reserved.
OUTDOOR INDUSTRY ASSOCIATION | Together we are a force.
China leads the import market for outdoor products (by quantity)
•Apparel: 35% •Footwear: 63% •Travel goods: 85% (Backpacks: 87%)
1
0
©2016, OUTDOOR INDUSTRY ASSOCIATION. All rights reserved.
OUTDOOR INDUSTRY ASSOCIATION | Together we are a force.
But: there is movement away from China
•In response to rising costs and political uncertainty, outdoor companies are eager to diversify sourcing options
•Tremendous enthusiasm for initiative to add travel goods –including backpacks and sports bags –to the Generalized System of Preferences, the main trade preference program for developing countries
•Strong support for Trans-Pacific Partnership (TPP) during the negotiations and following release of final agreement
•New initiative to add certain footwear products to the GSP program
•How can you take advantage? Understand the outdoor consumer
1
1
©2016, OUTDOOR INDUSTRY ASSOCIATION. All rights reserved.
OUTDOOR INDUSTRY ASSOCIATION | Together we are a force.
CONSUMERVUE OVERVIEW
APRIL 2017
13
Understand The U.S. consumer with OIA ConsumerVue?
Outdoor industry consumer segmentation
AttitudesBehaviorsPerceptionsParticipation
5
3
2
4
1
SEGMENT MARKET.Quantitatively segment the outdoor industry marketplace, develop a robust understanding of each segment
ACTIVATE INSIGHTS. Translate insights about each segment to actionable business applications and help members identify their highest potential ROI segment
FORECAST MARKET.Forecast segment shifts based on macro influences and trends impacting the outdoor industry to 2020
DEFINE OUTDOORS. Understand how the general population defines the outdoors and what the outdoors means to them
SIZE MARKET. Identify and quantify the full U.S. consumer market potential for the current outdoor industry
Segmentation Objectives
Seven Outdoor Consumer Segments
Segment overview
THE ACHIEVER THE OUTDOOR NATIVE THE URBAN ATHLETE THE ASPIRATIONAL
CORE
THE ATHLEISURIST
MOTIVATION Achieve
PLACE Outside
ACTIVITY FOCUS Performance
APPAREL & GEAR To improve his performance: Specialized ▪Technical ▪Top of the line
INFLUENCED BY Well-known professional athletes ▪Researchers & Scientists ▪Respected peers
USES TECH TO Improve performance
MOTIVATION Experience
PLACE Backcountry
ACTIVITY FOCUS Exploration
APPAREL & GEAR That goes unnoticed: Versatile ▪Functional ▪Durable
INFLUENCED BY Authentic ambassadors: athletes & working professionals ▪Friends & family
USES TECH TO Plan adventures
MOTIVATION Win
PLACE City Streets & Parks
ACTIVITY FOCUS Competition
APPAREL & GEAR To perform against others: Stylish ▪Athletic ▪Lifestyle
INFLUENCED BY Musicians & Entertainers ▪Mainstream professional athletes
USES TECH TO Share & Compare
MOTIVATION Adventure
PLACE Home & Away
ACTIVITY FOCUS Adrenaline
APPAREL & GEAR To get the job done: Entry-level ▪Starter Kits ▪Sensible
INFLUENCED BY Mainstream outdoors brands ▪Price & Promotions
USES TECH TO Capture & Posture
MOTIVATION Enjoyment
PLACE Neighborhood
ACTIVITY FOCUS Leisure
APPAREL & GEAR To be comfortable: Basic ▪Flattering ▪Sensible
INFLUENCED BY Non-outdoors brands ▪Sales ▪In-store display
USES TECH TO Doesn’t use tech
MOTIVATION The elements
PLACE Close to home
ACTIVITY FOCUS Accessibility
APPAREL & GEAR That transitions: Versatile ▪Lifestyle-oriented ▪Functional
INFLUENCED BY Past preferences ▪Good deals ▪Brands that acknowledge
them
USES TECH TO Compare & save
MOTIVATION Comfort
PLACE Backyard
ACTIVITY FOCUS Ease
APPAREL & GEAR To cover the basics: Fits comfortably ▪Affordable
INFLUENCED BY Mainstream value brands ▪Convenience ▪Low prices
USES TECH TO Doesn’t use tech
THE SIDELINER THE COMPLACENT
2020 macroshifts
HIGHER EDUCATION
HISPANIC GROWTH POLARIZED POLITICS
DISPARITY OF WEALTH
STAYING SINGLEURBAN MIGRATION
RISE OF MILLENNIALS & AGING BOOMERS
HEIGHTENED ATTENTION TO HEALTH
OBESITY
1
2
3
4
5
7
NEGLECTED
Consumers you likely don’t know, but may offer potential
NOW
Consumers you may know
NEXT
Consumers you may not know, but should
6
HIGH CATEGORY SPEND
LOW CATEGORY SPEND
Segment impact
The Achiever The Outdoor Native The Urban Athlete The Aspirational Core The Athleisurist The Sideliner The Complacent
20
ConsumerVuetools and resources
Consumervue
OIA ConsumerVueoffers a comprehensivedata driven viewof how consumers see the i ndustry and how you can apply these learningsto build your business.
Identify your current consumer
Identify a new consumer
Who is your opportunistic consumer segment and how can you target them through strategies specific to your business?
Segment activation guides
Segment specific toolkits to strengthen your business’ marketing, merchandising, product innovation and social strategies and better meet your current or prospective consumer’s needs.
©2016, OUTDOOR INDUSTRY ASSOCIATION. All rights reserved.
OUTDOOR INDUSTRY ASSOCIATION | Together we are a force.
Questions?
•Contact us at rharper@outdoorindustry.organd ssearles@outdoorindustry.org •Follow on Twitter: @OIA and @RichOIAtrade •Learn more: www.outdoorindustry.org
2
5
