As a consumer this season, you probably pass more and more retail locations at local malls and shopping centers that are completely vacant. The two “closing” signs on Linens ‘n Things and Circuit City in my neighborhood may be good for short-term sales, but I’d much prefer that they remain open. As outdoor retailers and manufacturers, the economic impact of a recession hits much closer to home. While only some stores may be closing for good, the bottom line is that change is coming for all companies that depend on consumer spending.

With change comes entrepreneurship, innovation and a refreshed look at how you can improve your brand. To explore the current consumer experience, and how outdoor companies can stay grounded and even grow, we discuss the importance of correlating your message to the new American values and going after new markets in our feature article.

Best,

Peter

Outdoor America: Embrace the Consumer
Experience for 2009, Build the Bottom Line

During the holidays and here at the beginning of the New Year, providers of consumer goods are feeling down in the dumps. While toilet paper, toothpaste, canned goods and other household essentials are flying off the shelves, other consumer goods have experienced a startling dip in sales. According to Reuters, holiday sales in 2008 fell as much as 4% from 2007, thanks to the combination of a weak economy and dismal weather nationwide, making this the weakest holiday season in decades.

The casualties have not only been luxury items. Sales of women's apparel fell 22.7%, men's clothing was down 14.3% and footwear sales dipped 13.5%, according to SpendingPulse. Consumers are simply bypassing the purchase of any goods not considered essential and manufacturers of outdoor gear are feeling the pinch.

The message from consumers is clear: "Before I pick a product off the shelf and carry it to the register, I'm going to assess if I really NEED it.”

In turn, the outdoor gear manufacturer's message needs to ring just as clear the other way: "This product is a smart choice in a down economy and provides a less expensive alternative to help you get through this recession."

Unexplored Alternatives

So if consumers are purchasing only essential products, how does outdoor gear fit in? The first thing to remember is that as a recession drags on for longer and longer, most consumers — if not in dire straights — will begin to purchase some non-essential items. As the saying goes, "Man cannot live on bread alone." Rather than halting all purchases permanently, most consumers will be looking for affordability and value in the products that they purchase over the long-term. As a substitute for more expensive options, even high-end outdoor gear offers affordability and value that will appeal to frugal consumers.

The trick is to experience the recession from the point of view of the consumer and communicate outdoor gear as the unexplored (and affordable) alternative.

This requires manufacturers and marketers to view their products and brand through a new lens in order to tell a new story and appeal to non-traditional target consumers. Here are three examples of positioning goods to appeal to shoppers in this less-than-ideal economy.

The Affordable Family Get-away

The manufacturer selling high-end camping gear faces a great challenge. Until the economy stabilizes, serious campers likely already have this gear and will simply opt to reuse what they already have in lieu of purchasing the latest, greatest model. But what about targeting a new consumer base that may not have been interested in camping previously, but might be interested now? An investment in a high-quality, trusted brand of tent, for example, can make the great outdoors a fun and affordable vacation spot. Instead of an $400 per person luxury cruise, the frugal consumer now has a 5-day camping trip for the whole family at the cost of just $10/nite at the campground. The investment in camping gear can greatly reduce the cost of the family vacation, while still allowing them to take some sorely needed time off.

An Investment in Quality Time

When times are tough, it’s more important than ever for families to stay close and spend quality time together. In a busy, technological world, video games, Wii, TV, cell phones, and texting present constant distractions and often eat into a family's time together. As one example, an investment in bicycles and good helmets can get the family out on the trail and away from the distractions of everyday life. These types of activities offer a break from multi-media overkill, have the added benefit of exercise, and can be enjoyed by all! For families that are trying to reduce cell phone bills and have cut cable or satellite TV, the one-time investment delivers hours of entertainment over the long-term without requiring a monthly fee.

Cut the cost of exercise

As companies tighten their belts alongside consumers, many are shaving employee benefits. Free or discounted gym access and other health benefits offered by many companies may be the first thing to go in tough times. Likewise, many individuals are cancelling their gym memberships to reduce their monthly expenses. Yet exercise is essential — now more than ever — to keep individuals mentally and physically healthy. For providers of footwear, an investment in a good pair of hiking boots or running shoes can save knees for people taking to the pavement for their run instead of the treadmill. Or the purchase of outdoor climbing equipment can give some individuals a beautiful new location for a good, but inexpensive outdoor workout. These investments are still far less than a monthly gym membership or the expense of installing exercise equipment in the home.

The Upside

So here's the message for outdoor gear providers: While every news headline seems to predict pending doom and gloom, there is hope for the future. This is the perfect time to recruit new users of outdoor gear by helping them think about these goods in a different way. Outdoor good providers don't have to wait until the economy recovers to create a new value proposition for their brands that matches needs of the time.

DownEast Outfitters Suits Up with Carabiner Outdoor

A provider of stylish clothing, home furnishings, and accessories at affordable prices, DownEast Outfitters is pioneering new territory in 2009. In 2008, the company suited up with Carabiner Outdoor as their PR agency of record to help them launch a new consumer-focused campaign to drive awareness and sales. Carabiner's public relations expertise coupled with their interactive media savvy is enabling DownEast to launch creative campaigns to build loyalty for core stores in the Intermountain West as well as expand awareness of the brand nationwide. For the complete story, click here.

Harness the Power of Social Media:
Blogs Influence Consumer Purchases

“Harnessing the Power of Blogs,” a research study conducted by Juniper Research (Forrester) of more than 2,000 online consumers in the US, found these interesting numbers:

*Blog readers = read a blog in past 12 months

Blog Influence

• 50% of blog readers find useful purchase information
• 56% of blog readers who found content useful for purchases say blogs with niche focus and topical expertise were key sources
• 52% of blog readers say blogs played role in critical moment decided to purchase

Blog Advertising

• 25% of blog readers say they trust ads, 19% of them trust ads of social network sites

Blog Searching

• 49% of blog readers read more than 1 blog per session (blogs read as part of a conversation not viewed in isolation)

If you’re not blogging, Twittering, and connecting with customers in a Facebook-type community, you’re missing out on what’s becoming the new way to communicate with consumers. Talk to Carabiner Outdoor about how you can kick-start a social media campaign for spring.