Outdoor Retailer - Summer 2018 - 34

IDEAS / Retailer Survey
2016 to November 2017 was down 6 percent
from the previous 12 months.
Outdoor industry watchers, including
Matt Powell, a senior advisor tracking sports
trends for The NPD Group, see a connection.
"The Millennial consumer has to be frugal in
purchasing," Powell says. "They have more
college debt and were hurt by the recession.
They may not have gotten into a good-paying
job yet." On a grand scale, this means they
are putting off buying cars and homes. They
are embracing a streamlined lifestyle that is
distinct from the materialist attitudes of the
flush generations preceding them. Below, retailers and industry experts who responded
to Outdoor Retailer's latest research survey
(sent out in the April edition of our newsletter) paint the picture of what that trend looks
like in the outdoor recreation market:

RESEARCH

Millennial Minimalism

In our latest survey of outdoor retailers across North America,
we dug deep into the idea that younger consumers are spending
less overall while also looking for more versatile apparel.
By Carol Kauder
REMEMBERTHE BUMPER STICKERTHATSAID
"whoever dies with the most toys wins?"
If you don't, you are probably under 40.
Millennials, born between 1980 and 2000
comprise the largest US generation ever,
and they are poised to shape the economy.
Millennials have a minimalist approach to
accumulating things, but at the same time
they prioritize health and exercise more
than their parents and grandparents do. Are
their shifting priorities driving change in the
outdoor recreation market? In our reader
survey, retailers tell us yes these are different times, but they see generational forces as
only one element in the winds of change.

34 OUTDOOR RETAILER

/ Summer 2018

Consider the following:
1) Millennials are the first generation in
modern American history to reverse the trend
of making more money than their parents.
A 2013 study by the Urban Institute showed
that the net worth of people ages 29-37 was
21 percent less than that for the same age
group in 1983. Likewise, Forbes reports that
Millennials' salaries are 20 percent less than
what Boomers brought home at the same age.
Meanwhile, the price of college rose more
than 50 percent in the same timeframe. 2) In
January, industry analyst The NPD Group
reported that the $18.9 billion total retail
sales for the outdoor industry from December

RENTING VS. BUYING
Delaying buying a home also translates to
delaying big purchases in the outdoor recreation space. A canoe and kayak retailer finds
that Millennials are more likely to rent than
buy a boat because many do not have room to
store a kayak in their apartment. This further
feeds the growth of "the sharing economy,"
attributed to the combined market forces of
Millennials' reluctance to amass things along
with digital technology enabling group access. Why buy a car or expensive handbag
when the ability to borrow one is at your fingertips? Of the 22 percent of our 80 retailer
respondents who rent equipment, 73 percent
have noticed an increase in demand. Of those
who don't offer rentals, nearly a quarter say
they've noticed an increase in rental inquiries.
But it's not just Millennials: As ski companies
continue to innovate, more skiers of all ages
want to demo before they buy. And population growth in and near resort towns means
business growth all around.
MULTI-PURPOSE VS. SPORT-SPECIFIC
In our survey, 72 percent agreed with the
observation that older generations are more
likely to desire "the best" sport-specific item,
regardless of experience or frequency of use.
Which makes sense-as Millennials are accumulating less wealth than those before them,

Andrew Kornylak

LESS IS MORE
Millennial co-owner Sharif
Hassan has fronted a
thriving business at
The Spindle in Atlanta,
Georgia, by focusing on
apparel and accessories.

Outdoor Retailer - Summer 2018

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