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The Garden Industry Manufacturers' Association (GIMA) has long been a powerful instrument in promoting and defending the interests of British and European-based businesses supplying the UK gardening sector. But after a difficult year, the association is determined to maintain a positive approach to market conditions, continue to be a conduit for the exchange of views between members on key issues, and to act as a robust mouthpiece for garden-product suppliers to share their concerns with media and the government.
Originally formed in 1982 but revamped following its merger with the Garden Products Association in 1999, GIMA now has more than 180 members, whose combined turnover at retail-selling level amounts to some £1.5 billion. Despite the impact of the credit crunch on household budgets and miserable spring weather, however, GIMA director Neil Gow remains broadly upbeat about the industry's progress over the last 12 months.
"The spring season from April to May, which is key from a gardening point of view, was cold and damp. The nice spell of weather we've just had is a help, but there's not a huge amount of gardening to be done now - people want to sit in their gardens and relax rather than work," Gow says.
"The independent sector of garden centres - the likes of GCA members, the more specialist businesses - have fared better than some of the large chains and those attached to DIY stores, because these rely so heavily on the impulse gardener as opposed to the more committed. April and May are the critical months for the impulse gardener: when they see the sun shining, they think ‘bedding plants' and go out and buy them. Traditional garden centres tend to cater to serious gardeners who will go out and buy what they need regardless of the weather.
"The independent sector seems to be running about one per cent down year on year, which is not terribly clever as we are looking at 2008 versus 2007, which we know was not a great year. That said, because we had a reasonably warm, dry September and October, the specialist garden centres actually wound up doing quite well due to sales of bulbs for autumn planting and in the run-up to Christmas. So, without doubt it has been a challenging season."
Nevertheless, ahead of the Glee show, Gow perceives profitable growth in public demand for "greener" gardening and its associated products, and believes that retailers and suppliers have made a good fist of capitalising on the burgeoning "grow it yourself" or GIY sector. There are certainly grounds for optimism and it is crucial for the sector to present a positive front.
"I'm not saying ignore all the talk about recession and the credit crunch. We have to bear it in mind but not see it as a gun at our heads. Past difficult financial times have proven that as an industry we are pretty resilient, if not recession-proof. At the end of the day, we are a low-cost hobby in a comparatively cheap, feel-good market. Spend £5 on a houseplant and it cheers up your room; you have to spend an awful lot more than that at the pub these days to feel happier. We must avoid talking ourselves into doom and gloom."
Another significant challenge for 2009 will be reacting appropriately to steep rises in raw material, energy and transport costs, which Gow believes should be reflected more stringently at wholesale and retail levels. The industry should take the opportunity to make more realistic and sustainable margins, thereby enabling it to bring the innovation and new products that consumers want into the marketplace.
"If anything, we haven't been looking for enough profits and have been price-driven for too long," he says. "Let's look at worth, not price. If your product is as good as you say it is and you have the service to back it up, people will pay for it. The public accepts that prices are going up. The press has talked about the summer of discontent, but I can remember 1973 and it isn't anything like that. Joe Public is better off than he has ever been, and he will spend the money."
To assist them in their quest for that business, GIMA members can take advantage of a range of services, from telephone-rate reductions to low-cost publishing and consultancy advice. The association has recently added preferential insurance to the list, and better rates for utility purchasing. "The insurance initiative has gone down particularly well," says Gow. "This is the first time there has been a package of insurance drawn up specifically for the manufacturer, so rather than suddenly worrying about cover for trade shows, your laptop or the containers coming in, you will have already been prompted."
With the highly influential Glee trade show on the horizon, the association will continue to look for new members, build their market and thereby allow the industry itself to expand. "This is our ultimate aim," says Gow. "We work on a macro as well as a micro level with individual members. The association is growing all the time."
As well as growing, the membership is also constantly changing and Gow concedes GIMA does lose members as well as gain them. "These are tough trading conditions and a lot of consolidation and amalgamation has been going on. But when times are tough, you can't put a price on the feeling of solidarity that comes with being in an association, having that extra support through communication with the team and through other members.
"Our meetings provide a forum not only to share ideas with fellow GIMA members but key industry speakers and potential product buyers." The association also provides access to support services in areas such as buying foreign currency and producing point-of-sale material.
Meanwhile, the annual GIMA Awards have become a major event in the industry, and since membership is not a requirement to enter, it has become a vehicle to showcase the widest possible scope of product and provide a benchmark for marketing standards. At the last awards, held in Birmingham on July 17th, Solus Nortene Home Composting won a Sword of Excellence award in the product category, while Honda's Seed Mailer took an Award of Excellence for marketing. Overseas ventures also receive plaudits, Suttons Consumer Products carrying away an Export Achievement Award for a highly successful Italian campaign.
Published last month, GIMA's New Products Digest is a further prominent means for members to place their stamp on the marketplace and represents, according to Gow, a compelling reason in itself to join the association for the publicity it generates.
Looking to the future, GIMA will continue to be a force to be reckoned with in its negotiations with government on legislation. "This is an increasing part of what we do, so we can influence rules and regulations and make them less harmful to our members - or at least so they can be aware of them sooner," says Gow. "It has been a trait of the current government to announce new legislation one day and it comes into effect almost the next. This can be pretty tough when you have long-term R&D issues or stock being made on the other side of the world."
Gow believes that "green" or environmentally neutral products need to be pushed further, but that the notion of green products in the gardening sector should be understood in a broader context. Personal pleasure is often more of a driver than genuine concern for the planet: "The modern consumer is not necessarily ‘green' but more environmentally and socially aware," he says. "Price is not the overriding decision-maker for the majority - they are more interested in worth and value. They will pay more if it is green or ethically produced - but not a huge amount more - to help them sleep better at night.
"The market has shifted towards more ethically produced goods, but convenience is still important to the consumer, and results remain important. Products have to do what it says on the tin. Perhaps the link with the environment is slightly tenuous with popular GIY products such as potato planters. How much difference does growing your own spuds really make to the environment as opposed to buying them at the supermarket or farm shop? A large part of growing your own is the feel-good factor. Turkey on Christmas Day with new potatoes straight from the garden? There's no taste like it in the world!"
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