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New Year is traditionally a time for resolutions, but it's also a time for new plans. This means it's the time that retailers are looking out for what will drive sales, and how to make the best of it. In the gardening industry, only a detailed weather forecast for the next twelve months can tell us what is going to happen. But by looking at trends in the market across the last year and where they might lead it may be possible to see where opportunities lie for 2008.
Green is here to stay
2007 was the year the world went green and this was definitely true of the gardening industry. Following in the footsteps of large retail corporations like Tesco and M&S, Wyevale announced a plan to go carbon neutral by 2010. Suppliers started to compete for the green pound. GLEE even had a ‘green trail'. As more and more retailers realised that there were opportunities to be made selling to green gardeners, it became more important than ever for companies to talk about what they were doing to minimise their environmental impact. It seems that green is here to stay.
Walking the walk
It now makes sense for suppliers and retailers to offer green products. The environment is no longer a ‘fringe' interest; there are enough consumers who will make purchasing decisions that include how eco-friendly a product is. This means that there is money to be made from greener gardeners. Consumers who want to buy greener products are going to buy from names that they trust and that they feel have a good environmental track record. Consumers also want to know that suppliers are ‘walking the walk', as well as ‘talking the talk'. This is why Sinclair, for example, has put Carbon Footprint information on our packaging. We know that everyone is now claiming to be green, and it won't be long before customers want to see something more than a mission statement and a smile. The best way to grab green sales this year will be to concentrate on companies that are already delivering.
Outperforming the competition
No matter how green a product is, no-one is going to buy it if it doesn't work. This was one of the reasons that Sinclair developed Sincro-Boost, an ingredient for growing media made from recycled green waste. After independent trials at Nottingham Trent showed that it was a high-performance product it was offered to consumers and continues to be a high seller. The message is that it is possible to find products that demonstrate equal or better performance than less eco-friendly alternatives. This means being a greener gardener doesn't have to be a sacrifice - so everyone can do it, not just people who put the planet first ahead of everything. Secondly it means that it is now more important than ever to be able to offer customers an environmentally-friendly product. If the only difference between two products is how green they are, then chances are consumers will always choose the greener one. After all, no one wants to damage the environment! So this means that the pressure is on for less eco-friendly alternatives.
But performance is also likely to be important for another reason. Over the last year we have seen challenging weather conditions; hotter and drier at times, wetter and windier at others. These have made it harder for gardeners to get the results they need. This means that customers are likely to be looking out the top performance brands. Premium performance products will always be popular with gardeners who see their gardens as a real investment, and are prepared to lay out more if they know they are getting a top product in return. But if these weather patterns continue then they won't be the only ones looking for better performing products.
The bottom line
But green isn't the only story. Looking at the economy, it seems that there might be testing times ahead for all of us. Of course, no one knows; predictions about the economy are usually as accurate as predictions of the weather! So what does this mean for retailers? Whether there is a boom or a bust, the answer is that brand loyalty is what will carry sales. If customers don't have much to spend then they will go for product that they know and trust.
Customers want to see markers that they will get the quality and high performance - and maybe the environmentally-friendly - products they want. Brands provide these markers. If sales slacken, then stocking strong performing brands is one way that retailers can avoid having to lose margins and chase profits from lower prices. In the end, customers will pay more for something they are familiar with and believe will do ‘what it says on the tin.'
Whether the economy goes up or down in 2008, Sinclair believes that no-one can lose out be being greener and by building business with brands. So if retailers are looking for a New Year's Resolution, then this could be a place to start.
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