Dealernews Research By Dr. Paul Leinberger
DON’T BURY YOUR HEAD IN THE SAND! Five Consumer Trends To Watch Closely In 2021
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owersports sales surged in 2020 as consumers looked for activities that were both outdoor and allowed for social distancing. And our industry wasn’t the only beneficiary of this consumer trend. Year-over-year sales of paddle sports equipment was up 53%, while camping equipment sales grew by 31%. As Fall turned to Winter, the trend continued. According to the NPD Group, a consumer trends and sales tracking service, backcountry-related equipment sales in the United States grew a combined 76% in the opening months of this snow season (snowshoe sales were up 254%, Nordic equipment sales were up 121% and Alpine touring equipment sales were up 51%). By comparison, new-model powersport vehicle sales increased 18.4% in 2020, with motorcycle and scooter sales rising 11.4% according to the MIC retail sales report. The question we have pondered (in this column and elsewhere in Dealernews over the past few months) is: Can we sustain the growth through 2021 and beyond? The answer to this question will depend on how we as an industry respond to the challenge… and the opportunities presented in a post-pandemic 2021. There are five consumer trends that bear watching… VERY CLOSELY: 1) Shifting Priorities Since the onset of COVID-19, consumers have focused on their immediate needs, seeking ways to make the best of a difficult situation – being stuck at home for an indefinite
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period of time. Once people return to work and start socializing again (going out to eat, going to social gatherings, heading to the mall, etc.), the focus on the “here and now” will inevitably shift. Some of the changes consumers have made over the past year will be sustained and some of the categories that suffered during the pandemic will come back to life. For example, as consumers go back to work and life, they will seek to update their wardrobes and as they do, categories such as apparel, footwear and beauty will thrive once more. As priorities shift, so too will time allocations. Jigsaw puzzles will go back in their boxes and board games will be relegated to a weekend activity (if at all). As time demands shift, will the new powersports vehicle owners who bought during the pandemic still have time for that weekly ride in the country – the one that saved their sanity? The accessories recently purchased won’t need to be replaced soon, so what will bring your new owners back to your dealership? As the new normal begins to take shape, consumers will reprioritize both their spending and how they choose to spend their time. The challenge will be to make sure you give your new customers reasons to keep riding and reasons to keep returning to your dealership. This may be the most important challenge you will face in 2021. 2) Obsession With Safety We are now more than a year into the pandemic and no one needs to be told to wash their hands more frequently and wear masks in public. Due to the pandemic, consumers have an increased fear of infection and an increased health awareness. Because of that, all industries have a responsibility to implement enhanced safety measures. The powersports industry is no exception. Consumers want and need to know that we take their safety seriously. Safety and health are at the forefront of consumer attitudes and behavior. “Touchless, cashless and clean” will become the hallmarks of companies’ consumers want to do business with. There is another reason why we need to take consumers’ heightened concerns over hygiene seriously. In consumers’ minds, if we don’t take their basic hygiene and safety needs seriously, we may not take their product safety concerns seriously either. And, of course, nothing could be further from the truth. So, take the time to implement enhanced safety standards. Consumers are feeling vulnerable and in need of support. If you take their safety and hygiene concerns seriously, you will be rewarded with their commitment to you… conversely if you don’t adapt, they will take their touchless/cashless transactions elsewhere! 3) On The Road Again Consumers can’t wait to make travel plans. Pressure is building to take a long-awaited road trip. With international travel still highly restricted, consumers are beginning to make plans to travel in late summer or early fall, hoping that the combination of greater COVID testing and sufficient vaccination numbers will make domestic travel possible again.
