INDUSTRY RESEARCH

Dealernews Research

By Dr. Paul Leinberger

DON’T BURY YOUR HEAD IN THE SAND!

Five Consumer Trends To Watch Closely In 2021

Powersports 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 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.

What kind of trips do they want to take? According to NPD, they are primed for outdoor adventure. Thus the question becomes: Where will they go and how will they get there?

Don’t leave them to their own devices. This consumer trend gives you a wonderful opportunity to help them plan a wonderful outdoor adventure. Remember it’s not the destination, it’s the ride!

4) Flexible Fulfillment

According to a recent survey from Ernst & Young, 90% of Americans are spending more time online, using their devices to exercise, socialize, work and shop. Further, with COVID-19 precautions in mind, buy-online-pick-up-in-store (BOPUS) and curbside pick-up have become popular consumer delivery options. 34% of consumers used a BOPUS option in 2020 and 31% used a curbside pick-up option.

If you haven’t already done so, introduce a cashless payment system and make it possible for your customers to order online and pick-up in store or curbside without having to interact with staff (contactless delivery). As the pandemic eases, many consumers will be anxious to return to your store, but they will continue to use the new fulfillment options they learned during the pandemic. A combination of digital and bricks-and-mortar fulfillment will be the new normal.

5) Hyperlocalism

COVID-19 has highlighted how one person’s actions can have a dramatic impact on the lives of many others. Consumers have become sensitive to their relationship with others at work and in the communities where they do business. Thus, they have come to expect more from themselves and more from the companies they do business with.

Instead of doing business with giant corporations headquartered in some far away city, consumers would much rather do business with a local firm — and the more local the better. As a local dealership, today’s consumers want to do business with you. And the more you are involved in the community, the more they will want to do business with you.

Don’t bury your head in the sand! Get involved and get connected – and watch your dealership grow.

A perennial keynote speaker for the Motorcycle Industry Council's annual Communications Symposium, Dr. Paul Leinberger has become the powersports industry's de facto futurist/strategist. Dr. Leinberger is an expert in market/brand strategy and research with more than two decades of social trend forecasting, market strategy and strategic planning. Prior to joining TTD, he was Senior VP of GfK NOP, where he ran the company’s flagship consumer trend services, Roper Reports, as well as the company’s groundbreaking Global Visual Database. His client list reads like a Who’s Who of corporate America: Hewlett-Packard, Apple, Disney, Nordstrom, Microsoft, Levi Strauss, E.& J. Gallo Winery and Toyota, among many others. Prior to his global responsibilities at GfK NOP, Dr. Leinberger was the Corporate Manager in the Product Planning and Market Strategy department at Nissan North America. Dr. Leinberger holds a Ph.D. in organizational and social psychology and a Masters of Urban Planning (Highest Honors). He lives in Irvine, California, and his work can be seen at www.dennyleinbergerstrategy.com FEBRUARY 2021 37