I want help looking into the key consumer needs when it comes to outdoor power equipment and handheld power tools (ex. chainsaws

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Consumer Preferences: Outdoor Power Equipment

Older generations (Matures and Baby Boomers) move towards big-ticket items when it comes to outdoor power equipment and handheld power tools, while the younger generations (millennial are more inclined towards impulse buying compared to the older ones. Brands and retailers loyalty programs play a vital role in consumer purchase habits related to outdoor power equipment and handheld power tools.

RESEARCH STRATEGY

We began our research by searching for consumer needs for outdoor power equipment and handheld power tools across many industrial insight sources like Irwinbroh, Getjobber, CBinsights, etc., which led us to information related to the overall industry performance and a forecast of the outdoor power equipment industry. However, we were unable to unearth data regarding consumer preferences for outdoor power equipment and handheld power tools in the US market.

We then focused our search on government-related sources like the Bureau of Labor Statistics, U.S. Consumer Product Safety Commission related to OPE, US Environmental Protection Agency, etc., to get valid information on occupational employment statistics and to find any useful references. Instead, we only found information related to environment safety, emission reports, etc.

Next, to gain insights, we looked for the top-selling OPE equipment, most sold handheld power tools, top manufacturers of OPE, and top online platforms which sell them. Unfortunately, we could find any relevant data.

Finally, we concluded results for this study by exploring any pre-compiled data across viable sources and found inspiration from such reports and infographics, mostly citing the exact requirements of this study across the Stevenson Company. Thus, with the help of pre-compiled reports, we analyzed the consumer preferences for outdoor power equipment and handheld power tools and narrated with important data points in this study.

KEY CONSUMER NEEDS/PREFERENCES FOR OUTDOOR POWER EQUIPMENT (OPE) AND HANDHELD POWER TOOLS

The following are seven consumer needs/preferences for outdoor power equipment and handheld power tools:

BRAND PREFERENCE BY MILLENIALS

From drills to lawnmowers, nearly every category of outdoor power equipment seems to have been affected by the declining cost of lithium-ion batteries. However, reports show that equipment brands influence different demographics in different ways. For example, millennials care about brands in different ways than Generation X and Baby Boomers.

WHY IT MATTERS
Brands play a vital role in the purchasing progress of OPE. Hence, millennials often prefer top brands, as their products tend to be more efficient.

PREVIOUS PURCHASING EXPERIENCE

About 44% of OPE buyers are from the south, and 23% of the OPE shopping population is loyal to retailers based in prior dealings with them. The average price paid for OPE products is $180.
WHY IT MATTERS
Majority of OPE consumers pick their retailers by their previous purchasing experiences because they can ascertain the level of quality of products. Hence, they have a confident assurance of a good deal when purchasing from the retailer.

IMPULSE BUYING

Millennials want a good selection of OPE products and are more prone to buying impulsively than matures or baby boomers. Around 40% of Matures and baby boomers revealed that they shop for outdoor power equipment online compared to 45% of millennials. 17% of outdoor power equipment sales are made online, half of which are purchased by matures and boomers.
WHY IT MATTERS
The impulsive buying behavior of millennials backs a good selection of OPE. They make such purchases because such equipment will have a longer shelf-life.

ECO-FRIENDLY PRODUCTS

Baby boomers and Matures are more likely to view big-ticket items as an investment because they believe that a higher the cost guarantees a long-lasting product. Millennials are, however, typically thought of as more eco-friendly and thus more likely to buy electric or battery-powered lawn tools.

WHY IT MATTERS
Younger generations prefer to go for eco-friendly products and are more likely to buy battery-operated lawn tools to ensure a healthier environment.

PRICE

Unlike the South, the Northeast under-indexes on power tools. More than 50% of consumers pick retailers because of the cost of their products, and a quarter of them choose a retailer who assists with product selection. Of the OPE buyers, 67% of power tool buyers are men. 11% of buyer dollars go to Craftsman. Black & Decker get almost 7% of consumer dollars while Amazon receives more than 6% of consumer dollars.
WHY IT MATTERS
Majority of OPE consumers prefer to buy handheld power tools because of their competitive pricing in retail stores.

DISCOUNTS

Manufacturers and retailers want to unload as much of their stock as possible during late season. Prime Day is specific to Amazon, and it has set a new sales record for the e-commerce giant every year since its inception. Because Prime Day falls in mid-July, it holds significant influence over Amazon’s power tool category. Typically, the second quarter of the fiscal year is the biggest for any power tools brand. For example, in 2018, the peak sales period lasted from mid-April to early July. Brands can then take advantage of this improved visibility by using timed late-season discounts to ensure strong sales into the fall, ultimately positioning themselves for a winning holiday season.
WHY IT MATTERS
Prime day sales offers and late-season huge discounts attract more consumers to go for a large purchase of power tools. Thus, a lot of discounts help the buying attitude of consumers regarding power tool purchase.

INNOVATION AND GREEN BRANDS

One of the key challenges of the power tools space is the fact that many products are expected to last for years or even decades, but the rapid shift from gas to electric mowers proves that innovation pays. By offering something better, whether by improving comfort, reducing noise, or emission, brands can stand out in a saturated market and capture a new audience.
WHY IT MATTERS
Consumers that were previously reluctant are now convinced of the value of electric lawnmowers and trimmers, influenced by innovations, decreasing prices and the significant reduction in noise.
Sources
Sources

Quotes
  • "One of the most rapidly emerging trends in all of home improvement is the consumer adoption of electrically powered equipment."
  • "From drills to riding lawnmowers, nearly every category seems to have been affected by the declining cost of lithium-ion batteries. "
  • "OPE is no exception; with cheap batteries and tech that is easily replicated from brand to brand, we’re seeing a proliferation of brands entering the market where there were few before. "
  • "Demographics and preferences may also come into play. Studies have demonstrated that different demographics are influenced by brands in different ways. "
  • "Millennials specifically care about brands in different ways than Generation X and Baby Boomers. Social issues and the ways brands respond to them matter more, and brands can earn loyalty by engaging with those social issues."
  • "Emerging companies and established companies alike have much to gain from engaging in social issues and connecting with the young shoppers who are increasingly leading the way in retail."
Quotes
  • "Home Depot brings home almost 28% of consumer OPE dollar share. Consumers love shopping local- almost 13% of OPE dollar share goes to independent dealers. Sears closes 74% of OPE sales"
  • "What’s in a name? More than you might think- 28% of shoppers pick OPE brands based on name, 3 in 4 OPE consumers makes their purchase in store- see how many choose to buy online with our infographic"
  • "Toro brand comes just behind Craftsman in OPE dollar share. OPE shoppers are spending an average of $247 at independent dealers. Home Depot draws more than 40% of OPE shoppers"
  • "The South loves its OPE- it overindexes with 44% of OPE buyers. OPE shoppers are a loyal bunch- 23% of consumers pick their retailer because of previous experience. The average price paid for OPE products is $180"
  • "Lowe’s wins almost 21% of OPE consumer dollars. The West underindexes on OPE sales. OPE products are man’s best friend- 60% of buyers are men shopping solo"
  • "75% purchase in retail store, 20% online and 5% other way. 60% buy for competitive pricing and brands in retail. 60% male and 21% female made purchases."
Quotes
  • "For example, Millennials want a good selection of OPE products and are more prone to impulse buys than Matures or Baby Boomers. They also cite advertising as a top purchase driver more than any other group. "
  • "Matures and Baby Boomers on the other hand, tend to be less swayed by marketing tactics. Considerations such as power source, size, and store loyalty are more likely to prompt these older shoppers to make the purchase."
  • "Believing that older shoppers, those in the pre-1946 Mature and post-WWII Baby Boomer generations, are less likely to shop online may be a costly mistake."
  • "Although each successive generation does more online shopping than the last, around 40 percent of Matures and Boomers say they shop online for outdoor power equipment. This is only slightly less than the 45 percent of Millennial OPE buyers who shop the web."
  • "Further, while brick and mortar is still king, 17 percent of outdoor power equipment sales are made online; half of these are made by Matures and Boomers."
  • "Millennials pay 25% less than Boomers or Matures for zero-turn mowers which can carry a price tag into the thousands. However, for less expensive items such as cordless shears, Millennials pay on average almost double what Matures are willing to spend."
Quotes
  • "24% of Power Tools & Accessories purchases are impulse buys. Amazon closes on 72% of sales. Over half of consumers pick retailers because of price!. 1/4 pick retailers because of product selection. Home Depot win 27% of consumer dollars."
  • "67% of power tool buyers are men. 11% of buyer dollars go to Craftsman. The Northeast under-indexes on power tools. Black & Decker gets almost 7% of consumer dollars. Amazon gets more than 6% of consumer dollars."
  • "21% of buyers are women. Lowes draws in 30% of shoppers. 1 in 4 are a 1st time purchase! Almost 7 in 10 shoppers just visit 1 store. Nearly 1 in 3 shoppers shop online. Millennials make up 33% of buyers."
  • "Almost 3/4 of buyers own their homes. 14% of online buyers use ship to store. Average sales price at @Amazon is $91. 20% of buyers are retirees. 24% of purchases are impulse buys."
  • "83% purchase in retail, 14% online, 3% other. 58% competitive price in retail buying. West 23% buying of US population, Midwest 21% of US -population - Income 30% < $35K, Northeast 18% of US population - Income 33% $35K - $74K. South 38% of US population - 38% >$75K."
Quotes
  • "Now is a good time to buy power tools. Like any seasonally-driven category, the late season is the when you find the best deals, since manufacturers and retailers want to unload as much of their stock as possible. "
  • "On Amazon, power tools experience a unique lifecycle, thanks to Prime Day. Unlike most other huge deal days, Prime Day is specific to Amazon, and it has set a new sales record for the eCommerce giant every year since its inception. "
  • "And because Prime Day falls in mid-July, it holds a special influence over Amazon’s Power Tools category. Typically, Q2 is the biggest quarter for a Power Tools brand – in 2018, the peak sales period lasted from mid-April to early July."
  • "Brands can then take advantage of this improved visibility by using strategically-timed late-season discounts to maintain strong sales well into the fall, ultimately positioning themselves for a winning holiday season."
  • "In the first half (H1) of 2018, typically the bigger half of the year, Amazon sold approximately $150M worth of Power Tools, an increase of 30% compared to H1 2017. The biggest share of these sales was controlled by Cordless Drills, the subcategory which has led Amazon’s Power Tools sales for years."
  • " Combo Kits’ YoY growth in sales surpassed that of its individual drill counterpart by a wide margin – 35% compared to 15% – and is rapidly approaching the latter category in size. In fact, the bestselling Power Tool during the first half of 2018 was a Combo Kit from Dewalt,"