Six ways to cash in on consumer trends in 2011

Industry surveys show that while a lingering recession has changed consumer behavior in lasting ways and the economy is slowly showing signs of recovery, shoppers still remain tactical and cautious in their spending.

“The question on many marketers’ minds is: 'How do we as an industry market horticulture products in this unique economic climate?'” says innovative marketer Anthony Tesselaar, co-founder and president of the Australia-based Tesselaar Plants. ”So, how do we make sure we stay in their cross-hairs? We’ve learned it’s not necessarily about price. These days, it’s all about value – and values – to me, the purchaser.”

With this in mind, here are six smart steps Tesselaar offers that you can take to profit from consumer habits this coming year:

1. Offer more for the money

“Of course retailers know they need to focus on sales and promotions to bring in shoppers. And of course price is a factor for just about everyone,” says National Retail Federation vice president Ellen Davis in the group’s recent 2010 holiday shopping survey report, which noted – among other promising indicators – a 5-percent drop in those saying they’d buy holiday gifts from a discounter this year. “But unlike 2009 – and most definitely 2008 – price is not the only factor shoppers will consider when making buying decisions.”
 
Instead, the report suggests a need to demonstrate how a product or service offers long-term benefits, prevents problems or hits on something so emotionally important to the consumer that the extra cost is “worth it.” For instance, does the drought-tolerant plant that costs 20-percent more than its similar counterpart worth the purchase because the consumer can go on vacation and not have to find a plant-sitter? Can the price for a season-long-blooming shrub be amortized over several years because it boosts the resale value of your home? Does the $40 hanging basket also work in the shade or save space in a downsized or urban dwelling? It could pay to spell out such perks, perhaps in a prominent display of “value” plants.

Even though the economy is improving slightly, the recession has affected the mainstream mindset, moving shoppers toward a “save-save-save” mentality. Just this past fall, talk show after talk show focused on where to find freebies, how to negotiate with retailers for markdowns and the best times of the year to find sales on specific items.

“The added-value equation has become extremely important,” says Tesselaar. “For instance, when we introduced Flower Carpet we included a free fertilizer sachet with each plant, so the consumer got help getting their plant started with the best material possible and didn’t have to take the extra step to also find the right fertilizer. It was revolutionary at the time – and is still unique to the Flower Carpet program – but in recent years, it has really paid off.”

2. Promote products as “multi-use”

Can a garden perennial be overwintered as a houseplant, helping to beautify the indoors, boost moods and improve indoor air quality? Can it provide healthy, chemically free food for the family and save on the grocery bills? Can it even become a gift for someone else?
 
Container plants that can easily be carried in from the patio to serve as a wintertime houseplant are a big sell, especially in colder climates. For instance, we were delighted enough that Festival Burgundy cordyline offered extreme drought-tolerance and season-long architectural interest, texture and colorful foliage. But then consumers in northern climates made a point of telling us they’d successfully overwintered it inside as a houseplant – and thanked us for brightening their gloomy months with color.
 
And why can’t quick-growing, lovely-leaved edibles like swiss chard, ornamental kale and lettuces be packaged up as ornamental containers with recipe ideas or articles about how adding more fresh, raw produce to your diet can improve digestive health and give you a more youthful, beautiful appearance? Tesselaar even suggests promoting plants as no-cost, personal gifts in a pinch. In a recent blog post on Tesselaar’s Your Easy Garden, it was suggested that gardeners share their love of Tropicanna cannas by sharing some of the rhizomes they’ve dug up for winter as holiday gifts for gardening family and friends.

3. “Green” on the tag = green in your pocket

“Fifteen years ago, when we introduced the Flower Carpet line as the world’s first water-wise, no-spray, self-cleaning shrub rose, we were of course thrilled to offer consumers a product that saved them time, water and money on plant replacements while curbing their use of chemicals,” says Tesselaar. “But we had no idea just how important such products would become in the next decade – not just to the consumer and landscaper, but the grower, retailer and others in the horticulture industry.”

After all, drought-tolerant, pest- and disease-resistant plants also cut businesses’ spending on water and chemicals, plus they require fewer staff hours to keep them looking good. Such plants can also be promoted as socially and/or environmentally responsible products – something 67 percent of respondents said they’d buy, even in a difficult economy, in a 2009 survey by brand-marketing firm BBMG. Gardeners, especially, are keen on these products. In the late spring 2010 Garden Trends Report by the Garden Writers Association, for instance, three-fourths (73 percent) of gardeners surveyed said they were concerned about the environmental impact of products they buy.

Tesselaar suggests highlighting this value for the consumer through eco-tags that equate the purchase of the plant to a real-life environmental benefit or through point-of-purchase displays with a simple sign reading “water-wise” or “no-spray.” Grouping plants according to their watering or spraying needs, by the way, streamlines maintenance – further reducing staff hours.

4. Give the landscapers what they want
 
Those who design, install and maintain others’ landscapes for a living have also had to deal with tightening budgets. So they’ve turned to plants that can quickly spread and create big swaths of color for the same amount of money, or full, blooming shrubs that will look better from a distance and swiftly fill in the holes left by dead or scraggly plants.

Landscapers are also moving toward buying smaller containers of such plants at a lower price, because they know these plants will soon fill out and reach the mature size of the more expensive ones. They’re also buying less of a variety of plants, but more of what they choose (i.e. – only the tested, top performers they can count on and which won’t need replacement anytime soon). So do your homework, then buy, promote and sell only the best.

Landscapers are also offering hot new services like designing, installing and maintaining water features and lighting for nighttime and holidays. (Many of the new lighting systems, by the way, offer energy-saving LED technology that can be seen as an investment recoup). In colder climates, snow and ice removal have also grown as popular off-season money-makers. Supply these professionals with the products, customers and exposure they’re looking for – perhaps by showcasing their work at your garden center, having them teach a “nightscaping” workshop or promoting them as an affiliated design consultant.

5. Cultivate connections

“With online experiences developing rapidly, for bricks and mortar retailers discounting is a no-win battle against the Internet,” says James Limbach in his October 29, 2010 ConsumerAffairs.com article, “Economic Hard Times Bring Lasting Changes to Consumer Behavior.” In 2011, says Limbach, we may need to “get more creative to lure consumers into stores, offering more than just retail and be a venue. Service may extend into advice and demonstrations, while exclusivity and environment may also be key aspects to engage consumers with real-life, not virtual, shopping experiences.”
 
With that in mind, Tesselaar suggests hosting landscape professional certification or floral design programs for unemployed retirees looking to turn a passion into a new career. Or offering pot-a-plant workshops that give parents and grandparents a special day out with a child. Perhaps consider the recession-inspired popularity of vegetable gardening by featuring a “cooking with fresh vegetables” demo with samples, recipe handouts and some take-home plants.

Cooperative relationships can also cut down on overhead. Why not? People are now sharing pricey items like cars and expensive equipment and trading or bartering goods and services. Tesselaar likes the idea of offering to have high school students or master gardeners fulfill their volunteer hours at your site. Or using leftover merchandise to beautify the sales lot of a playground retailer – in return for a play set than can help make your store a family destination.

“Think creatively,” suggests Tesselaar. “The sky’s the limit on the cooperative arrangements you can broker. Everyone wins here.”

6. Smartphones prompt thinking locally

“With smartphones becoming the dominant mobile force, Quick Response (QR) codes and application technology will pique interest, provide portals into unique experiences and improve our quality of life,” says Limbach, noting that sales of smartphones grew 82 percent from 2008 to 2010. In fact, that’s why Tesselaar was among the first plant innovators to pursue mobile marketing this past year, by listing its plants on the GardenPilot app, so consumers could find out where they were sold in their area.
 
And this ability to filter information by geography has inspired a “local-local” mentality. “Empowered like never before,” says Limbach, “consumers are showing a deeper interest in where they are: from the city to a specific store.” Geography and status, he says, “can be redefined through retail.”
Ride the wave of this trend by offering location-based services, promotions and solutions. Perhaps you can highlight native plants that work well in your area. You could also cater to the growing “localvore” movement (in which people are going out of their way to buy or eat locally grown food), by promoting local produce, contributing to a school or community garden or telling customers where to find restaurants featuring local produce on their menus.
 
Tesselaar can be found on its blog at www.youreasygarden.com; Twitter @ TesselaarPlants and @CarpetRose and Facebook at Tesselaar Plants.