September 16, 2011
The rise of fire pit chat groups as a category. Fire pit sales are “on fire” right now, and Agio is having more success in the category than ever.
This is a category that’s here to stay. Consumers are seeing the outdoor setting as more than just dining. They are extending their evening with chat groups in general and firepits in particular. Fire elements rank as #2 on consumer’s wish list for outdoor rooms.
Porcelain is in. Agio’s move to using more porcelain top tables as opposed to natural stone top tables —the whys and wherefores.
Seven or eight years ago, it was glass. Then alternative top tables arrived. Later stone tops were trending. Today, it’s porcelain. For several reasons:
- Durability (less breakage) both during life use as well as shipping—a big concern for retailers.
- Design intricacies. The detail and variety of designs capable with porcelain adds greatly to perceived value by the customer and adds another selling feature for the retailer.
- Reduced weight. Easier to move and handle benefits both consumer and seller, but lower weight also translates to lower shipping costs for the retailer, helping margins.
- Popular surface. Porcelain goes to the top of consumer’s preferences.
- Color options. The color and design possibilities are practically endless with porcelain, whereas stone is more limited by Mother Nature.
Value Priced Products. The Specialty Retailers’ move to more value priced products that retails between $999 to $1999 leads to successful sales.
This is a big development. Driven by consumer demand, this is the sweet spot for specialty retailers today—it helps them hit their margins while moving products people
love. Agio retailers increased their sales, maintained margins and are getting new customers in the stores because of it.
Open Price Point (OPP) product groupings. Agio has had success with OPP KD product groupings sold in one box at promotional pricing.
From the logistics side of their business, retailers save from shipping cost saving and achieve ordering efficiencies when placing container orders. From the merchandising standpoint, customer assembly provides many retailers with an opening price point that’s slightly more attractive to entry level consumers. It also provides consumers the option for store delivery and set-up, which can translate into additional revenue for the retailer.
More color. While shades of brown still reign supreme when it comes to sales, there’s light at the end of the tunnel.
We’re still seeing shades of brown but for 2012 and as the economy gets better, we’re definitely seeing an injection of color.
- Look for a lot of whites and driftwood colors, generally lighter, more refreshing colors.
- Green is up-trending; but bright shades of green, happy shades of green. Fun colors: like oranges and reds. Color is really making a difference in their lives. Making them happier, making them feel good about themselves. It’s about a way to display their personal style.