| In our opinion, the quality and range of Potting Mixes available in 2009 compared with thirty years ago is like chalk and cheese. Consumers seem to be aware that you cannot stint on quality when growing plants in pots. We asked suppliers if they agreed with us and queried what the current trends were.
We asked if the GFC was affecting business and it was obvious that it was not a major factor at this time; unsurprisingly weather (water – too little or too much) was still the major talking point.
The Manufacturers
Richgro Garden Products – Peter Morrison
“As with the rest of the Industry we have experienced strong growth over the last year in most segments of our business including potting media with particularly good results in April and May. Weather has been kind to us in Victoria and WA particularly with low rainfall and fair weather extending the Autumn season, whilst this is heartening it is also of concern that the Winter rains needed, particularly in Victoria, may not come which could impact negatively on the coming Spring.”
Are your sales of bagged mixes growing for 2008/2009? - “As a category, yes sales are up.”
I presume you have a ‘cheaper mix’ and dearer mix or mixes. Is the growth in the dearer product or cheaper one? – “Premium mixes are showing stronger unit sales than lesser quality mixes.”
Are you seeing a clear move towards better quality or is price still a big factor? - “There will always be a market for ‘budget’ mixes but the trend seems to be more to the upper end products.”
Does the GFC seem to be influencing buying decisions based on price? - “The trend does seem to be toward ‘quality and value’ products; this is a normal reaction during poor economic conditions. In other words, if the consumer only has a certain amount of money to spend, they will do the research to ensure what they buy will do the job well and guarantee good results.”
Are you seeing any clear trends with Potting Mixes? – “Consumers are certainly looking for organic products and also product related to grow it yourself, vegetable mixes etc.”
Are you seeing growth in sales to garden centres or are the majors still dominating? - “Garden centres continue to struggle; majors are certainly holding their own.”
Grow Better Garden Products – Mike Donsen
“Our bagged potting mix sales are up for 2008/09 thus far.
Our cheaper mix (branded differently) has had a lot of growth this year however it does not represent the high level of a sales that our Grow Better quality brand does. The cheaper brand is strategically placed in the market.
We sell our product into independents who in most cases recommend higher-priced mixes to get results for their customers. If the mix is not effective it is the retailer’s credibility that is on the line. Therefore, to some extent, I believe price is not a factor.
Our most expensive mix (Terracotta & Tub) generally retails under $14. As raw materials rise and price points blow out, our concern relative to rate of sale grows; however our sales are still growing with this product by the order of 10%.
Our Organic Potting Mix sales are growing strongly
The growth for our business has come from independents which shows us that this sector is alive and well.”
JC & AT Searle Pty Ltd – Jason Searle
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Jason runs a large garden centre in Queensland (Gardenway) so can comment as a major supplier and as a retailer.
“We have had our biggest year ever and the biggest percentage growth in mixes since business started in 1977. Searle’s have experienced consistent growth in the mixes for a long time but growth has accelerated over the last couple of years.
Searle’s do not do many ‘cheaper’ mixes – only one regular grade mix. Searle’s has positioned itself in the high-quality end of the mixes category. Having said that, sales of quality mixes continues to outperform ‘cheaper’ mixes. This trend is well recognized in both garden centres and majors. In reality our dearest mix is having the greatest percentage increase in 08/09.
Quality comes first; price generally is not the major factor. Price barriers tend to be the only price factor i.e. $10 or $15 barriers etc
There is no evidence yet of affect from GFC – only to price barriers. If people are looking to take up gardening or continue with their gardening lifestyle, they generally understand that they need to do it properly; potting mixes and garden soils are not just ‘bags of dirt’. Consumers are grasping the reality that growing plants is highly dependant on using good mixes whereas for a long time they did not understand their importance. This has been the main variable in consumers moving from ‘cheap, inferior’ mixes to high quality mixes.
I think a more crucial factor to any retailer is not ‘cheap’ lines but the pressure on the average sale value. Consumers are showing signs of limiting what they spend e.g. in the past consumers may think nothing of buying multiple trolley loads of plants and mixes where now they are tending to buy less plants and mixes, but maintain quality and impact. This reinforces the lack of request for ‘cheap’ mixes and a desire by consumers to purchase high quality mixes which work well over a long period of time. I am seeing evidence of offering multi buys and bonus deals in helping keep up average sale values which helps offset a natural decrease in consumer numbers in a GFC.
There has been a tendency for consumers to look for specific mixes i.e. azalea, herbs, organic, and other specialty lines. I think that consumers want to ensure they get their purchase decision right the first time and not waste money, so many are choosing specialized lines to minimize purchase mistakes. Also, as many businesses monitor staff levels, there is less staff to advise consumers on the floor in both garden centres and majors so consumers are making ‘from-the-bag’ decisions. Naturally, if consumers are looking to grow specific plants they will select specific potting mixes.
Growth in multi- faceted garden centres is still strong but garden centres which just rely on plants and some mixes will increasingly find it difficult to compete in the market, particularly in metro areas where consumers need variety and excitement. On face value, majors still dominate but there is evidence that in these times consumers are returning to reputable garden centres seeking the right advice and variety of range in plants, mixes and garden accessories. Garden centres tend to be more adaptable over majors thus it can have a competitive advantage in a tough market.”
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