Turning Water Into A Growing And Profitable Business
Since the dawn of time, water has been an intricate part of human life and existence. Our bodies are mainly water, we bathe in water, we drink water, we travel on water, it surrounds our planet, it sparkles, it cleans, it refreshes - every element of our lives has a close affinity with water. 
But while all this is true, as Australians we have not yet embraced the use of water as a decorative feature within our home, garden or office environments. I can still remember the plastic battery-operated table fountain on the family table some thirty or so years ago, and helping my father mix cement to make the odd concrete pond.
However, water features as a serious lifestyle segment are only just beginning to catch on as part of mainstream home and garden design culture in Australia.
Indoor water features market
This year we have seen dramatic growth in the popularity of indoor water fountains and sculptures. Manufactured from plastic, resin, ceramic or metal, these fountains artistically bring the relaxing sight and sound of nature into the home environment.
Until 1998, indoor water fountains were primarily marketed through lifestyle health and specialty gift stores for their sensory and therapeutic value in promoting a calm and relaxing environment. The Chinese philosopher Feng Shui promoted the benefits of natural flowing water in maintaining a balanced and serene environment.
While early products were ceramic or stone-based designs, the category has experienced dynamic growth as manufacturers have developed more upscale lifestyle designs in a wide range of themed products, being suitable for multiple room applications in the home and office environment. These include designs for children’s bedrooms, bathrooms, kitchens, living areas, study and office, and other commercial working environments. 
Working displays are essential
For nurseries and garden centres to succeed in this category, it is important to build working displays in high traffic locations where consumers can interact with the product. This is an emotional product, and working displays will dramatically boost sales by stimulating unplanned purchases. Grouping products will create a power presentation that consumers will find irresistible, so select at least ten to twelve designs which collectively offer broadscale cultural, age and decorative lifestyle appeal to stimulate multiple purchases. 
The current trend for indoor water features has primarily grown from its therapeutic benefits. In the mid-1990’s, North American psychological studies discovered that water was an ideal sound therapy product for use in both the home and office. The sound of trickling water is often a sleeping aid for children and insomniacs, (according to the US Sleep Foundation, more than half of all Americans have trouble sleeping) promoting calmness and relaxing the mind. Indoor fountains are known to be beneficial in masking external traffic or industrial noise, or alternatively creating a soothing and gentle sound in an otherwise silent environment.
With over five million home dwellings in Australia, the indoor fountain category is expected to grow significantly over the next few years, and with multiple use applications as a decorative and relaxation product, the indoor fountain category has the capacity to sell all year round.
Outdoor garden decoration
Gardening is the largest single outdoor consumer activity in Australia. Nationally, more people will engage in garden maintenance, decoration or recreation each week, than attend any sporting event, drink cola or eat meat pies. With ownership of private home dwellings in Australia being second highest in the developed world, our interest and involvement in home and garden decoration activities provides a unique marketing opportunity for retailers and suppliers in all sales channels.
A survey of Australian household activities in 1996 indicated that 76% of homeowners were actively involved in lawn and garden activity, garden maintenance, landscaping and general beautification. Interest in garden related activities clearly remains high, given that the top five TV programs watched nationally last year were all home and garden lifestyle programs.
Outdoor water features
By general definition, the outdoor water features segment forms part of the rapidly expanding ‘garden decorations’ category, which has doubled during the past three years. This growth level seems set to continue as homeowners allocate their disposable income to upgrade and individualise their gardens as places of retreat and personal relaxation. 
In Australia, the outdoor water features segment broadly comprises outdoor fountains and water gardening or garden ponds, both of which are relatively immature segments with less than 5% of Australian homes having invested in an outdoor water feature. This compares to 24% of homes in Germany, 20% in the United Kingdom and 12% in the USA.
Some retail marketers may feel the Australian market is small and therefore unimportant, however with more than 90% of households not actively participating in the category, this represents a phenomenal marketing opportunity!
Outdoor fountains
Traditionally, products manufactured from concrete and stone have dominated the outdoor fountain segment. However, while these materials are the ‘real thing’, there are often difficulties with shipping and handling. The product can be difficult to merchandise, and weight becomes an issue for customers wanting to take the product home in the family car.
While products made from natural materials will continue to enjoy wide market appeal, there are limitations for their ability to break open the mainstream DIY market for outdoor fountains, such as is occurring throughout North America and Europe.
In Australia, the past two years have seen the arrival of outdoor fountain products manufactured from fibre resin, which constitutes less than half the weight of concrete and stone. The benefit of these products is that while the material can be sculptured to reflect real stone, timber or metal, all components pack comfortably into a carton that can be merchandised in-store, easily transported home and installed in minutes by the consumer.
Throughout many international markets these lighter and more durable materials are redefining the outdoor fountain category. Outdoor fountains can now be merchandised in stores on shelves or freestanding power displays, they are easily transportable, and being complete with pump, they are easy to install for immediate consumer gratification.
There are also several fountain segments being established, which include patio and deck fountains, courtyard fountains, garden and contemporary accent fountains, wall fountains, flowerbed fountains, and later this year, water island fountains.
Consumers are visiting stores looking for landscaping ideas, so present them with small displays using paving blocks, timber decking, synthetic grass or pine-bark to create a ‘virtual reality’ home idea centre. These displays should be grouped together rather than sporadically located around nurseries and garden centres where they are frequently viewed as a feature of the centres themselves, rather than identifying the store as a destination centre. Be sure to locate the display where the line of sight, together with the sound of falling water will provide optimum impact and ambience for your store environment. 
Water gardening
Water garden ponds are a wonderful way to replicate nature in the home garden environment. Water is a living and dynamic element in any garden beautification project, particularly when the project involves living creatures such as plants and fish.
C | onsumers are often confused by the apparent technical nature of pond components. A visit to many garden centres and stores will confirm that the category is often disorganised with basins, liners, pumps, fountain sprays, filtration, pond pharmacy, pond lighting, and spitters all located in different sections. Consumers get the impression that they need a rocket science degree to purchase, install and maintain a healthy garden pond.
The pond category should be both organised and simplified with product selection and installation information available for the consumer to purchase products that meet their specific requirements. This can be achieved by grouping products in a single location to create a power wall, which dialogues with the consumer.
To become a serious destination store for water garden products, it is imperative to install operative ponds adjacent to the displays. I suggest that a minimum three or four ponds be installed representing a variety of sizes in basin and liner type formats wherever possible.
For ponds fewer than three square metres in size, use only a pre-formed pond basin, however if space permits, build a larger pond using a liner and landscape the surrounds to replicate a natural garden pond.
Water gardening is one of the best opportunities for garden centre retailers to generate a value-added sale. Too often the consumer is simply sold a pump and pond basin without a filter, lighting, or pharmacy requirements. When the water turns green, you have a grumpy customer, and the garden beautification project suddenly becomes a major catastrophe. So train your staff to sell a complete pond system (as distinct from individual products) to ensure that your customer achieves the beautiful garden pond pictured in the product literature - after all, that’s what they really want!
And remember too, water garden ponds are a consumable. Like the home swimming pool, your customer should return frequently to purchase pond pharmacy needs, and upgrade their ponds with accessories such as waterfalls, streams, additional pond fountains, pond lighting and plants.
A beautifully landscaped water feature can add four times its cost value to the overall value of the garden, and remember that today most features are environment-friendly, water is continuously recycled within the pond or fountain. 
Current trends in water gardening
Throughout Australia, stores are assigning more space to the category and installing more ponds, fountains and waterfalls. However, it is not acceptable to simply fill a basin with water and believe you are in the pond business. Again, you are selling emotion, and customers are turned off by sloppy presentation of pond basins sitting on concrete, with dirty water, dead plants, sick fish and half-submerged signage. You are presenting a lifestyle concept which may have a purchase value ranging from $600 to $1000, so it is essential to present a first class appearance.
The category is transitioning from contractor-installed ponds (DIFM) to self-installed ponds (DIY), as product distribution and consumer knowledge becomes more accessible. Having product information available is critically important, so ensure you are well stocked with supplier ‘how to’ literature which provides basic selection, installation and maintenance information. Ensure you have several members of staff who are trained by suppliers; buy some good books and keep these as a training resource. We are living in the consumer information age, so make best use of the Internet, supplier brochures, interactive compact disk guides, ‘how to’ installation videos, lifestyle landscaping magazines and even books from the local library.
Knowledgeable staff should also be trained in how to present a complete pond system, and should understand how to sell up the range from basic to upgrade performance or decorative products.
For example, pumps are the heartbeat of the pond providing movement of water through fountains, waterfalls and decorative features. A filtration system is essential to maintain a balanced and healthy chemistry in the pond. Fountain sprays are necessary to aerate the pond, especially during summer when water temperatures are higher, and oxygen levels become depleted. Furthermore, underwater and above ground pond lighting is important because lighting the water feature brings life to the garden after dark. This is ‘total solution’ selling.
In Australia we are witnessing the arrival of several key international players in the water garden segment, and more will arrive prior to the 2001 spring season. These more organised programs will help grow the market and their investment in advertising will help grow the category. Being a company director of the largest fountain and water garden group in the world provides some insight into the direction of the water features category. This year we will produce in excess of 15 million pond and fountain pumps, and this capacity is being increased for 2002 when 20 million units are forecast.
The water garden category will change significantly during the next two years, and will see new product developments which will include remote controls to turn the pond on or off, raise or lower the fountain height (great for windy days) and also turn pond lighting on and off from the living room. Several companies are working on new concepts in garden pond systems utilising new materials and design technology to create and update the traditional water garden pond. 
Get set for more growth
The outdoor water features category is set for significant growth as consumers continue to invest in garden decoration products, and invest in higher value landscaping products that enhance their enjoyment of outdoor garden lifestyle. While accurate quantitative figures are not currently available in Australia, the National Gardening Survey of North America 1999 – 2000 reports that spending on outdoor living products grew by 11 percent to USD $33 billion (AUD $57 billion). The garden decoration segment has grown by an average 19 percent over the past three years and this level is expected to continue for the next two years.
My view is that the water features category in Australia will double in sales turnover during the next three years, driven by rising interest in garden beautification and the enormous popularity of home improvement and garden lifestyle programs shown on live-to-air and cable television. These shows are extending the financial budgets and interest of consumers to upgrade and beautify their garden environment.
In addition, the baby boomer generation is passing through middle age, and is a prolific spender on garden landscaping, lighting and decoration products, having the financial capacity to do so now that the family is educated, and leaving home to pursue their own careers and home lifestyles.
The new consumer is not cramming the garden with ‘stuff’ anymore, but instead is investing in value-added projects that provide a more upscale garden lifestyle environment. In Europe and North America the dollar spend per (landscape) project has increased significantly, and this trend is expected to occur in Australia.
As life becomes more pressured and stressful, consumers will turn to their garden as a place of relief and relaxation, and that’s where water features will play an integral role. So prepare now and make sure you get your share of this growing and profitable segment! 
Written by Graeme Pope
Managing director - Waterwerks Pty Ltd
Waterwerks is a subsidiary company of the Peaktop International Group
Graeme is also an executive director of the Peaktop International Holding Board
Thankyou to Waterwerks for assistance with photography |
