As the UK’s leading manufacturer of garden products, with 55% of market share and an annual turnover of around £70m, Forest Garden plc has its finger firmly on the pulse of the sector. And the diagnosis is that the garden products market is in positively rude health.
With temperatures soaring throughout the glorious summer of 2003 and more and more people spending time – and money – in their gardens, business was buoyant. It was not, however, without its challenges, as group marketing manager Vicky Barker explained. “We had a good year with lots of increasing interest in our decorative timber garden products, but it was also quite a difficult year because of the increase in demand.
“We have such a broad range of products, it’s a case of getting the mix right,” she added. “We, and a number of other suppliers in the industry, found it tricky to keep up, but we learned a lot of lessons in terms of what we needed to do to improve and move forwards.”
As a result, Forest Garden has invested heavily in its planning and forecasting systems and in its supply chain. “We now have a much more sophisticated back-up to our business which will allow us to get the right mix of products and respond to changes in the weather more rapidly and switch production accordingly,” said Ms Barker.
Demand for edging products continued to increase through 2003, while decorative products such as pergolas have generated huge interest – so much so that Forest Garden has doubled its range and now includes pergola kits. Consumers, ever on the lookout for the quick fix, have really taken to the idea that a garden structure can be purchased and assembled on the same day. The kit concept has also extended to decking.
Fashion statements
Decks are certainly still the latest fashion accessories and the garden products sector is keeping a watchful eye on the fashion industry in general in order to identify new trends that will filter through to the garden. “The fashion industry is dictating what’s happening inside the house and now that is actually being transferred into the garden,” said Vicky Barker. “People have talked for a long time about the garden being another room outside the house, but I think it’s really starting to bear fruit and filter down into the mass market. Consumers are seeing that they can have an instant makeover.”
Taking inspiration from the fashion and interior design industries is particularly important in view of the UK’s changing demographics. “Historically it’s been a very traditional market dominated by the ‘grey’ population,” said Ms Barker. “But the market for garden products is extending to younger age groups and filtering all down the line. We have to make sure our products tie in with all the different market types and we’re striving towards a broader range with new and exciting products that will meet this emerging market.
“We’re always looking two or three years ahead at least,” said Ms Barker, “but what we’re keen to identify are the 10-year retail patterns for specific product related issues.” This, she said, is particularly key to business with its multiple customers, where the emphasis of its Larchlap business is more in the nature of “value for money”. Here, product development and forecasting is more collaborative, whereas the premium Forest business, directed at the independent merchant, involves more anticipation of market trends by Forest Garden itself.
Tips for the immediate future include the continuing preference for smooth planed product. Arbours are the latest ‘must-have’, but decorative products in general are in increasing demand as consumers continue to trade up. This even extends to the humble fence panel, once seen as a functional boundary marker and now a sophisticated method of “framing” the garden.
Another prediction, perhaps for 2005, is the increasing use of timber with complementary materials. “Timber is still the preferred material to use in the garden but I think we’ll see it being used with other materials – plastic, zinc, copper and so on,” said Ms Barker.
Natural product
“I think timber will always be very popular in the garden because it’s a natural product in a very natural environment. And its longevity and environmental credentials are such a strong pull, too,” she added. “We are always going to see alternative materials coming through and it’s a case of keeping an eye on them and identifying where we can use them with wood, rather than trying to work against them.”
There may still be a commodity element to some basic components, but the way to escape this, said Ms Barker, is to keep refreshing the range. “People are looking to have an element of individuality in the garden and if you are able to offer some differentiation you can revitalise [a product] and flatten out the price sensitivity of the market.
“In general, the consumer is now prepared to pay more for value-added product,” she continued. “Not so much the grey population, but we find the markets coming through are cash rich, time starved and are willing to pay for instant gratification. If they see a deck or an arbour one minute and can have it assembled in their garden the next, then they are willing to pay for it.”
Forest Garden, for one, is working very hard on new product development and, along with its more traditional lines, is promising some rather more avant-garde items. “People have a perception of what the garden should look like and the products that are available for it,” said Ms Barker. “But people’s expectations are going to change and they are going to want a different look and feel to their garden. It’s the way interior design has gone and it [garden design] will become much more sophisticated and contemporary.
“It’s all getting very concept based and sounds a bit airy fairy, but we’re trying to challenge the traditional way in which we use our external spaces.”
