Store brand patio furniture takes its place in the sun - Brief Article

DSN Retailing Today, April 2, 2001 by Debbie Howell

A robust housing market and a solid economy led to steady patio furniture sales in recent years. Despite threats that an economic downturn could reverse this trend, optimism runs high that affordable sets of higher quality will keep consumers buying.

This spring's offerings continue to bring mass retailers many quality and style elements previously available only at specialty outlets. Wrought iron and rust-free aluminum sets with tempered glass tables, for example, can be purchased for as little as $100. As a result, mass has risen to become the leading channel for outdoor furniture sales.

With national brand recognition low in the category, mass merchants have succeeded at growing their own private labels. Kmart has created a strong brand through its Martha Stewart Everyday Garden line, now entering its third season, while Target has added a Michael Graves set to its own Gardenpiace patio furniture line. WalMart features two tiers of house brands in outdoor furniture, Better Homes and Gardens and Garden Basics.

Kmart spokeswoman Nicole Dowswell said four new collections were added to the MSE patio line this year--Georgetown, French Quarter, Florida Keys and Sanibel. Although the retailer doesn't divulge category sales, she said that the line has "definitely met expectations."

While private-label collections ranging in price from $99 to $500 are either the primary or sole brands offered at the Big Three, such isn't the case with opening price point resin pieces. Syroco, Keter, Grosfillex and Bemis dominate the market in this lower-cost arena.

A survey of 3,000 consumers last spring by The Coleman Company showed resin taking up the majority of unit sales at 37%. Second in sales is wrought iron at 20%, followed by aluminum and steel at 19%, wood at 17%, and wicker at 3%. Other results showed the average price paid for a set at mass, including resin, was $162 vs. $694 for non-resin sets at specialty stores.

Even in resin, improvements in technology have enabled vendors to offer more stylish pieces at low price points. Textured looks and imitation of natural finishes have become popular. "Over the last few years, consumers have moved toward more natural materials," said Karen Klein, director of communications for Grosfillex. "What we're trying to do is work with natural materials and introduce metal- and wood-lookalike materials."

Resin with special additives has enabled companies to create looks that mimic metal, rattan and wood without the disadvantages of weather damage to sets made of authentic materials. Patterned and mosaic tabletops are now typical in resin.

For Syroco, a division of Fiskars, a folding chaise lounge in resin has been one of its most popular items in the south. Jeannine Boell, product manager for Syroco, agreed that consumers are looking for more natural finishes, detailed texture and softer earth tones in resin. "You'll see more matte finishes coming out this year, along with textures. One thing we have tested this year is an Adirondack vintage, with a whitewash process over an Adirondack chair," Boell said.

Antique finishes are impacting the non-resin market as well. Speckled antique looks, retro granite colors and mixed materials are expected to be top sellers this season, according to Debra Cole, a marketing associate for Meadowcraft, which makes outdoor furniture under the Meadowcraft name for specialty retailers and under Plantation Patterns for the mass market.

"There is a big trend in mixed materials right now, such as wood with wrought iron or cast iron mixed with wrought iron," Cole said.

Sling chairs have become quite popular, with at least one set offered by each of the Big Three in this style. The chairs feature weatherproof fabric such as nylon mesh attached to wrought iron, aluminum or steel frames. With these chairs, consumers don't have to bother with washing or protecting cushions.

Overall, sets with finishes resistant to rust and sun damage have become the norm in patio furniture. Meadowcraft treats its wrought iron and steel sets with rust protection, while sets with powder coatings over steel or aluminum are commonly found in mass-market lines.

As Asian imports now control the outdoor furniture market at mass, the number of national brand players has dwindled. But Sunbeam, which sold its Sunlite Casual Furniture subsidiary in 1997, is trying to break into the market again through its Coleman division.

At last year's National Hardware Show, Coleman unveiled a new program called BackHome, featuring coordinated sets of patio furniture, lighting, sun shelters, heaters, fireplaces and personal accessories. One set that sells for about $330 is a rollaway unit in which all pieces fold up for easy storage, while another is a classic style in rust-free aluminum, featuring striped white and beige cushioned chairs. Coleman spokeswoman Ann Walden said the company went with a basic look to stay true to the Coleman camping brand.

"We chose not to go with high-fashion looks but instead with a clean, nature-based look. The thing people are most looking for is a great value," Walden said.