THELASTMILE Logistics Outside the Box
The Great Outdoors: Peak Opportunities As more Americans venture outdoors, apparel and gear makers net more direct-to-consumer sales and embark on the path to a more sustainable supply chain.
OUTDOOR ACTIVITIES CLIMB IN POPULARITY Outdoor recreation accounted for $862 billion in gross economic output in 2021, says the U.S. Bureau of Economic Analysis. The following activities generated the most value: ● Boating/fishing ($27.3 billion in current-dollar value added) ● RVing ($25.1 billion) ● Hunting/shooting/trapping ($10.8 billion) HIKE IN DTC GAINS Outdoor participants are more likely to shop at specialty retail shops, according to the Outdoor Industry Association (OIA). Outdoor products maker YETI coupled retail store expansion with accelerated e-commerce growth to report strong direct-to-consumer (DTC) sales in 2022. In fact, the DTC channel for YETI accounted for 60% of net sales in 2022, up from 50% in 2020. The year-over-year hike in DTC net sales was a robust 21% for YETI despite supply chain disruptions. SCALING THE GREEN MOUNTAIN Outdoor apparel companies are gearing up to reach an ambitious milestone: becoming the world’s first climate-positive industry by 2030. Some steps they’ve taken: ● Burton, New Balance, Patagonia, REI, and Gore, along with the OIA, are exploring how suppliers in China, Japan, and Taiwan could shift to using industrial heat pumps to decarbonize thermal heating processes in apparel and textile factories. ● OIA members including Columbia Sportswear and The North Face are eliminating some chemicals used to waterproof fabrics. ● OIA Climate Action Corps members Klean Kanteen, MiiR, Stanley, and YETI teamed up to reduce emissions and set science-based targets across their manufacturing supply chains. WILD FOR RENTALS While the number of people enjoying the outdoors increases, the number of total outings has decreased over the past decade, thanks to fewer “core” participants (individuals who participate 51 times or more in outdoor recreation activities in the past 12 months, as defined by the OIA). Capitalizing on this growing, but less hard-core, participant base, Moosejaw, a retailer specializing in outdoor gear and apparel, introduced a gear rental program in 2022. The program gives consumers the option to rent by category such as tents, sleeping bags, and backpacks, or rent a customized package designed for a specific activity including car camping, comfort camping, standard backpacking, or ultralight backpacking. Rentals exceeding $49 are shipped directly to the customer’s home or destination at no charge; at the end of the rental, customers ship back, also at no charge.
164 million Estimated number of people in the United States who enjoyed the outdoors in 2021, according to the Outdoor Industry Association
54% Share of Americans ages
6 and older who engaged in at least one outdoor activity in 2021
Nearly 7% Increase in the outdoor participant base since the pandemic began
Sources: Outdoor Industry Association; U.S. Bureau of Economic Analysis; Sustainable Brands; RetailWire; YETI
96 Inbound Logistics • March 2023
Powered by FlippingBook