A Return to Double-Digit Growth

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Presentation transcript:

A Return to Double-Digit Growth After double-digit increases in shipments for 2012, 2013 and 2014, total RV shipments increased “only” 4.9% for 2015, but the industry found another gear for 2016, as shipments increased a spectacular 15.1%, or 430,691 units. The month of December 2016 alone accounted for 32,970 of those shipments, which was an increase of 17%, compared to December 2015. A record number (375,950) of towable units were shipped during 2016, a 15% increase from 2015, and accounted for 87.3% of all 2016 RVs/campers shipments. Motorhome shipments increased even more, or 15.7%, a total of 54,741 units.

Charging into 2017 The RV/camper industry didn’t hesitate for a moment with the advent of the New Year, as January’s total shipments were 31,526, a 7.4% increase over January 2016 and 2.7% more than December’s excellent shipment numbers.   February 2017 brought more of the same, with a 9.7% increase in shipments (39,428), compared to February 2016. Towables, +16.9% over January, and motorhomes, +17.1% over February 2016, were the prime movers. Motorhomes continued their gains into March, with sales registrations for class B vehicles increasing 21.2%, and 34.1% for Q1 2017. Class C contributed to the motorhome success during March, with a 9.4% increase in sales, and 10% YTD.

Identifying the RV/Camper Consumer According to a 2016 consumer survey conducted by Nielsen for the Recreation Vehicle Industry Association, RV owner averaged 5 trips per year, which averages to 14 days and 3,000 miles. Conventional travel trailers, at 22%, account for the largest share of RVs owned, with type A motorhomes and fifth-wheel travel trailers second, at 14% each. Two-thirds of people who currently own an RV have owned one previously. The report divides RV purchase prospects into three categories: Active Family Adventurers, Nature Lovers and Kid-Free Adult Adventurers. Find more information about these categories on page 4 of the Profiler.

RV Dealers Expecting Another Fabulous Year According to Baird’s RV Dealer Sentiment Index, the current condition index increased to 79 for January 2017, the highest index ever. The three-to-five-year outlook index also increased for January, to 70, compared to 62 during early November 2016. A late-2016 Wells Fargo Commercial Distribution Finance survey found that 42% of RV manufacturers and dealers are expecting sales to increase more than 10% during 2017. Of those surveyed, 56% said consumer demand was fueling their optimism. A possible downside to all this optimism and bullishness is dealers’ inventory concerns, as towable inventory was just 99 days during early February, compared to 106 days during February 2016.

Celebrating the Rainbow Campgrounds According to The 2017 North American Camping Report, one million new households started camping during 2014, 2015 and 2016. Of all surveyed campers, 48% expect to camp more during 2017, especially those that had only camped once a year. Although the RV and camping audience is often considered older adults, Millennials are primarily responsible for recent growth, as 38% say they are campers, but they represent 31% of the total population. The report also revealed a significant increase among Asian Americans who are camping. Of all new campers during 2016, 14% were Asian Americans and 43% of them who are Millennials said they were recent first-time campers.

Advertising Strategies Show dealers that you represent the two media, TV and digital (your station’s Website), critical to reaching the prime RV-buying prospects categories. TV can target Kid-Free Adult Adventurers while Website ads can target Active Family Adventures and Nature Lovers. RV dealers in markets with an above-average Asian American population should consider marketing messages in any medium that focuses on the reasons why an RV or camper will make the camping experience more enjoyable. Marketing messages targeting Millennials can certainly emphasize the fun of RVing and camping, but dealers should feature new RVs, such as Winnebago’s Winnie Drop and the Micro Minnie, to take advantage of the tiny-house trend among Millennials.

New Media Strategies Dealers can use social media to engage with RV-buying prospects in any of the three categories. Nature Lovers, for example, over-index for visiting national parks, so dealers could provide links to national park Websites and ask people to submit videos of their visits. With so many Millennials and Generation Zers (the oldest are graduating from college) enthusiastic about camping, dealers should consider appointing a “brand ambassador” of the same age to encourage the sharing of photos and videos of their camping adventures. Ask people to share the title of their favorite “truckin’” song, and then invite everyone to vote for the best. The person who suggested the #1 truckin’ song receives a streaming music service gift card to download all the truckin’ song submitted.