Evolving Trends in theCamping & RV Industry and Paddlesports & Boating Industry

P+P+P =EPeople + Place+Product&promotion = Experience

Camping: A Gateway to the Outdoors

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Rundown

Physical Activity Council 2014 Participation Report

Largest yearly participation study, (42,000 participants)

117 sports and activities

Demographics

2014 Special Report on Camping from the OF & Coleman

OIA-Vantage Point POS Data Reporting

SOS Research, 2014 Outdoor Brand Strength Report

Data Used In the Presentation

Why Camping?

The simple act of camping is the biggest motivation for taking a camping trip. 87% of participants camp just because they enjoy it, which indicates that camping is here to stay.

Source: 2014 American Camper Report

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Camping: A Gateway to the Outdoors

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Favorite activities while Camping

Hiking is, by far, the most popular activity to participate in while camping.

Source: 2014 American Camper Report

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Decision Making

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Participation in Camping by Age

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Camping Shelter by Age

Camping is a Family-Oriented Activity

Source: 2014 American Camper Report9

Young People Not Getting the Message

Camping --- 18-34 Camping --- 35-54

Camping ---55+

Median 29.00 44.00 60.00

Source: SOS Research, Brand Strength Report

Median or average age of campers broken by Generation

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Words Associated with Camping

Camping is a Social Event

Friends are the most popular camping companions. 70% of campers ages 18 and older say friends accompany them on trips, and among young adult participants, 75% camp with friends.

Source: 2014 American Camper Report12

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Motivation for Camping

Camping Participation

Source: 2014 American Camper Report14

Camper Demographics

• Myth: Camping is a completely male-dominated activity

• The median age for campers is 32, down from 33 years of age

Source: 2014 American Camper Report15

Geography of Camping Participants

Source: 2014 American Camper Report16

While camping attracted 10.5 million new or returning participants, it lost 11 million participants at the same time. This is a churn rate of 27%.

The Leaky Bucket

Source: 2014 American Camper Report17

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Reasons for Taking Fewer Trips

Youth Participation in Sports and Recreation

• Early exposure to outdoor activities and other recreation has a lasting impact on future choices

• Among adult campers, 57% participated in regular outdoor activities between the ages of 6 and 12, versus only 25% of non-campers

• Outdoor recreation during adolescence had a similar impact on future lifestyle choices –inspiring adults to get outdoors and active

Source: 2014 American Camper Report19

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Motivation for Camping in the Future

Declining Gas Prices Could Make a Huge Difference in 2015

• In 2012, the average family spent about $2,912 on gasoline, a 3.3 percent increase from the year before.

• High gas prices force consumers to delay large purchases like upgrading household appliances and maybe even buying a new car.

• Gasoline price-spikes also drive up the cost of other goods as well — food, clothing, electronics, anything that’s transported by vehicles that run on gas or diesel.

Gasoline typically accounts for just over 6% of the typical American Household Budgets

Source: U.S. Dept of Energy and the Fuel Freedom Found

Key Takeaways

• Reaching Americans at an early age is one of the best ways to instill a lifelong love of camping and the outdoors – 85% took their first trip between the ages of birth and 15.

• The camping industry must continue to re-engage and re-inspire current camping participants

• The future of camping looks bright among those predisposed. 99% are likely or very likely to camp next year, and are planning an average of 4.9 trips. The challenge remains engaging younger consumers.

Today’s Presenters

Ivan LevinThe Outdoor FoundationSenior Director of Programs and The Outdoor Nation Program.ilevin@outdoorfoundation.org

Research Links: http://www.outdoorfoundation.org/research.participation.html

http://outdoorindustry.org/research/participation.php

• Grow and Expand the RV Market

• Increase Traffic to GoRVing.com

• Increase Consumer Engagement

• Generate Leads

What is our Goal?

• People & Families Age 30-49• Baby Boomers• Outdoor/Sports Enthusiasts• Emerging Hispanic Market

Our Target

The Marketplace

The Consumer – Population by Generation in 2014

Source: Mintel/US Census Bureau, interim population projections released 2012 and annual population estimates

• Millennials Have anIncreasingly SignificantCultural and EconomicImpact

• Adults Age 50+ WillControl 70% of America’sDisposable Income by2017

• For boomers, travel = quality timeValue escapism, service, high-quality experiences

• For millennials, travel = personal fulfillmentPrize unconventional value, efficiency, and true authenticity

* Over the past three years, travel references to “authenticity” and “localexperiences” have increased 344% according to

Source: iconoculture.com

VS.

Why They Travel & What they Want

$$$

The Discretionary Dollar

US Vacation & Tourism Outlook

Source: Mintel: “American Lifestyles – Looking Forward, U.S. April 2014

Vacations and Tourism Saw 4.6% Growth from 2012 to 2013

So, How Are We Doing???

A

Source: RVIA Recreation Vehicle Market Reports: February 2015

US RV Shipments

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2010 2011 2012 2013 2014 *2015

RV Shipments

RV Shipments

*2015Projected

KLAJFJAL US RV Shipment -- Trends

• In 2009, 67% of ConventionalTravel Trailers Were 27.5 Feetor Longer; in 2014 ThatNumber was 50%

• In 2009 Class C Motorhomeswere 50/50 Over/Under 30Feet; In 2014 58% were Under30 Feet

• In 2009, Type A MotorhomesWere 50/50 Over/Under 36.5Feet; In 2014 67% were Under36.5 Feet

KLAJFJAL US RV Shipment -- Trends

• In 2009, Type A MotorhomesOver 43 Feet Were 6.4%; In2014 it was 9.7%

• In 2009, 33% of Fifth WheelsWere Over 35 Feet; In 2014 itwas 50.7%

However – American RVers Still Love Luxury

Marketing the Industry

Advertising Highlights

$0$2$4$6$8

$10$12$14$16

2010 Total AdSpend $8.25

Million

2014 TotalSpend $13.2

Million

2015 ProjectedSpend $15

Million

Dollars in Millions

Dollars in Millions

Events & Onsite Activations

Our Garden & Gun and Country Living Exhibits Attracted Over 10,000

Visitors in 2014

Events & Onsite Activations

GoPro Mountain Games

Over 5,000 Consumers Visited our Lightweight Travel Trailer Display

Partnered with Yeti Coolers for Prize Giveaways

Expanding Partnership in 2015

Website & Mobile Functionality

• User Sessions Up 18%

• Page Views Up 20%

• Average Time on Site Up 13%

• In 2013, 76% of Traffic toGoRVing.com Came ViaTraditional Computer or Laptop

• In 2014, it was 56%

• Nearly 50% of Traffic toGoRVing.com Now Arrives ViaMobile Devices

Website & Mobile Functionality

USIFacebook & Social Media

• 610K Facebook Fans

• The Most Active OnlineCommunity in the RVIndustry 20

USIFacebook & Social Media

Go RVing’s Facebook Page Saw 147% Increase in Community Size in 2014

56% Increase in User Engagement

Go RVing’s You Tube Channel Experience a 118% Increase in Views in 2014

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What’s New?

• Testimonial Marketing• Video & Pictures• http://away.gorving.com

Launch of New Microsite

Emerging Hispanic Market

• U.S. Hispanic PopulationProjected to Increase 167%Between 2010 and 2050

• In 2050, Hispanics WillRepresent 30% of the U.S.Population

Source: Mintel Hispanics & American Culture and Identity 2014

• 78.5% of allHispanic BuyingPower isConcentrated in 10States

• By 2018, Hispanicswill Comprise10.6% of Total U.S.Buying Power =$1.6 Trillion

Hispanic Buying Power

For More Information Visit:

www.gorving.com

www.rvia.orgMarket Trend Data: http://www.rvia.org/?ESID=mdandt

James Ashurst : jashurst@rvia.org

Rundown

Physical Activity Council 2014 Participation Report

Largest yearly participation study, (42,000 participants)

117 sports and activities

Demographics

2014 Special Report on Paddlesports from the OF & Coleman

OIA-Vantage Point POS Data Reporting

Data Used In the Presentation

Introduction to Paddling

Participation in PaddlesportsAll Participants – At least 1x in the previous 12 months

Core Participation in Paddlesports

Paddle Participants by Gender

Core Participation by Gender

Paddle Participants by Region

Positive Words Associated with Paddlesports

There are a Bunch Negative Word Associations

Core Level Paddle Participants by AgeCore Defined as participating 5 or more times per year

Average Annual Outings

Plan to Participate More or Less

Have you participated more frequently, less frequently or about the same in paddlesports in the past year?

Data from 2014 SOS Survey of Paddlesports Consumers

• 70.4% willparticipate moreor the same as lastyear

• 75.5% willparticipate thesame or less

What Sorts of Other Activities are Paddle Participants Taking Part

What Gets Paddlers Outdoors?

Challenges to Participate More

Data from 2014 SOS Survey of Paddlesports Consumers

The Leaky Bucket - Kayaking

Is the activity gaining participants faster than it is loosing them, (Y/Y)

43%

30%

Paddle sports continue to show strength in terms ofparticipation.

Demographics show a favorable situation withrespect to demographic targeting.

Paddlesports does a good job of appealing towomen in terms of getting them to try, it has a hardtime getting them to stay with it.

Bring the fun and bring the people

Conclusions

Today’s Presenters

Ivan LevinThe Outdoor FoundationSenior Director of Programs and The Outdoor Nation Program.ilevin@outdoorfoundation.org

Research http://www.outdoorfoundation.org/research.participation.html

TRENDS IN RECREATIONAL BOATINGRobert Newsome, NMMA

CONSUMER TRENDS

3Source: OIA

Almost one out of five dollars consumers spent on outdoor recreation went to boating and fishing

BOATING GETS ITS SHARE OF OUTDOOR RECREATION

4

$27.0 $29.7

$31.7 $30.3

$33.0

$37.3 $39.5

$37.5

$33.8 $30.8 $30.4

$32.3 $35.6

$36.8

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Bill

ions

$37B

TOTAL RETAIL SPENDING

Source: NMMA

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2013 BOATING EXPENDITURESIN BILLIONS OF DOLLARS

New Boat Sales, $7.52

Pre-owned Boat Sales, $10.10

New Outboard Engine Sales,

$2.33

Pre-owned Outboard Engine

Sales, $2.02

New Boat Trailer Sales, $0.15

Aftermarket Accessory Sales,

$4.92

Other, $9.79

Source: NMMA

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BOATING PARTICIPATION36.5% 35.8%

26.0%

35.7%

0

10

20

30

40

50

60

70

80

90

100

0%

5%

10%

15%

20%

25%

30%

35%

40%

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Mill

ions

of B

oate

rs*

Part

icip

atio

n R

ate*

Millions of Boaters Participation Rate

Source: Foresight Research, U.S. Census Bureau*Adults 18 years of age and older

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• 3 billion boating exposure hours• More than 300 million boating trips

Source: USCG

BOATING IS PERVASIVE

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WHO ARE BOAT OWNERS TODAY?

• 77% are married or living with a partner

• 50% have children living at home

• 68% have household incomes under $100,000

• 63% are younger than 50

• 5% are Hispanic and 5% are African Americans

Source: Foresight Research

9

HEADWINDSWe must start to better understand how to motivate younger consumers to buy boats

0%

2%

4%

6%

8%

10%

12%

14%

16%

<25 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75+

Perc

enta

ge o

f All

Buy

ers

Age Range

Boat Owner Age Distribution - 1997 vs 2013

1997 Owners

2013 Owners

2013 Adult Pop

Source: Info-Link

PRODUCT TRENDS

11

0

3

6

9

12

15

1819

9019

9119

9219

9319

9419

9519

9619

9719

9819

9920

0020

0120

0220

0320

0420

0520

0620

0720

0820

0920

1020

1120

1220

13 e

st

Milli

ons

Source: NMMA

RECREATIONAL BOATS OWNED

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2013 REGISTRATIONS BY BOAT TYPE(MILLIONS)

Outboard Boats, 7.4

Inboard Boats, 1.0

Sterndrive Boats, 1.5

PWCs, 1.2

Sailboats, 0.2

Other, 0.8

Source: USCG

13Source: USCG

Under 26'95%

26' and larger5%

2013 POWERBOAT REGISTRATIONS BY SIZE

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POWERBOAT, PWC, AND SAILBOAT RETAIL SALES

407 393 366

280 207 188 190 202 206 227 238

$11.0 $11.2 $11.2

$8.8

$6.5 $5.6 $5.8

$6.5 $7.3

$8.2 $8.6

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015*

Dol

lars

(Bill

ions

)

Uni

ts (T

hous

ands

)

* Projected Estimates

source: NMMA, SSI, SailAmerica, MIC

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VERSATILITY

CHANGES IN PROMOTION

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• Text here

WHY DOES DISCOVER BOATING EXIST?

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3

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STORIES OF DISCOVERY ARE DRIVING PEOPLE TO DISCOVERBOATING.COM

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NATIVE ADVERTISING ALIGNS OUR MESSAGE WITH PREMIUM CONTENT

Ad experience follows the natural form and function of the editorial content

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OUR CONTENT WILL APPEAR ON A VARIETY OF PREMIUM SITES

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KEY TAKEAWAYS• Powerboat registrations are up, led by PWC, jet

drive boats and ski boats• Outboard boats (including pontoons, aluminum

fishing and small family cruisers) are the mostpopular

• Boating participation is way up• Boat owners are aging• Industry promotion is changing to gain new

entrants

QUESTIONS?

ABOUT NMMA

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OUR MISSION

NMMA works to and recreational boating.

Everything that we do supports these two objectives.

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NMMA PROGRAMS:PROTECT & PROMOTE BOATING

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NMMA

Robert E. NewsomeDirector, Engineering StandardsNational Marine Manufacturers Associationrnewsome@nmma.org

Market Researchhttp://www.nmma.org/statistics/default.aspx