Waterproof Hats, Socks and Gloves Category: Who will win?

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What is the size of the prize? The US waterproof breathable fabric category is projected to hit $2.18 Billion in the next 5 years.

-NASDAQ News

ABOUT THIS STUDY

This study is a topline review of US consumer and

category intelligence related to the waterproof hats,

gloves and socks category.

As you know, when you don’t have reliable

consumer intelligence your next business steps can

be risky, expensive or completely miss the mark.

We use this study method to help companies facing

major marketing decisions to acquire reliable

consumer intelligence quickly and act on it.

GOOGLE KEYWORD OPPORTUNITIES

FromDexShellmarketstudy

WHERE CONSUMERS ARE IN SOCIAL MEDIA

Market footprint

DexShell Sealskinz Hanz Rocky Showers Pass

Instagram Followers

862 5,386 551 113,000 8,311

Facebook Likes/Fans

253 21,000 22 148,000 12,729

SEALSKINZ IS STRONG IN ITS NICHE, BUT COULD BE THREATENED BY A LARGER BRAND.

Established brand in US Lifetime warranty Dual zone construction US market leader in category Not all product is waterproof Made in (outside US)

New launch to market Made in USA Very few SKUs Dual zone construction Simple liner yarns such as Polartec No caps Website informational only

New launch to US market New tech Four way stretch Worldwide presence Made in China

NICHE PLAYERS IN THE SPACE

THERE IS AMPLE PRODUCT COMPETITION. CRYSTAL CLEAR PRODUCT DIFFERENTIATION REMAINS OPEN TERRITORY. (THINK YETI VS. COLEMAN)

BRAND ANALYSIS

A brand is what you make it. While much of

that work comes from understanding your

customer, your brand and your category in

unison, Wingnut was able to look at our brand

in context of the competitive landscape. The

work below is a subjective viewpoint. It’s an

observation through a brand lens, based on a

snapshot in time. It shows the single ideas

associated with each brand, and how that

may map out in the consumer’s mindset.

What this means

We will have to clearly define our brand

differentiation, align it with long-term customer

needs, and constantly stake our claim in your

space.

FromDexShellmarketstudy

WHO WILL BUY? Our sweep indicates Millennials will spur growth in the US. 76 Million people between the ages of 18-35 who crave outdoor experiences, travel and new adventures. Their purchases follow the things they value. They don’t hunt or fish at the levels their parents and grandparents do. Declining hunting and fishing license data proves that. They do hike, camp, paddle, swim, bike and travel at higher rates than ever, according to countless studies, including the Sports Market Analysis study referenced below. They are already purchasing and growing the category. While many retailer doldrums continue, REI posted a record 2.56 Billion in sales in 2016, a 5% growth YOY. http://www.sportsmarketanalytics.com/Blog/July-2015/The-Millennials.aspx

UX WILL MATTER Two big revelations from an outside of the house sweep of your website. 1. Mobile matters tremendously in the

US in both information gathering and purchase. Creating customer profiles and matching your digital experience with the customer journey will shorten the path to sales and brand affiliation.

2.  US category competitors are

working hard on improving UX (ShowersPass, NRS, etc…) Great UX, though hard to do, has become table stakes for the category, with zero margin for error.

SEALSKINZ CONSIDERATIONS

You’ll have to find out if your brand resonates here. Outside of the US you are positioned as a highly technical product that can help users defy mother nature. That idea may or may not resonate in the US and must be tested before leaning on it. Our millennial market embraces the outdoors, seeking less to defy it and more to preserve and embrace it. They often define their challenges as within. (Can I overcome a rainy bike ride?)

Your niche is ripe for a big splash. An honest look at the category shows little differentiation. We see similarly featured products that are designed and marketed very much the same way. The US consumer sees 5000 ads per day. It takes a lot to stand out. Product design and marketing must be dramatic to create differentiation quickly.

HOW WILL BRANDS POST GAINS IN WATERPROOF SOCKS, HATS AND GLOVES? 1.  Know precisely what customers want 2.  Strong customer segmentation 3.  Strong product innovation 4.  Strong operations 5.  Strong marketing and ecommerce 6.  Strong sales pitch at retail

NOT ALL BRANDS ARE LISTENING TO CUSTOMERS

WEBSITE CUSTOMER EXPERIENCE

User experience analysis is based on two things. First, analyzing the website for users to follow an easy path to a purchase. Second is to set the website up to make that path as simple and obstacle free as can be. Below are the top 5 discoveries that can help impact sales: 1.  User friendly navigation 2.  Boost cross selling in store area 3.  Promote “Free Shipping” and “Lifetime Warranty” more 4.  Currently well optimize for mobile 5.  Give customers opportunity to engage What this means: We’re leaving online sales on the table. Even without a deeper dive, we can see that people are likely coming with the intent to purchase but the user experience isn’t designed to assist sales and engagement.

RECOMMENDATION: CHANGE THE GAME

Overall market approach: Create a game changer.

Successful brands were once in our exact spot. Fall

Raven, Smart Wool, Darn Tough- each of them were

once dwarfed by larger players. The way out from

under the larger players is to change the game.

A Broad Look at the Current Lineup with Suggestions. CURRENT Very deep assortment Lots of choices Varying weights and styles Not all items are waterproof oriented •  Doesn’t communicate to a new market WHAT COULD WE DO BETTER Better organization •  Weight of garment (US is more of X-Lightweight to X-Heavyweight) •  Ease of identifying yarn type (merino, etc.) •  Better descriptions online MERCHANDISING Look to create a Sealskinz ‘look’ Create a combo hat, glove and sock multiple coordinated color group Add ‘Signature’ fashion Look at expanding category reach through private label •  Example: Duluth Trading for work wear accessories PRODUCT Accentuate activity Lifestyle accentuation to appeal to millennials Make sure packaging is accessible (I have not seen packaging, but this is a DexShell issue.

CURRENT MERCHANDISING FOR THE US MARKET

A Smart30 review can help. Deep consumer intelligence in 30 days. WHAT YOU GET Deep understanding of what your customer and prospects think about you. Sleep soundly knowing your marketing is backed by solid research. A comprehensive report of brand new consumer intelligence that will guide communications, product and brand. Easily identified consumer segments. Where your brand stands vis-à-vis competitors. HOW WE DO IT We use powerful social listening software guided by human analysts to mine the conversation around your brand - wherever it appears. DELIVERABLES Comprehensive report of brand new consumer intelligence

–  Brand intelligence –  Competitive intelligence –  Communications intelligence –  Product intelligence

Original reports and data Key direction for next actions: With what we know now, how do we attack? What is our roadmap? TYPES OF INTELLIGENCE LEARNED Potential growth initiatives you’ve never considered Facts on where your customers are really spending their time in digital Facts on which platforms to invest in Potential pain points of your brand that you weren’t even aware of

INTERESTED IN MORE CONSUMER INTELLIGENCE?

THE VALUE WE BRING CLIENTS. Measurable marketing. We measure all campaigns. Social media, UX, e-commerce, advertising, paid media- all of it. Opportunities revealed. We study customer segments and find out how to connect their need to your products and brand via campaigns. We work specifically in the outdoor segment. Creativity supplied. We provide creative, outside of your own walls thinking followed by flawlessly executed communications campaigns.