How Small-Market Outdoor Retailers Can Compete With Global Brands

For years, the outdoor retail scene has been dominated by big-name brands. Head out on the slopes, and you will likely see North Face and Columbia gear everywhere. Come across a hiker in the Rockies, and you could bet they were carrying Patagonia or REI gear.

But that's starting to change, as outdoor retailers are beginning to focus on smaller customer markets that were previously ignored. 

This shift is occurring for a variety of reasons, including the rise in popularity of outdoor activities such as mountaineering and backpacking and the growing awareness of environmental issues.

As a result, smaller outdoor brands are beginning to emerge and compete with the big names in the industry. While they may not have the same name recognition or marketing budgets, these small businesses can still thrive in the outdoor retail market. 

And the unique market conditions and growing interest in human-powered outdoor activities create opportunities for them to do so.

So what can a small-market outdoor retailer do to compete with the goliaths of the industry? Let's take a closer look at how the industry is evolving – and how small businesses can make the most of it.

The Outdoor Retail Scene is Changing

Outdoor retailers are facing a number of challenges, including the growth of online shopping and the rise of big-box stores such as Walmart and Target that sell outdoor gear. Yet, at the same time, there's been a resurgence in the popularity of outdoor activities such as mountaineering, backpacking, and camping. This has led to a shift in the outdoor retail landscape, with retailers beginning to focus on smaller customer markets previously ignored.

For example, while big-name brands have typically catered to more casual hikers and campers, they are now starting to gear their products and marketing towards hardcore backpacking and mountaineering enthusiasts. Plus, the COVID-19 pandemic has caused even more people to seek out outdoor activities as a way to socially distance themselves while still getting exercise and fresh air.

All of these factors have created an opening for smaller outdoor brands to emerge and compete in the market.

The Popularity of Outdoor Activities is On The Rise

According to the Outdoor Industry Association, there has been a significant increase in the number of people participating in outdoor activities in recent years.

A study from Penn State found that social distancing guidelines caused many Americans to reconsider their leisure time – nearly half of all adults reported focusing on outdoor activities. A surprising statistic in the study found that 20% of those surveyed were new to outdoor experiences – a sizeable new market ready to be tapped!

People are Spending More Money on Outdoor Gear

People aren't only going out more – they're spending more while doing so. The Outdoor Industry Association found that Americans spend a combined $646 billion on outdoor recreation experiences and products each year. This includes park access, guided tours, equipment, and more.

The Outdoor Industry is Becoming More Sustainable.

As people become more aware of environmental issues, they're beginning to demand that the companies they buy from are sustainable and eco-friendly. 

This is especially true for younger consumers, who are willing to pay more for environmentally friendly products. This means that brands willing to engage in movements rather than benefits can see their loyalty climb among conscious consumers.

Accessibility is Becoming a Hallmark of the Outdoor Market

In the past, outdoor activities were seen as inaccessible to many people due to the cost of gear and the lack of knowledge about where to go and what to do. 

But that's changing, with initiatives such as The Outdoors for All Act bringing awareness to outdoor accessibility. These movements are making it easier for people of all ages and abilities to get involved in outdoor activities.

All of these factors contribute to the shift in the outdoor retail landscape, with retailers beginning to focus on smaller customer markets that were previously ignored. And this shift presents an opportunity for small-market outdoor retailers to compete with the big names in the industry.

Small-Market Outdoor Retailers can Still Compete

While the outdoor retail landscape is changing, small-market outdoor retailers can still compete with the big names in the industry. Knowing how to position your business to take advantage of the unique market conditions and growing interest in human-powered outdoor activities is key.

Here are some tips for small-market outdoor retailers:

1. Embrace Your Niche – and Your Niche’s Niche Consumer

One of the best things about being a small-market outdoor retailer is that you can focus on a specific niche. This allows you to deeply understand your customers' needs and cater your products and services accordingly.

For example, consider Intrinsic Provisions – a niche lifestyle retailer in Hingham, Massachusetts. Seeing a growing interest in artisanal and small-batch products, the company decided to focus on curating a selection of unique, hyper-local items. This focus has helped them stand out from the big-box retailers and attract customers looking for something different.

While having a niche is nothing new, taking it further and learning everything about your target market is essential for small-market outdoor retailers. 

You may be shocked that your investment in your target consumer creates a unique, loyalty-based customer relationship that big-box retailers cannot consistently achieve.

2. Get Local and Engage Your Community

The COVID-19 pandemic not only helped launch a resurgence in outdoor engagement but it put a spotlight on local communities and the importance of supporting them.

As a small-market outdoor retailer, you have a unique opportunity to get involved in your community and support local initiatives. 

For example, consider hosting or sponsoring a gear rental program for low-income families or partnering with a local school to offer discounts on gear for students participating in outdoor activities.

3. Build and Market Your Product on a Mission – Not a Feature

Big retailers stick to the tried-and-true methods of selling products based on features. But as a small-market outdoor retailer, you have the opportunity to build your products and services around a mission.

Your customers are looking for more than just a product – they're looking for an experience that aligns with their values. So, focus on creating an authentic brand that stands for something bigger than just selling outdoor gear. Then connect that brand with movements that put hands and feet to those values.

For example, the Adaptive Climbing Group (ACG) offers inclusive and adaptive climbing clinics that are open to people of all ages and abilities. Imagine creating products designed specifically to partner with ACG's clinics or other local organizations that focus on getting people outdoors. 

Not only can you do good, but you'll also tap into a market that big retailers haven't even realized exists. (Just make sure you stay honest and genuine!)

4. Leverage Experiences to Drive Engagement

REI is no stranger to utilizing experience to drive engagement and loyalty. From in-store events and clinics to outdoor adventure trips, REI has long understood that their customers are looking for more than just gear – they're looking for an experience.

The company recently tapped into the "vehicle-supported adventuring (VSA)" movement that exploded during and following the pandemic. Taking cues from the "van-life" movement, REI has begun to market products designed to help adventurers enjoy their outdoor time in new, convenient ways.

But REI isn't the only one with this idea. As a small-market outdoor retailer, you can create unique experiences that connect your customers with the great outdoors in new ways. Just look for where people are going, and meet them there with the gear and information they need to have a great time.

5. Connect with Social Media Influencers

Social media influencers are a powerful marketing tool, especially for small businesses trying to reach new audiences.

But don't just focus on the numbers – make sure you're connecting with social media influencers who share your values and mission. When you can connect with the "human element" that connects followers to experiences, you can harness the true power of social media marketing.

These influencers add an element of trust and reliability to your brand, which can go a long way in attracting new customers.

Take Your Brand To New Heights with Atlas Studio

The outdoor industry is booming, and small-market outdoor retailers are perfectly positioned to capitalize on this growth. By getting involved in your community, building your product around a mission, utilizing experiences to drive engagement, and connecting with social media influencers, you can take your brand to new heights. So get out there and start competing!

If you want to learn more about how to create unique, accessible branding that will help you connect with new customers, schedule a consultation with the Atlas Studio team today. We’re committed to helping our clients create sustainable businesses that have a positive impact on the world around us. And our team of experts has the experience and knowledge to help you hone in on your brand identity and create campaigns that will reach your target audiences.

Schedule a free consultation today, and let's create an unstoppable outdoor brand together!