Emerging Themes for Investors in the Outdoor Enthusiast Market

• Emphasis on proving tariff resiliency, either based on markets the Company sells into (e.g., ex-US market presence) or where the Company manufactures (e.g., non-Chinese mfg.). ​
• For companies that do have differentiated cost positioning, opportunity exists to opportunistically gain share as competitors face higher prices—both at the retailer and consumer level. ​
• Across the board, companies are still seeking to understand consumer price elasticity in a high tariff environment, impacting the ability to pass on price increases without
• impacting demand levels.

• Emphasis on building recurring revenue exposure across products and services business, often via tech-enablement (e.g., tech-enabled product with an integrated app)​
• Additional benefits include greater repeat participation with the product due to social/community engagement, gamification, etc. benefits from tech usage—e.g., tech-enabled golf ball with an app to track performance, compete against peers, etc.

• Branded products companies are increasingly leveraging owned manufacturing capacity for both own branded product, as well as white labeled offerings (e.g., for corporate partners, other brands, etc.), reducing brand-specific risks.​

• Though outdoor activity has remained mostly flat post-Covid, individuals that remain engaged, particularly those that are newer to outdoor, have high propensity to spend, supporting ongoing category growth.​

• Brands are increasingly seeking to be precise in consumer targeting, aligning brand positioning and messaging to the specific needs and preferences of that target audience. As such, brands with a strong DTC channel presence are often advantaged given their customer connectivity and access to data; that said, brands selling across channels are increasingly completing scaled consumer research to understand consumer needs on a regular basis.​

Sameer Tejani

Managing Director