Repeatedly on Amazon's BS list! Outdoor sales made $420 million in three months

On the Amazon platform, a brand that started out with outdoor products has been on the Amazon Best Seller list many times, and its popular products have received 140,000 reviews, becoming a leader in the industry. After strong performance growth in the first quarter of this year, YETI made another effort in the second quarter and made considerable profits.

YETI's sales reached US$420 million in three months, with DTC channels accounting for more than half

As a brand focusing on outdoor products, YET I did not often appear in the public eye at first, but as its popular products were listed on the Amazon BS list many times, it received increasing attention.

YET I was founded in 2006. It mainly sells outdoor products such as sports water bottles, wine glasses, coolers, etc. Its main sales channels are official websites and Amazon. According to the latest performance announced on August 4, YET I's sales in the second quarter of this year reached US$420 million, a year-on-year increase of 17%, and gross profit increased by US$219 million, an increase of 5%.

The strong second quarter helped the company's overall gross profit rise 6% to $374 million for the first half of the year , while net sales rose 18% to $714 million.

From the second quarter data, the company's sales in various channels have achieved synchronous growth. Among them, the sales of DTC channels increased by 14 % to US$225 million, compared with US$ 197 million in the same period last year , mainly due to the strong performance of Drinkware . The sales of DTC channels accounted for half of the total sales of the brand this time. In the wholesale channel , sales increased by 21% to US$195.2 million, and coolers and equipment products made a huge contribution to the growth of wholesale channel sales.

In terms of product sales, YETI's wineware sales were $216 million, up 12% from $ 193 million in the same period last year . The company said that the continued expansion of its branded wineware product offerings , the launch of new colors and sizes, and strong demand for customization drove the growth of this category.

Sales of refrigeration equipment products grew even faster, up 23%. The top-selling products in this category are mainly luggage, soft coolers and hard coolers . It is worth noting that many of YETI's products have become hits.

The reason is that while YETI focuses on products, it also focuses on marketing and promotion. The combined effect of the two gives the brand a clear advantage in product creation over other brands in the industry.

Product + marketing combination, many YETI products become hot sellers

Behind YETI's strong performance growth , its hit products are naturally indispensable. In fact, the top-selling products mentioned above have become hot-selling products since 2019 and continue to be so to this day.

(Picture from YETI official website )

In March 2019 , YETI released a mug on its official website. To the outside world, this product did not have any special features. Apart from the brand logo, it looked similar to other thermos bottles on the market. The unit price was about $30. However, the product was sold out one month after its launch, with more than 20,000 positive reviews at the time. Other products such as lunch bags and coolers for outdoor use also saw a surge in sales in the same year, becoming the favorites of consumers.

Another popular product, YETI kettle, has been listed on Amazon BS list, with more than 140,000 reviews. While other brands focus on 3C and clothing markets, this brand has opened up the market with niche and unpopular categories, which is really eye-catching.

The reason why YETI products are so popular among consumers can be attributed to the coexistence of product personalization and practicality and the effectiveness of marketing strategies.

Since the brand focuses on outdoor products, it has made many improvements and innovations in the portability and usability of its water cups, wine utensils, coolers and other products, and the polished products are more in line with actual needs. At the same time, buyers can also customize products according to their own preferences, which will increase their favorability.

The brand has always attached great importance to brand marketing strategies and has accumulated a large number of fans on multiple social platforms. Through various forms of promotion, the brand exposure has been increased. In addition, the product itself is excellent, the number of consumer groups is increasing, and the stickiness is further improved.

With such dual support, it is not surprising that YETI's market foundation is becoming more and more solid. However, when the brand's performance showed strong momentum, its inventory increased significantly, which to some extent caused risks.

Data shows that YETI's inventory increased by 121% to $490 million in the first half of this year, compared with $222 million in the same period last year . Two major product categories grew by about 70%. In addition, the company said its gross profit margin and operating expenses were affected by rising logistics and distribution costs.

In the first half of the year, the company's gross profit margin fell by 610 basis points due to freight, cost increases, and exchange rate fluctuations , but its adverse effects have been offset by price increases for some products. It can be seen that its product-driven ability to resist risks is strong.

As the relevant person in charge of YETI said, the demand for outdoor products it is engaged in is highly elastic. This also enables the products in this category to maintain the original consumer groups and purchasing power after the bonus period gradually fades.

The bonus period is gradually flattening, and outdoor products are still popular

As a leader in the outdoor products industry, YETI's development is inseparable from the overall environment of the market. Although the bonus period is not as rapid as the initial development under the overall industry environment, the market space it releases is huge and the radiation driving effect lasts for a long time.

As the epidemic continues to recur, consumers pay more attention to the "outdoor" lifestyle. European and American consumers are increasingly purchasing outdoor products such as grills, coolers, leisure tents, hammocks and paddle boards.

Judging from the sales situation in the past two years, the sales volume of outdoor products in various channels has also been growing steadily. Among them, the fastest growing categories in the outdoor specialty channels are mainly water sports products, with sales revenue increasing by 21%. The growth rate of camping products such as tents, folding tables and chairs, and air mattresses on e-commerce platforms is the most obvious, increasing by more than 50%.

In addition, outdoor durable goods, outdoor clothing, skateboards, surfboards, etc. are also very popular, and the sales of outdoor energy storage products are also following closely, and the order demand has increased. As the industry becomes more and more popular, more people are trying to share the pie. Under this circumstance, the market share of outdoor products is being redistributed by major brands and new entrants.

At present, some domestic companies that focus on outdoor products, such as Huabao New Energy, Nook, and Baleaf, have seized the development dividend period and have performed well in recent quarters. Some foreign brands have a relatively stable market share due to their local market advantages and early start. However, if new and old sellers can rely on their own advantages, there is still ample room for them to play.

According to Statista data, the revenue of sports and outdoor products alone will reach 75.24 billion US dollars this year, with an annual revenue growth rate of 10.24%. By 2025, the market size will reach 100 billion yuan, and the number of users may exceed 1.5 billion. It can be seen that the market space and future development potential are still huge.

During this critical period when the industry development is currently returning to a stable state, sellers must return to their products in order to go long-term.