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Swimming Pool News reports from the UK Pool & Spa Conference at Oxford
Margins hit as more hot tub brands fight for market share
The UK's hot tub industry has been given a sharp reminder that sales are not immune from the credit crunch.
Leo Reynolds, Chairman of the British and Irish Spa and Tot Tub Association (BISHTA) said after a high-flying five years of year on year sales increases the trade learnt that hot tubs are not immune from the credit crunch and a general slow down in retail sales.
He told the conference: "As recently as February this year, we were anticipating a repeat of combined UK sales of 7,000 portable spas.
"In the previous 12 months of trading, the UK hot tub market was estimated to represent £50 million in annual sales with another £17 million in add-on value through the sale of associated products such as chemicals and accessories.
"Until this year, the UK market had stayed
consistently around the 7,000 to 10,000 sale mark.
However the whole retail pie was being cut into
many more slices with an estimated 100 brands now
available in the UK compared with just 30, five
years ago.
"More competition has squeezed margins and given, appropriately enough, more emphasis on quality products and customer service."
He said that sales support was vital to hot tub purchases especially in the crucial area of on-going water treatment.
"While an estimated 10% of portable spas are sold via the Internet, the bulk of the hot tubs are sold through an estimated 400 specialist showrooms across the UK who provide vital water treatment advice and a source for both chemical and accessory supplies.
"Higher end products such as swim spas have not just held their own but shown a slight increase in demand while the lower end of the market has been most badly hit."
He said despite the tougher times BISHTA was an evolving organisation with much to learn and even more to offer.
"We have pledged to take our message out to both members and prospective members throughout the UK. A BISHTA Road Show in Wigan has shown the potential for events being held around the country to give everyone an opportunity of coming along and seeing what BISHTA can do for them.
"The need to attract businesses by offering sales and marketing training and / or arranging the meetings in the September to March period would potentially bring more attendees.
"Another important point raised at the Road Show was that the public are still not really aware of BISHTA and the value of having a BISHTA affiliated company and what they can do for them.
"We will be revisiting the BISHTA Standards and are looking to implement a BISHTA Technical Committee to complement the existing SPATA Technical Committee. There will be further work needed to progress a BISHTA Deposit Guarantee Scheme proposal, which is currently under discussion."
BBC Radio Two promotion “priceless”
The hot tub promotion on BBC Radio Two was described by Leo Reynolds as being "priceless."
The two hour promotion was a timely shot in the arm for the hot tub industry. The entire Chris Evans show was in essence an advert for home hot tub ownership with countless emails read out on air from happy and contented hot tub owners.
In addition to the programme itself there were countless trailers in the two days leading up to the show on programmes like Terry Wogan and Steve Wright.
Craig Trusson of Home Counties Pools and Hot Tubs climbed into the hot tub with a host of accessories from spa bars to geezer gushers to underline the fun element to family time in the hot tub.
"We have been overwhelmed with the response from BISHTA members with praise for what has been an extremely timely boost for our industry. The promotion was simply priceless."
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Swimming Pool News reports from the UK Pool & Spa Conference at Oxford
Margins hit as more hot tub brands fight for market share
The UK's hot tub industry has been given a sharp reminder that sales are not immune from the credit crunch.
Leo Reynolds, Chairman of the British and Irish Spa and Tot Tub Association (BISHTA) said after a high-flying five years of year on year sales increases the trade learnt that hot tubs are not immune from the credit crunch and a general slow down in retail sales.
'The public are still not really aware of BISHTA and the value of having a BISHTA affiliated company and what they can do for them'
He told the conference: "As recently as February this year, we were anticipating a repeat of combined UK sales of 7,000 portable spas.
"In the previous 12 months of trading, the UK hot tub market was estimated to represent £50 million in annual sales with another £17 million in add-on value through the sale of associated products such as chemicals and accessories.
"More competition has squeezed margins and given, appropriately enough, more emphasis on quality products and customer service."
He said that sales support was vital to hot tub purchases especially in the crucial area of on-going water treatment.
"While an estimated 10% of portable spas are sold via the Internet, the bulk of the hot tubs are sold through an estimated 400 specialist showrooms across the UK who provide vital water treatment advice and a source for both chemical and accessory supplies.
"Higher end products such as swim spas have not just held their own but shown a slight increase in demand while the lower end of the market has been most badly hit."
He said despite the tougher times BISHTA was an evolving organisation with much to learn and even more to offer.
"We have pledged to take our message out to both members and prospective members throughout the UK. A BISHTA Road Show in Wigan has shown the potential for events being held around the country to give everyone an opportunity of coming along and seeing what BISHTA can do for them.
"The need to attract businesses by offering sales and marketing training and / or arranging the meetings in the September to March period would potentially bring more attendees.
"Another important point raised at the Road Show was that the public are still not really aware of BISHTA and the value of having a BISHTA affiliated company and what they can do for them.
"We will be revisiting the BISHTA Standards and are looking to implement a BISHTA Technical Committee to complement the existing SPATA Technical Committee. There will be further work needed to progress a BISHTA Deposit Guarantee Scheme proposal, which is currently under discussion."
BBC Radio Two promotion “priceless”
The hot tub promotion on BBC Radio Two was described by Leo Reynolds as being "priceless."
The two hour promotion was a timely shot in the arm for the hot tub industry. The entire Chris Evans show was in essence an advert for home hot tub ownership with countless emails read out on air from happy and contented hot tub owners.
In addition to the programme itself there were countless trailers in the two days leading up to the show on programmes like Terry Wogan and Steve Wright.
Craig Trusson of Home Counties Pools and Hot Tubs climbed into the hot tub with a host of accessories from spa bars to geezer gushers to underline the fun element to family time in the hot tub.
"We have been overwhelmed with the response from BISHTA members with praise for what has been an extremely timely boost for our industry. The promotion was simply priceless."
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