Pavestone Comment: Q3 2022
The third quarter saw a bigger drop off in demand than anticipated, as plummeting consumer confidence, uncertainty around the impact of rising energy costs and Government disruption scuppered growth. We’d normally expect a slowdown during Q3, but this was more dramatic than previous years.
The slowdown is not being felt evenly across the market. Landscapers servicing the top end of the market remain busy as people with more money, such as those with savings and small or no mortgages, are still spending on outdoor improvements. It’s the middle to lower end of the market where landscapers tell us they are starting to take a hit. For many people, a new patio is a want and not a need.
Supply chains have fully recovered from the chaos caused by the pandemic. As such we have seen a return to merchants using the ‘just in time’ model and reducing their stock holdings. The result is also a return to last minute orders!
The porcelain market continues to grow but it’s where we import product from which is the big Q3 talking point. Higher energy prices are pushing up the cost of European porcelain, while lower shipping costs are making Indian porcelain more competitive. The market conditions are also opening the door to new countries to sell into the UK.
This doesn’t mean the market will be flooded with cheap imports. The quality of entry level porcelain from India is completely fine. It’s the aesthetics which differentiate it, and that’s where savvy merchants can upsell product with a quick side-by-side comparison to the customer.
This kind of product knowledge is often the difference between a sale and customers going elsewhere. We support merchants with an advanced training offer which educates branch staff about everything from how paving products are made and how they are laid, to how to upsell and cross sell. We also offer a troubleshooting guide for customer enquiries, to help merchants resolve matters more quickly and efficiently. Knowledge is power, as they say, and a bit of product knowledge can go a long way.