The 2019 Wells Fargo RV Dealership Survey was completed in conjunction with the Caravan Industry Association Australia. It reveals a complex retail and commercial environment influenced by changing consumer behaviour and challenging external economic conditions.
Negative changes in the Australia and New Zealand economic and financial landscape was cited by businesses as their greatest concern. This is not unexpected given the Royal Commission into the Banking Sector, the significant fall in the housing and new vehicle markets, and macroeconomic conditions including weak wage growth, high underemployment and minimal growth in retail sales.
Stability within the Australian political landscape was cited as the second largest concern to business conditions. However, noting that the survey was conducted before the Federal election, it would be expected that this factor is now of less importance.
Caravans represented the largest percentage of overall sales (67%) for businesses, followed by motorhomes (31%) and camper trailers (18%). New sales accounted of 67% of net income, followed by used sales (25%) and maintenance services (12%).
“There is little doubt that disruption is impacting Australia’s caravan and camping industry yet demand for the RV lifestyle remains stronger than ever before in Australia. This demand will manifest itself in new and different ways in the coming years that will challenge existing business models, create new and engaging marketing strategies, drive product innovation to meet differing demands and deliver new experiences that will influence visitor behaviour. Looking forward, the manufacturing and retail sectors remain the most susceptible to disruption and economic conditions due to the need for consumers to access discretionary income to purchase a recreational vehicle, therefore these sectors are reliant on consumer confidence supported by a strong economy that encourages spending.”
-Stuart Lamont CEO, Caravan Industry Association Australia
Click below to read the full report.