"With the loss of jobs, additional money that people used to care for their horses has gone down...You have to feed your family before you feed your horses" (Powers 2009). The availability of second-hand goods will be helpful to address this issue. On the other hand, one of the most untouched segments by the recession was that of high-end, luxury goods. Consumers who do not primarily live off of their salaries as less impacted by the upturns and downturns of the unemployment rate, and the stock market has been less affected than employment by current economic figures. They will have more money to buy customized saddles and to pursue their hobby.
Weaknesses
The market for horse items is very specific, and not all areas of the country have high levels of equestrian participation. Additionally, there is a great deal of loyalty amongst brands because of the 'traditionalism' of the market. Finally, the brand would be geared more towards riders and showing than people who keep their own farms, as these individuals might be more inclined to patronize stores that focused on ranch rather than riding supplies. This focus on custom saddles and apparel could miss a market segment of horse owners that kept horses mainly on-property, as part of farms rather than focused on the sport of riding.
Opportunities
The online market has turned people on to buying second-hand gear of all kinds more than ever before, as manifested in the popularity of eBay. The store could sell second-hand as well as new products online, while still honing its 'brick and mortar' customized business. Few stores offer both second-hand and customized merchandise. There are customized tack merchants and some second-hand retailers online, but few combine the two services.
Threats
The Dover and Miller stores are already well-reputed amongst riders for their high quality tack and...
They offer a small selection of used saddles. The new store would have to craft a reputation for high quality by hiring excellent craftsmen and a wider-variety of the second-hand saddles.
Describe the market position for your product and service
This product and service attempts to straddle both the high-end and low-end aspects of the equestrian profession, as a way of hedging risk in an uncertain market "As more people find themselves unemployed, luxuries such as horseback riding are among the first expenses to go...Even those who have stayed committed to equestrian sports are now looking for ways to cut back on the price of upkeep and the cost of competitive horse showing" (Powers 2009). Second-hand clothing caters to passionate equestrians thinking of scaling back slightly.
However, the customization service also 'corners the market' in the form of higher-end riders who have more money to spend on their hobby. This is important, given the relative durability of the high-end market. "The rich are again buying designer clothing, luxury cars and about anything that catches their fancy. Luxury goods stores, which fared much worse than other retailers in the recession, are more than recovering -- they are zooming" (Clifford 20011). The unique marching of consignment apparel and customization would encompass both economic ends of the niche market of horseback riders.
References
Clifford, Stephanie. (2011). Even marked up, luxury goods fly off shelves. The New York Times.
Retrieved October 21, 2011 at http://www.nytimes.com/2011/08/04/business/sales-of-luxury-goods-are-recovering-strongly.html
Powers, Martine. (2009). Horse farms and riders tighten their belts. Pittsburgh Post-Gazette.
Retrieved October 21, 2011 at http://www.post-gazette.com/pg/09186/981426-51.stm
