With nearly two dozen education sessions, the International Home + Housewares Show is a great place for retailers and manufacturers to look into the industry’s crystal ball. I attended a great session when I was in Chicago with Tom Mirabile who is the Senior Vice President of Global Trend and Design at Lifetime Brands Inc. Mirabile outlined four key trends that will shape the US housewares market in 2013 and relate equally to all consumer products.
1. Engaging Both Young and Mature Audiences
The first trend specifically applies to Gen Y, (ages 17-36), and Baby Boomers, (ages 37-67). “Gen Y is starting to move out of their family home, as the nation has added more than two million households in the past year,” he said. “This generation will determine what happens with housing in the next 20 years. They are creative, self-expressive, smart, innovative and resourceful. They create their own trends versus waiting to see what a trend is. About 70% of Gen Y’s have brand loyalty and they don’t make a purchase without consulting people. Gen Y have a rising affluence, so they have a strong position in the market.”
Baby Boomers, Mirabile said, “‘Seem to run the world,’ yet they only have 41% of consumer spending, so we give them too much credit.” There are 80 million Baby Boomers, he said, and they are reinventing retirement, partly out of need, but a large part is desire. “They are spending less on frills and more on experience. They don’t see themselves ageing, they see themselves evolving,” he explained.
In the middle of both generations is Gen X, who are ages 37-46, raising families and who have 21% of consumer spending. “Their median household has fallen 59% over the last eight years,” Mirabile said, so their discretionary spending is low. “So with these people you have to give them an experience and something special, as well,” he said. “They make shopping lists and keep them; they download coupons from site, so the engagement is very onsite. This generation is also big on in-home food experience and they are doing that with drink mixers, espresso machines, sushi cookware, cupcake pans and tortilla makers. They are looking for more retail experiences. The bottom line is that you have to follow the money trail and create products that are accessible to every generation.”
2. Understanding the Changing American Dream
“The second consumer trend still entails owning a home,” Mirabile said, “but inside that home are changes taking place, including adjustable lighting, conversational seating, home décor and design. In particular, “people are spending even more time in their kitchens and creating memories with their children,” he said. “The kitchen is the foundation upon which many memories are built. So help the consumer create interaction.”
“With that kitchen foundation come the ‘what’s next’ culture,” Mirabile said. “For example, breakfast becoming a headliner, ‘mocktails’ in entertaining, tea is the new coffee and cured meats and charcuterie are what’s next,” he said.
3. New Definitions of Value and Luxury
The third trend focuses on the value of products, partly due to the economic recession and limited discretionary spending. With this trend, “Being a smart consumer is a badge of honour,” Mirabilie said. “Consumers hunt for deals and discounts with relish, if not pride. It is enjoyable to save money, so home cooking is up. And do it yourself can be anything, including sewing, craft and even cleaning. Purchases are being driven by the total store experience, including convenience, relevance and compelling value regardless of location or value. It’s important to recreate that experience.”
4. Perception & Reality: A Wake-Up Call
The last trend involves our society diversifying in new ways. For example, the number of married couples without children has increased, there is a decline in marriage rates and divorce is increasing among people ages 50 and over. “We have to pay attention to these wake up calls so that our message is broader, yet engaging and welcoming to every generation, ethnicity and age group,” Mirabile said. “There are so many new family types, including friends living together with children, grandparents raising children, and people who are unmarried with children. You need to consider those new family types in your messages.”
With that wake-up call mentality, Mirabile pointed out that product discovery has evolved to the
point where consumers are discovering new products “on the go” and even faster than ever. “Consumers love online reviews,” he said. “We still think that we have control over our brand. But people don’t listen to retailers, they listen to each other. They rely on you for information, but they rely on each other to say whether or not they should buy something.”
Author:
Ian Smith
CEO – Access USA Pty Ltd
0417 020 429
