Hot Trends in the U.S. Housewares Market- Business Success in the US – Blog #7

Despite the economic downturn, North America remains one of the largest markets for ‘housewares’ in the world. According to the most recent estimates, the US and Canada accounted for 25% of global housewares retail sales totaling US$76.7 billion. So what are the latest trends in the market and what opportunities do these present for Australian exporters?

Dollars for Design
The primary, overarching trend in the U.S. housewares market is the move by the consumer toward high design. Whether this trend is manifested through more intelligent functionality or through more eye-appealing construction, the U.S. consumer has begun to appreciate the value that design adds to any product at any price. From $4,000 automatic coffee machines to cleverly designed baking tools, from ergonomic handles to new cooking methods such as induction or sous vide, from more functional cleaning tools to high-powered kitchen appliances, thoughtful design is being rewarded through increased purchases.

Sustainability
Although not as prominent as in years past, the U.S. consumer has not abandoned concerns for the environment and is voicing those concerns through purchasing behavior. Consumers look at country of origin, the uses of materials and the recyclability of the materials that make up the housewares products they purchase.

Constant Change
Another macro-trend is the move to more casual products for the home, somewhat prompted by the generational shifts underway with the aging of the Baby Boom cohort and the rise of Generation Y and the Millennials, who tend to value convenience and change the look of their living space more frequently. This has led to a much broader use of color in home products, to more unique shapes and sizes of kitchen appliances and eventually to greater replacement frequency of home goods by younger generations.

The Power of Celebrity
Perhaps the greatest change for home goods over the past five to 10 years is the emergence of the influence of professional chefs and home remodelers who have come to dominate the cable channels of U.S. television. Celebrity endorsements have become a major driver of business for cookware, cutlery, appliances, tabletop and other home categories. Guy Fieri, Paula Deen and Australia’s own Curtis Stone are leading the way.

Smart Shopping
The internet and digital technologies are having an increasing influence on the U.S. Housewares market. In a year where international retail markets floundered E-commerce displayed resilient growth, with sales increasing 16.1% to US$194.3 billion (in 2011) according to the US Department of Commerce. An explosion of digital innovations, most notably the emergence and rapid adoption of Smartphone and Tablet technology, has transformed the buyer seller relationship. Instead of getting defensive, some stores and brands are embracing the change by creating new personal touches that feature these new innovations in preference to more sales staff. In the future, QR codes and other innovative social shopping services will provide consumers with unparalleled choice. Retailers and vendors alike need to position themselves to take advantage of the huge growth opportunities this offers. 

All of these trends will be on show at the 2013 International Home + Housewares Show in Chicago, USA to be held 2 through 5 March. 60,000 housewares professionals from more than 100 countries will attend in search of the latest in products for homes around the world. More information is available at www.housewares.org.    


“Change is the only constant. Hanging on is the only sin.”- Denise McCluggage

Author:
Perry Reynolds
Vice President, Marketing & Trade Development
International Housewares Association

For more information on accessing the US housewares market or attending the International Home and Housewares Show please contact Ian Smith, CEO of Access USA on 0417020429 or ian@accessusa.com.au

Despite all of the doom and gloom, you might be surprised to learn that there is one consumer channel in the United States that has experienced double digit growth right through the recession. The US is home to the largest and most sophisticated e-commerce market in the world that presents a plethora of opportunities for Australian companies. According to the US Department of Commerce online sales totaled US$194.3 billion in 2011, up 16.1% from US$167.3 billion in 2010.

Even before the internet gained popularity, the US (unlike Australia) had a very strong home shopping culture. Today more than 70% of households regularly purchase items online or by other virtual means and e-commerce accounts for well over 5% of US retail sales. The advent of the smartphone has only served to increase consumer appetite. According to a new study by Click IQ, 29% of consumers who use a smartphone to research a product while in a retail store end up purchasing the item online.

Amazon.com
Amazon.com is the largest online retailer in the world with over 140 million active customers across the globe. Net sales increased 41% in the 2011 calendar year to US$48 billion, compared with US$34 billion in 2010. North American net sales totaled US$26.7 billion, up 42.8% from US$18.7 billion in 2010. The site has over 65 million unique visitors per month which is more than Walmart.com and Target.com combined. Amazon has built its business on selection, personalisation & customer service and is now ranked as the number 1 brand in the States.

Products of Interest
Amazon provides the largest selection of products in the world with over 40 product categories. Some of the top categories on Amazon include:

• Books   
• Electronics
• Toys               
• Sports & Outdoors
• Home & Kitchen       
• Jewelry
• Beauty               
• Health & Personal Care
• Tools & DIY           
• Lawn and Garden
• Automotive           
• Baby
• Gourmet Food

Secrets of Success
There is a very big difference between just selling on Amazon.com and selling successfully on Amazon.com (or any other website for that matter). Some of the secrets to maximizing exposure and revenue include:

1. Representation: Specialist Manufacturers’ Representatives have established relationships with key buyers at Amazon to get you in the door and best position your product(s) for a multitude of targeted marketing programs which are conducted by category and region. 

2. Brand Exposure: Keep in mind that Amazon.com is now the top retail site where people go to do market research. Taking time to build a strong brand presence on Amazon will have flow on benefits to your ‘bricks and mortar’ business around the US.

3. Amazon Fulfillment: Drop shipping directly to Amazon customers from your US warehouse is generally inefficient and costly. Amazon has fulfillment centres across the States so that orders come directly from the retailer – Saving you time and money.

4. Optimise Product Searches: We all know the increasing importance of search terms and ‘ad words’ in online marketing. Make sure you optimise search terms for specific SKUs to ensure that they are the ones people see when they have a specific need.

5. Customer Ratings: Good customer ratings are key to success on Amazon. Shoppers pay close attention to feedback, as does Amazon for your performance rating. Again, take the time to accurately describe your items and be proactive in addressing any concerns raised.

"The Internet will help achieve "friction free capitalism" by putting buyer and seller in direct contact and providing more information to both about each other."- Bill Gates

Author:
Ian Smith
CEO – Access USA Pty Ltd
0417 020 429
ian@accessusa.com.au
www.accessusa.com.au