H O U S E W A R E S MARKETWATCH VOL. 3 NO. 4 10000 $ Complimentary New Data! Benchmark Your Business! THE HOME AUTHORITY LOOKS AT THE U.S. CONSUMER • Electric can openers, electric coffee makers, blenders and food thermometers will be purchased by more U.S. households in the next year than the other 25 product categories featured in this issue. But even though these four categories rank highest in purchase likelihood of the 25 product categories examined in this issue, less than 20% of U.S. households are planning to buy an electric can opener, electric coffee maker, blender or food thermometer within the next year. MANUFACTURERS CAN USE HOUSEWARES MARKETWATCH TO: V Determine how well their product lines are performing relative to the total category. V Estimate market share. V Predict how well the category – and their product lines – is going to perform in the future. V Identify product categories with strong growth potential. V Understand which channels of distribution are most important to their product category. • More than 90% of U.S. households own microwave ovens, irons and ironing boards but fewer than 12% of U.S. households replaced these products in the past year. V Understand what type of consumer buys their product category. V Allocate resources among N E W DAT E S : March 20 – 22, 2004 N E W D AY S : Saturday – Monday different product lines. • The typical U.S. household replaces their electric teapot and electric coffee maker every four to five years. In contrast, the typical U.S. household replaces their ironing board every 30 years. RETAILERS CAN USE HOUSEWARES MARKETWATCH TO: V Determine how well their stores are performing relative to the total market. • Significantly more U.S. households report owning a food thermometer now than did in 2000. V Predict how well the category is going to perform in the future. V Identify product categories with strong growth potential. V Determine how much shelf space each product category should have. V Validate data provided to them by vendors. ® I N T E R N AT I O N A L H O U S E WA R E S A S S O C I AT I O N IHA, Sponsor of the International Housewares Show SAME LOCATION: McCormick Place, Chicago 2 H O U S E W A R E S M A R K E T W A T C H • V O L U M E 3 N U M B E R 4 WHAT CONSUMERS TELL US HOW MANY OWN — Household Penetration Virtually every U.S. household V 96% of all U.S. households own a microwave oven. owns a microwave oven and V 91% of all U.S. households own an ironing board. V 95% of all U.S. households own an iron. an iron. Percent of Households Who Own Microwave Oven Iron Ironing Board Electric Coffee Maker Blender Hand-held Mixer (electric) Outdoor Grill Ceiling Fan Portable Fan Barbecue Tools Can Opener (electric) Barware Retailers: 96% ❑ Are most of your housewares categories low household penetration categories or high household penetration categories? 91% 84% ❑ If most of your housewares categories are high household penetration categories, are you carrying the right mix of higher-end fully featured products to attract the aging baby boomer who is trading up when they replace? 82% 79% 77% Manufacturers: 73% ❑ Does your portfolio of products skew more to the high household penetration side of the scale or to the low household penetration side of the scale? 72% ❑ If your product categories are low household penetration categories, are they new, emerging product categories with tremendous growth potential or are they mature, niche categories with limited growth potential? Food Thermometer 69% 61% 58% 58% 44% Food Processor 34% Dehumidifier Window or Room Air Conditioner 33% Stand Mixer (electric) 33% 26% Pressure Cooker 23% Ice Cream or Yogurt Maker 22% Juice Extractor or Juicer Rice Cooker or Food Steamer (electric) Espresso or Cappuccino Maker 14% Wok (electric) 14% 20% Tea Pot (electric) 9% Vacuum Package Sealer or Machine 9% 0% 95% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: IHA Research by Riedel Marketing Group For more in-depth demographic H O U S E W A R E S M A R K E T W A T C H • V O L U M E 3 N U M B E R 4 3 WHAT CONSUMERS TELL US WHAT THEY BOUGHT — Past Year Purchase Incidence Four of the 25 categories V A larger percentage of U.S. households — 18% — purchased an electric coffee maker in the past year than any of the other 25 product categories. featured in this issue were purchased by more than 10% of U.S. households in V 40% of U.S. households did not purchase any of the 25 featured categories in the past year. V One out of every 10 U.S. households purchased an outdoor grill, a portable fan, or a microwave oven in the past year. the past year. Percent of Households Who Bought in Past Year None 40% Electric Coffee Maker 18% Outdoor Grill 11% Portable Fan 11% Microwave Oven 11% Barbecue Tools 8% Can Opener (electric) 7% Blender 7% Retailers: Ceiling Fan 7% ❑ Are you carrying the housewares categories that were purchased by the most households in the past year? Iron 7% Hand-held Mixer (electric) 5% Food Thermometer 5% ❑ Are you promoting the housewares categories that were purchased by the most households in the past year? Dehumidifier 4% Food Processor 4% Manufacturers: Window or Room Air Conditioner 4% ❑ Where do your product categories rank in terms of past year purchase incidence? Barware Ironing Board Juice Extractor or Juicer Ice Cream or Yogurt Maker Stand Mixer (electric) Rice Cooker or Food Steamer (electric) 3% 3% 3% 2% 2% Espresso or Cappuccino Maker 2% Tea Pot (electric) 2% Pressure Cooker 2% Vacuum Package Sealer or Machine 1% Wok (electric) 1% 0% ❑ What is driving past year purchase incidence of your product categories: Length of product replacement cycle? Level of new product activity? Being "on trend" or "off trend"? Amount of new product innovation? Increases or decreases in category ad spending? What implications does this have for your marketing and new product development strategies? 3% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: IHA Research by Riedel Marketing Group information visit www.housewares.org 4 H O U S E W A R E S M A R K E T W A T C H • V O L U M E 3 N U M B E R 4 WHAT CONSUMERS TELL US PURCHASE FREQUENCY — Number of Years Between Purchases of Product Category Electric tea pots, electric V The average U.S. household purchases electric tea pots and electric coffee makers about once every 4.5 years. coffee makers, portable fans and outdoor grills are V Portable fans, outdoor grills, espresso/cappuccino makers, ice cream/yogurt makers and juice extractors/juicers are purchased by the average U.S. household about once every 6 to 7 years. purchased more frequently than any other of the 25 product categories. V The average U.S. household purchases dehumidifiers, window/room air conditioners, barbecue tools, electric can openers, microwave ovens and vacuum package sealers about once every 8 to 9 years. Editor’s Note: Purchase frequency, computed by dividing 1 by “Past Year Purchase as a Percent of Household Penetration,” shows how often the typical owner will be in the market for the product category either to replace or add to what they already own. Projected number of years between purchases Past Year Purchase as a Percent of Household Penetration 22% Tea Pot (electric) 4.5 21% Electric Coffee Maker 4.7 15% Portable Fan Juice Extractor or Juicer 14% Espresso or Cappuccino Maker 14% 6.5 7.3 7 14% Outdoor Grill 13% Ice Cream or Yogurt Maker Window or Room Air Conditioner 12% Barbecue Tools 12% 12% Dehumidifier Can Opener (electric) 11% Microwave Oven 11% Retailers: 7 ❑ Are you missing sales by not promoting the product categories that rank highest on "Past Year Purchase as a Percent of Household Penetration"? 7.7 ❑ Are there any hot new product categories that you should be carrying but are not? 8.5 8.3 8.6 8.7 8.7 Vacuum Package Sealer or Machine Rice Cooker or Food Steamer (electric) 11% Manufacturers: 10% 10 Ceiling Fan 10% ❑ Do your product categories have "Past Year Purchase as a Percent of Household Penetration" of: 1) over 50%; 2) between 25% and 50%; or 3) less than 25%? ❑ If your product categories have "Past Year Purchase as a Percent of Household Penetration" of over 50%, what is driving this high level of past year purchase incidence? 11 Blender 9% Food Processor 9% Food Thermometer 9% 8% Pressure Cooker Iron 7% Wok (electric) 7% Hand-held Mixer (electric) Stand Mixer (electric) Barware Ironing Board 0% 9 10.4 11.7 11.6 13 13.6 14 6% 15.8 6% 16.5 5% 19.3 3% 30.3 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: IHA Research by Riedel Marketing Group For more in-depth demographic H O U S E W A R E S M A R K E T W A T C H • V O L U M E 3 N U M B E R 4 WHAT CONSUMERS TELL US WHAT TYPE OF HOUSEHOLD BOUGHT — Past Year Purchase Incidence by Household Type held mixers and microwave ovens and at least 15% less likely to have purchased outdoor grills in the past year than total households. V Households with children are at least 10% percentage more likely to have purchased barbecue tools, blenders, ceiling fans, electric coffee makers, food thermometers, irons, outdoor grills and portable fans and at least 10% less likely to have purchased electric can openers or hand-held mixers in the past year than total households. V Single person households are at least 20% less likely to have purchased barbecue tools, blenders, ceiling fans, electric coffee makers, food thermometers, hand–held mixers, irons, microwave ovens, outdoor grills and portable fans in the past year than total households. V Households with no children are at least 10% more likely to have purchased electric can openers, hand- Past Year Purchase Incidence by Household Type Index vs. Total U.S. Households (2+) Households with No Children with Children Base: 391 Base: 458 Barbecue Tools Single Person Households Base: 143 92 126 36 Blender 100 113 64 Can Opener (electric) 113 87 107 Ceiling Fan 92 133 21 Electric Coffee Maker 97 111 64 Food Thermometer 92 115 64 141 83 50 97 113 57 113 91 79 Outdoor Grill 82 141 21 Portable Fan 95 122 50 Hand-held Mixer (electric) Iron Microwave Oven Source: IHA Research by Riedel Marketing Group Note: Past year purchase incidence by household type could not be computed for 14 out of the 25 product categories because the sample size was too small to obtain reliable data. Editor’s Note: To determine which demographic group is most likely to buy in the future, it is useful to look at the percent of past year purchasers in each demographic group in relation to a larger group. The purpose of this comparison is to identify the demographic groups that have a disproportionately large percent of past year purchasers relative to the larger group. This comparison is done through the use of an index number. The “Past Year Purchase Incidence by Household Type” index is derived by dividing the percent of past year purchasers of a particular product category by the percent of the total sample. For example, 51% of past year purchasers of electric coffee makers live in households with kids. 46% of the total sample of 1000 live in households with kids. Divide 51 by 46 and you get an index number of 111. An index of 111 means that households with kids are 11% more likely to have purchased an electric coffee maker in the past year which means that households with kids are a demographic group that is more likely to buy an electric coffee maker in the future. Please go to www.housewares.org for a description of the demographic characteristics of each household type. Retailers: ❑ Are the product categories you are carrying consistent with the consumer who shops your stores? ❑ Should a particular product category be carried by every one of your stores, regardless of demographics? ❑ Are there cross-promotional opportunities between product categories that are bought by the same type of person? Manufacturers: ❑ Who is the target consumer for your product categories? ❑ Do all of your product categories have the same target market or do they appeal to different consumer demographics? ❑ Are there cross-promotional opportunities between your various product categories? information visit www.housewares.org 5 6 H O U S E W A R E S M A R K E T W A T C H • V O L U M E 3 N U M B E R 4 WHAT CONSUMERS TELL US WHAT WILL THEY BUY — Likelihood of Planned Purchase Most of the 25 product categories featured in this issue have purchase likelihood of less than 5%. The only categories with purchase likelihood of 5% or V 8% of U.S. households will definitely or probably purchase an electric can opener within the next year. V 5% of U.S. households say they definitely or probably will purchase a blender within the next year. V 6% of U.S. households are planning to purchase an electric coffee maker within the next year. V 5% of U.S. households say they definitely or probably will purchase a food thermometer within the next year. more are electric coffee makers, electric can openers, blenders and food thermometers. Likelihood of Planned Purchase (% of U.S. households that definitely or probably will buy in the next year) Can Opener (electric) 8% Electric Coffee Maker 6% Blender 5% Food Thermometer 5% Barware 4% Food Processor 4% Barbecue Tools 4% Juice Extractor or Juicer 4% Portable Fan 3% Ceiling Fan 3% Outdoor Grill 3% Hand-held Mixer (electric) 3% Microwave Oven 3% Window or Room Air Conditioner 3% Espresso or Cappuccino Maker 2% Stand Mixer (electric) 2% Rice Cooker or Food Steamer (electric) Ice Cream or Yogurt Maker 2% Dehumidifier 2% Iron 2% Vacuum Package Sealer or Machine 2% 2% Wok (electric) 1% Tea Pot (electric) 1% Ironing Board 1% Pressure Cooker 1% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: IHA Research by Riedel Marketing Group For more in-depth demographic H O U S E W A R E S M A R K E T W A T C H • V O L U M E 3 N U M B E R 4 7 OWNERSHIP AND PURCHASE TRENDS HOW MANY MORE OWN NOW THAN IN 2000 — Changes in Household Penetration from 2000 to 2002 Only one of the 25 product 58% of U.S. households now report owning a food thermometer. In 2000, 36%* of households reported owning one. V Increased media attention on the importance of using a food thermometer to determine the doneness of meats has educated consumers about the need for food thermometers. categories featured in this issue — food thermometers — increased in household penetration from 2000 to 2002. * See Editor’s Note Percent of Households who Own Microwave Oven Iron Ironing Board 86% 84% Electric Coffee Maker 96% 95% 95% 94% 91% 78% 82% 82% 79% 78% 77% 76% Blender Hand-held Mixer (electric) Outdoor Grill Ceiling Fan 73% Portable Fan 72% 77% 81% 69% 70% Barbecue Tools Can Opener (electric) Barware 54% Food Thermometer 36% 44% 43% Food Processor 34% 34% 33% 28% 33% 31% Dehumidifier Stand Mixer (electric) Window or Room Air Conditioner 26% 25% 23% 18% 22% 21% 20% 24% Pressure Cooker Ice Cream or Yogurt Maker Juice Extractor or Juicer Rice Cooker or Food Steamer (electric) 14% 15% 14% 11% 9% 15% 9% 11% Wok (electric) Espresso or Cappuccino Maker Vacuum Package Sealer or Machine Tea Pot (electric) 0% 10% 20% 30% 40% 61% 59% 58% 2002 2000 58% Editor’s Note: Although at first glance, it looks like household penetration increased across most of the product categories featured in this issue, much of the difference in household penetration can be explained by differences in how one of the questions was asked when the study was conducted in 2000 compared to this year. In 2000, we did not interview anyone who was younger than 21 or older than 69 whereas now we conduct interviews with younger and older householders as long as they are the person in the household who makes the purchase decisions on household products. Since approximately 10% of U.S. households are headed by someone age 69 or older or younger than 21, we inadvertently excluded as much as 10% of the households who own in 2000. For purposes of this analysis, we are assuming that any difference in household penetration that is less than 10% does not reflect actual changes in household penetration but rather reflects differences in sampling. 50% 60% 70% 80% 90% 100% Source: IHA Research by Riedel Marketing Group information visit www.housewares.org 8 H O U S E W A R E S M A R K E T W A T C H • V O L U M E 3 N U M B E R 4 OWNERSHIP AND PURCHASE TRENDS HOW MANY MORE HOUSEHOLDS PURCHASED NOW THAN IN 2000 — Changes in Annual Purchase Incidence from 2000 to 2002 Twenty of the 25 product categories featured in this issue experienced declines in annual purchase incidence in the 20012002 time period compared to the 19992000 time period when the economy was still going strong. The categories that experienced the largest declines in annual purchase incidence during that time period V 7% of U.S. households purchased irons in the past two years. 19% purchased irons in 1999–2000. V 8% of U.S. households purchased barbecue tools in the past couple of years. 16% purchased barbecue tools in 1999–2000. V 7% of U.S. households purchased a blender in the past two years. 15% purchased a blender in 1999–2000. were irons, barbecue tools and blenders. Percent of Households Who Bought in the Past Year None 31% 40% 18% 19% Electric Coffee Maker 11% 13% 11% 16% 11% 17% 8% 16% Outdoor Grill Portable Fan Microwave Oven Barbecue Tools Can Opener (electric) 7% Blender 7% Ceiling Fan 7% Iron 7% 5% Hand-held Mixer (electric) 5% 5% 4% 4% 4% 5% 4% 7% 3% 7% 3% Food Thermometer Dehumidifier Food Processor Window or Room Air Conditioner Barware Ironing Board 2002 2000 13% 15% 14% 19% 10% 8% 3% 3% 3% 3% 2% 3% 2% 5% 2% 3% 2% 2% 2% 2% 1% 3% 1% 2% Juice Extractor or Juicer Ice Cream or Yogurt Maker Stand Mixer (electric) Rice Cooker or Food Steamer (electric) Espresso or Cappuccino Maker Tea Pot (electric) Pressure Cooker Vacuum Package Sealer or Machine Wok (electric) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: IHA Research by Riedel Marketing Group H O U S E W A R E S M A R K E T W A T C H • V O L U M E 3 N U M B E R 4 Consumers’ “Split Personality” Bodes Well for Cooking, Cocooning and Casual Living Lifestyle Trends It seems Americans want to have their cake and eat it too. Many consumers are mixing contradictory lifestyle trends within their home, combining their own mélange of trends to match their eclectic style. Housewares retailers will be presented with the challenge of identifying the consumer’s “split personality” in 2003. American consumers cite a desire for healthy eating yet they have not abandoned their craving for some of life’s unhealthy indulgences. Some consumers state they love to cook and yet they occasionally view cooking as a chore. And while casual living continues to be the predominant theme for home entertaining, formal dining is on the rise. These conflicting lifestyle trends combined with an uncertain economy plus the threat of war with Iraq may drive many Americans to continue insulating themselves within their home cocoons. This bodes well for the housewares industry as consumers search for items such as candles, popcorn poppers, photo albums and dinnerware that enable them to develop a better sense of family and community. These new trends and products can be seen at the 2003 International Housewares Show, sponsored by the International Housewares Association, Jan. 12 - 14 at McCormick Place in Chicago. There is no question the after-effects of September 11, 2001 strengthened the “cocoon boom,” a trend that started years earlier as Americans transformed their homes into a family haven and private retreat from the outside world. Immediately following September 11, sales at home building and home furnishings companies as well as consumer electronics and discount chains were higher than at other retail segments in the fourth quarter 2001, according to a September 2002 report in CNN/Money. Consumers Retreat to Home, Family, Community As consumers strengthen ties with family, friends and community, the casual living trend, which has influenced the housewares industry for years, is expected to continue. “Products that encourage family togetherness, promote quality family time, support family traditions and enable people to connect will do well this year,” said A.J. Riedel, senior partner and founder of Riedel Marketing Group and editor of IHA’s Housewares MarketWatch newsletter. She cited categories such as tabletop and dinnerware, candles and fireplace/hearth products, board games and entertainment products, popcorn poppers, photo albums, comfort foods, decorations and collectibles for Christmas and other holiday seasons as strong sellers in 2003. Riedel noted Americans seem to be attaching greater importance to time spent with their families, friends and neighbors since September 11, citing a study Greenfield Online/TNS Interactive conducted for American Demographics magazine in June 2002. “When asked last October (2001), 42 percent of adults said they planned to become more closely involved with their communities as a result of September 11,” she said. “In June, 20 percent said they had actually made the effort to be more closely involved.” Tom O’Higgins, president of The O’Company, a design and marketing firm for housewares and gourmet companies, agreed. “The casual entertaining process is going to continue because there is still a sense of community, sharing and a sense of family,” he said, noting consumers will still have parties, entertain friends and families and celebrate birthdays and holidays. Riedel said Faith Popcorn’s 7,500 member “TalentBank,” which is used to predict social, economic and cultural trends, has noted trends toward insulating, protecting and surrounding ourselves with comfort within our homes—and the spending to accomplish those feelings of safety—are increasing. “Eating main meals away from the home declined in the past year, due mostly to economic concerns and consumers are showing a greater inclination to prepare homecooked meals,” she added. “Home, hearth and happiness are the trends we are seeing now,” said Bob Coviello, president of Housewares Tabletop International. “Comfort food, rustic cooking–these are the trends that make people feel warm and fuzzy. I expect the cocooning trend to continue and that is good for the housewares industry.” Looking ahead toward 2003, industry experts anticipate the casual living, “home comfort” and comfort food trends will be redefined. “Like Dorothy said, ‘There’s no place like home’,” said Eleanor Hanson, co-editor of FoodWatch, a newsletter that tracks and analyzes consumer food trends. “There is still a feeling that when consumers come home they can take a deep breath and relax.” But, Hanson said the term “comfort food” is being overused and losing some of its appeal. “The underlying premise is still valid because there is a place in the industry for comfort appeal, however, it needs a new twist, such as new words cozy, soothing or homespun, to get the consumer’s attention.” While comfort food continues to be an overriding trend, consumers are still pressed for time and not willing to sacrifice convenience. “The world has become a string of mini meals and snacking and an individual, portable eating category has developed,” Hanson said. Consumers are eating in their cars, offices and dorm rooms, she said, and they are searching for products that cook well and can be easily transported. Food marketers have capitalized on this trend with items such as yogurt or peanut butter in squeezable tubes or soup cans for those on the go. “We are seeing an increase in ‘fast and functional eating,’ which is one-handed meals and snacks, eating on-the-move, desk-dining and the use of ready meals and minimal effort meal kits,” Riedel said. “All of these types of consumption offer convenContinued on next page information visit www.housewares.org 9 10 H O U S E W A R E S M A R K E T W A T C H • V O L U M E 3 N U M B E R 4 Consumers’ Split Personality continued ient, time-saving solutions to the need to eat or prepare proper meals.” “The need for convenience and speed aren’t going to go away anytime soon,” said Sandra Hu, vice president/director of the Ketchum Food Center. “Countertop ovens that cook quicker, tools that make food preparation simpler – consumers are willing to pay a premium to buy time.” Formal Dining On The Rise Too While casual living remains strong, industry veterans are starting to see a return to formal for special occasions. Riedel cited an increase in “special occasion” eating where consumers are making a greater effort to make some of their meals special occasions or meet up with friends or family for a dinner party. “For everyday, I don’t see casual (dinnerware) going away,” Riedel said. “But, I think that people are starting to want to have dishes and other items that are just for special occasions just like our mothers and grandmothers had. They had the everyday dishes and the “good” china. “In my research with Generation X home owners this summer, I saw a definite trend among the newly married toward having two sets of dishes, one for every day and one for special occasions,” Riedel added. Yin And Yang: A Dichotomy In The Kitchen Just as consumers have two mindsets for entertaining—casual and formal for different occasions, there appears to be a dichotomy in terms of cooking too. “There is a dichotomy among consumers— a yin and yang in the kitchen,” Hanson said. “We see them as two distinct groups but also see two sides of the same coin. The same people are exhibiting different wants and needs depending on the circumstances.” Hanson described the yin and yang approach to cooking as varying between dummies—those who hate cooking or view cooking as a chore and sophisticates— those who love cooking and “live to eat.” “Some of us are dummies—or at the very least, don’t want to be bothered cooking,” according to FoodWatch. The newsletter states “the cooking dummies are not so much dumb as they are disinterested—perhaps even antagonistic—about cooking. It is of no interest to them.” “For others, finding just the right ingredient or preparing the most complicated dish becomes central to our existence. And, more than just a few of us regularly shift between these two personas,” FoodWatch reports. Sophisticated cooks consist of two primary groups—aging boomers who have the time and money to devote to learning about and enjoying food, and young adults who view cooking as a creative outlet, according to the newsletter. The dichotomy also occurs within the same consumer since some “dummies” may view cooking during the week as a nuisance, yet transform themselves into gourmet cooks on the weekends. “Cooking as self-fulfillment continues to be a powerful motivator,” said Hu. “Similar to the 1970s when people were so into cooking they were buying kits to grow mushrooms or to make sprouts, there is a movement to cook on weekends for personal self-fulfillment, for the recreational pleasure of cooking. “Consumers who are cooking advocates want the best cookware they can afford and are willing to buy whatever specialty tools they think will enhance their cooking skill,” she said. “Playing to this emotional need can be compelling.” Healthy Cooking Continues That dichotomy seems to transcend to healthy eating and fitness as well. Riedel cited contradictory trends regarding health and fitness. “According to the Food Marketing Institute, we are seeing increases in concern about nutrition,” she said. She cited a 2002 FMI report, Trends in the United States: Consumer Attitudes & the Supermarket, 2002, in which half of American shoppers report being “very concerned” about the nutritional content of what they eat, up from 46 percent in 2000. And 70 percent of shoppers admit their diet could be somewhat or a lot healthier, up from 68 percent in 2000. “Baby boomers are growing old and are looking for the magic bullet for lifelong good health,” Hu said. “Appliances that provide healthful ways to eat will be appealing. Also, there is a lot of attention being focused on the epidemic of overweight kids and adults. This need for weight control provides opportunities for steamers, grills and any new appliances that can cook foods with low or no fat.” Feel-Good Product Sales to Increase No matter the economy, there are still some items in which consumers will continue to indulge. Feel-good products, such as stress-relieving massagers, health care and personal care items, will continue to sell well. “There is a sense of pampering oneself not only on the outside but the inside as well,” O’Higgins said. Hu agreed. “We all need some pampering. People need to feel they are taking care of themselves and their families,” she said. “So much in the world is uncontrollable, especially in today’s uncertain times. Small indulgences make people feel better.” Indulgences are not just limited to products. Consumers may indulge in a home remodeling or redecorating project that provides the same “feel-good” senses. For many, the laundry room has become “the” room to have. According to Riedel, the laundry room has become the new status symbol. In a survey released in September 2002 by the National Association of Home Builders, Riedel noted home buyers ranked a separate laundry room not just a space for a washer and dryer as the most coveted design feature in a house. She noted it beat out 88 other features, including a bathroom linen closet (No. 2), a separate dining room (No. 8) and a walk-in pantry (No. 9.) Are Consumers Ready to Break Out of Their Cocoons? If the economy begins to improve, Americans may be ready to break out of their cocoons and begin traveling again. “People are traveling again and they want Continued on next page For more in-depth demographic H O U S E W A R E S M A R K E T W A T C H • V O L U M E 3 N U M B E R 4 Consumers’ Split Personality continued to experience different lifestyles,” O’Higgins said. As they travel and experience new cultures, foods, styles and designs, consumers may seek to purchase new items, such as cookware or home décor, to recreate that experience within their own home. O’Higgins noted the popularity of Tuscan, Mediterranean and Provencal colors, styles and designs is an indication of this trend. “Ethnic foods continue to grow in popularity in restaurants and the mainstream consumer is introducing these flavors into the home – ingredients like balsamic vinegar, cumin and soy sauce are now commonplace across the U.S. There is a potential to promote appliances that enable consumer to cook ethnic dishes – pressure cookers for beans and lentils and sushi kits come to mind,” Hu said. The desire for an ethnic flavor in cooking is transforming the grilling experience as well. “The new ethnic grilling opportunities— from Latin to Asian to Mediterranean—keep grilling exciting,” Hu said. “It’s not the same old food and the same old flavors. Grilling is simply the technique – the new flavor profiles take grilled foods around the world.” Color Palette Remains Muted Consumers’ concerns and fears along with their search for security and safety has manifested into soft, muted colors such as blue greens, copper and metallics and conservative, neutral colors such as browns and earth tones. “Initially after 9/11, we saw a spate of red, white and blue, mostly in promotional, decorative items,” said Jay de Sibour, president of the Color Marketing Group. “In a broader sense, it raised consumer’s minds about the need to reconnect, to consider the issues of home, family and religion. “When the economy is good, people tend to be more daring in terms of color, however, when the economy is tight, people put more value in their purchase. They tend to be less frivolous and less risk-prone because it may be a long time before they can replace that item.” ■ New Products and Trends at the 2003 International Housewares Show Kitchen, Dining and Decorative Expo Stovetop popcorn poppers along with gourmet and theater-style popcorn and accessories are expected to be strong sellers as consumers continue searching for “comfort foods.” ■ Sushi making kit that includes rice, rice vinegar, sauces, bamboo mat and paddle and cookbook ■ Environmentally friendly soy candles that provide a clean, longer-lasting burn ■ Handmade, all natural home furnishings and decorative accessories made of such natural fibers as abaca, sinamay, buri and raffia ■ A vacuum sealed storage container and serving platform that keeps baked goods fresh for days ■ Handheld fresh herb processor that features a pull cord to chop herbs and garlic ■ Cast iron table wok with burner underneath so consumers can entertain and prepare food right at the dinner table ■ Silicone oven mitt that protects the user’s hands during contact with direct flames up to 500º ■ Household storage clips that are not only airtight but also include attached spoons and scoops for easy storage and use ■ Stainless steel flatware with ergonomically shaped style and design to feel better and provide better balance for the user ■ Well-designed, quality acrylic serving ware and plastic food storage products in such colors as blues, greens and purples ■ Odorless, smokeless oil lamps that are clean burning and are refillable ■ Storage containers with a patented airtight locking system that are stain resistant, dishwasher, freezer and microwave-oven safe ■ Retro-styled salt and peppers shakers, oil and vinegar cruets and sugar, cheese and straw dispensers made of smoked black glass with stainless steel lids ■ Licensed stainless steel cookware and kitchen accessories ■ Basting brush that attaches to a beer or beverage can for barbecuing ■ Crystal-clear cooking pots that can be used in the microwave, oven and stovetop as well as serving and storing dishes ■ Kitchen tools and gadgets with different ergonomically shaped handles that fit perfectly in the hand since they were designed according to how they are used ■ Italian-designed stainless steel teakettle shaped like a cube Electrics and Home Healthcare Juicer that can also grind seasonings and coffee beans, mince meat and fish and make fresh pasta and frozen fruit sorbet ■ Chest-style freezer with a glass top and built-in drawer that is ideal for keeping froze food such as ice cream at a ready to eat temperature ■ Electric beverage cooler that quickly chills an aluminum can from room temperature to cold drinking temperature in one minute and a wine bottle in six minutes. It can also be used to warm up baby bottles ■ Bathroom scale that stores, recalls and displays the user’s weight history for up to two years. It also can be used as a conventional scale or the readout can be mounted at eye level ■ Updated, “smart” slow cooker that features 200 recipes programmed into the digital appliance making it more convenient and versatile ■ Pour-in countertop water cooler with a filtration accessory that allows the consumer to use whatever size bottled water available and frees up space in the refrigerator ■ Filtered water cooler that enables consumers to use tap water but eliminates bad taste, odor, sediments and lead. It also features an automatic monitor to let consumers know when its time to replace the filter ■ A wrist blood pressure monitor that also includes a body fat meter that calculates body mass index ■ Redesigned fondue pot with heat resistant handles and break away electric cord for “dip-dining” and entertaining at home ■ A roasting machine that locks in juices and seals in flavor and can also be used for baking as well as steaming rice, vegetables and seafood ■ Stylish, Italian-designed stainless steel two-slice and four-slice toasters that can also be used to make pannini sandwiches ■ Upgraded, quieter deep cleaning machines that are narrower and can fit easier on stairs ■ An electric appliance that can make froth and hot beverages as well as prepare sauces, dips and desserts Home Organization, Cleaning & Furniture Expo Home safety product that can be mounted to a window frame to prevent a child from falling out and can also be a deterrent for potential criminals ■ Portable light for computer and laptop that helps reduce eyestrain ■ Light that attaches to window and helps emergency services personnel locate your home quickly ■ Asian-inspired, handmade home office accessories, placemats, candle holders and lighting fixtures made of woven fibers such as pandan and mendon combined with materials such as galvanized metal ■ Folding table that can be adjusted to four different heights so it is always the correct height and eliminates unnecessary bending and strain ■ Clear, acrylic expandable dish drainer that features side trays to hold pots, pans or platters ■ Anodized aluminum grip and hook holder, perfect for cleaning tools, sports gear or garden tools ■ Adhesive roller mop with handle that picks up pet hair, crumbs and debris on carpets and hard floor surfaces similar to an adhesive lint brush ■ Colorful, highresolution plastic cell phone holders shaped like chairs and rear-view mirrors for computer ■ An interchangeable painting system that includes a soft grip handle that is equipped with a paint lid opener and built-in brush comb for easy cleaning ■ A three-piece auger system that attaches to any drill to plant flowers and bulbs without bending over ■ Folding picnic tables that feature built-in seating ■ An all-in-one laundry and ironing unit that includes a hamper, clothes bar and a collapsible ironing board ■ Closet storage items featuring leather, linen and flannel fabrics ■ Licensed garment and laundry care items ■ Cleaning products, especially hand vacuums, steam extractors and stick vacuums, are popular ■ An alarm that attaches to the discharge hose of a washing machine and shuts off the power when the water level in the laundry tub gets too high, preventing an overflow and water damage ■ Natural crystal odor absorber that absorbs and neutralizes unpleasant refrigerator odors information visit www.housewares.org 11 H O U S E W A R E S M A R K E T W A T C H • V O L U M E 3 RESEARCH CONTRIBUTORS N U M B E R 4 next issue The next issue of Housewares MarketWatch examines consumer purchase patterns for the following categories: POINT-OF-SALE About NPDHouseworldSM NPDHouseworldSM is the definitive online source for accessing essential market information and insights organized around business issues. Through powerful interactive features, NPDHouseworld provides the appliances and housewares industries with access to information from The NPD Group’s uniquely combined point-of-sale tracking and world-class online consumer panel. It provides a personalized, in-depth view into what is selling, where, to whom and why. As the only information source that does this, NPDHouseworld makes information for some of today’s most critical business decisions accessible and actionable across the enterprise. For more information, please contact Kevin Kelly at 516-625-2316 or via e-mail at kevin_kelly@npd.com. About The NPD Group, Inc. The NPD Group is an innovative global market information company that leading manufacturers, retailers, resellers, distributors and operators turn to for essential market information across a broad range of industries. As the gold standard for measuring product movement and consumer behavior in each industry tracked, NPD offers unparalleled information for better business decisions. Clients use this business-critical insight to uncover market opportunities, to strengthen channel relationships and to benchmark industry performance. Markets tracked by NPD include apparel, automotive products, consumer electronics, cosmetics and fragrances, food, foodservice, footwear, housewares, information technology, interactive entertainment, toys, music and more. The firm has offices and affiliations in 60 countries, covering North America, South America, Europe, Asia and Australia. CONSUMER About A.J. Riedel and the Riedel Marketing Group [www. 4rmg.com] A.J. Riedel, Senior Partner of Riedel Marketing Group (RMG), is a recognized marketing authority for the housewares industry. RMG provides a full-range of strategic marketing planning services exclusively to the housewares industry and publishes shared-cost, multi-client consumer market research reports. For more information, please contact A.J. Riedel at 602-840-4948 or via e-mail at aj@4rmg.com. TABLETOP/DINING Flatware Dinnerware Glassware Serving Bowls/Platters Trays Napkin Holders Coasters Salt & Pepper Shakers DECORATIVE Clocks Photo Frames Portable Lamps Framed Art Candles HOME ORGANIZATION/STORAGE Craft Storage Plastic Storage Totes, Bins/Drawers Closet Storage/Organizers Shower/Bath Caddies Kitchen Cabinet/Drawer Storage/Organizers Garage Storage Sinkware (dish racks, dish pans, etc.) HOME HEALTHCARE/PERSONAL CARE Power Toothbrushes/ Plaque Removers Oral Irrigators KITCHEN TEXTILES Kitchen textiles (dish towels, hot pads, pot mitts, dish cloths) Tablecloths Placemats METHODOLOGY o obtain retail sales data, NPDHouseworld draws sales and inventory data from a broad and diverse panel of retailers, collecting actual results from each store in each participating chain. NPDHouseworld’s retail panels for small electric appliances and housewares comprise over 6,500 department store, mass merchandising and home specialty outlets, including such industry leaders as Kmart, Target, Federated Department Stores and Linens ’N Things. A sophisticated projection system is used to account for missing pieces of the market. The foregoing information is limited in that the volumes represent extrapolated retail dollar sales for specific channels of distribution, derived from a panel of retailers. NPDHouseworld and the International Housewares Association provide the foregoing information “AS IS” and make no representation or warranties of any kind concerning its accuracy, completeness, suitability for any purpose or otherwise. T All information is subject to change without notice. Market size data published in Housewares MarketWatch should not be interpreted as representing the total market. To obtain consumer purchase dynamics, a national sample of 1,000 U.S. households were interviewed by telephone during the month of October. In each household, the person who typically is responsible for making decisions about purchasing small household appliances and products was interviewed. Household selection was accomplished via a computer-generated random digit dial telephone sample, which selected households on the basis of telephone prefix. All interviews were conducted at the central location telephone facility of Rose Research by means of Computer Assisted Telephone Interviewing (CATI). The CATI system is a computer-controlled interview that uses a tightly integrated branching pattern to control cuing and display of contingent questions. Housewares MarketWatch Deborah A. Teschke, Senior Editor A.J. Riedel, Editor Published by: International Housewares Association 6400 Shafer Court, Ste 650, Rosemont, IL 60018 Tel: 847-292-4200 Fax: 847-292-4211 www.housewares.org For more information, contact Debbie Teschke at 847-692-0110; dteschke@housewares.org ® I N T E R N AT I O N A L H O U S E WA R E S A S S O C I AT I O N