Industry Overview
Despite the economic downturn, North America remains one of the largest markets for housewares in the world. According to the most recent estimates, the U.S. and Canada accounted for 25 percent of global housewares retail sales totaling $76.7 billion. According to the International Housewares Association, here are some of the latest trends in the market:
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 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 percent to $194.3 billion (in 2011) according to the U.S. 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 doting sales staff. In the future, QR codes and other innovative social shopping services will provide consumers with unparalleled choice. Retailers and vendors alike need position themselves to take advantage of the huge growth opportunities this offers.
All of these trends will be on show at the 2015 International Home + Housewares Show in Chicago March 7-10. About 60,000 housewares professionals from more than 120 countries will attend in search of the latest in products for homes around the world.