American consumers are entering the new decade with cautious optimism, as many plan to continue navigating through a difficult economy by focusing on frugal spending and simpler lifestyles.
Over the past decade, many Americans have turned their attention toward the home and activities such as home entertaining, healthy cooking and home improvement. These trends marked a return to traditional values and have signaled good news for the housewares industry. Hundreds of new products highlighting these trends will be on display at 2010 International Home + Housewares Show, March 14-16 at McCormick Place in Chicago.
“Probably the biggest trend, and one that has been percolating for a few years, is the return to frugality,” said A.J. Riedel, senior partner of Riedel Marketing Group. Riedel noted this trend has been growing, but it took the struggling economy to “kick it into high gear.”
“Often, we don’t see radical shifts in behavior until we’ve looked at the past decade. Consumers were hit by a huge economic downturn on so many levels – the housing market, the stock market – that even consumers who once were secure now felt insecure,” she explained. “Many are realizing how far out of control they had gotten. It made many people realize they had a false sense of security.”
The International Housewares Association’s (IHA) Consumer Advisory Council, a subset of the 100-member Home Trend Influentials Panel, or HIPsters, created by Riedel Marketing Group mirror this trend. The HIPsters were created to identify cutting-edge home-related trends and a small group of HIPsters comprise a focus group each year for IHA.
In June 2009, Riedel surveyed the full HIPsters panel about money and the future. Thirty-six percent said they were more worried about money and the future than they were in late 2008. Almost half, about 46 percent, were feeling the same level of worry, and only 16 percent were less worried.
At an October 2009 focus group of seven HIPsters, two reported feeling cautiously optimistic that the economy is starting to recover. “Yet, there is still the fear factor, especially among the younger women, even though none of this year’s group of HIPsters have lost their jobs or been adversely affected by the recession,” Riedel noted. When the focus group was asked whether they would return to their old spending habits once the recession ends, all seven said no. Seventy-three percent of the full HIPsters panel has said they would not go back to their old spending habits, an increase of 18 percent from a December 2008 survey.
Along with streamlining their spending, consumers also have been searching for ways to simplify their lives, household chores in particular. Riedel noted simplification was also a growing trend among the HIPsters at the October focus group.
For some HIPsters, this trend means getting a healthy meal on the table quickly. For others, it reflects simpler household cleaning. And for some, this trend means reducing clutter and possessions.
Slowdown expected for “green” products
The consumer trend toward “green” products seems to be abating. Some have reduced overall spending while others have grown skeptical of claims made about “green” products.
“The momentum may be slowing on the acceptance of new green habits and practices,” Riedel said. “While most of the focus group participants said they are much more aware of environmental issues than they were a year ago, they have not made any huge changes in their environmental habits and practices in the past year.
“It would appear, based on some comments by the focus group participants, that consumers are starting to question whether the sacrifices required to use green products instead of non-green alternatives are worth it,” Riedel said. At least half have switched to compact fluorescent lamps (CFLs), for instance, but several complain they do not like the light those bulbs emit.
Riedel noted that many HIPsters are embracing “green” products when they can reap an immediate benefit, such as using solar water heaters or tankless water heaters to conserve energy. “Some environmental practices are harder to measure,” she said. Many HIPsters, Reidel noted, have returned to traditional products for cleaning. One HIPster has begun using “basic” cleaners such as ammonia, vinegar, bleach and baking soda because she believes they clean better and likes their scent.
Outdoor entertaining still strong
According to The NPD Group, most consumers still do outdoor entertaining, with an average frequency of about four times per year. In an April 2009 report, about 45 percent of outdoor entertainers purchased some type of related product in the past 12 months. In addition, more than 40 percent told NPD they plan to purchase or add an item to their property in the next 12 months.
Firepits/outdoor fireplaces, outdoor lighting and water fountain/décor were among the products outdoor entertainers said they would plan to purchase within the next year.