Archive for December, 2007

‘family’ becoming a hot marketing focus

Monday, December 31st, 2007

If you haven’t already noticed it, it’s a trend to watch: more family-oriented marketing campaigns from industries as varied as real estate, cars, video games, electronics and food… and hopefully furniture.

In part, it’s due to the growing number of people raising children in the city. In Manhattan, for example, the number of families with children under 18 grew nearly 5% between 2000 and 2006, according to US Census Bureau.

Campaigns are varied, but many are targeting the 8-18 adolescent. As an example, amenities for the older child are the latest twist in condo development, according to Crain’s New York Business magazine (Dec 10, 2007). Developers are including game rooms, swimming, karate and roof-top astronomy lessons, greater insulation between kids bedrooms and living rooms, and more. In each case, parents can be close by without hovering.

“While playrooms were obligatory for new developments a few years ago, game rooms and Internet access are the must-haves now,” the article said. 

Stay tuned for more in 2008 on this shift toward marketing ‘family’ rather than just young couples in the media. 

in a competitive market, being ‘unique’ is highly valued

Friday, December 28th, 2007

Competing in today’s tough retail market is no easy task. So here’s some advice from Gordon Segal, creator/owner of Crate and Barrel, from The Reluctant Entrepeneur, Inc Magazine (July 2007).

 ”It’s harder to be unique today. In the 1960s, very few people travelled internationally…Now the world has grown much closer, which is great, but it means that products… face more competition.

On the other hand, because there are fewer different stores and more homogeneity in retail today, uniqueness is more highly prized. If you can develop a unique design… or something beautiful - you have greater opportunity today than you did back then.”

I couldn’t agree more, and would add that being unique can go beyond products to services, processes, ideas and messages. It takes courage to step away from the crowd, but differentiating in a way that’s meaningful to consumers not only adds value; it’s a powerful way to thrive, not just survive.

stainless steel appliance sales continue to grow

Thursday, December 27th, 2007

10% of home appliances are now stainless steel, up from 3% five years ago. And nonwhite home appliances, which accounted for over 15% of total worldwide shipments in 2006, is expected to grow to almost 25% of total shipments by 2011. 

“It’s part of the consumer trend for customization,” said Jill Notini of AHAM. “It’s also a reflection of the fact that the kitchen is more of an entertainment area, and with more open floor plans, more visible.”

Source: Advertising Age Magazine, Nov 9, 2007

‘beautiful means nothing’…

Thursday, December 20th, 2007

From a Fast Company magazine interview with Philippe Starck, the man who designed everything from more beautiful toilet brushes to motorcycles, juicers that look like spiders, cutting edge restaurants, boutique hotels, furniture, lighting and more…

“…marketers make people crazy. Today pink is beautiful; in six months, it will be green. It’s trendy, or out of trend. The style of tomorrow will be the freedom and recognition of difference. We must replace the name ‘beautiful’ by the name ‘good’. Beautiful means nothing.”

“Today, all buildings are very fancy… Now it’s time to come back to quality. I want somebody walking by on the street to say, ’Look, darling: it can be good to live here. I think we could be at peace’.”

“If you see everything I do, there is not a style, there’s a logic. There is a way of thinking, the same brain.

“I am not a fashion victim … My only inspiration is my life.”

For more on the interview with Philippe Starck, see: Fast Company Magazine, Oct 2007, Starck Raving

consumers responding to information about better sleep

Wednesday, December 19th, 2007

There’s more and more information in the media about sleep (or the lack of it), so it was interesting to hear about Better Sleep Council’s (BSC) plan to expand their consumer message and reach.

Following a BSC campaign begun in 2006 to bridge the connection between sleep and emotional well-being. their 2008 campaign will discuss sleep and physical performance; in 2009, sleep and healthy relationships; and in 2010,  sleep and intellectual capability.  

A few interesting stats to measure consumer response to the topic of “better sleep”:

sleep messages (print, online and broadcast) reached 416 million consumers, a 99% increase over last year

* sleep media spots rose to 432 million in 2007 (first 9 months), up from 128 million in 2003. 

* monthly BSC web site traffic has risen to 106,000 visitors, up 29% from a year ago 

* annual BSC web site traffic jumped to 929,000 visitors in 2007 (first 9 months), as compared to 160,000 in 2003.

BSC’s web site: www.bettersleep.org

Source: Furniture/Today, Dec 3, 2007

refrigerators with docking station

Wednesday, December 19th, 2007

Not long ago, the “Internet refridgerator” promised to manage family schedules, transmit grocery lists to stores and more.  But it seeems technology changes a little more quickly than consumers want to replace their refridgerators (really?!) and the idea was a bust.

Fall 2007: enter fridge with docking station. A much better match, it appears. Whirlpool’s new centralpark Connection will act as a docking station to recharge portable electronics, and plug in a flat-panel TV or tablet PC, with wires pre-installed for electrical power, cable TV and Internet service.

Expect refridgerators in coming years tol let us plug in a Tablet PC for Internet, email, leaving each other mesages and planning calendars, a CD, MP3 player or DVD to play music or movies, a digital memory card to runs a slide-show of favorite photos, and a satellite radio with more than 100 channels.

While most consumers still prefer using kitchen technology for efficiency rather than entertainment, if these features simplify our lives, a little extra music, radio and art in the kitchen might be nice. 

drop in ‘household growth’ adding to housing crisis

Monday, December 17th, 2007

Demand for housing typically parallels trends in marriages, births, immigration and income growth.  And during the 2001-2006 housing boom,  homebuilders justified an over-building frenzy because of new demand: more young married couples, more newly divorced, and more immigrants - all who needed a place to live.

But a 2007 Census report shows a 44% drop in the number of new households formed - to 891,000 from 1.6 million in 2006. This sudden drop in household growth - well below the trend of 1.1 M the past five years - helps explain why homebuilders, subprime buyers, banks and hedge funds are all in trouble, says Business Week Magazine.

The boom stole sales from the future as people bought houses earlier than they might have a few years ago. The pressure has to rebuild from people who have crossed critical life threholds and need a home,” says Dowell Myers, a professor of urban planning and demography at the University of Southern California, quoted in the article.

Homebuilders are now correcting their overbuilding mistep by slashing construction, the article explains,  but it could take 2-3 years to ’soak up’ the excess supply of new homes built.

For more information: see Business Week Magazine, Aug 13, 2007.

green home products important to more older than younger consumers

Sunday, December 16th, 2007

With every survey indicating that it’s older rather than younger consumers who are more likely to be concerned with ‘green’, I’m surprised. I guess I thought young kids’ minds were being filled with all-things-green in school, and since they would seem most at risk of a future unhealthy environment, they would also care the most.

But again last month, a report from the NDP Group (NY) indicating that consumers aged 55+ are more likely to rate eco-friendly products as important. Asked to weigh in on the importance of eco-friendly products at home…

Eco-friendly home insulation was important to 82% of consumers aged 55+ vs. 63% for age 18-34.

Eco-friendly major appliances were important to 79% of consumers age 55+ vs. 62% for age 18-34.

Eco-friendly lighting was important to 68% of consumers age 55+ versus 57% of age 18-34.

Eco-friendly house paint was important to 67% of consumers age 55+ versus 50% age 18-34.

(Age brackets between 35 and 55 came in somewhere between these percentages.)

The good news is that the eco-friendly numbers are as high as they are for all ages. And maybe college students and young parents just have more things on their mind than seniors. Or maybe they’re more skeptical about green issues, or the current avalance of media attention.  Or maybe they think they can’t afford to go green. Still, it just surprises me.

wine sales up 7%

Sunday, December 16th, 2007

Sales of wine continue strong. For the 52-week period ending August 1st, 2007, sales of red and white wines were up 7%. Wine ‘gadgets’ were up nearly 16% during the same period

Red wine is growing the fastest; up 14% for the 13 weeks ending August 1st, as compared to overall wine sales increase of 8% for the same period.

For the second year in a row, sales also indicate that consumers are buying wine at higher prices.

closets continue to claim space (and furniture sales)

Friday, December 14th, 2007

br-country-living-dec-2007-home-almanac.jpg 

The trend continues … custom closets reinventing bedrooms and (hopefully) bedroom furniture.  Country Living Magazine reported this month that the average home has 6 closets…  but in new homes at least 2 of those closets are walk-ins - ranging in size from 4×6 to 8×9.  The article advised consumers “to make the most of this area by lining the closet’s perimeter with drawers, shelves, and hooks. “

Walk-in closets aren’t just for hanging clothes. The average walk-in closet features 20 feet of hanging space, and many (most) now feature cases and shelves to store what was once stored in free-standing dressers and chests.

The appeal of custom closets is easy to understand. Cosumers like to see all their choices in one place, at one time. Many of today’s closets are ellaborate dressing rooms. In newer, high-end homes, some of the walk-in closets are even larger than 8 x 9 and feature a reading chair, chaise lounge and central dressing tables (like a kitchen island).

The good news is that not everyone has space for furniture in their closet… making it important that dressers and chests  become more functional, and even to incorporate some of the smart storage features of custom closets.

For more information on designing smart storage bedroom storage, see room planners’ organized bedroom report at www.roomplanners.com.

Photo: Country Living Magazine, Dec 2007