top trends for 2012. ©2011 lifetime brands, inc. top trends for 2012 expert panel susan yashinsky...
TRANSCRIPT
©2011 Lifetime Brands, Inc.
TOP TRENDS for 2012Expert Panel
Susan YashinskyMacro Trend Forecaster & Innovation PredictorSphere Trending
Michelle LambCo-founder and Chairman; Editorial DirectorThe Trend Curve
Robin K. AlbingPresident/CEOAlbing International Marketing, LLC
TOP TRENDS for 2012
10 New Rules for theChanging Economy6
Reinventing Customer Relationships5
The Multi-Faceted Meaning of Value4
America’s Culinary Rebirth3
The Multi-Generational Home1
The Rise of Anti-Consumerism2
THE MULTI-GENERATIONAL HOME1© 2011 GLOBAL TREND & DESIGN
Four distinct generations in the workplace, home and marketplace
Consumers taking cues from each other: Gen Y teaches the older generations about technology while Baby Boomers influence younger consumers on experiential activities (yoga, traveling, etc.)
BABY BOOMERSAge 46-6580 Million
ACTIVE SENIORSAge 66+
47 Million
GEN YAge 16-3584 Million
GEN XAge 36-4543 Million
THE MULTI-GENERATIONAL HOME1© 2011 GLOBAL TREND & DESIGN
GEN Y Age 16-3584 Million
Key Inspirations: Friends Technology Local retailers Experience Social media
Key Words: Renters Job-hopping Peer influence Collective empowerment Record unemployment
THE MULTI-GENERATIONAL HOME1© 2011 GLOBAL TREND & DESIGN
GEN YAge 16-3584 Million
Marriage is simply shrinking as a cultural value; in 1960 66% of women over 15 wanted it, today just 51%
“Boomerangers” Large amount of
debt New social norms
on marriage & children
Urban migration Crowdsourcing Demand to be seen
as individuals but capitalize on power of the crowd
Everything is reviewed and rated, making decision-making a team sport
Radical Change:
THE MULTI-GENERATIONAL HOME1© 2011 GLOBAL TREND & DESIGN
Key Words: Family Overwhelmed/ Underwater Community Entering peak
earning years
Key Inspirations: Gen Y Work / life balance Healthy living Children
GEN X Age 36-4543 Million
THE MULTI-GENERATIONAL HOME1© 2011 GLOBAL TREND & DESIGN
GEN XAge 36-4543 Million
The majority of moms (65%) utilize 5 or more forms of technology every day to stay connected
40% more households grew their own food last year than two years ago (NGA)
Radical Change: Stuck in starter homes Trading down to trade up Children’s health Hit hardest by recession Starting work later
means diminished incomes
Less ability to save Home ownership down
6% in 6 years (35-39 year olds, US Census)
THE MULTI-GENERATIONAL HOME1© 2011 GLOBAL TREND & DESIGN
THE MULTI-GENERATIONAL HOME1
Key Words: Power influence (10,000 a
day turning 65 for the next 19 years
Do-It-For-Me Downsizing Shifting priorities Second middle age
Key Inspirations: Gen Y Wellness Experience Giving back Family (quality time,
tradition creation and preservation)
BABYBOOMERS
Age 45-6580 Million
THE MULTI-GENERATIONAL HOME1© 2011 GLOBAL TREND & DESIGN
THE MULTI-GENERATIONAL HOME1
BABY BOOMERS
Age 46-6580 Million
Boomers do not perceive themselves as getting old and work hard at staying young
Radical Change:
Savings/Nest Egg loss Worried about retirement and
healthcare costs Working longer Supporting up to 3
generations (self, young adult children and aging parents)
Living longer Mentally and physically
healthier than prior generations
47% of parents are putting college expenses for their kids ahead of their retirement savings
THE MULTI-GENERATIONAL HOME1© 2011 GLOBAL TREND & DESIGN
Gen Y (ages 16-34) Globally-aware Willing to try new
things Design critical Love exotic flavors New homeowner Durability
important as an upgrade opportunity
Save me money, time and energy
Save the planet
Gen X (ages 35-44)
Rising concern about family wellness
Looking for solutions re: eating healthy
Community connections—reaching this consumer in new ways through local networks (such as Mommy blogs, Yelp, etc.)
Baby Boomers (ages 45-65)
Entering an experiential life stage
Disposable income moving to purchases that deliver experiences
New appreciation for the value of quality/family time
Know your
Customer
THE RISE OF ANTI-CONSUMERISM2© 2011 GLOBAL TREND & DESIGN
WhatDoes It
Mean?
Anti-consumerism: refers to the socio-political movement against the equating of personal happiness with consumption and the purchase of material possessions. (Wikipedia)
Anti-consumerists believe commodities only supply short-term gratification, and detract from a sustainably happy society.
GOALS:1. To increase the overall happiness and fulfillment of the
human race by encouraging simplicity
2. To save the planet from a global environmental collapse fueled by spreading hyper-consumption
THE RISE OF ANTI-CONSUMERISM2© 2011 GLOBAL TREND & DESIGN
“ I will not
overpay for
this!”
REALITY: Groupon-like sites are reimagining the coupon as a tool for dragging prices to unprecedented lows—not just a few bucks off a single product but 50 % off or moreOPPORTUNITY: While margins are compromised, consider this massive exposure for your brand and inventory leveling opportunities
“Look how much I saved!” has replaced “Look at what I bought!”
THE RISE OF ANTI-CONSUMERISM2© 2011 GLOBAL TREND & DESIGN
“Will I really use
this?”
REALITY: “The new mantra is ‘right-sized’ home amenities… Say goodbye to the industrial-grade kitchen range and the spa tub that the owners never fire up because they don’t want to clean it.” (Builder Magazine)
1 in 2 Americans will have a Smartphone by 2012, as compared to 1 in 10 in 2008 (Nielsen)
Consumer savings rate is now close to 6%, a big shift from the negative savings pre-recession
New ‘necessities’ also affect discretionary income
OPPORTUNITY: Reinventing the basics — Everyday use translates to everyday need
THE RISE OF ANTI-CONSUMERISM2© 2011 GLOBAL TREND & DESIGN
“We just don’t
have the room for
this.”
REALITIES: 57% of the 30.3 million housing units added from
2005 to 2020 will be rentals (Joint Center for Housing Studies)
Average new home size dropped 51 square feet in 2009 (Nat’l Assn. of Home Builders)
New storage needs: Cookbooks Coupons Grocery lists Medications Pet supplies Kids toys, etc.
OPPORTUNITY: Create smaller profile and smaller space solutions — the downsized home has to live larger
THE RISE OF ANTI-CONSUMERISM2© 2011 GLOBAL TREND & DESIGN
Laws ofAttractio
n
“If I don’t need to buy, how are you going to entice me to buy?”
The iPad was launched in April 2010 and as of January 18, 2011, 14.5
million have been sold
InspirationalDisplays
Exclusive Product
Outstanding Service
Engaging Events
THE RISE OF ANTI-CONSUMERISM2© 2011 GLOBAL TREND & DESIGN
Inspire Your
Consumer
People are learning to live within their means yet this doesn’t mean we have stopped being a consuming society
Understand that a new generation of coupons & discounts are enabling consumers—how do you play in this opportunity?
You’re competing for market share growth as the discretionary pie shrinks— know your competition’s strengths and weaknesses!
The kitchen continues to be the hub of the home and is taking on even more responsibilities; make sure your assortments are meeting these new demands
AMERICA’S CULINARY REBIRTH 3© 2011 GLOBAL TREND & DESIGN
Hub of the
Home
OPPORTUNITY: Multi-function and decorative value have never been more needed/important in this new kitchen environment
Besides cooking meals, the most common activities taking place in the kitchen are: 65% eating meals 62% planning meals 49% taking medications or
vitamins 46% talking in-person with
family & friends 43% talking on the phone 38% caring for pets 11% using computers (up from
6% in 2006)Research Institute for Cooking and Kitchen Intelligence
Male consumers now make up a $51 billion shopping industry
NPD Group
REALITY: Kitchens will continue to combine eating and
meeting spaces Bring dining, cooking, meeting, and recreation all
together in one large, open space
AMERICA’S CULINARY REBIRTH 3© 2011 GLOBAL TREND & DESIGN
StressBuster
REALITY: 79% of adults say they enjoy cooking 30% say they love it 49% say they enjoy it when they have the time (Harris Poll)
Increasingly cooking is seen as a stress reliever and a creative hobby
OPPORTUNITY: Entertaining opportunities from tasting parties to cocktails... New growth in DIY entertaining and even DIY weddings
In a survey conducted by the American
Institute of Psychologists, about
75%-90% of all visits to general physicians are
for stress-related problems
AMERICA’S CULINARY REBIRTH 3© 2011 GLOBAL TREND & DESIGN
New World
Influence
sOPPORTUNITY: Bring new culinary experiences to the mass—Williams-Sonoma has, from frittatas to stuffed pancakes (“ebelskiver”) and sous-vide cooking; all of which incidentally require new cooking appliances, prep tools, recipe books, etc.
Salsa now outsells ketchup and tortillas outsell white bread
Asian food market in the U.S. is growing 11%
Indian food market in the U.S. is growing 35%
Hispanics will account for 17% of the U.S. population by 2015, up from 14% in 2005
WILLIAMS-SONOMA
REALITY: Mass media such as television and the internet has made the American palette more sophisticated, adventurous and diverse
AMERICA’S CULINARY REBIRTH 3© 2011 GLOBAL TREND & DESIGN
Entice Your
Consumer
Address the new social aspects of cooking and baking Cooking as leisure/entertainment Cocktails, casual dinner parties, BBQ, potlucks
Consumers are looking to be creative Update traditional favorites Bring the experience and flavor of “Global Cuisine” Bring more restaurant experiences into the home
Save them more than just money Save them Time Save them Space Save them Effort
MULTI-FACETED MEANING OF VALUE4© 2011 GLOBAL TREND & DESIGN
Value Equation
is Reweighted
Today’s marketplace that is oversaturated with brands, models and even points of purchase—no wonder their consumer expectations are so high
REALITY: The consumer has moved from ‘value = price + quality’ to a multi-dimensional equation covering a wide variety of variables
MULTI-FACETED MEANING OF VALUE4© 2011 GLOBAL TREND & DESIGN
Value of Individuality
REALITY: 27% of all households (31 million) are one-person
households Married couples are now a slight minority (49.7%)
OPPORTUNITY: Find ways to let the customer participate. Enable customization.
A market of one: with only one syrup the Starbucks latte framework offers almost 200 million variations
AD AGE AMERICAN DEMOGRPHICS
The value of the consumer as an individual increases as the mass market disappears
The value of the consumer as an individual increases as the mass market disappears
MULTI-FACETED MEANING OF VALUE4© 2011 GLOBAL TREND & DESIGN
Quality Is OnceAgain Important
OPPORTUNITY: Be best-in-class for quality. In times of recession and recovery, quality & durability to rise in importance within the value equation
The Good News: There is a lot of pent-up purchase demand from consumers who have not spent in several years
Consumers are staying in their homes longer 2-3 years pre-recession Expected average of 10+ years post-recession
REALITY: 73% of consumers say they'd rather have fewer, high quality things (Ogilvy)
MULTI-FACETED MEANING OF VALUE4© 2011 GLOBAL TREND & DESIGN
Value in theDesign/Function
Relationship
OPPORTUNITY: Embrace style as a selling point from OPP
to high end Use color and form as competitive
differentiators
The separation between function and style is vanishing as aesthetic value becomes a standard
REALITY: Decorative value weighs equally with function as the element of design rises in importance
KIZMOS
FARBERWARESABATIERMISTO
MULTI-FACETED MEANING OF VALUE4© 2011 GLOBAL TREND & DESIGN
Multi-function as a Value Multiplier
OPPORTUNITY: Multi-function adds value on all of these fronts; it means that the consumer has to buy less products, thus storing less, saving money and often even prep/clean-up time
FARBERWARE
KITCHENAID
KITCHENAID
REALITY: Regardless of consumer segmentation, the top three new value multipliers are Time Savings, Space Savings and Money Savings
MULTI-FACETED MEANING OF VALUE4© 2011 GLOBAL TREND & DESIGN
Value of Quality Time Together Growing concern over the ‘softer’ side of raising
children Parents are taking back control with regard to
play, family time and everyday habits
OPPORTUNITY: Products and services that promote “together” time (gaming, cooking, eating and sports activities)
Research by the National Center on Addiction & Substance Abuse finds that children who eat four to five meals a week with their family are 40% more likely to get higher grades in school than kids who eat two or fewer meals a week with their family
Same study finds that kids who regularly eat dinner with their families are 20% less likely to drink alcohol, smoke or use illegal drugs.
REALITY:
MULTI-FACETED MEANING OF VALUE4© 2011 GLOBAL TREND & DESIGN
Exceed Expectations
Understand that value has individual meaning—some will weigh price more in the equation, others design and others quality or some other variable Tailor your offering to exceed the value expectations of
your consumer
Speak to the consumer’s needs and lifestyle Bring all components of the value equation into your
merchandising & marketing process
“Surprise and Delight” should be part of the plan That might be color, packaging, or even humor
REINVENTING CUSTOMER RELATIONSHIPS
5© 2011 GLOBAL TREND & DESIGN
Technology as a Game Changer
Multi-channel strategies: Consumers who shop across a number of channels—physical stores, the Internet, and catalogs—spend about four times more annually than those who shop in just one (McKinsey Research)
The internet is playing a role in almost half of U.S. retail sales, either as a point of research and/or for point of sale
73% of mobile-powered shoppers preferred peering into their phones for basic assistance over talking to a retail clerk (Accenture Survey)
REALITY: “In five years, every Target guest will be connected to the Internet—via their iPad or phone or other device—the entire time they are in the store. If that’s the case, what can we deliver?” (Sr. VP Store Design, Target)
REINVENTING CUSTOMER RELATIONSHIPS
5© 2011 GLOBAL TREND & DESIGN
OnlineShoppingGrowth
In 2009,
154 MILLIO
Npeople in
theU.S.
boughtsomethin
g online,
or...
The total spent online on
consumer goods was
$155 BILLION
That’s an average of
$1,006.5for every person
who made an online purchase
Online population
Total U.S. population
49.8%
67%
REINVENTING CUSTOMER RELATIONSHIPS
5© 2011 GLOBAL TREND & DESIGN
OnlineShoppingGrowth
U.S. online sales will keep growing at least through 2014. Forecast sales will be nearly
$250 BILLION
20092009
$155.2 B
20102010
$172.9 B
20102010
$191.7 B
20112011
$210.0 B
20122012
$229.5 B
20132013
$248.7 B
More than 44% of online sales ($67.6 Billion) was spent on...
REINVENTING CUSTOMER RELATIONSHIPS
5© 2011 GLOBAL TREND & DESIGN
Consumer
Reasoning
What is the most important factor when buying online?
Source: Guidance/Synovate
REINVENTING CUSTOMER RELATIONSHIPS
5© 2011 GLOBAL TREND & DESIGN
Consumer Empowerme
nt
Red Laser and similar apps available on iPhone, Android and Blackberry are changing the retailers relationship with the consumer forever. (also Edocrab, Sccope, ShopSavvy and Scandit)
Scan any items bar code and get comparative information on that item both regionally and on the internet
Keep a library of scanned items, so you don’t even need to leave your house.
The future will not just be price… Nutritional facts Allergen info Material and manufacturing info
REINVENTING CUSTOMER RELATIONSHIPS
5© 2011 GLOBAL TREND & DESIGN
Differentiate
Your Brand Work with your vendors to make certain that items
in your assortment have limited exposure on internet price comparison sites, and at your competitors
Keep an eye on the market, and stay at the right priceOPPORTUNITY: Create protection against price-only competition
Partner to create exclusive product Explore exclusive configurations for your customers
The safest competition is differentiation
RISK MANAGEMENT:
REINVENTING CUSTOMER RELATIONSHIPS
5© 2011 GLOBAL TREND & DESIGN
Beyond Products
& Services
REALITY: Consumers expect companies to go beyond being a producer of products and services…
To include helping make the world a better place Includes green products, community
involvement, charity, etc.OPPORTUNITY: Engage consumers with products or services which are more “responsible”
RECYCLE ELECTRONICS AT BEST BUY
MAKING A DIFFERENCE, SIMPLIFIED: Recyclability Minimized resource use (in
production and product lifecycle)
Fair and/or empowered labor Cause-related marketing
(Environmental, Education, Social Betterment)
Increased product lifespan
REINVENTING CUSTOMER RELATIONSHIPS
5© 2011 GLOBAL TREND & DESIGN
CreateLoyalty
REALITY: Store loyalty is eroding 43% of U.S. shoppers switched their retailer of
choice after going online for a chosen product (Nielsen)
OPPORTUNITY: Invite and engage the consumer to explore with store assortment, design and in-store experiences
Average time spent in an Anthropologie store is over one hour
ANTHROPOLOGIE
40% of customers remain open to persuasion once they enter a store (McKinsey Research)
REINVENTING CUSTOMER RELATIONSHIPS
5© 2011 GLOBAL TREND & DESIGN
Multi-Channel
Strategies
5
Physical space is still very important—but engaging the consumer has never been more difficult OR more crucial. How you leverage it must be strategic, not an afterthought
Small retailers have the advantage in creating experiential retailing
Multi-channel strategies need to be used to reinforce each other—the consumer is at a stage where single channel players seem outdated and irrelevant
Open up and get warm & fuzzy… you have to have meaning to your consumer to create loyalty, and a part of meaning is an emotional connection… show them you know their life, their needs, their aspirations
Age is a number, Not a lifestyle predictor
1
NEW RULES FOR A CHANGING ECONOMY
Meal occasions continue to blur as we eat more meals in a car or on the fly between places
Traditional kids food goes ‘up-market’ with gourmet grilled cheese and hot dog recipes
New traditions that expresses our individuality – such as the Sweet Potato Bar for Thanksgiving
© 2011 GLOBAL TREND & DESIGN
Economic recovery will be slow; success will come from taking market share from competitors… and non-competitors.
2
NEW RULES FOR A CHANGING ECONOMY
Bringing restaurant quality and excitement home will continue to create opportunities for the housewares industry
Reinventing the basics: one-pot meals, gourmet basics, tricked out snacks, crafted cocktails, embellished desserts
The economic downturn prompted consumers to buy coffee makers so that they could brew at home versus $4 lattes out
© 2011 GLOBAL TREND & DESIGN
Inspire ‘Shopping & Purchasing’ versus ‘Sharing & Trading’
3
NEW RULES FOR A CHANGING ECONOMY
40% of consumers can be persuaded to buy something else even after research once they enter the store (McKinsey)
Create experiences that fire the imagination, tap into hidden needs and desires and elevate aspirations
Elevated value suppresses purchase guilt!
© 2011 GLOBAL TREND & DESIGN
Transparency is no longer optional… Manage your image like you manage your inventory
4
CRM Magazine, Lauren Mckay
NEW RULES FOR A CHANGING ECONOMY© 2011 GLOBAL TREND & DESIGN
Tracking orders. Being able to see when something has been shipped, where it is en route, estimated arrival time.
Give us your credit-card information and we will eventually give you something you paid for in return.
Our beef comes from grass-fed cows that spend a happy life in upstate Maine.
“Mystery Meat”
“Thanks for your phone call, are you calling me about the email you sent us last Monday at 2 p.m.?”
A Web site with no “contact us” page or phone number in sight.
Viewing an organization as one entity – whether it’s through a catalog, phone, Web site, or email.
“Let me transfer you to Extension 4. Hold, please.”
Leveraging customer feedback for innovation and research and developments.
“We could get some real work done is it weren’t for all these customers.”
Transparency Is Transparency Is Not
Create and enable family time, wellness and shared experiences in the home
5
NEW RULES FOR A CHANGING ECONOMY
Reevaluation of priorities means growth of:
Stand mixers & food processors Slow cookers Pressure cookers Blenders (homemade soups) Cupcake makers Cooking with kids Bring-a-dish socials
© 2011 GLOBAL TREND & DESIGN
Storage and space savings are a renewed concern in the American household
6
NEW RULES FOR A CHANGING ECONOMY
Americans buying in bulk, increase in rentals, staying longer in starter homes all point to the need for smaller footprints for everything, modularity and multifunction as important considerations for the buyer
Consumers want more storage to keep clutter under control
© 2011 GLOBAL TREND & DESIGN
Put some fun back in function.7
Functional gifting becomes more the norm
More items exposed = greater need for décor + function
Bringing joy into everyday ‘chores’
Consumers respond to little luxuries
Color and shape become the new ‘black’
Don’t be afraid to have a sense of humor
NEW RULES FOR A CHANGING ECONOMY© 2011 GLOBAL TREND & DESIGN
KIZMOS
Less ‘glam’ and more classic styling with long-term appeal.
8
The higher the ticket, the more important this becomes. We’re moving from a disposable society to one where quality and durability are again important key benefits.
NEW RULES FOR A CHANGING ECONOMY© 2011 GLOBAL TREND & DESIGN
Take “Comfort Food” and “Creature Comforts” to the next level
9
We live in a stressed society that is staying at home more, and re-discovering entertaining and loves surprising friends and family
NEW RULES FOR A CHANGING ECONOMY
Small indulgences like gourmet hot dogs and stuffed burgers
Guilty pleasures such as whoopie pies and stuffed pancakes
Taking basics “over the top”, like truffled mac and cheese and bacon cheddar popcorn
CURRY COCONUT POPCORN
© 2011 GLOBAL TREND & DESIGN
Technology increasingly changes how we shop, prepare and what we expect - don’t get left behind
10
Explore partnerships that help you capitalize on the benefits and exposure of mobile coupons, DIY blogs, online video on culinary and entertaining ideas
NEW RULES FOR A CHANGING ECONOMY
music goes digitalmovies are downloadedprint is becoming obsoleteas cookbooks become e-cookbooks
© 2011 GLOBAL TREND & DESIGN
©2011 Lifetime Brands, Inc.
TOP TRENDS for 2012
The information contained in this document provided by Lifetime Brands, Inc. is for demonstration & internal
research purposes only, to give dimension and meaning to the trends. Any reproduction of this information is a
direct violation of the Federal Copyright Law. This includes, but is not limited to, color copying, color printing, photocopying or faxing, as well as email
distribution of all content, photographs & images, or posting on the Internet. Please be careful to not copy the designs, trademarks or intellectual properties of others reported within these pages, as this may result in your
being sued or prosecuted by the owner of that content. ©2011 Lifetime Brands, Inc. Images © 2011 Sphere
Trending, LLC.
If you have any questions regarding this
presentation, please contact:
Tom MirabileSVP, Global Trend and Design
E: [email protected]: 917.864.6328
Lifetime Brands, Inc.