-By Perry Reynolds

Last month, we introduced our new "As I See It" column — a monthly interview with a leader in the specialty gourmet industry. We welcome your feedback and suggested topics/interviews for this column. If you would like to comment or send us your feedback, please send e-mail to mmoran@gourmetretailer.com.

Our second columnist this year is from the kitchenware side of the business — Perry Reynolds is the Vice President, Marketing & Trade Development for the International Housewares Association (IHA). He served as a buyer and merchant for retailers in the mass market, supermarket and distributor channels before moving to housewares manufacturers EKCO and Progressive International in marketing roles. He joined the NHMA, now the IHA, in 1997.

Q. What are the major factors at work in the housewares and homegoods industry today?
A. As we look forward to 2009 and beyond, the trends that are shaping our industry appear to be the growing importance of design, the impact of sustainability initiatives on consumer preferences, and the growing importance of specialty and independent retailers to both consumers and suppliers.

Q. Can you elaborate on the role of design in today's housewares business?
A. From our vantage point, the strongest driving force in the housewares and homegoods business is the emergence of design. Manufacturers realize that a strong and credible design is the price of entry for both retailers and consumers. And although functional design has added value to products at all price points, the consumers with the greatest disposable income appear to be keenly interested in high-design products at higher range prices.

We have heard a great deal about the disappearance of the "middle market" in homegoods. Perhaps an alternate explanation is the triumph of design in giving the consumer a genuine reason to accept a premium product for an equivalent retail price. At almost every housewares category, from kitchen tools to bakeware and cookware, from vacuum cleaners to countertop appliances, from dish racks to garbage cans, higher-design products have helped extend the definition of top-of-market retail prices.
At the same time, design is redefining moderate price point products by giving consumers new reasons to look at traditional products. Whether it's a new design take on a measuring cup or the addition of magnets to measuring spoons, consumers seem to be responding.

In addition, this trend has given independent specialty retailers the opportunity to be recognized more broadly as a growing, dynamic segment for suppliers. As fertile testing grounds for new concepts, these retailers offer excellent feedback to suppliers based on their own keen market knowledge and on the opinions of their customers.

And don't let the economists dampen your outlook for homegoods. It appears that this surge of inspired designs is well-positioned to overcome any pressure on the products our industry offers.

Q. What impact will the sustainability movement have on homegoods?
A. Our industry is busily taking on the sustainability challenge to reduce packaging or to make packaging friendlier to the environment. And suppliers are making good progress in identifying sustainable materials for use in their products. But the jury is not in yet on the consumer. What will they be willing to spend on a product that is friendlier to the environment? The IHA Consumer Advisory Council members were quite clear when we met with them last fall. There are many things that they are willing to do to save the planet, but they expect not to spend more money (or much more money) doing it.

We will take the industry's pulse on sustainability prior to the upcoming International Home + Housewares Show and will offer examples of sustainability strategies and outstanding efforts in both product and packaging. But the consumer still needs some convincing.

Q. How has the role of specialty independent retailers changed?
A. The homegoods world is being driven by innovation. Whether one considers the impact of functional design, the coming influx of more environmentally friendly products and packaging, or the impact of new technologies, it seems clear that suppliers have discovered the value of independent retailers in bringing these innovations to market. Independent specialty retailers are well-positioned to satisfy the needs of their customers because they know those needs well and are willing to assist suppliers in marketing these new concepts.

And all along the supplier front, sales managers are recognizing that independent retailers have gathered significant market clout in recent years. Those same suppliers have suffered the disappearance of many large and medium-sized retailers over the last dozen years. In fact, 46 percent of the top 100 housewares retailers of 1995 have disappeared from the top 100.

Many suppliers have recognized that a significant portion of the business abandoned by those departed retailers has moved to the customer-friendly independent retailers who are, in addition to other sales strategies, making fast friends with their customers through personalized service, cooking demonstrations, product workshops and celebrity appearances.

These independent retailers have earned the respect of suppliers in the same way they did with their store's customers. They know the business; they know the products; they know the customers' needs and which products will best meet those needs.

Over 2,000 suppliers will be on hand to work with this new power class of retailers at the 2008 International Home + Housewares Show, March 16-18, www.housewares.org.
See you there.