-By Allison Zisko

Value, quality and functionality are the new buzzwords in housewares as manufacturers seek to find a middle ground for both penny-pinchers and investors in 2010.

Consumers crave comfort and peace of mind these days, which is why some of the key trends in housewares for 2010 will be centered on functionality and versatility, spiced up by a gradually evolving color palette and influenced by a few adventurous trends in food.

In order to capture consumers’ attention and gain their confidence, product introductions made at the International Home + Housewares Show (IH+HS) in March must not only conjure up what Kathleen Cella of market research firm The NPD Group calls the “warm and fuzzy effect,” they must convince consumers that they are worth the money spent on them.

“In this economy, consumers are more judicious in their decisions,” notes Rob Laub, president of Harold Import Company.

Some consumers are adopting a back-to-basics mentality, while others are deciding to purchase higher-end goods they expect to last a lifetime.

“We see people who are penny-pinching and, at the same time, people who are tired of penny-pinching and are interested in investing,” says Vicki Matranga, the design programs coordinator and historian for the International Housewares Association (IHA).

Todd Myers, vice president of sales for Wüsthof-Trident, agrees. “We are seeing trends with retailers going with lower and higher price points,” he says. “Our two fastest-growing lines are higher- and lower-priced than our core line.”

Drew Chernoy, owner of Clementine’s Kitchen in Del Rey, Calif., says he continues to see customers with money to spend on gifts as well as functional products, but there are fewer impulse buyers and much fewer of what Chernoy calls “recreational buyers.”

“People coming in have a reason to buy,” he says.

Keeping that in mind, the key to appealing to consumers, according to Lisa Casey Weiss, lifestyle consultant for the IHA, is “offering value at an economical price.”

As Myers puts it, “Good value on a world-class product with fundamental purposes sells.”

Color, style and design are all important, but the most important thing consumers will be looking for this year is whether a product has a function, says Casey Weiss. This is true for all housewares categories, including cookware, cutlery, small electrics and gadgets. “It has to perform the function first and foremost,” she says. “Then, how does it appeal to consumers?”

Noting that “people are value-oriented,” Steve White, vice president of sales and marketing for Kuhn Rikon, says, “If it’s new, functional and under $50, that’s a good bet.”

Although vendors agree that functional and versatile products are the key to success in this market, they have divergent points of view over how functional a product should be. Should it perform one function extremely well, or multiple functions competently?

In what appears to be a paradoxical spending pattern, frugal consumers are gravitating toward both. This is borne out by market research: according to Debra Mednick, director of small appliances and housewares for NPD, some of the most successful small electrics categories right now include both popcorn makers and juice extractors, which perform one function well, and food processors and slow cookers, which are multifunctional and growing more so each year.

Food Trends
Many new housewares products take their cue from food trends. The most obvious trend right now is consumers’ inclination to eat at home.

“Things that make eating cheap and eating healthy will boom,” says John Lehndorff, chief food trend researcher for American Forecaster, whose recent “Eat In Eat Out” report outlines food and dining trends. This includes slow cookers, rice cookers and immersion blenders, according to Lehndorff, a former food critic at the Rocky Mountain News in Denver.

Another “mega trend,” says Lehndorff, is the green and sustainable movement, especially appealing to younger consumers who are highly conscious of how and where their food is grown or produced.

“For retailers, one of the great opportunities in the future will be niche marketing to people who have food allergies or environmental concerns,” says Lehndorff.

Changing American demographics and increasingly savvy consumers have also had an impact on food trends. “There’s this adventurous spirit right now, combined with more immigrant groups opening restaurants,” says Lehndorff.

Consumers knowledgeable in all aspects of Asian foods, as well as their appreciation for regional differences in cuisine in places like India and Mexico, have sparked interest in lots of new spice mixtures and various masalas.

We are also in the “renaissance of the pig,” reports “Eat In Eat Out.” Artisan butchers and leading chefs have been producing their own head cheese, and have rediscovered parts of the pig previously disregarded, including pork feet, ears and jowls.

The artisan movement in general is growing, according to Lehndorff. “House-made” items in restaurants, such as pickles or salume, may eventually make their way to the home chef, who will need the appropriate tools and equipment to ply their newly learned trade.

Color Trends
Food trends influence housewares product development teams. So do color trends.

Leatrice Eiseman, executive director of the Pantone Color Institute, will deliver the keynote presentation at the International Home + Housewares Show, which takes place March 14 to 16 in Chicago. Her message to housewares manufacturers will be that consumers are most comfortable with manufacturers who understand that they are not prepared to change overnight when it comes to color and design. “Show them a way to be clever with what they already have,” Eiseman suggests, by demonstrating how the newest color palette can enhance their existing appliances or home décor.

Neutrals are coming back strongly in 2010, according to Eiseman, although she acknowledged that they will have less impact on the housewares industry, which has lower price points than other home furnishings categories.

Historically, colors like orange, vibrant yellow-greens and purples are a little slow to come into the marketplace, says Eiseman, but for manufacturers willing to take the risk, they are surefire attention-getters.

But the longer consumers are exposed to a particular color or colors, the more accepting of them they become, and these colors are having an impact and more staying power. They are also being shown in beautiful combinations.

“This is a good thing today, in this economy,” says Eiseman.

These three colorways will continue to be strong in 2011, predicts Eiseman, if presented in clever ways. And they all combine well with turquoise, which is Pantone’s color of the year.

Combining what Pantone considers “the serene qualities of blue and the invigorating aspects of green,” turquoise evokes images of soothing tropical waters and vacation getaways. It also pairs well with orange, yellow-greens and purples, says Eiseman. In the past, she adds, one wouldn’t think of combining yellow-green with turquoise, but it is now acceptable, particularly among a younger, more adventurous generation, to combine a cool green with a warm green.

People are exposed to many more cultures and ways of doing things than in the past, and “it’s that exposure that ramps up their imagination,” says Eiseman.

In her presentation in Chicago, Eiseman will exhort retailers to know their customer “and be smart about them.”

Consumers need to be shown that the industry is not reinventing what was done last year, but instead is showing “how smart we can be with these colors.”

With all of these food, color and business trends in mind, here is a look at how they are playing out in individual housewares categories.


Cutlery
This is one of those categories in which consumers may be willing to make an investment in good-quality product, and where brand loyalty is a factor. “People are looking for quality and not sacrificing,” says Cella, a senior account manager for NPD. Overall, accessories fared the best in this category last year, according to Cella, and knife sharpeners were one of the top-selling accessories — an indication, perhaps, that consumers are interested in keeping their existing tools in good shape.

Last year, open stock items in the cutlery category fared the best.

“There are two things that are still driving business at the independent retailer: quality and value,” says Myers of Wüsthof. “We are seeing independents getting behind single items.

“Also, gift sets are still growing and a current trend,” he continues. “A business that used to be predominantly open stock and block sets is evolving into two-, three- and four-piece gift sets hitting several price points from $25 to $200.”

Consumers are more savvy about prices than ever before, says Dominique Dobson, national demonstrator, coordinator for Kai USA. “We’ve all driven them to look for a fabulous deal.”

This does not mean cheap products, she adds. Customers who traditionally buy high-end product want to get the absolute best price for it, and they are very familiar with the Web sites and the promotions, such as gift with purchase or other enticement, that hold the promise of a great deal.

For the Housewares Show, Kai’s Shun brand is offering a combination of new product and what Dobson referred to as “throwbacks,” knives embodying techniques that may seem new but are actually quite old. The Tsuchime knife in the Shun Premiere line, for example, has a hand-hammered finish on the blade. It is an old technique, perhaps one of the original hollow-ground blades, suggests Dobson, but to consumers, it will seem new. Shun is also updating its Shun Pro with a graffiti etch, a decoration that will add texture to the blade.

Gadgets
Gadgets are both functional and fun. Value is an important factor in this category, according to vendors.

Consumers may be willing to spend $5 more in an effort to get something that lasts longer or functions better, says Laub of Harold Imports. His company is pushing back against what Laub calls “extreme gadgets,” or those with a lot of gimmicks, in favor of quality basics.

Color appears to be driving a big part of the business, says Kuhn Rikon’s White. “Color is well-accepted. Retailers who weren’t previously interested in color are [now] interested in color. That’s an important trend.”

Besides color, consumers want to see what’s new, he says. “Innovation and newness are still important aspects of the business.”

Cookware
Color will have an influence on cookware, mostly in the cast-iron category, according to NPD’s Cella. Bright colors grab attention, and right now, may prompt an emotional attachment and a yearning “for something they may not have.”

But the most important drivers in cookware will most likely be functionality and versatility.

“The single most important and relevant trend in cookware for the last couple of years is versatility,” says Frances Ro, president of Fissler USA. “Overall consumer interest in more specific specialty cookware seems to have declined, at least from what we’re seeing with the Fissler brand, and consumers are looking for more functional pieces that do double duty.”

Fissler is introducing its Solea line of cookware to the United States; its features include a pouring glass lid, integrated lid holders and a conical pot shape for space-saving stackability.

Small Electrics
The small electrics that have been less undermined by the economy, according to NPD’s Mednick, include coffee makers (all types), food processors, waffle makers, popcorn makers, juice extractors, hand mixers and slow cookers. Many of these products help consumers prepare meals and drinks at home, or support a healthy lifestyle, another strong movement. They fall into either the aforementioned multiuse category or, on the other end of the spectrum, the specifically purposeful.

“Small electrics have become more aesthetically pleasing to the eye and versatile,” says Mary Rodgers, director of marketing communications at Cuisinart. “These are two major trends that are continuing to develop in this category, as consumers increasingly seek out inherent value when making purchasing decisions.”

Cuisinart’s Rice Plus Multi-Cooker offers a multitude of functions, including six different rice settings, steaming ability, oatmeal, soup, and slow and quick cook functions, within one appliance with a small footprint.

Toastess offers both multifunctional electrics and those with a single purpose. It is expanding its Multipot brand of intelligent slow cookers, sophisticated machines that perform numerous functions and can cook anything from a roast to a loaf of bread.

“There’s an edge that these kinds of products have,” says Bill Booth, vice president of sales and marketing at Toastess.

Toastess will also produce its next generation of digital countdown toasters and expand its inexpensive personal coffee makers, designed for the “everyman” and priced between $15 and $40.

In light of these current trends, how can specialty stores position themselves to stay ahead of the competition?

Customer service remains as important as ever, vendors say. Those who have defined themselves in their communities and differentiated themselves from larger-format stores have had greater success, says Booth, and many have achieved this through cooking schools, events and other programs that display their superior knowledge of a category or business.

The IHA will continue to support specialty retailers throughout the year and specifically during the Housewares Show with its Specialty Retailer University, which offers tips on everything from visual merchandising techniques to managing inventory. In addition, retail consultants are available for the duration of the show for one-on-one meetings.

Photo Captions:
1. Cuisinart’s Rice Plus Multi-Cooker cooks rice as well as oatmeal or soup, and performs several other functions in a small footprint.
2. The Solea line of cookware from Fissler has won international design awards; it will be introduced this spring in the United States.
3. The new color-coded Pure Komachi 2 knives by Kai can help prevent cross-contamination of food, and they add a fun shot of color to the countertop.
4. The new Tsuchime knife in the Shun Premiere line has a hand-hammered finish on the blade.
5. Toastess will be offering new sizes and formats in its Multipot Intelligent Slow Cooker.