The snowball effect of the worldwide credit crisis and concerns about weakening economies are of great interest to housewares retailers around the world, writes Derek Miller, vice president, International – International Housewares Association. Because U.S. consumers and retail markets were affected by this downward trend several months before the rest of the world, economists around the globe predict that the United States will also emerge sooner from this downturn than most other countries. As an important barometer of the health of the overall global housewares retail industry, the Chicago-based International Home + Housewares Show, taking place March 22-24, 2009, will offer retailers valuable insights on what they can do to survive these challenging times.

According to HomeWorld Business, a U.S. housewares trade publication, a consumer-turning point has arrived that calls for retailers' immediate attention. This 'new' consumer is driven by frugality, cuts down on energy consumption and has a growing interest in 'green' products. This new consumer has begun seeking out items of enduring quality. In fact, as more and more consumers become pressed for money, they will shun disposable products and avoid buying the same product again within a few years, according to Marcel Trepanier, president of Luigi Bormioli's U.S. division.

Driven by high food and fuel prices around the world, many consumers are gravitating to large format stores that facilitate a family's one-stop shopping needs. In the United States alone, this trend has resulted in more than 53 percent of all housewares sales moving through the large format retail channel. Other channel players currently gaining ground are drug stores that carry homegoods and personal care appliances as consumers continue to be concerned about their wellbeing and appearance. Another retail channel benefiting from consumers' need to save on fuel are online retailers, which Forrester Research Inc. estimates will grow by 17 percent in 2008 to $204 billion from $169 billion in 2007.

These economy-driven changes call for specialty retailers to be agile and adopt new strategies in order to anticipate and quickly capitalize on new consumer trends. The 2009 International Home + Housewares Show will provide retailers with the education and expert insights that they can immediately use to meet the economic challenges forecasted for 2009 and beyond.

Consumers Retreating Into 'Nesting' Mode
Fortunately, as more consumers stay home to cook and entertain, some retailers report sales increases in various product categories, including home canning equipment and canning jars. Cooking more meals at home will also entice the consumer to experiment more with cookbooks, ethnic recipes and equipment. And while consumers may give up buying expensive coffee drinks at coffee bars, they will treat themselves at home by buying the best coffee equipment they can afford. While consumers are expected to embrace the 'nesting' trend to save discretionary income, they still want to have some fun, according to Peter Goldman, president of the global market information company, The NPD Group.

"With consumers showing a greater tendency to spend more time at home, we may begin to see overall housewares sales slowly start to increase," says Goldman. Citing results from a recently conducted survey that reveals more than 50 percent of consumers plan to dine out less often, he adds, "Growth patterns do exist in select segments of the housewares industry. These patterns are largely attributed to the home cooking and entertaining trend that continues, as consumers look to nest at home in order to cut their dining-out expenses."

Entice Customers With Color
Globally renowned color trends expert, Lee Eiseman of Pantone, Inc., who also presents the annual Color Trends Forecast at the Show, cautions retailers not to overlook the strategic use of color in their product selections to combat these challenging economic times. "It is absolutely important for retailers to be mindful of creating visual excitement in their stores today," says Eiseman. "Color is an intrinsic part of the visual experience, and certainly an intrinsic part of consumer purchase decisions. In an environment where consumers are cutting back on their spending, I think it would be a mistake to overlook this fundamental element of human psychology."

Underscoring the inherent human tendency to be drawn to color, she reveals, "Whether or not we acknowledge it, color is part of the stimulation we feel, and something we've grown to expect as human beings. This natural tendency has significant influence on the decisions we make." Explaining the relevance of incorporating color to housewares retail settings, she adds, "In the housewares industry, incorporating the unexpected is quite effective. Unlike higher-priced products like automobiles and furniture, which consumers generally purchase in neutral tones during an unfavorable economy, colorful housewares products really entice consumers during an economic downturn."

"No matter where you are in the world, it's the same," says Eiseman. "We live in a world where we need visual excitement, and we are naturally tempted and drawn to objects that are colorful. This happens everywhere we go, whether we're visiting a Web site or passing by a store window, or walking through the inside of a store -- we are drawn. Because impulse purchasing is part of the human condition, the simple placement of products that feature unexpected splashes of color can be highly effective."

For more information about the show, visit www.housewares.org/attend