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Nov 01, 2001

Category Analysis: Cutlery

PrintCategory Analysis: Cutlery  

By Laura Gorman
The first man-made implement — the knife — was born of necessity. The necessity of having to cut up their food drove our ancestors to fashion that rudimentary knife 2.5 million years ago by striking stones and pebbles against each other to make a crude cutting edge.

As humans attempted to create a more efficient implement, the methods used to manufacture these stone tools evolved. Those improved methods brought forth new versions of knives, such as axes, cleavers, and chisels. Today, modern cutlery includes an extensive assortment that enables users to perform specific tasks from butchering to chopping, slicing, and cutting.

Despite cutlery's long history, it still remains a mystery to most consumers — indeed, to many retailers as well. Consumer questions run the gamut from how and when to use which knife, to how to sharpen and maintain knives, to how to choose the right cutlery for their home.

A Sign of the Times

According to NPD HomeTrak, retail sales of cutlery in department stores averaged $20,390 for 2001's first quarter, reached $20,898 for mass merchants, and was $13,988 for home specialty stores. Compared to the same quarter in 2000, cutlery is the fastest-growing nonelectric category in all three channels, posting a 27.3 percent growth for all channels combined. Home specialty stores enjoyed the greatest growth at 37.9 percent compared to last year, followed by mass merchants and department stores at 27.8 percent and 20.5 percent, respectively.

In predicting 2002 cutlery sales, one manufacturer said, "We expect industry-wide cutlery sales to be generally flat in 2002, but we do project that we will have increases due to the added-value offers we have presented to consumers, as well as some shifts in color trends. In terms of value, consumers now more than ever want more bang for their buck."

Manufacturers across the board note continued growth in upscale lines. Helping catapult quality into the limelight is the continued interest in all things professional for the kitchen; however, retailers must remain savvy when balancing price and quality in an attempt to increase category sales.

Similar to the current consumer penchant for upgrading their kitchen choices — from cookware to high-tech espresso machines, a desire has arisen among consumers for cutlery not considered to be disposable. While consumers once spent a nominal amount on cutlery only to repurchase it when it dulled, they are now more willing to spend greater amounts for high-quality cutlery. Yet with their investment in upgraded choices come higher expectations — they expect cutlery to last a lifetime.

The Price Issue

With price always an issue, retailers must be more diligent than ever in explaining the differences between knives. Cutlery manufacturers continue to rate independent specialty stores as the leaders in customer service since a dedicated, knowledgeable staff can explain the nuances between a high-end knife and others marketed at lower prices.

"Independents do an excellent job of walking customers through the cutlery process and educating them," explained one manufacturer. "It is very difficult in some cases to impart to the customer the information they need regarding cutlery." This becomes especially imperative when the cutlery carried in store is expensive. Specialty retailers must be able to explain to customers why a boning knife advertised by another retailer is $9.99, whereas the one they carry costs $89.99. "It is difficult to translate the information about upscale cutlery. It needs to be done in an environment conducive to serving the customer, and the independent does a wonderful job of that," added the manufacturer. (See accompanying sidebar entitled Anatomy of Cutlery on page 38 for information which will help you to better sell the category.)

Consumers today are capitalizing on the savings associated with purchasing sets as opposed to open-stock items. Manufacturers point to sales of "sets" within all price categories as driving the cutlery business. According to one manufacturer, open-stock sales compared to those of sets used to be a 60/40 ratio. Today, he noted, that number has moved closer to 50/50.

Industry experts attribute this shift towards the purchase of sets to the interest consumers are expressing in upgrading purchases in all their housewares categories. Consumers who purchase upscale lines realize the cost benefit of purchasing sets over individual pieces, following the "bigger the set, the bigger the value" principle. "Not too long ago, the six- or seven-piece sets were the entry price leaders; now, the nine-piece sets are most popular across all lines," explained one manufacturer, who cited the fact that his company's 10-piece block sets priced at $750 (retail) outsell its starter block sets priced at $500 by ten to one. "A customer who is even entertaining the thought of purchasing high-quality cutlery will view the complete set as a considerable value," he said. However, individual cutlery pieces, such as tomato knives, bread knives, even decorative cheese knives, are also experiencing strong sales.

Many believe consumer confidence about cutlery has increased due to the preponderance of television cooking shows. Those shows have helped ease consumer insecurities about its usage. Add to that the upswing in attendance at cooking schools, where home chefs learn the rudiments of cutlery use, becoming more proficient in slicing, dicing, and just plain old cutting.

The Maintenance Issue

Consumer satisfaction with their investment in high-end cutlery is in direct proportion to the ease with which they can maintain their cutlery. Undoubtedly, maintenance of that cutlery is a great challenge for consumers. The prevailing lack of knowledge about the usage of a sharpening steel results in many steels never seeing the light of day. And unfortunately, if consumers do not have the expertise necessary to properly sharpen their knives, dissatisfaction results.

The type of steel used to fashion the blade affects its ability to maintain a sharp edge. Though never-needs-sharpening knives hit the retail scene with a bang a few years back, traditional knife blades have continued to lead the category in sales.

"When consumers purchase cutlery," advised a manufacturer, "they should be aware of what sort of metal content is in their blade, especially if they are a first-time buyer of cutlery and don't know much about sharpening." He explained that the edge of a blade made with a high stainless steel content will be able to keep a sharp edge longer. However, stainless steel's hardness makes it tougher for consumers to put an edge on it when it requires sharpening. He suggests consumers look for a good mixture of carbon and stainless to get the best of both worlds — a blade that is strong and one that is able to be sharpened.

Today, consumers are demanding great products and great service. In the cutlery arena, the crucial service issue for consumers is "how do they keep their knives sharp and how do they do it inexpensively." To answer these questions, some manufacturers offer free factory knife-sharpening programs to build loyalty for their brands.

A fairly recent innovation in this mature category was the development of ceramic blades. Harder than steel, these blades are reportedly sharper and able to hold their sharp edges longer than traditional steel blades. Additionally, they do not rust or stain, are easy to clean, and are lightweight compared to metal.

The tradeoff is that ceramic blades do not flex as well as steel blades and they can be more brittle. But when used normally in the kitchen — for slicing vegetables and fruits to cutting boneless meats, they will last months or even years without requiring sharpening.

In addition to consumers' movement towards purchasing high-end cutlery, manufacturers have seen similar growth in knife sharpeners that offer more convenience than the daunting sharpening steels. Since sharpening steels continue to be difficult devices for many consumers to use, some have turned to sharpeners that guide knives through the process.

Looking beyond cutlery alone can add additional revenue to the category. "Retailers seeking to increase revenue must pay more attention to knife maintenance," explained one manufacturer. While one tactic many retailers employ to improve revenue is to simply add another cutlery line or expand their offerings, a good way to improve cutlery sales is to merchandise the knife maintenance area more. Retailers who do this properly can add 15 percent to their bottom-line sales in the cutlery category.

Designer Cutlery

Hand in hand with the importance of quality and convenience is the cutlery's design, an aspect that continues to increase in importance for all kitchen categories. Weight, heft, and balance are important considerations in selecting cutlery, and small changes in design, such as the addition of ergonomic handles, have improved the feel of the cutlery in the hands of the consumer.

Even the unrelenting stainless steel trend has entered the world of cutlery. In this very traditional category where the biggest change has been from wooden handles to molded polypropylene ones, stainless steel handles bring a sense of fashion to cutlery. "The retro stainless look is still enjoying a pretty good run with all things in the kitchen," agreed one manufacturer, "and cutlery is included."

"Color trends are also important," added another manufacturer. "We have found that there has been a shift away from just black handles. Black handles will always be the most popular, but some consumers are moving towards other materials, both wood and synthetic," he said, citing increased sales in the company's rosewood and resin-infused wooden cutlery lines.

The Asian Allure

Alongside the design trends influencing cutlery sales is an important food trend. American consumers continue to embrace Asian cuisine from stir fry to sushi and that fondness has affected sales of kitchen utensils and accessories from tabletop to cutlery.

Unfortunately, consumers misunderstand many Asian knives. For instance, they often call a Chinese chef's knife a "cleaver" and as a result, are hesitant to use a product they perceive as unwieldy and perhaps unsafe. However, once customers perceive the knife's capabilities, universality, and proper usage, they realize how easy it is to use, as well as how a good-quality knife should feel.

The thin, sharp santoku knife has essentially become a mainstream item. Likewise, Japanese-style cutlery with its sharp, thin blades provides the preciseness necessary for cutting ingredients for sushi. Not only do these Oriental-style chopping knives cut vegetables finely and smoothly for Asian-inspired dishes, but also for any food preparation.

Said one manufacturer, "Overall, I use the Chinese knife about eighty percent of the time. However, I am not cooking Chinese food eighty percent of the time." He uses it for a variety of tasks — from smashing garlic with the flat side to tenderizing meat with the blunt side, plus using it to pick up chopped ingredients with the big blade's side.

Thinking Outside the Block

While shrewd consumers realize that a block set is a better value, do not lose the opportunity to think outside the block. Specialty items that are not part of typical cutlery sets provide retailers the opportunity to bring customers back for more cutlery purchases.

For instance, the mandoline is not a traditional knife; however, for some consumers, it can perform the job of several knives found in the traditional knife block. Perhaps consumers are once again taking the cue from professional and television chefs who frequently demonstrate the ease with which the mandoline performs multiple kitchen tasks. Since the mandoline slices quickly, precisely, and always to the same thickness, it particularly meets the demands of Asian cuisine, which calls for finer, smaller, or julienne cuts.

Other trend-driven cutlery items include cheese knife collections. As the cheese course becomes more popular both at home and in restaurants, manufacturers have responded by presenting new cheese knife collections. Sold singly or as gift sets, the sale of these knives can add additional revenue to the cutlery category.

As consumers seek different ways to present food, the spiral slicer, a gadget that cuts vegetables into shapes or ribbons, has also become more popular.

Supporting the Sale

Assess your store's merchandising efforts by visually walking through your store. As you do, note the excitement you have created for each of the different kitchenware categories — cookware, small electrics, gadgets, tabletop, and finally, cutlery — with your displays and signage. The cookware section should shout with gleaming copper pots and matching sets, a row of colored stand mixers standing at attention, a wall of gadgets screaming "come touch me," and an enticing dinner table setup with the newest dinnerware patterns, coordinating linens, and sparkling glassware.

Now, to the cutlery section. Often, knives are either placed under a glass counter or behind a glass wall display; therefore, they are untouchable by consumers without the help of sales personnel. The inability to touch or handle the knives directly makes this category harder to merchandise. Manufacturers suggest retailers look for ways to draw attention to the category through maintenance demos, eye-catching displays, or education programs.





Recognizing Quality Cutlery



A good knife will last through generations of daily use without undue wear or deterioration. The way to recognize a quality piece of cutlery is to examine it closely. The knife needs to be functional. Does the blade taper evenly from the handle to the top, and from the back of the blade to the cutting edge? Are the edges smooth, with no grooves or gaps between the handle and the blade? How is the balance of the knife? The heft and weight, together with the blade's sharpness add safety to the knife's use by reducing strain and fatigue. Proper balance produces a better, more functional tool.

Construction

While each manufacturer has their own special processes, the basic steps in cutlery construction are generally the same. It is important to note that the steel alone does not ensure a good cutting edge. What is essential is the entire process of constructing the knife. A variety of steels are used in knife construction and include the following.

Carbon steel is the oldest type of steel used and can be hardened to 53 degrees Rockwell. Carbon steel knives can be sharpened on a conventional steel. They may rust and stain.

Stainless steel eliminates the development of rust and stains. The blades are very hard (61 degrees Rockwell) and require a diamond-coated sharpener or professional knife grinder to sharpen.

High-carbon, no-stain steel's hardness varies with the composition of stainless and carbon steel. It is easy to resharpen.

Ceramic blades undergo a different manufacturing process than steel blades do. (Contact the manufacturer for specifics.) Ceramic blades are stronger but more brittle and can remain sharp for months, even years, depending on use.





Anatomy of Cutlery



The Blade: The tip or point is the pointed end of the cutting blade used to cut small vegetables and during decorative work. The heel is the back end of the cutting blade and the strongest part of it. The back or top of the knife blade gives the knife strength and performs in conjunction with the cutting edge.

A knife is only as good as the steel from which the blade is formed. The steel composition needs to be selected carefully to ensure superior cutting performance, flexibility, no-stain properties, and ease of sharpening. The molecular structure of the blade is determined by the chemical composition of the steel and the tempering or hardening process. High carbon is used for a superior cutting edge. Chromium is used for its no-stain properties.

The Cutting Edge: The center of the blade and as such the most important part of the knife. A superior cutting edge contains microscopic teeth. The smaller the teeth, the sharper the knife will be. The dense molecular structure of the blade provides a finer cutting edge.

The Handle: The tang is the end of the blade that extends into the handle and gives the knife strength and balance. Knife handles are made of a variety of different materials. Each has advantages and disadvantages. Wood has an elegant look and is less expensive (depending upon the type of wood used). It is not waterproof, dishwasher safe, or oven proof. Polypropylene is impact resistant, break proof, and dishwasher safe. It starts to deform at 290 degrees F. A superior knife handle should feel comfortable and secure. The balance of the knife — dependent upon the weight distribution of the handle and the blade — will determine how comfortable it is to use. A uniform weight distribution is ideal. Look for a handle with a smooth finish all around.

The Bolster or Shoulder: This area between the handle and the blade gives the knife proper balance and weight, plus protects the hand from slipping over the cutting edge during usage.






Find Reports & Data

The Gourmet Retailer's 2009 Retail Yearbook

There are more than 700,000 independent retailers across the U.S. The Gourmet Retailer Magazine focuses on specialty food and kitchenware stores, profiling these entreprenuers in its print edition. Here is a collection of those specialty retailers in an easy-to-peruse yearbook.

The Gourmet Retailer's 2009 Deli Handbook

A must-read for anyone in the specialty deli business,The Gourmet Retailers 2009 Deli Handbook is now available online. Packed with new product information from top food shows around the globe-including the NASFT Fancy Food Show

CSNews' 2009 Industry Report Study

Industry sales climbed 11.4% to an all-time high of $633.9 billion last year, according to the Convenience Store News 2009 Industry Report, the longest-running compilation of sales and operational results in c-store retailing. 40 pages, including 69 charts.

CSNews' 2009 Realities of the Aisle Consumer Study

Food quality and in-store execution greatly impact a consumer's choice to purchase and consume prepared food from a convenience store, according to the new Realities of the Aisle consumer research study conducted by Convenience Store News, in partnership with Nielsen Homescan. Study is 11 pages and includes 14 charts.



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