ROSEMONT, IL - American consumers are entering the new decade with cautious optimism, as many plan to continue navigating through a difficult economy by focusing on frugal spending and simpler lifestyles.
"Probably the biggest trend, and one that has been percolating for a few years, is a return to frugality," said A.J. Riedel, senior partner of Riedel Marketing Group. She noted that this trend has been growing, but it took the struggling economy to "kick it into high gear."
"Often we don't see radical shifts in behaviour until we've looked at the past decade. Consumers were hit by a huge economic downturn on so many levels--the housing market, the stock market -- that even consumers who once were secure now felt insecure," she explained. "Many are realizing how far out of control they had gotten. It made many people realize they had a false sense of security."
The International Housewares Association's (IHA) Consumer Advisory Council, a subset of the 100-member Home Trend Influentials Panel, or HIPsters, created by Riedel Marketing Group mirror this trend. The Hipsters were created to identify current home-related trends and a small group of HIPsters comprise a focus group each year for IHA.
In June 2009, Riedel surveyed the full HIPsters panel about money and the future. Thirty-six percent said they were more worried about money and the future than they were in late 2008. Almost half, about 46 percent, were feeling the same level of worry, and only 16 percent were less worried.
At an October 2009 focus group of seven HIPsters, two reported feeling cautiously optimistic that the economy is starting to recover. "Yet, there is still the fear factor, especially among the younger women, even though none of this year's group of HIPsters have lost their jobs or been adversely affected by the recession," Riedel noted. When the focus group was asked whether they would return to their old spending habits once the recession ends, all seven said no. Seventy-three percent of the full HIPsters panel has said they would not go back to their old spending habits, an increase of 18 percent from a December 2008 survey.
Along with streamlining their spending, consumers also have been searching for ways to simplify their lives, household chores in particular. Riedel noted simplification was also a growing trend among the HIPsters at the October focus group.
For some HIPsters, this trend means getting a healthy meal on the table quickly. For others, it reflects simpler household cleaning. And for some, this trend means reducing clutter and possessions.
Among the HIPsters, many are trying to spend less time on cooking through the use of convenience foods such as precut fresh fruits and vegetables. Others are relying on products such as slow cookers to eliminate the hands-on time they spend over a store. Four of the focus group participants also are looking to simplify household cleaning and spend less time on it. Toward that goal, several have purchased time and effort-saving appliances such as a steam mop to make cleaning easier.
EATING AT HOME TREND CONTINUES
According to the 24th Annual Report on Eating Patterns in America by the NPD Group, Americans are eating at home more and have been since the beginning of the 2000s. The report also noted Americans used their microwave ovens more last year and their stove tops less. Approximately 20 percent of all meals prepared in U.S. homes from 1990 to 2007 involved a microwave. Last year that figure increased by 10 percent. Meals prepared on a stove top dropped from 52 percent in 1985 to 33 percent in 2009.
Harry Balzer, chief industry analyst at The NPD Group and author of Eating Patterns in America, stated the trend toward coming home to cook and eat is not new. But he pointed out that this is the first decade where the number of meals bought at a restaurant at the end of the decade does not exceed the number of meals bought at restaurants at the beginning of the decade.
"The movement back to our home has been about value," Balzer said, noting that household income has not increased in the past decade. "There has been a structural shift illuminated by the economy, not caused by the economy."
More than half of the HIPsters panel report they are eating out less than they did a year ago.
Peter Goldman, president of the home division for The NPD Group, cited a "renewed interest and renewed emphasis" on eating and cooking at home. He said the majority of consumers may not be cooking more, but they are making those meals more special.
Some, he said, may be influenced by celebrity chefs and are seeking to recreate restaurant-quality meals at home. Others, he noted, may be migrating away from formal dinnerware and toward quality casual dinnerware, but will "dress up" the dinner table with colors and accessories such as table linens.
Riedel believes increases in home entertaining and eating at home are partly the result of the sagging economy and partly out of a desire to eat healthier and better control what their families consume. Riedel noted 58 percent of members of the HIPsters said they are preparing meals at home more often than they did a year ago.
Professional chefs concur with the HIPsters findings, ranking the trends of sustainability, nutrition/health and simplicity/back to basics among the top five culinary themes, according to the National Restaurant Association Chef Survey: What's Hot in 2010. Among the trends cited in 2010, locally grown produce, locally sourced meats and seafood and sustainability ranked at the top.
In addition, 55 percent of those chefs expect environmentally-friendly products to be the hottest kitchen equipment trend in 2010. Productivity-enhancing products, such as speed cookers or labour-saving devices ranked second, with 23 percent of those surveyed expecting that to be the hot trend.
SLOWDOWN EXPECTED FOR "GREEN" PRODUCTS
The consumer trend toward "green" products seems to be abating. Some have reduced overall spending while others have grown skeptical of claims made about "green" products.
"The momentum may be slowing on the acceptance of new green habits and practices," Riedel said. "While most of the focus group participants said they are much more aware of environmental issues than they were a year ago, they have not made any huge changes in their environmental habits and practices in the past year.
"It would appear, based on some comments by the focus group participants, that consumers are starting to question whether the sacrifices required to use green products instead of non-green alternatives are worth it," Riedel said. At least half have switched to compact fluorescent lamps (CFLs), for instance, but several complain they do not like the light those bulbs emit.
Riedel noted that many HIPsters are embracing "green" products when they can reap an immediate benefit such as solar water heaters or tankless water heaters to conserve energy. "Some environmental practices are harder to measure," she said. Many HIPsters, Riedel noted, have returned to traditional products for cleaning. One HIPster has begun using "basic" cleaners such as ammonia, vinegar, bleach and baking soda because she believes they clean better and likes their scent.
HOME REMODELING REMAINS STEADY
Many U.S. consumers are focusing on the home to insulate themselves from the outside world and are rethinking their home projects spending. "The economy has created a reality check for many consumers and has had a fundamental impact on home improvement," Riedel said.
Prior to the housing slowdown, consumers spend money on their homes as a primary investment with projects that would improve the home value. Today, consumers recognize that the money spent on their home many not be recouped when the house is later sold. Annual spending on home improvement should start to rise again in the first quarter of 2010, according to the Leading Indicator of Remodeling Activity at the Joint Center for Housing Studies, Harvard University. The study reports that a decline in spending could shrink to 8.9 percent by the second quarter of 2010.
OUTDOOR ENTERTAINING STILL STRONG
According to The NPD Group, most consumers still do outdoor entertaining, with an average frequency of about four times a year. In an April 2009 report, about 45 percent of outdoor entertainers purchased some type of related product in the past 12 months. In addition, more than 40 percent told NPD they plan to purchase or add an item to their property in the next 12 months.
Firepits/outdoor fireplaces, outdoor lighting and water fountain/décor were among the products outdoor entertainers said they would plan to purchase within the next year.
Hundreds of new products highlighting these trends will be on display at the 2010 International Home + Housewares Show, March 14-16 at McCormick Place in Chicago.
For more information visit http://www.housewares.org
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