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KNHR @ THE HOUSEWARES SHOW www.kitchenwarenews.com n MARCH 2014 n KITCHENWARE NEWS & HOUSEWARES REVIEW 1 9 With a recovering American economy, housewares executives are looking ahead to adaptations companies have made to generate sales. Global housewares market data show an overall retail sales increase of 2.9 percent in 2012, the most recent available statistics, while U.S. average household housewares expenditures increased 3.3 percent the same year, according to the International Housewares Association's (IHA) 2013 State of the Industry (SOI) Report. "This means that on a comparable basis consumers wanted more housewares per household," says IHA President Phil Brandl. " The economy is improving enough that consumers are less wary about spending money." "We hit bottom in 2009," adds Keith Jaffee, chairman of O2 Cool and IHA's Chairman of the Board. "People were scared but did invest in some of the bigger purchase items. With the economy picking up and unemployment coming down I think we're going to see a ver y strong couple of years (in 2014 and 2015). "I'm a little disappointed with (the holiday season) but some of that was a shorter season and weather may have had some effect," he said. "But, if you look at auto and homes sales, people are spending money, so I'm moving toward a bullish standing." Evan Dash, CEO of StoreBound, sees the housewares industr y "performing somewhat better than most." Because the economy is still chugging along toward improvement at a relatively slow pace, consumers remain selective about their purchases, but "they are proving every day that they will spend on products that are well designed, work as promised and make their lives easier," Dash says. One factor housewares manufacturers are keeping a close watch on to gauge improvement: the direction of raw materials costs going into 2015. The slower paced economy in 2008 and early 2009 had one clear silver lining in lower costs for raw materials prices and a mild economic expansion that followed. Today, while consumers seem to be loosening their belts, housewares manufacturers tend to maintain a cautious "wait and see" stance because many expect to see increases in raw materials prices in 2015 along with the beginning of higher interest rates. Those who still source in China also expect higher labor rates. Over the next 18 months, human factors that will drive consumers and retailers to buy include "specifically targeted messaging toward individual buying behavior," says John Collins, partner and managing director of Neatfreak. "Social media and technological advances are making the buying process easier for the consumer and far more efficient for retailers and manufacturers/suppliers. The question now becomes whether this approach is too invasive and how far this approach can be stretched before consumers object." Bill Riebl, president of Infusion Living LLC, believes product innovation and helping retailers differentiate themselves in an increasingly consolidated marketplace will create excitement for consumers and new business opportunities for retailers well into 2015. "Innovation takes many forms," says Jeff Siegel, CEO of Lifetime Brands Inc. "It can be as simple as a slight redesign of a product or the holy grail of innovation, something that is new to the world. A good example would be simple innovations such as new handles for a can opener, in contrast to a splatter screen that eliminates odors or a container that doubles the shelf life of fruits and vegetables, both of which are new to the world." Housewares Industry Leaders See Growth In Sales CHEF PRO INTRODUCES GREEN LINE OF ECO-FRIENDLY KITCHEN TOOLS Chef Pro Green is the new Chef Pro line of eco-friendly and bio-degradable kitchen tools made from bamboo and acacia wood. The product line includes Solid Spoon, Slotted Spoon, Slotted Turner, Pasta Server, Ladle, Rolling Pin, Cutting Boards and tools holder. The ergonomic design of the handle makes the pieces easy and convenient to handle while cooking. Handles are an attractive red color, and the handles incorporate a user-friendly slot that allows the tools to rest on the rim of a plan while cooking, saving any mess from spoon drips on the counter and the need for a spoon rest. Chef Pro 855.243.3776 or 732.650.9400 www.chefprousa.com

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