Oser Communications Group

Kitchenware News May 2017

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News ..............................................5 Ad Index .......................................22 www.kitchenwarenews.com BY LORRIE BAUMANN If you're a retailer looking for more dough, you should follow the Baby Boomers, because they've got the bread. Welcome to the longevity economy, in which Baby Boomers may be outnumbered by Millennials, but they're living longer than their parents, and they've still got most of the U.S.'s wealth to spend, according to market researcher Marsha Everton, a Principal in AIMSights, an international marketing company studying the intergenerational dynamics of the Baby Boomers Still Driving Economy Continued on PAGE 6 Continued on PAGE 20 Continued on PAGE 5 Continued on PAGE 7 Baby Boomer and Millennial generations. She and AIMSights Millennial Associate Whitney Ryan made her point during an address during this year's International Home + Housewares Show, held in Chicago in March. The number of adults between ages 20 and 49 – the Millennial Generation – is now 56 percent of the American population and it 's still growing due to immigration into this country, which is precisely why this generation is of such deep interest to marketers, who are spending about 90 percent of their advertising dollars courting Millennials' purchases, according to Everton. It's the generation that's been all but abandoned by the marketers, though – the Baby Boomers – that still has a disproportionate share of the nation's purchasing power. While the Millennials now outnumber their parents, the Baby Boomers still have 70 percent of the nation's BY GREG GONZALES The idea that what happens in the kitchen can change the world seems to be spreading throughout the industry. Low- power and high-efficiency appliances empower consumers to cook with smaller carbon footprints, toxin-f ree plastics let them eat without worrying about harmful chemicals in their bodies and post-consumer sites, and brands that boast clear and vocal sustainable efforts give consumers a chance to back brands they can trust. Millennials are seeking brands that offer good to the community, but this expectation increasingly spans Small Electrics Get Personal at 2017 IH+HS generations. Nielsen's 2015 Global Sur vey of Corporate Social Responsibility found that a vast majority of Millennials are willing to pay a premium price for sustainable products and brands. Generation Z wasn't far off; 55 percent of that group was willing to pay extra in 2014, to 72 percent in 2015. A majority of Baby Boomers felt the same way. Earlier, in 2012, MIT Sloan Management Review and the Boston Consulting Group conducted a manager and executive survey, with 4,000 managers f rom 113 countries participating, and found 70 percent of companies had permanently placed sustainability on management agendas, with two thirds of respondents claiming sustainability was a necessary goal for market competition. More recent numbers, presented at the 2017 Natural Products Expo West, reflected the same patterns: According to a consumer survey by the New Hope Network, 64 BY MICAH CHEEK Near the tip of southern California wine country, Kitchen Fantasy is catering to home cooks and restaurateurs alike. Ernie Rodriguez, who has been selling kitchenware since 1984, has made his store thrive in the same shopping center as a Target and a Home Goods. "It 's a symbiotic relationship," says Rodriguez. "A lot of times, [customers] go into Target looking for something and they're disappointed." Kitchen Fantasy maintains the attitude that the store should do everything online shopping does, including offering high value. To compete with online prices, as well as the superstore prices nearby, Rodriguez buys in high volume. "We're stocked floor to ceiling, merchandise on merchandise," says Rodriguez. "It 's more pleasing to the customer to see that we're stocking a full range of products." Buying high volumes of merchandise obviously has its own drawbacks. If a product doesn't sell well, there is a lot of stock to work through. This is where Kitchen Fantasy's other major demographic comes in. "A lot of times, we'll be sitting on a product for 6 to 8 months, and a restaurant [owner] will come in and say, ' This is the perfect guitar-shaped ser ving dish, can we get more of them?'" The store has invested greatly into relationships with local restaurants. " We're selling Chefworks and high-end knives for them, too," says Rodriguez. "A lot of the local restaurants want me to just be a restaurant supply." Surprisingly, professional equipment has sold quite well to home cooks as well. "Most of the homes here are a bit larger, with larger backyards. People will come in and buy stuff for these big events they do," says GENERAL NEWS n Cornell Capital 8 SMALL ELECTRICS n Magic Chef 21 THE PANTRY n The Spice Lab 16 PATIO & OUTDOOR n 13 THE KNIFE RACK n Chef's Choice 18 BUYER'S GUIDE n Garlic & Herb Tools 17 TRADESHOW CALENDAR n Upcoming Shows 22 H o u s e w a r e s R e v i e w KITCHENWARE NEWS Making Fantasies Come to Life Sustainability Proves Necessary, Not Trendy BY GREG GONZALES "Some things scratch the surface while others strike at your soul." It's doubtful that author Gianna Perada Carini was referring to kitchenware designs when she wrote that, but today's consumers certainly seek out products and brands that strike them personally. Designs in small electrics are diverse as ever, and multi-functional capabilities and space-saving innovations attract universal appeal. Connected devices are attracting the Millennial crowd at a higher rate than other demographics, and so are completely new innovations that expand daily meal options. Consumers today seek small electrics that speak to their identities, provide lifestyle-specific conveniences and save space on the counter. "You're seeing a trend toward multi-functional items, and smaller footprints, and pieces that are more pride-of-placement pieces," said Kurt Jovais, Vice President of Sales and Marketing at Midea. "A heavier focus on design, on color, on finish. As long as it's going to take up space on my counter, I better be proud that it 's actually looking good." Jovias noted that small electrics finishes are seeing a shift away from shiny enamel to more matte VOLUME 23, NUMBER 5 MAY 2017 n $7.00 THE PANTRY: cHARISSA SEE PAGE 16 GADGET OF THE MONTH: WEST BLADE SEE PAGE 22 SMALL ELECTRICS: BRAUN SEE PAGE 21

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