Page 18 - Craftcil March 2017
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            Home-Products Industry                    Consumers shift to 'responsible' spending

              to continue on growth                         incline towards artisanal and handcrafted items

                  trajectory in 2017
                                                         Two-thirds of US consumers now patronize off-price stores, part of a shift
                                                     away from aspirational shopping. According to a new white paper from NPD
               A new home-products industry forecast  Group, consumers have adopted 'responsible' spending habits. Even Baby
            from global information company The NPD  Boomers, who continue to have more discretionary income than any other
            Group, reveals that the small home appliances  group, aren't shelling out for the same categories of merchandise they did a
            and housewares markets will continue on the  few years ago. Millennials are more tightfisted than their elders. "Millennials
            growth path they returned to in 2015.    aren't aspirational. They're frugal, except in a handful of categories," the report
            Covering more than 100 small kitchen     concluded. Presented during the recent ShopTalk conference, the report's key
            electrics, personal care appliance, home  findings include that consumers now:
            environment appliance, and housewares
                                                                   •  Prioritize their purchases
            categories, NPD is forecasting a nearly three
                                                                   •  Are fascinated by artisanal/handcrafted items
            percent combined dollar sales increase for
                                                                   •  Chase individuality rather than fashion
            these industry segments in 2017 versus 2016.
                                                                   •  Are skittish about debt
            This is based on forecasted sales of small
                                                                   •  Prefer experiences to things
            home appliance and housewares products
                                                                   •  Search carefully for items or foods that enhance an
            captured in The NPD Group Retail Tracking
                                                     experience and make good photogenic prospects for social media
            Service point-of-sale data.
                                                         The hunt for value extends up the income ladder. A recent study from
                                                     NPD's Checkout Tracking service showed about 19% of spend at Dollar Tree,
                                                     Dollar General, and Family Dollar came from households with an income in
                                                     excess of $100,000 a year. "The dollar-store phenomenon is even more
            which include
                                                     significant among Millennials. Checkout Tracking found Millennials with annual
            floor care, will
                                                     incomes of $100,000 or more made purchases at these stores nearly 13 times
            have the
                                                     a year and spent more than $135," the report noted. „
            strongest growth
                                                     Source : Home & Textiles Today
            this year,
            increasing dollar
            sales nearly four percent, followed by personal  Target: New textiles chem regulations soon
            care appliances with three percent growth     producers to have six to 12 months to get compliant
            compared to 2016 results. Small kitchen
            electrics and housewares (non-electrics) are
                                                        Once Target releases its restricted substances list, textiles producers will
            each forecast to grow two percent in 2017.
                                                     have six to 12 months to get compliant. Speaking at a seminar recently, Target's
               "The home-products industry has entered
                                                     Kirk Smithwick said the retailer's new chemical management goals will be one
            a five to ten-year window in which it has the
                                                     of the most comprehensive in the industry. "The word 'transparency,' that's the
            potential to see consistent annual growth in
                                                     key," he said. Smithwick, one of Target's principle product engineers, said the
            the U.S., based on the changes occurring in the
                                                     company is in the process of crafting its textiles restricted substances list and
            demographics of the population," said Joe
                                                     aims to have it completed in the next six to 12 months. Once it's published,
            Derochowski, executive director and home
                                                     manufacturers will have six to 12 months to get compliant. "It's going to be a
            industry analyst at NPD. "While the
                                                     lot work on both sides," he added. Ben Mead, managing director for
            environment is supportive of growth for the
                                                     Hohenstein Institute Americas, discussed the role of the Oeko-Tex Standard
            home industry, manufacturers and retailers will
                                                     100 as a measurement tool in the process and Target's leader as an industry
            need to deliver innovative new approaches
                                                     influencer in moving the transparency forward. "In most cases we see a pull
            addressing consumer needs and wants, not
                                                     effect from the retailers or from the brands saying 'here are our requirements,
            just bells and whistles, in order to compete
                                                     we need to be able to provide this to the consumer, and we need you as a
            and capture consumer dollars." „ Source :NPD
                                                     producer to be able to enable this," he said.  „  Source : Home & Textiles Today
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