Feb 14 2008
With the "green" movement leading the way, increasingly conscientious Americans also want to eat better, improve their home environment and escape to the great outdoors. Hundreds of new products highlighting these major trends will be on display at the 2008 International Home + Housewares Show, March 16-18 at McCormick Place in Chicago.
"The environmental or 'green' movement certainly seems to have been the 'hot' topic of 2007," says A.J. Riedel, senior partner of Riedel Marketing Group. "I've seen more coverage by the consumer and business press this year than I have ever seen before." The rising cost of fuel, energy concerns in states such as California and former Vice President Al Gore's documentary, "An Inconvenient Truth," all have pushed the issues of global warming and the environment to the forefront for many consumers.
According to an October 2007 report by The NPD Group Inc., nearly two-thirds (64 percent) of consumers surveyed believe it is important to purchase environmentally friendly products for their homes. The report even found that purchasing "green-related" home products becomes more important to consumers as they get older.
Major appliances are the leading eco-friendly product category for consumers of all age groups, the report says. NPD Retail Tracking Service reported that unit sales of Energy Star appliances increased 9 percent in the 12 months ending August 2007 when compared to the same time two years ago.
That parallels the findings of the IHA Consumer Advisory Council created by Riedel Marketing Group (RMG) for the International Housewares Association (IHA). The Council was designed to identify emerging home-related trends from among more than 100 HomeTrend Influentials, or HIPsters. In a RMG survey of HIPsters, 77 percent say they are "extremely concerned" or "somewhat concerned" about the environment and 63 percent are extremely concerned or somewhat concerned about global warming.
RMG also reported that 77 percent of HIPsters purchased a product because it is seen as being better for the environment. In addition, 45 percent report they have started to use household cleaning products and/or equipment. The majority have switched to environmentally-friendly, organic or natural cleaning products. Nearly all (97 percent) HIPsters report they recycle and 87 percent are actively trying to reduce energy use.
At an October 2007 focus group of four HIPsters, all reported switching to compact flourescent lamps (CFLs) and are considering tankless water heaters. One participant is having her new home built as an Energy Star rated home, Riedel noted.
"She is part of a national trend," she added, citing a National Association of Home Builders (NAHB) 2007 survey of architects, designers, manufacturers and marketing experts. The survey found that 98 percent of participants are seeing an increased demand for energy-efficient appliances and mechanical equipment. Other results: 89 percent report greater use of water or energy conserving devices, 89 percent report increased demand for energy-efficient windows, 75 percent report more use of green and sustainable products and 66 percent say they see builders seeking green certification.
But while the majority of HIPsters report concerns about the environment, three out of four participants in the focus group also are skeptical about information being reported on environmental issues. And for many environmentally conscious homeowners, the typically higher cost of a "green" product, especially on big-ticket items such as hybrid cars, "green" building materials and solar panels, is a deterrent.
Today's consumers seem to be equally concerned about healthier eating. According to the HIPster survey, 52 percent have made major changes in their eating habits for a healthier diet. Most significantly, they have switched to organic food products and increased the amount of fruits and vegetables in their diets.
One focus group HIPster began using recipes from Jessica Seinfeld's cookbook "Deceptively Delicious," which features traditional recipes for children with vegetables hidden inside. Another is following the example of "Eating Clean" and eating raw foods, grinding her own grains and making her own bread. And a third started purchasing cholesterol-reducing/heart healthy cooking oils and spreads.
Riedel notes that 29 percent of HIPsters in the October survey now use new food preparation products they were not using three months previously. They include food processors, choppers, juicers and slicers. Some purchased blenders to make smoothies or protein drinks, while others now use tools such as mandolines, peelers or apple slicers to make it easier to prepare fruits and vegetables. And some purchased appliances or cookware such as steamers or woks to help cook healthier foods.
Some industry experts report conflicting predictions about the future of home remodeling and redecorating expenditures. Citing weaknesses in housing prices and consumer confidence, an October 2007 report by Harvard's Joint Center for Housing Studies predicts continued declines in home improvement spending in 2008. Overall homeowner remodeling spending for 2007 is projected to be 2.3 percent lower than in 2006.
"Remodeling and redecorating are still the great (HIPster) pastime but there is some indication they are putting off some projects because of the downturn in the housing market," Riedel said. Still, while the market for home remodeling is less robust, many of the HIPsters continue to focus on their favorite activity-home decorating.
In a July 2007 online survey of 100 HIPsters, 40 percent said they had done at least one major home improvement and/or remodeling project in the first six months of 2007. Half reported they were planning at least one major home improvement and/or remodeling project in the next six months. Half also said they redecorated at least one room in the first six months and 69 percent reported they planned a redecorating project in the next six months.
But while home improvement spending is declining, The NPD Group reports there is a silver lining in that more affluent ($100,000+ per year) and older consumers favor remodeling over trading up to new homes. Less than one quarter say they plan to purchase a home in the next year, but 41 percent say they plan to remodel, the NPD Group survey found. In addition, consumers 55 years and older are less likely to buy a new home and are more likely to remodel.
Home trend experts see consumers transforming their outdoor space into living space by adding screened porches, outdoor fireplaces and pits, covered decks and patios and outdoor kitchens, further blurring the line between indoors and outdoors.
Riedel reports that more than half of the HIPsters who participated in the July 2007 online survey improved their patios or decks in the first six months of 2007.
The NAHB survey also identified outdoor kitchen features the upscale home will include: grills (76 percent), sinks (65 percent), cooking islands (60 percent), refrigerators (58 percent) and beer dispensers/wine coolers (47 percent). Outdoor room features in upscale housing will be: decking/patio covers/enclosures (78 percent), outdoor audio/TV equipment (74 percent), outdoor lighting (73 percent), outdoor fireplaces (70 percent), pools/spas (60 percent), decorative water features (57 percent), built-in patio heating (31 percent) and portable patio heating (27 percent).
One HIPster, in an effort to create her own outdoor living room, purchased a gazebo for her back patio. "It's made a difference," she says. "It's like an extra room."