IHA News Release

FOR IMMEDIATE RELEASE:
Contact: Deborah A.Teschke
Manager, Media Relations & Communications
847-692-0110

Housewares Remain Buoyant In Stormy Economic Seas

ROSEMONT, ILL (December 20, 2007)—As has been the case during turbulent economic cycles of the past, the housewares industry is weathering a slowdown that has consumers balking at major spending.

"Time has shown that when growth of the U.S. economy slows, consumer spending on housewares remains steady," says Phil Brandl, president of the International Housewares Association (IHA). "While there is probably less spending overall, consumers tend to focus their remaining purchases on home products, especially as they stay at home and ‘feather the nest.’"

IHA Board President Peter Cameron, chairman of Waterford Wedgewood, adds that "in most instances" the slowing housing market does not affect the housewares industry "as much as it does other industries."

"In fact, it might leave more money available in the market for remodeling and redecorating. This often involves the kitchen and entertainment areas, which should keep the housewares category relatively strong," he says.

Housewares industry watchdog Peter Goldman of the NPD Group, Inc. also sees resiliency in the industry’s ability to "adapt and evolve with change." In the Fall 2007 Housewares MarketWatch, published by IHA and NPD, Goldman says "month-to-month, year-to-year, different factors come into play either positively or negatively affecting sales performance."
Also buoying up the industry is a full-fledged focus on the "green" movement and sustainability heading into 2008. Once simply a "feel good" concept, sustainable housewares have gained momentum as consumers become more conscious of global warming and other environmental impacts and manufacturers realize cost savings on materials and packaging.

"It has a definite foothold driven mainly by the demands of our customers," says Jeff Siegel, IHA Board chairman-elect and president/CEO of Lifetime Brands, Inc. "It will manifest itself in many ways. Many products are being designed to use recycled materials as long as they are not on food surfaces. Packaging is changing to be more environmentally proper through the use of recyclable materials and through the reduction of packaging."

"I think the green movement is here to stay," adds IHA board member Barry Harper, president/CEO of Harper Brush Works, Inc. "The way our company has approached this issue is to create a corporate social responsibility statement that is the guiding light for everything we do within the company. That not only includes ‘green’ products, but packaging, energy costs, scrap and moving toward a paperless work environment. We’ve introduced a deck mop made from recycled soda bottles and cotton materials with a bamboo handle."

The adaptable housewares industry is embracing other forms of innovation in a fundamental way. IHA board member Sheldon Goodman, president of Spectrum Diversified Designs, Inc., says innovation is the key to maintaining "solid and fundamental" relationships with retailers.

"The exceptional manufacturer-partner must innovate in order to provide customers the excitement at retail they demand," Goodman says. Innovation in design and product development, he notes, must have certain attributes to fulfill retailers’ needs. Those include new designs, improved functionality, new features and benefits, improved quality, improved retail packaging and display and product margin enhancement.

An aging population, says Waterford Wedgwood’s Cameron, also plays into the need for innovation in housewares. "As the baby boomer population ages and the ‘echo’ boomers move into the marital age, there is more and more requirement in housewares for innovation." he says. "Most of the population already has everything it needs and the general replacement business will be uninspiring. The requirement here is to create new motivation through innovation for consumers to re-enter the purchasing cycle in housewares."

Economic cycles come and go, but as IHA’s Brandl says, "housewares sales remain steady." And now new generations are challenging the industry to innovate in order to meet their needs, a challenge suppliers are well-prepared to answer.