Monday, November 30, 2009

Why American Consumers Will Spend Lavishly Again

The previous blog entry is interesting from a sustainability perspective - but at the end of the day, we are not Europe...and the American consumer will not consume like their European brothers and sisters.

One of the conversation starters on the Harvard Business blogs reminds us of this, it is entitled: Why American Consumers Will Spend Lavishly Again. The author is a social anthropologist who has come to understand the American consumer from that perspective. He says that our things define us, but more importantly define what we want to become. He is quite sanguine about the fact that consumption will return and uses the recent history of remodeling as an example. From an anthropological perspective, our constant remodeling is hardly irrational consumption, but actually has a deeper, cultural motive. "Susan (his composite consumer in speaking of an expensive great room remodel) is fashioning her social life. To be sure, there is status seeking here. But there is also something richer and more cultural, as Susan works out new ideas of the "host," "guest" and "entertainment.' "

If this article is correct, it speaks to the continued importance of keeping up with fashion trends in building materials, as when the pent-up demand for remodeling returns, consumers will not be interested in yesterday's fashions. The American consumer looks towards the future, even if that future means looking for new, yet more traditional looks because the resale value of a home is not rising as rapidly as it did during the go-go years.

Respect for the Environment - a Tradition

Long before sustainability was on the tip of everyone's tongue, Manufactum opened stores in Germany with that concept in mind from their very beginnings more than 20 years ago. A German store for home products that is a cross between IKEA and Conran's, they started out immediately with a sustainability mission.

Products were to be selected based on three simple criteria:
  • Produced through traditional methods, are reliable and easy to use.
  • Materials are carefully selected and are attractive.
  • Made of traditional materials (wood, metal, glass), respect the environment and can be repaired.

Saturday, November 21, 2009

A Historical Perspective On Housing Starts

The title says it all, and Supply House Times gives us the actual statistics in an article by that name. I had no idea, judging by the state of the tile industry, that housing starts were at an all-time high in 1977-78 the year I came into the industry and they plummeted to less than half of that in the first three years I sold tile. Seeing today's downturn through a prism of experience and a product development bias, I can't imagine how I kept growing my territory during in that climate.

Being young and green, I knew that the new computer inventory control system the company had purchased from IBM was problematic and those of us in the field spend untold amounts of energy circumventing it. Only in hindsight can I see why more was not done to keep the product relevant - given the statistics. The company was in hunkering down mode, just as I see happening in many companies today.


The company survived that downturn through the efforts of a commissioned sales force, but now I can see how the many seeds that had been planted in the previous downturn lead to the demise of the company in the following housing downturn, and how the company all but put out directional signs for the competition.


This weeks
Fortune has an article entitled "Calculated Innovation" that speaks to the hi-tech industry, but applies to every company affected by the current downturn that wants to set themselves apart from their competitors for future growth.

"Economic indicators suggest that we are slowly pulling out of this global economic downturn. Despite the uncertainties ahead, this is the optimal time to think about innovation in a different light: what new groundbreaking product or service would truly resonate with your customers? It's probably something they can't articulate themselves. But it's worthwhile to take the time to discern what motivates your customers and how you could meet a need they don't even realize they have... we call this calculated innovation."


Focus groups can't have the answers, there is no question that it will take hard work for those who step up to the plate.

Tuesday, November 17, 2009

3 Pet Specification Peeves in Public Restrooms

As a trend analyst, I thrive on discovering all the new influences that affect building materials - but there is a ying to every yang and one of the most important things to remember when specifying building materials is the old Bauhaus saying "Form follows function." It is more than a figure of speech, and there are some times that it is more important to specify the correct material than the latest on-trend look.

I was at MASS General Hospital today, and had to look up exactly when a particular building was built because the rest room looked like it could have been installed yesterday. Yes, that is a product of excellent maintenance, but what is most important is that the products specified could be maintained. It turns out the building was built in 1981, and I knew by the black, gray and white that it was probably the eighties, although I didn't remember the specification coming across my desk, although I am sure that it did. I can date any installation from the last 50 years within three years, because of material, color and wear and tear. This installation was timeless, classic in color and material choice and impecibly maintained.

My pet peeves all apply to public spaces, as I feel that anyone can put anything in their home that their heart desires. My job as trend analyst is to understand what those heart's desires are at any given moment in time, but public spaces are usually meant to serve a large number and a wide range of people, and IMHO shouldn't be experiments in fantasy.

The new terminal of the RDU airport that I mentioned in an earlier post, is but one of the travesties of specification that I constantly encounter. It looked a fright within weeks of opening.

Pet Peeve #1:
Floor products used on the wall: This started to happen because natural stone tiles and stone looks became so cheap and easily available. Some of the ugliest bathroom installations that I have encountered fall into this category. This is particularly oppressive when carried all the way up to the ceiling. The MGH rest room had matte 6" x 6" white matte wall tile with a double row of soft gray checkerboard - a classic and timeless look.

Pet Peeve #2
Wall products that meet the floor: There is no getting around the fact that maintenance crews will slosh dirty water around with their mops and the dirty water travels up the wall for the thickness of the mop. The room never looks clean again. The MGH restroom had a base that matched the black large particle, poured terrrazo floor. The floor looked like it had just been installed.

Pet Peeve #3
Premium countertops with poorly designed backsplashes: The MGH rest room has a porcelain handicap sink, so this was not an issue. My favorite detail is to leave the countertop set back from the wall with no backsplash - that takes care of any movement issues and nasty grout joints that constantly plague improperly installed backsplashes. If a premium material is installed, then the extra expense of a proper joint at the backsplash should be considered. If the budget does not allow this, wall hung sinks or less expensive materials that are easily replaced are a better option.

The cleanliness of a rest room speaks volumns about any facility, whether it is a hospital, restaurant, shopping venue or office building. I for one, won't go back to a restaurant with a dirty rest room. It gives me immediate insight into the kitchen. Recently I was in a brand new building in another hospital in Boston, despite the cast on my leg, I asked for the most remote rest room in the building because I refused to go in several that I looked into. A scary propostion where every fourth person leaves the hospital with some kind of infection.


In our current economic climate, it is critical to create spaces with life cycle costs in mind, and avoiding these pet peeves creates installations that are ultimately sustainable in the long run if the right material is specified. The Ceramic Tile Institute of America has an excellant article on the sustainability of ceramic tile, despite the fact that it doesn't fall into any of the new "green" categories. It is, after all, THE original sustainable building material.

Thursday, November 5, 2009

The New Luxury Consumer

High income luxury consumers appear to be returning to the marketplace, but they are decidedly different than BC. (before the crash) From an e-letter from Kitchen and Bath Pro comes this assessment: "When the recession is over, the luxury market that emerges from the downturn is going to be very different from the way it was before the current crisis, according to marketing consulting firm Unity Marketing . The new luxury consumers are thinking about the future and learning that conspicuous consumption is not the way to grow wealth, to achieve happiness or to make their lives more meaningful.

Affluent consumers are giving back and taking concrete steps to make the world a better place, rather than simply buying more stuff. The American culture overall is in transition from a consuming, more-for-me culture to one guided by principles that are giving, sharing and linked to more for everyone.

Luxury doesn't mean the same thing it once did. People with money will always want the best quality, best workmanship, best style and design, but they want the emphasis on concrete attributes and values that are measurable - the facts and figures that translate into value - not image or status. In the new normal world after the recession, luxury is turning inward. It no longer is about an outward show of status or wealth, but an inner state of being linked with personal happiness and an outstanding quality of life."

For example, you can still travel to Paris, still buy
Chanel, Yves Saint Laurent and Stella McCartney and feel principled doing so. Merci, the brainchild of the childrenswear designers Bonpoint, is not your local Goodwill, but they are donating 100% of their profits to a children's charity. This suits the new luxury consumer to a tee. See some great pictures of the store on the Scout-Holiday blog