Whats Cooking Pulse on Consumer Behavior May 2020 Managing - - PowerPoint PPT Presentation

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Whats Cooking Pulse on Consumer Behavior May 2020 Managing - - PowerPoint PPT Presentation

Mar 04, 2024 365 likes •814 views

Whats Cooking Pulse on Consumer Behavior May 2020 Managing Director for Cookware Manufacturers Association 30 yrs + Consumer Product Manufacturing Experience Product Development Team Leader BS Engineering from Michigan

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What’s Cooking…

Pulse on Consumer Behavior May 2020

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  • Managing Director for Cookware

Manufacturers Association

  • 30 yrs + Consumer Product

Manufacturing Experience

  • Product Development Team Leader
  • BS Engineering from Michigan State and

Masters from Notre Dame

Penny Rosema

Managing Director Cookware Manufacturers Association

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Some Brands You Know…

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Cookware & Bakeware

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  • 2019 Trends
  • COVID19 Influence on Demand
  • Demand Drivers
  • Consumer Insight

Unsplash Photo: by Hans Peter Gauster

Agenda

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2019 Data

Cookware & Bakeware

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2.43 Billion

Cookware 2018

4.2%*

vs 2016

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Cookware 2019

Total Cookware

*Note: 2018 Year over Year comparison is with 2016

0.98%

vs 2018

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1.46 Billion

Aluminum 2018

7%*

vs 2016

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Aluminum 2019

Aluminum Cookware

*Note: 2018 Year over Year comparison is with 2016

5.38%

vs 2018

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568 Million

Stainless 2018 2019

Stainless Steel Cookware

2%*

vs 2016

*Note: Year over Year comparison is with 2016

  • 8.4%

vs 2018

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In Short, We Note…

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Aluminum 2019 Up 5.3%

  • Thicker Gauge Colored Alum Up 23%
  • <8ga Colored Alum Down 13%

Stainless Steel 2019 Down 8.4%

  • Multi-ply Stainless Steel Down 9.8%
  • Fabricated Bottom Down 5.8%
  • Single Wall Down 1%
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372.5 Million

2018*

  • 4%*

vs 2016

2019

Cast Iron/Porcelain

  • n Steel/Copper

*Note: Year over Year comparison is with 2016

  • 4.4%

vs 2018

Percent is a mix of three categories. Cast Iron Cookware remains a strong category

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2018 2019

Bakeware

  • 2%

vs 2016

*Note: Year over Year comparison is with 2016 As of this presentation Date - Data for 2019 Bakeware under further evaluation. Bakeware is up 10-20%

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37.1 Million

2018 2019

.08%

vs 2017

Tea Kettles

6%*

vs 2016

*Note: Year over Year comparison is with 2016

2.5%

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Cookware & Bakeware Imports

  • Private label and imported cookware shipments were

up in 2019 over 2018. China was the major producer of imported cookware/bakeware

  • In the first six months of 2019, imports were up 1.5%
  • ver 2018 in dollars and up 5.9% in units. Average price

per unit is down -9%

  • Trade agreements, tariffs and retaliatory tariffs

continued to put pricing pressure and impose uncertainty in the industry.

  • Impact of COVID-19…undecided

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Recovery Factors

Looking Ahead

  • Income
  • Wealth
  • Uncertainty

Photo by Bud Helisson on Unsplash 14

Video Link – Dr Marci Rossell

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Income

Haworth Connect Economic Insights: Dr Marci Rossell LINK

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Not evenly distributed across workers, categories or industries Income at 20k/year twice as likely to have lost their job vs those at 80k/year Primarily high touch industry – jobs that can’t be done at a distance Manufacturing jobs – some have slowed while

  • ther have increased labor force
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Wealth

Haworth Connect Economic Insights: Dr Marci Rossell LINK

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Bond Market – impact of government stimulus Stock Market – impact varies by company Real Estate – Commercial Real Estate – Residential

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Uncertainty

Haworth Connect Economic Insights: Dr Marci Rossell LINK

“Be Watching, Be Innovative, Be Agile” Joe Derochowski, NPD 17

Economist watching prior pandemics COVID 19 will change the way we work COVID 19 will change the way we spend COVID 19 will change the way we vacation

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Demand Factors

Cookware & Bakeware

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  • Income / Unemployment
  • Residential Real Estate
  • New Home Buys
  • Residential Construction
  • Home Remodeling
  • Other Demand Drivers
  • Life Moments
  • Entertainment

Unsplash Photo: by Hans Peter Gauster

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Unemployment

4/4/2020 Unemployment Claims 11,976,000 5/2/2020 Unemployment Claims 22,833, 000

fred.stlouisfed.org/series/CCSA 19

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Housing: New construction

Source: Census.Gov 20

Census.Gov – Housing Construction Link Time Series / Trend Charts – Rhand Column Select Date Range | Category | Type

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Housing: New Home Sales

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Census.gov- New Home Sales Link

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Home Remodeling

Leading Indicator of Remodeling Activity – LIRA

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Entertainment Indicator

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Retail Trade: Beer, Wine, & Liquor Stores in California

https://fred.stlouisfed.org/series/SMU06000004244530001SA

Link

Q1 2020: 17.48802 Thousands of Persons Seasonally Adjusted

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In Short, Note…

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  • Unemployment not evenly distributed
  • Watch Residential Real Estate
  • Follow the Entertainment Indicator
  • Expect changes in how we spend,

work, and vacation

Image: Creatv-eight on Unsplash

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Consumer

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E-commerceRetail Sales –Percent of Total Sales

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Link

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  • Brick-and-mortar plays an integral role
  • Digital presence is key to consumer

engagement

  • Omnichannel Opportunities

Department Store Insight

TAG – Dana Telsey April 2020

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Telsey Advisory Group (TAG) is a registered broker dealer offering equity research, trading and investment banking services.

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Consumer Focus

IHA / NPD Webinar – Joe Derochowski

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Strategy

l Provide the tools they need l Watch and Listen l Wow Factor

Consumer I wish, I want , I hate

YouTube Video Link IHA Webinar

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  • Cost of Food won’t outpace the

budget

  • 3-4x more cost effective to eat at

home

  • New Behaviors – “help consumer

stay in the game”

Insight

Joe Derochowski, NPD

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YouTube Video Link IHA Webinar

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Other Observations

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  • Working / Teaching / Meal Prep
  • Virtual - Happy Hour / Family Hour
  • One Dish Meals
  • Health Focus
  • Family Activities
  • More Snacking
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Consumer Experience

  • Focus on how consumer is

spending their time

  • Focus benefits and ease of

use

  • Focus on consumer needs
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Consumer Preferences and Retailing Strategies

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Strategy

l Good cooking is a combination of the

right tools with simple techniques and instructions

l Digital - “Alexa what is the best…” l Customize the Consumer Experience

Consumer Looking for help…

Homeworld Business – loo for Forecast 2020 [subscription required

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Trends

Health & Wellness Healthy eating AND cost conscience Space Considerations Stackable cookware and

  • ther innovative ways to leverage limited
  • storage. Urbanization and downsizing.

Endless Aisle providing wider array of products with alternate delivery option. BOPIS Buy Online Pick-up in Store …now pick- up @ the Curb.

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Resources

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Cookware.org

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CMA’s Mission & Who We Serve

Cookware Manufacturers Association Promotes the Optimal and Appropriate Design, Manufacture, Sale, Use & Servicing of Cookware and Bakeware Through Quality Standards Development, Information Sharing, Education, and Impartial Communication to Members of the Association, Their Trade Partners and to Consumers

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Unsplash Photo by : Marcin Kempa 36

Cookware.org: Retailer Links

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Cookware & Bakeware Engineering Standards

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Retailer Tools

What’s available ?

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Retailer Tools

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Resources from the CMA

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Guide to Cookware—available online!

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  • IHA - The Inspired Home Show
  • IHA Presentations
  • HomeWorld Business
  • National Retail Federation
  • Telsey Group – Dana Telsey
  • National Association of Manufacturers

NAM COVID-19 Resource Page

Other Resources

Industry Links

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NPD Group’s Joe Derochowski provides a look at how consumer spending has already shifted since Covid-19 took hold, and how emerging spending behavior in the US lines up with other countries that have weathered this situation.

Shifting Consumer Behavior During COVID-19

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LINK

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Contact Info:

Penny Rosema (616) 987-3520 prosema@cookware.org Cookware.org

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