Beyond the International Home & Housewares Show 2010: Listen Up.
The lines are heating up on Twitter about the Housewares Industry, so it’s time for me to do a post. The industry’s association lays claim to the housewares show growing by 500 exhibitors this year. And it does attract a fairly large audience, but I believe this is all about to change.
With Wal-Mart’s announcement that it plans to go direct with 80% of it’s products and the Housewares Show making up at least half of Wal-Mart’s vendor base, do we really think this is the show they will continue to display their wares at? From having worked this show for some 30 years, and being in that industry, I also know, have felt, and been keenly aware of how much has changed since the early heydays of the Housewares Industry in the 80’s. This show, traditionally held at McCormack Place in Chicago since it’s inception, used to have a building that we all knew to be where the start-up creative companies were. That building died out and got replaced by a larger segmented Housewares Show based on big business deals years ago. The little guy, if noticed at all, was shoved in a corner.
Now, international exhibitors are there in the back, the very back,(read Asian manufacturers) so if you need to source something just bypass your vendor and go straight to the back to make your deals. All very messy, but in the name of progress.
Still, as early as 8 years ago the industry also understood that it was putting on a show for about 5 accounts…Wal Mart, Target, Costco, Sam’s Club and maybe Container Store? The association was smart to start focusing on the kitchen and on the cooking side…more gourmet which nearly got wiped out in the 90’s but is now seeing a comeback. But is it wise to maintain this show on the basis that the merchandising team, product development team, and buyers of Wal-Mart along with Li & Fung can walk the halls (hiding badges) to copy what the vendors are doing instead of doing business with them?
My recommendation is that the show splits itself off into three parts, the cooking and tabletop guys go to the Gourmet Show held in San Francisco at Moscone Center, the creatives head for the gift shows especially the New York Gift Show in January or the Atlanta Gift Show held in July, and the housewares/hardlines guys head for Las Vegas for the Hardware and Lawn & Garden Show. There is also the craft show for those who were smart enough to forge into that market early on.
For the past three years I have been live blogging the Housewares Show, and industry since sustainability became the Hot Topic. With Wal-Mart both co-opting the subject and the industry by last May creating their Sustainability Index and the maxim that all vendors jump on board, I have moved on and recommend others in the space do the same. Target will be able to soak up only so many of the vendors that will depart Wal-Mart. Hopefully they’ve already seen the writing on the wall and have begun their exodus. This morning’s article from AdAge on Wal-Mart losing market share highlights the problems going on in this sector as well as some of the opportunities for vendors, and Warren Shoulberg, HFN’s editor, who is as honest as I am and equally if not more so knowledgeable about the industry, released both a video and a statement with the same recommendations I have. Kids, it’s time to diversify.
In the meantime, don’t believe everything you read or hear about the Housewares Industry especially if it is coming from the Housewares Association. It is very possible it has passed it’s prime. I still have not decided whether I’ll be attending this year as I have mostly moved my cheese already, but the show is next week. If for no other reason, the show will be good for color palettes which is a pretty sad state of affairs don’t you think? Whatever is being prognosticated and held up as trend worthy has already been presented to Wal-Mart and Target and maybe even mostly decided upon. Half the industry is going the route of supply chain to create a more sustainable company and most of us all already know about the 85-95% post consumer waste. I already know about the company in Brazil who has done some great product but it’s from food sources and people are reluctant to place this kind of demand onto farmers. Tabletop has been the most progressive with even that slowing up in recent years.
I covered some innovative companies last year, bodum and fusion brands, on 2modern’s design blog, and still consider them to be innovative companies, but really not much else is happening. Last year the show’s producers pushed color in countertop to be the thing that would make people buy. Color helps, but in this economy, I think real innovation is what is called for not half measures. This industry can run on some pretty low margins (thanks once again to Wal-Mart and Target) so innovation is not always what these manufacturers can afford. Aside from the mentions I’ve already written about here on my blog and 2modern’s, not much has changed, other than their color palettes and if I may say so, the color marketers may have been having their day in the sun as a result.
The only hope is if Rubbermaid or Sterilite licenses some of the innovations made in biodegradable plastics and those get placed in Wal-Mart and Target and then the pricing comes down so everyone can start to do the same. And if this is the case, I have not heard about it. I know it’s been being discussed, but I think we are still a few years from this kind of progress being made.
Info on show dates and exhibitors for 2010 is here. For more past article I’ve written on the Housewares Show visit this link here.
I read your blog with great interest and even though I work for the International Housewares Association, I hope to offer an alternative point of view for your readers to consider.
I have personally worked the Show as a retail buyer and as a marketing director for a large supplier before coming to work for the Association. Before I arrived, I was not aware that the Association was a not-for-profit, that it was run by the industry through various steering committees made up of IHA supplier members and, of course, a volunteer, member-based Board of Directors.
The Show also has two Retailer Advisory Councils, one focused on larger retail entities and another made up of primarily independent gourmet retailers. There is also an exhibitor advisory group. Each of these groups is focused on maximizing the value that the Show delivers to the industry and many positive changes have been implemented based on the input of these groups.
The Show has certainly evolved over the recent past. International participation by both exhibitors and attendees has grown dramatically. And even in the face of significant consolidation over the past decade or so, buyer attendance has increased more than 30% over the last ten years, as U.S. independent retailers and international suppliers and retailers have found value in attending.
The housewares industry is broad and vibrant. As the housewares industry has globalized, design has become a key ingredient in most suppliers’ strategies. Competition has made suppliers more cognizant of the imperative to innovate. The Show is the industry’s opportunity demonstrate that creativity and ingenuity.
As you may know, the breadth of the companies who chose to exhibit at the Show is available to all. There are over 1,900 exhibitors, all searchable on the Show’s website. This year’s Show has over 500 new exhibitors. You can search, learn about and map those new companies on the site as well.
We sincerely hope that you will have a change of heart and be in attendance with the 60,000 or so housewares professionals from around the world who will be here in Chicago next week.
Thanks for stopping by Perry. We have met and I had some input on those changes that were made some 5 years ago. But I am talking about moving forward in the years to come as Wal-Mart goes direct it will have a significant impact on your show.
If you can discuss that point, knowing the input you have, that would be really helpful for my readers and my twitter following.
Again, thank you for stopping by and give my best to Phil Brandl.