The Dallas Total Home & Gift Market opened this week as the first of the year’s summer gift and home markets that should provide a revealing mid-year progress report leading into what could be a turning point holiday season for the home and housewares business.
After Dallas, the summer industry show calendar includes stops at the Atlanta Market, NY Now, New York City’s Shoppe Object and Las Vegas Market.
No doubt the home and housewares business is still challenged by a wobbly economy that has yet to inspire consistently higher consumer confidence levels, and commensurately, assured retail expectations for the back half.
The heady days of the pandemic sales surge now seem long gone, even though the housewares business is on pace to exceed pre-pandemic levels in many categories. Pre-pandemic comparisons, however, have become a bit hackneyed. It is far more crucial to stay focused on how to seed the next wave of growth that doesn’t need to depend on a steep economic rebound.
Chief among what’s needed is the most fundamental business driver in the history of this business: meaningful new product. Voluminous new product launches had been something of a given from the industry for a generation despite economic conditions. Recent seasons shattered such expectations, however, as an unprecedented cycle from overdemand to supply chain disruption to oversupply conspired to discourage new product investment.
Retail inventories across the marketplace have been managed to the lean side. Thorough, if still carefully calculated, restocking is a priority now compared to a year ago. And while there is much demand from retailers of all types for aggressive price promotion to drive traffic, there also is more incentive for retailers to curate their assortments where possible with new products that can differentiate their businesses and drive new sales while guarding margins.
Moreover, increased household penetration in many categories built during the pandemic translates to continuing heavy use of products purchased as long ago as early 2020. That may presage an opportunity to accelerate traditional replacement cycles by introducing consumers to a new wave of product innovation.
It all adds up to percolating potential for the industry to begin stoking the next growth wave for a business that historically has performed well in softer economies but never faced the once-in-a-lifetime sales fallout from a once-in-a-lifetime sales surge.
The home and housewares industry, perhaps sensing a turning point, is unleashing what might be the most comprehensive arsenal of new products in years in the face of ongoing business headwinds. Well-attended and productive trade shows earlier this year, such as Ambiente and The Inspired Home Show, showcased much of that fresh output.
This is where the summer markets should provide a barometer of the progress made by the industry and its retail customers to take stock in this re-commitment to new products. And new growth.
