The International Housewares Association’s 2024 CHESS (Chief Housewares Executive SuperSession) wrapped up Wednesday with retail insights from Circana, intellectual property in the age of AI and how to measure ROI from retail media networks.
CHESS is IHA’s strategic networking event for chief officers and top decision-makers of IHA member companies.
CHESS is sponsored by platinum sponsors Houlihan Lokey and Oracle NetSuite in collaboration with Myers-Holum; gold sponsor Creative Planning; and supporting sponsors Krunchbox, Monk Tree Partners, OnPeak, Wholescale, Circana, Housewares Credit Group, HomePage News, IHA Government Affairs and the International Housewares Shippers Association.
Read a recap of the day-one sessions at CHESS:
Intellectual Property in the Age of AI
Michael Graif
Generative AI (GenAI) has become a powerful tool across industries. While AI can streamline product design and creativity, it also raises complex intellectual property (IP) concerns. Michael Graif, IP attorney and partner at Brown Rudnick, offers valuable insights on how housewares companies can protect their innovations in this evolving landscape.
GenAI refers to AI systems that create new content — whether images, text, or designs — by recognizing and combining patterns from large datasets. These tools are useful for automating design processes, but the AI outputs themselves are not copyrightable. Under current laws, these AI-generated works often fall into the public domain, meaning anyone can use them freely. This can present a problem for companies that rely on design to differentiate their products.
Since AI-generated designs are not copyrightable, companies should focus on design patents and trademarks to protect their products. Design patents, which safeguard the visual aspects of products, can be a valuable tool in the housewares industry. Additionally, trademark registration should be used to protect brand identity and distinguish genuine products from counterfeits.
Graif also stressed the importance of internal guidelines when using AI tools. Housewares companies should establish protocols for AI usage, including avoiding trade secret exposure, protecting personal data and respecting third-party IP.
Circana: Turning Insights Into Action
From left: Lora Morsovillo, Joe Derochowski
In his annual CHESS presentation on the housewares industry, Joe Derochowski, home industry advisor at Circana, examined how turning insights into action can help housewares suppliers identify opportunities for growth. Joining Derochowski was Lora Morsovillo, president of Circana’s home durables practice. They discussed current trends, a future outlook and how using data from Circana can help suppliers develop action plans for their products.
Derochowski began with an overview of microeconomic trends, saying he feels it’s “best to have a broader look” at what is happening. Post-pandemic macroeconomic trends affecting consumer confidence and where and how consumers spend include increasing inflation — the Consumer Price Index rose 2.5% for the 12 months ending in August; rising unemployment — was 4.2% in August; rising personal debt — Q2 2024 credit card debt increased to $1.12 trillion; and declining interest rates — rates have dropped to 6.09%. Increasing inflation and rising debt mean money to consumers and are causing them to eat more at home rather than go out.
For the 12 months ending June 2024, health & beauty, home and food gained in share at the expense of fashion and tech, he said. Growing categories across the home include floor care, personal care, major appliances, grills, home décor, furniture, and home improvement. Eating trends drivers include coffee/tea — specialty coffee now dominates over regular coffee; leftovers, new ways to cook; portability; balanced diet; entertaining; heat and eat; and outdoor events. Because consumers are eating at home more, Derochowski urged suppliers to think of ways to use leftovers and make them better through the use of products. He added that entertaining at home continues to grow, especially with consumers staying home more.
Online purchasing continues to grow for most segments except for home improvement. Home environment, kitchen electrics and personal care lead in the percentage of dollar sales online.
As for the future, Derochowski said the industry has been in a “pull forward stage” but is now heading to years of positive momentum as products bought during the pandemic hit the replacement stage, lower interest rates will lead to home sales and kitchen remodels and the growing population is now hitting key life moments which generally spur sales.
Driving Incremental Revenue and Efficiencies with Cutting-Edge Retail Media Measurement
From left: Aaron Conant, Meghan Corroon
Retail media networks have created both opportunities and confusion for brands, especially in the housewares industry. As ad spending continues to shift toward these platforms, many businesses are left wondering how to measure their return on investment (ROI) effectively and whether their efforts are truly paying off.
In a fireside chat at CHESS, Aaron Conant, co-founder and chief digital strategist at BWG Connect, and Meghan Corroon, CEO of Clerdata, addressed these challenges and provided actionable insights for leveraging retail media networks to drive revenue and operational efficiencies. They highlighted the importance of advanced measurement techniques in ensuring that investments in retail media produce real results.
Retail media networks have transformed how brands approach advertising. With retailers like Amazon, Walmart and Target, brands have an array of platforms from which to choose. However, as Corroon pointed out, the number of media options can blur the lines between shopper marketing and commerce media, making it hard for brands to choose the best channels for investment.
Corroon emphasized the need for brands to ask critical questions: “Are you paying for Amazon ads just to cannibalize in-store sales?” By accurately quantifying the impact of each dollar spent, brands can make better business decisions, ensuring they are not merely shifting sales between channels but driving growth.
One of the hurdles in retail media is understanding how to measure performance across platforms. Traditional metrics, like click-through rates and cost per click, only scratch the surface. To gain a deeper understanding, Corroon recommends using advanced econometric modeling to analyze the overall impact of advertising investments. These models can evaluate how various interventions — such as ad placements on Amazon — affect outcomes like sales, brand awareness, and customer acquisition.
Corroon also stressed the importance of neutral ROI measurement. Brands should not rely solely on the metrics provided by platforms like Amazon or Meta, as these platforms have their own incentives. Instead, having independent data to assess the true ROI of campaigns is crucial.
The power dynamic between brands and retailers is shifting. With data-driven insights, brands have more control over their ad spend and can negotiate better terms, ensuring they get the most value from their media investments.
