Thursday, March 27, 2008

Trends: Color Forecasts and Your Design Center



View of my trend board: My gray trend collage, including ads from Crate and Barrel, Larson-Juhl and a great article by Katherine Nelson for Met Home Magazine.

Color is an elusive and yet very powerful component of our industry. The Hearst Publishing survey I wrote about in a recent post indicated many consumers need help and support in selecting color in their home. In the shelter and fashion industries, color forecasters work to understand what is happening in the marketplace now, and project forward to changes in trends and consumer demand.

Color trend forecasters do not always agree with one another, which is why it is important to take your consumer base and regional preferences into account. We absolutely should be showing what is new, fresh and aspirational in our design centers and model homes, yet we need to be cautious (from a sales standpoint and the cost of re-merchandising your showroom) about going overboard on the latest trend that may or may not stand the test of a full selling season.


Pantone is a multi-industry international resource for color, and also works to stay ahead of consumer forecast. You can subscribe to free color articles and color palettes here. The recent New York Times article by Cathy Horyn announces Pantone's 'Color of the Year 2008' - Blue Iris. As the accompanying photo illustrates, it is easy to overboard.






Source New York Times: Digital composite courtesy Image Bank/Getty Images



The Color Association is the oldest color forecasting service in the US. Since 1915, the Association has been issuing color reports in elegant, fabric-swatched booklet form. The Color Association is the only forecasting service that selects its colors through a committee panel of eight to twelve industry professionals. The panels continue to be a 'who's who' list of trend makers in the fashion and shelter industries.

The new Color Association Forecast for Environments and Interiors is available here:
This is an interactive tool you can drop and drag to see how colors look in a larger swatch.
Click here to open the CAUS Spring/Summer 2008 Interactive Color Forecast,
then click CAUS Spring/Summer 2008 Interactive Forecast, then click "Interiors/Environmental".







CAUS Interactive Color Palette




Reviewing the Color Association palette, gray stands out as an exciting addition to the palette. The 2008 forecast has no less than 5 different grays in a single forecast.

At Las Vegas Interiors furnishings market, grays surfaced as the new 'beige'. Warm grays, especially were well used in upholstered furnishings and flooring, and cool grays were abundant in decor and art. This was especially true in Contemporary and Transitional categories.

Pottery Barn has an entirely different palette, most likely geared to support their new assortment of tropical bright transitional furniture and accessories. Pottery Barn seems to be taking direction from the Pantone forecast rather than CAUS. Click here to get a fan deck of the season's Pottery Barn paints from Benjamin Moore.

Presenting color to the consumer is an important part of your role as a new home consultant and designer. Being knowledgeable and current in your design center presentation is important in this competitive market.


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The Design Minds at Hearth and Home Blog is geared to support design center staff and the new construction industry in selling options and upgrades to the new home consumer. Subscribe for updates. Contact Krisann Parker-Brown for merchandising or marketing support of your design center. She will be happy to work with you on your assortment and presentation to ensure you are on track for the upcoming decor trends.

Krisann Parker-Brown is the merchandising manager for Hearth and Home Technologies, the leading manufacturer and retailer of fireplaces and hearth systems. Krisann supports design centers and new construction builders in presenting Heat & Glo, Heatilator and Quadra-Fire hearth systems, and consulting on design center merchandising, point of sale and the consumer experience. Contact her at brownkr@hearthnhome.com or 952-985-6537

Monday, March 24, 2008

The Active Adult - Exceeding Expectations and Selling Options

Currently, there are more than 80 million adults age 55 and older in the US. Americans age 55 and older control 70% of the nations wealth, and make up 50% of all US discretionary income. Importantly, nearly 60% of these adults plan to purchase a new home for their retirement.

The US Census tells us that 26 states will double their populations of folks 65+ by the year 2030.

Active Adults

The new wave of maturing Americans is incredibly active. The number one concern for Baby Boomers is "Not being healthy enough". Aging Boomers are seeking amenities to maintain activity as they age. 65% of Boomers report that travel is an unfulfilled ambition they plan to address during retirement.

During my visit to the Phoenix market last week, Robson Communities shared the many active options they offer in their planned communities. Robson does a marvelous job of uniquely addressing this consumer's desires, offering golf, tennis, swimming, fitness, clubs and organizations in an absolutely beautiful setting.

Don't Assume

A recent BurstMedia study finds that 20 % of Americans age 55 and older think Web content is made for people their age, however a DelWeb study shows that 94% of those between 41 and 69 use email. See a disconnect here? Robson Communities website offers great information in an easily understood format.

Needs, Options and Upgrades

This consumer is seeking specific things in their home , and has plenty of time to research and find them. The active adult will respond well to a home featuring active options and cultural opportunities near by. Home builders would be smart to provide links to appropriate nearby activities on their websites.

Given the desire to travel, low maintenance will be a key selling point, as well as security features for 'lock it and leave it' peace of mind when traveling.

Entertaining is important to this market - although they may be overall 'downsizing', they are in no way seeking to cut corners. Quality and luxury is very important to this consumer, especially in the kitchen and bath. Outdoor living rooms are also a strong trend with this group.

The active adult consumer will enjoy being close (but not too close) to family, and will seek a guest room and bathroom for company.





The Heat & Glo Pier multi sided fireplace is perfect in a master suite.
The Selling Process

The active adult will expect and demand a high level of customer service, and will take plenty of time in the purchasing process (they have it!). They are more willing to buy luxury items in the kitchen and bath. They will also show a strong interest in the master suite. ( A perfect location for a second fireplace, by the way.)


It's THEIR Turn

Tom Peters is one of my favorite experts on marketing trends and exceeding expectations. Tom is the author of "In Search of Excellence" and "The Pursuit of WOW!". Tom Peters has a knack for summing it all up in a few powerful words - from his 'Trends' book regarding Baby Boomers:
  • I am in charge
  • I am active
  • I have a lot left to do
  • It’s my turn
  • And I can afford it
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The Design Minds at Hearth and Home Blog is geared to support design center staff and the new construction industry in selling options and upgrades to the new home consumer. Subscribe for updates. Contact Krisann Parker-Brown for merchandising or marketing support of your design center. She will be happy to work with you on your assortment and presentation to ensure you are on track for the upcoming decor trends.

Krisann Parker-Brown is the merchandising manager for Hearth and Home Technologies, the leading manufacturer and retailer of fireplaces and hearth systems. Krisann supports design centers and new construction builders in presenting Heat & Glo, Heatilator and Quadra-Fire hearth systems, and consulting on design center merchandising, point of sale and the consumer experience. Contact her at brownkr@hearthnhome.com or 952-985-6537

Friday, March 14, 2008

Preparing for the International Home Buyer


The dollar is at near record lows against the Canadian Loonie and the Euro. Although tough for American's right now, ( I felt like I was on a back packer's budget on my recent trip to Amsterdam, Germany and France), European and Canadian visitors have more buying power than any time in recent memory.

While Canadian border stores in the US have long been known to accept the Canadian dollar, A recent Reuters article told of New York City stores accepting the Euro as currency. Domestic tourism is one industry that is still faring remarkably well in this downturn. My retail contacts at the Minneapolis Mall of America are passing on anecdotal evidence of increasingly large numbers of free-spending foreign tourists, including Canada, Asia, Europe, and surprisingly, Iceland.

WHAT THIS MEANS TO YOUR BUSINESS

Iconoculture is an internationally known consumer trend research firm, based in Minneapolis. A recent report highlights the growing trend of international consumers here in the US. The report discusses the customer service needs of making travel and transactions 'easy' for this customer.
For home builders in tourism destinations such as California, Florida, Colorado and even Montana, you could see an increase in the number of international customers considering a second home. Your marketing department may want to look for opportunities to reach this target market (airline magazines, perhaps?) Another idea is partnering with the HR/relocation department of large multi-national corporations who import foreign talent.

SOHO Direct Vent Fireplace with Stainless Steel Surround

WHAT DOES THE INTERNATIONAL CUSTOMER WANT?

In terms of home features and design, there are key points this consumer will appreciate.

A low maintenance, easy to 'lock it and leave it' home in a community with security are well thought of. This customer appreciates shops and activities within walking distance and entertainment and fitness options nearby. Accessibility to specific tourism 'destinations' such as the mountains, ocean, or entertainment destination are also important. The Walkscore website displays destinations available within a walkable distance of any address in the US. It highlights everything from restaurants, cafe's, food stores, parks and entertainment destinations near-by, and "scores" an address based on how many options are available nearby. It would be beneficial to have print outs of your communities on hand to share with your customers as a selling point.

In terms of design center options and upgrades, in many cases this customer appreciates clean, sleek design, easy care and ease of use. This customer is already accustomed to seeking out energy efficiency, water conservation and sustainability, so highlight these selling points when pointing our features and benefits of upgrade products. (For all of these reasons, Heat & Glo Fireplaces have been extremely successful in Canada and Europe, your customer will be very familiar with their designs and performance.)

EVEREST FIREPLACE, Shown with Atlas cast surround

The European style ("taller than wide" opening) of the Everest offers a fresh new look that's sure to add charm to any home. Its unique stacked campfire log set and distinctive refractory turns any room into a showpiece. It also features a clean face design that allows for a true masonry appearance. And, because it's a direct vent, it's easy to install and maintains your indoor air quality.

Going the extra mile to make it easy for this customer will go a long way - appreciated tactics could be emailing photos of the building progress, referring the customer to a well thought of interior designer in the area, and passing on community information ahead of time. Of course, in this global economy, it just makes sense to learn how to say "Thank You" in the appropriate languages.

The international consumer may or may not impact your business, but being knowledgeable and prepared will differentiate your community from the many available choices.
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The Design Minds at Hearth and Home Blog is geared to support design center staff and the new construction industry in selling options and upgrades to the new home consumer. Subscribe for updates. Contact Krisann Parker-Brown for merchandising or marketing support of your design center. She will be happy to work with you on your assortment and presentation to ensure you are on track for the upcoming decor trends.

Krisann Parker-Brown is the merchandising manager for Hearth and Home Technologies, the leading manufacturer and retailer of fireplaces and hearth systems. Krisann supports design centers and new construction builders in presenting Heat & Glo, Heatilator and Quadra-Fire hearth systems, and consulting on design center merchandising, point of sale and the consumer experience. Contact her at brownkr@hearthnhome.com or 952-985-6537

Monday, March 10, 2008

Learning from Retail - Home Storage and Closet Organization





The New York Times personal shopper, Marianne Rohrlich, published a spread on closet organization last week. Marianne's picks could help home owners finally 'get organized', and gave suggestions for new items that could update a closet and make it more efficient. Choices ranged from a $20 mini dehumidifier to eliminate mildew in warm weather, to a contemporary ebony armoir with glass feet and brass fittings, starting at $23,645.

Arturo Armoire starting at $23,645 Contact Georgetti USA, 1-888-836-9100


While retail news has been filled with reports of flat or negative same store sales, Sears offering to buy out Restoration Hardware, Bombay Company filing chapter 11 and mall vacancies galore, The Container Store says it's expansion plans are on track. The 42 store chain does an estimated $650 million in annual sales, is expanding it's e-commerce division to Canada, has added categories in Elfa shelving and drawer systems, and continues to open new stores, including Little Rock, Scottsdale, Minneapolis and Cincinatti this year.


What does this tell us, and why does it matter to your design center? Basically, Americans have too much stuff. The closet organization and home storage categories are big opportunities for selling options and upgrades in your design center.

According to a Louisville Magazine Article by Donna Russell, an average California Closet customer owns 50 pairs of shoes. Cheryl Meyer, of California Closets says "You have to have over 200 pairs to be in the "I have a lot of shoes' club".

It is important to note (like many categories) that aesthetics are becoming increasingly important in the closet organization industry.

Here are some questions to ask your customers about lifestyle, clothing, home and garage storage, to allow them to see the personal benefits of upgraded organization from your design center. Review these with design center staff, or consider posting on your website or including in a packet you give to new home purchasers prior to their design center appointment.

How many pairs of shoes do you own?
Do you travel to different climates within the same season, requiring several seasons of clothing to be available to you easily?
Do you prefer to change clothes in the closet / dressing area? (an increasing trend in 2 income households, requiring a dresser type storage in the closet)
Do you travel frequently for work (need luggage storage areas and unpacking area)
Where will you store sentimental items (wedding gowns, keepsakes)
Do you take a lot of pictures?
Do you collect anything?
What crafts or activities do you do?
Where do you plan to store all of your sports gear/ yoga mat, etc. ?
Where do you plan to keep your pet's things?
Are you a person who likes to 'stock up' on groceries or other items if you find a good deal?
Do you like wine? Where do you currently store it?

Contact your closet and organization manufacturers to come to your design center for a special seminar event, and invite prospective home buyers, and recent home purchasers. You could even advertise in the calender section to the general public. (Usually a free listing in the local paper).

As evidenced by the variety of home 'clutter buster' TV series' and magazines such as 'Real Simple', the home consumer is very interested in this topic. With all of the 'stuff' most of us have sitting around, we are all hungry for great ideas on organization and storage. I may have to wait on the $23,000 armoir for now, though....


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The Design Minds at Hearth and Home Blog is geared to support design center staff and the new construction industry in selling options and upgrades to the new home consumer. Subscribe for updates. Contact Krisann Parker-Brown for merchandising or marketing support of your design center. She will be happy to work with you on your assortment and presentation to ensure you are on track for the upcoming decor trends.



Krisann Parker-Brown is the merchandising manager for Hearth and Home Technologies, the leading manufacturer and retailer of fireplaces and hearth systems. Krisann supports design centers and new construction builders in presenting Heat & Glo, Heatilator and Quadra-Fire hearth systems, and consulting on design center merchandising, point of sale and the consumer experience. Contact her at brownkr@hearthnhome.com or 952-985-6537

Tuesday, March 4, 2008

Home Rules Trends - Hearst Study is Eye Opening


While at the recent Las Vegas interiors and furnishings market, I had the pleasure of attending a presentation on key consumer trends by Kelly Peterson, of Hearst Integrated Media. Hearst publishes O - Oprah magazine, Veranda, House Beautiful, and many more great shelter magazines.
Hearst conducted an in-depth study of consumer preferences across the US. While many findings will be useful for those in the furniture and home accessory realm, there was much applicable information for those of us in the new home construction world. Paying attention to consumer needs can help us better address presenting the right options and upgrades in our design centers.


The top 3

Top opportunities and areas of regret for consumers were paint, wood flooring and lighting. In these areas, the consumer is really unsure and needs design support. The more information they have, the better. Think about your design center and your selling process as you read through the results of the study.

Some KEY findings:

Paint is worth paying 10% more if it:
Is easy to clean
Is dirt/stain resistant
Won't need to be replaced for a long time
Is a trusted brand name

Consumer comments on paint:
" I think the hardest part of decorating the room was choosing the paint color."
"One of my mistakes is not having the room painted. It looks plain...it is white"





Hardwood floors are worth paying 10% more for because:
Infrequent replacement
Resist wear due to high traffic
Easy to clean
Stain / dirt resistant


Consumer comments on flooring:
"The biggest mistake was putting in manufactured wood floors instead of hard wood. We chose it because it seemed more cost efficient and easier. When you walk barefoot on it, it often leaves a footprint mark and I think you can tell it's not real."
"The flooring is a dark reddish cherry color. My one regret is that we chose a manufactured wood product over real hard wood."




Lighting - Ceiling fixtures dominate preferences.

Energy efficient lighting complementary to room decor was deemed worth paying 10% more.
High energy efficiency rating
Complements other items in room
Focal point of room
Infrequent replacement

Lighting is a big regret and area of opportunity - look at these consumer quotes:
"The greatest challenge is lighting for the dark evening hours...the overhead fan is very dim."
"I definitely need to add more lighting to the room."
"I would love to get a lighting designer in to tackle the lighting issues."


All of these points tell us the home buyer would love more support in making her decisions in paint, wood flooring and lighting. It also tells us there is a lot of upgrade potential in these areas.

Review the points above with your sales team, these key points make sense to include in the "Feature, Advantage, Benefit presentations" of selling upgrades and options in these categories.

By extending your support and highlighting your expertise in these areas, a consumer could choose you as her builder rather than the competition. Some ideas to support the consumer and help her make confident choices -

Paint-

  • Be aware of color trends by subscribing to newsletters and e-updates - some suggestions: Sherwin Williams, Benjamin Moore, Pantone, The Color Association (see my links list for additional suggestions)Click here to see Sherwin William's color forecast for 2008
  • Offer swatches (large size are preferred) for the consumer to take home (Your paint manufacturer rep should provide these)
  • Have multiple fan decks that the consumer can carry with her during the design center appointment.
  • Create a "color design" center within your design center, with swatches, publications and displays emphasizing color combination. Encourage your customer to come and play during office hours.
  • Most paint manufacturers create beautiful palette combinations to help make combining colors an easier task and to provide inspiration. Gather these to keep in your color library.
  • This is probably a no-brainer, but ensure your design center is painted in the latest colors of UPGRADE paint.

Wood-
  • Be able to speak to your customer about flooring trends - have your flooring manufacturers come in to do a training (Shaw has great information).
  • Have printed materials available for your customer, you can get trend information at www.flooring-trends.com/
  • Show multiple varieties/colors and species through out your design center.
  • Place standard / laminates in the rear of your design center.
  • Place flooring selection section near a source of natural light.
  • Have a selection table where the consumer can pull together all swatches and chips with the flooring.
  • The consumer is really concerned about durability and being easy to care for, ensure your brochures, selling discussions and signing provided by the manufacturers emphasize these points.
  • Offer care instructions.
  • Highlight 'Green' choices.

Lighting-
  • Use hangtags to call out energy efficiency, annual savings or Energy Star fixtures.
  • Expand and update your lighting assortment, the consumer is very concerned with the aesthetics of lighting.
  • Allow enough space for the consumer to view lighting - they should be able to back up and get the perspective of the piece.
  • Offer fliers with photos and specifics of the lighting fixtures for the customer to add to her design file or place on the selection table to see the "whole picture".
  • Review these tips on lighting design.
  • Ensure lighting fixtures are current with today's trends in decor - brushed nickel, bronze, copper, verdi-gris, and matte/brushed silver or gold leaf looks were extremely popular at the latest interior market.


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The Design Minds at Hearth and Home Blog is geared to support design center staff and the new construction industry in selling options and upgrades to the new home consumer. Subscribe for updates. Contact Krisann Parker-Brown for merchandising or marketing support of your design center. She will be happy to work with you on your assortment and presentation to ensure you are on track for the upcoming decor trends.
Krisann Parker-Brown is the merchandising manager for Hearth and Home Technologies, the leading manufacturer and retailer of fireplaces and hearth systems. Krisann supports design centers and new construction builders in presenting Heat & Glo, Heatilator and Quadra-Fire hearth systems, and consulting on design center merchandising, point of sale and the consumer experience. Contact her at brownkr@hearthnhome.com or 952-985-6537

How Fireplaces Fare with the National Green Programs

Today we have the treat of a guest blogger, Jim Plucker. Jim is a colleague of mine, and I have to tell you he is my one stop resource in navigating the confusing and oft-changing world of green building, standards and architecture. I encourage any architects who are seeking guidance on specifying fireplaces or who want the update on the newest cutting edge product to check in with Jim, he is a terrific resource. He also does AIA continuing education credit seminars, just ask! I think Jim's article will really provide clarity for those of you who are currently selling fireplaces in your design centers and models.

Many of you are already offering the 'green' fireplace of choice, you just need to let your customers know! Read on...and learn. Krisann

How Fireplaces Fare with the National Green Programs
Jim Plucker
Architectural Services Manager



Apprehension is justifiable in a builder’s decision to go green, especially in today’s profit-challenged market. There’s common concern over the increased cost of constructing a “green” home and whether it will positively impact the home’s value. In some markets, people are just not ready to voluntarily pay for performance or willing to wait for long-term energy savings.

But, when it comes to one of America’s favorite home amenities, the fireplace, you can relax. Any green home can include the popular and common direct vent gas fireplace... and it’ll be in compliance.


“Compliance?” Yep, builders will begin relying on national green programs as a way to certify a house as green. These national programs are quite comprehensive about the green home; from the efficiency of component products, sources of pollution in the home or the design, preparation and development of the lot. Though these are voluntary programs, you should expect municipalities to begin adopting these green models into law as local code evolves.

The fireplace category is fairly consistent among all the national green programs. They all focus on how indoor environmental quality benefits by specifying direct vent (or power-vented) gas fireplaces. It doesn’t matter if the fuel is natural gas or propane; the best practice is a gas fireplace with sealed combustion and a direct venting system.



So, if you make a decision to go green; a direct vent fireplace as a standard feature in your homes will qualify for points in the fireplace category.

Up selling
Now that you’ve discovered the best green practice in fireplaces, consider up-selling by adding innovative green features with the fireplace. By combining energy efficient options with the environmental quality of a direct vent fireplace, you’re offering a new level of green...

“Best Green Practice plus Innovation”


Innovation One: Fireplace features that reduce fuel consumption




  • IPI (electronic ignition) saves homeowner $8-$12 a month in fuel costs used by an old fashioned standing pilot light. That’s $675 to $1,000 in seven years.


  • Variable flame feature controls flame height should the room become too warm.



Innovation Two: High efficiency fireplaces and features





  • AFUE-rated fireplaces. More energy efficient with the certification to prove it.


  • Ceramic-molded refractory or liner. Radiates more heat energy into the room and looks great.

Innovation Three: Warmth without waste







  • In cold climates, have the fireplace warm the living area by setting the fireplace thermostat higher than the home’s central thermostat. This practice saves whole-house energy use by warming just the living areas while maintaining the rest of the house at a lower temperature.



  • Hybrid heating system for temperate climates combines a gas fireplace in the main living areas with electric baseboard heating in the rest of the house. A well-insulated home allows the heat of the efficient gas fireplace to warm the living areas of the home while delaying the use of costlier electric heat for the coldest parts of winter. This saves the cost of a furnace as well as whole house heating costs.




  • Zone heating redistributes convective heat pulled from the firebox by ducting it to another room or dropping the heated air into the furnace’s fresh air return for redistribution.

Woodburning?

Where do wood burning fireplaces fit? Well, this one is going to change some common practices. Factory built wood burning fireplaces or stoves will need to comply with EPA standards certifying that particulates released outdoors will be at or below EPA standards. Some programs require wood burning fireplaces to have gasketed doors, make-up air and a sealed damper. Green standards for wood burning fireplaces vary among national programs, but none of them allow an open hearth.

Of course, not all fireplaces fit the green standards of the national programs; in particular, unvented or vent-free gas fireplaces will disqualify a green certification. The same disqualification goes for decorative gas logs, either vented or unvented. Another industry favorite, the site built masonry fireplace with an open hearth will not meet green standards because of the back draft potential (even though they are vented and cost $25,000 or more to build on site).

If you’re looking for more information about the green residential programs and specifics relating to each category of products, almost everything can be reviewed and downloaded from the internet. If you are looking to participate, the best place to begin may be the local chapter of your trade association or one of the websites below.

To learn more about the national green programs, visit these web sites:

NAHB National Green Building Program
http://www.nahbgreen.org/

LEED for Homes
http://www.usgbc.org/DisplayPage.aspx?CMSPageID=147#2008

Energy Star’s Indoor Air Package for Homes
http://www.energystar.gov/index.cfm?c=bldrs_lenders_raters.nh_iap

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Jim Plucker is Manager, Architectural Services at Hearth & Home Technologies in Lakeville, MN. Jim is also a member of the Education Committee of the Mississippi Headwaters local chapter of US Green Building Council and is HHT’s point of contact for their AIA Continuing Education program.

Jim and his family live in a rural Minnesota community that’s comprised of homes recently built in the 18th century colonial American period. In his spare time in winter, Jim likes to hunt for antique stoneware made at a nearby pottery company in Red Wing and in summer it’s either fishing or planning to go fishing.

Send comments to pluckerj@hearthnhome.com or for more information, visit http://www.fireplaces.com/