Opening Our Eyes to the Possibilities of 2009

"The real voyage of discovery consists not in seeking new landscapes but in having new eyes." Marcel Proust

2008 is almost over. Can I hear a 'hellya'?!

"Fresh Eyes" ~ Although painful, the challenges we have been presented in 2008 have helped us all approach each day a bit differently, and with purpose. In the home building industry, we are all 'Doing more with less'. We have eliminated the unnecessary, and raised our eyes to focus on the biggest opportunities and the fastest returns. I would venture to guess we are all smarter, leaner and more efficient, and absolutely more customer focused than we have been in a long time. That can't be a bad thing in the long run.

"Leaders keep their eyes on the horizon, not just on the bottom line." Warren Bennis


2009 will bring continued challenges ahead for us in the home building industry, but also a great deal of opportunity. The bottom line, we have hopefully all learned from Albert Einstein, who defined Insanity as "Doing the same thing over and over again and expecting different results."

2009 Opportunities include approaching existing home buyer groups differently; from how we sell to female and Hispanic home buyers, for example, to the product offerings and options we offer to differentiate your home from the next builder's. Green building products and practices and indoor air quality will continue to become more important as the consumer becomes more educated.

Emerging home buying groups, like the graduating Generation Y multi-family group and Move Up but Scale Down baby boomers will offer new opportunities for those of us who can change our approach, our product offering, our option catalogues and the fundamental way we relate to the home buying consumer.

"You cannot depend on your eyes when your imagination is out of focus." Mark Twain

The biggest opportunity for all of us is to continue challenging ourselves: reinventing, focusing on what is most important, and keeping our eyes up. In yoga, we are told that our posture and our body will follow our gaze. After learning all we can from 2008, let's turn our eyes forward, and upward, to make the most of 2009. We are all smarter than we have ever been. We can do this!

Thanks so much for your readership this year. Congratulations on everything you have learned and applied and on your personal and professional growth in 2008.

Happy New Year.

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Stop by and meet Krisann at IBS, in the Hearth and Home Technologies booth.

International Builder's Show

Las Vegas Convention Center

January 20-23, 2009

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. Krisann is a member of the Institute of Store Planners, now the Retail Design Institute. Contact her at brownkr@hearthnhome.com or 952-985-6537.

What Happened To The Jones' ?! - Selling Options to the 'Simplifier'

Hello all - This post is coming to you from Europe, where I am taking great photos to show you design influences from Amsterdam, Zurich, and tomorrow, Milan.... New post very soon!

Perfect for the Simplifier Consumer Interested in Experience and Design

Heat & Glo's Contemporary Fireplace

Red 40

The October Harvard Business School review features an article by Harvard professor John Quelch on the new breed of consumer – the middle-aged Simplifier.

This new consumer can be recognized by her refusal to ‘buy-in’ to the conspicuous consumption so popular in the 90’s and early 2000’s. John Quelch calls out the following characteristics:

Downsized- The simplifier perceives that they have more ‘stuff’ than they truly need, and looks to downsize and simplify.
Experiences- The simplifier seeks to add to life through rich experiences, not possessions. Dining out, foreign travel, spa experiences, learning a new sport, activity or hobby all fit the desires of this emerging consumer group.
Possessions– They are embarrassed by their possessions, especially those flagrant indicators of their wealth.
Wealth– Although this group is self assured in their wealth, they remain comfortable leasing their car, renting a vacation home, and no longer feel it necessary to amass possessions.

John Quelch tells us empty-nester baby boomers make up a large portion of this group, already trading in their large SUV’s for a Prius. They seek detail and architectural character in their new homes, and even special spaces to display a few carefully chosen items from their life ‘experiences’, be it travel, or painting lessons. They seek low maintenance, smaller spaces. From a design perspective, we see this consumer seeking clean, modern minimalism.

While this consumer is downsizing, they are not downscaling, and they value quality over quantity in goods. High end finishes and new home add-ons such as wine storage, closet organization, and luxury spa bathrooms will reach this consumer. Adding additional fireplaces in the home add to the ‘experience’ for this consumer, be it in the kitchen, bedroom or bathroom. Sarah Suzanka’s now 10 year classic “The Not So Big House” becomes even more of a guide in creating a finely crafted and well designed home interior that will satisfy this consumer.

John Quelch points to EBay and the internet as the high tech equivalent of a yard sale allowing these consumers to rid themselves of unnecessary things and start fresh.
The October 2008 issue of Details gives well to do, style conscious men tips on how to minimize the showy appearances of wealth and status in these uncertain times. A recent Wall Street Journal article discusses the same, as well as John Quelch’s article in The Economist, “Too Much Stuff”.

When selling to this consumer, speak to quality, design, durability and green aspects of features and upgrades. This consumer may be more willing to upgrade in interior experiential home options rather than status exterior home upgrades. Think outdoor living rooms, luxury shower heads, art niches, fireplaces and top end granites. The important thing to this consumer is quality without showiness. The Jones’ be damned.
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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 and lifestyle 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. Krisann is a member of the Institute of Store Planners, now the Retail Design Institute. Contact her at brownkr@hearthnhome.com or 952-985-6537.

Are Real Estate Downturns Ever a Good Thing? News From The Multi-Family Trends Conference

Guest Blogger - Jim Plucker, Architectural Services
Hearth and Home Technologies

Are downturns always a period of forced change known for belt-tightening and cost- elimination, intensely focusing on maintaining profits while exiting markets that don’t have enough potential?

Yes, if you are going to survive, these changes will help your odds of at least staying in front of your customers if not in front of your competition. And what happened to the bottom line? Even though organizations were efficiently structured for a base of 1.4 million starts a year, the customer base just turned small and stingy. Now, smaller competitors have an efficiency edge and can take healthy slices of tasty market share.

The messages given this June at The Multifamily Trends Conference in San Francisco had generous doses of these types of reality statements along with more forecasting than is usually seen at these meetings.

Bob Gardner, of Robert C. Lesser & Co. , a large real estate consulting firm in Los Angeles, served it up in easy-to-understand terms and graphics. What follows are some of the highlights of his presentation... (Download his presentation slides here)

“Markets always correct on upside and downside”

“Real estate downturns force change”

“Home prices have the biggest decline in recent years (since before ’87)”

“New home sales off 40% since peak in 2005”


But how about growth? Many company fortunes have their roots in downturns and the smart firm takes advantage of great opportunities that emerge during times of change. The key is to have a vision to do so.

Mr. Gardner had analyzed enough demographic data to uncover some demographic realities developing over the next 12 years.

First Reality:
Aging Baby Boomers want to shift into empty nests while a smaller size population of Gen X will not create a lot of demand for those mature family suburban homes.
The Boomers are hanging on tight. Most are ready to downsize soon, but they shouldn’t expect to see their home prices return to the peak levels of 2005 until full pricing returns around 2012.
Boomers still have a lot of options and they’ve demonstrated an interest in multifamily living. But, it has to have a marketing hook whether it’s upscale and urban or community-based living in the traditional suburbs, it must have personal appeal and enduring value.


Second Reality:
Gen Xers, a significantly smaller group than Boomers, are moving into their First Time and Mature family home. Suburban home prices may be dropping, but big price increases in food and gas make suburban living expensive, so Gen X wants to be in a smaller home close-in to work or near mass-transit.
That’s why there will be a growth in the 3 bedroom family condo and luxury apartments. The urban cities still have work to do on their schools systems, but this is a big market that wants urban living in bigger family units.


Future Reality:
Gen Y, the new “pig in the python”, won’t begin to start absorbing homes until they start to enter the “For-Sale” market in 2012. They represent the biggest first-time home buyer group ever. We can expect 1 million new households to be entering the market each year after 2015.



Although it’s hard to predict their preferences as they start family homes, Gen Y is demonstrating a desire for urban-rental lifestyle with floor plans and living areas designed for entertainment. Their taste for quality won’t match their earning capacity, so living units will be smaller with a focus on design versus size in order to have the amenities they most desire.

Suburbs will need to evolve to remain attractive to Gen Y:
A. More walkable areas, including new and existing town centers – urbanizing suburban commercial nodes.
B. Master-planned communities with greater variety of product and higher connectivity.
C. Driven by convenience, connectivity, and a healthy work- life balance to maintain relationships
• 1/3 will pay more to walk to shops, work, and entertainment.
• 2/3 say that living in a walkable community is important.
• More than 1/2 of Gen Y would trade lot size for proximity to shopping or to work even among families with children.
• 1/3 or more are willing to trade lot size and “ideal” homes for walkable, diverse communities.

So what are marketers to do?

Dust off your old strategy and breathe in some new ideas and motivating direction.

1. Conduct strategic planning or update the company’s strategy. Critique project or portfolio performance or positioning
2. Evaluate project performance vis-à-vis the marketplace and take action to improve performance.
3. Analyze market opportunity. Seek advice on how to reposition the company in current markets and what new markets and/or product types to enter
4. Understand demographic trends and consumer demands.
5. Develop a strategy for meeting the changing demands of Boomers and Gen Y.
6. Develop a green strategy.
7. Think about how green will impact your company, products, hiring practices, philosophies, etc.
8. And always remember...

“Markets always correct on upside and downside”

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Jim Plucker is the manager of Architectural Services at Hearth & Home Technologies, the leading manufacturer of hearth systems. His focus is the growth of new business among architects, designers, and multifamily developers. He also develops and administers the continuing education courses offered nationwide by sales and field representatives.

Jim is actively involved in the Education Committee of the Mississippi Headwaters chapter of the US Green Building Council, Jim is also the corporate contact with USGBC, the American Institute of Architects and the International Code Council.

Contact Information:
Jim Plucker
Manager, Architectural Services
Hearth & Home Technologies, Inc.
20802 Kensington Blvd.
Lakeville, MN 55044
952-985-6661
pluckerj@hearthnhome.com

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