3 Key Messages From IBS - Can you afford not to know them?

Jenn-Air New Oiled Bronze Suite

Having just finished the IBS show last week, it is fresh on my mind. Attendance was down, but I noted that everyone I spoke to had a compelling reason to attend. The mood of the show attendees was positive, optimistic, yet realistic. Builders were searching for solutions to support differentiating their homes, increasing their profitability, and better meeting consumer needs. It was the most 'consumer-centric' builder show I have ever attended. And maybe that is a good thing...

Among the exhibits that were well received, there were some common themes that builders seemed engaged in - The big 3:

Innovation - (Including the categories of Green, Energy Efficiency and Health such as Indoor Air Quality)
Aesthetics - (Design and Differentiation)
Emerging Consumer Markets - (Including Multi Family, Affordable Housing, Custom/Urban/High Rise and Mixed Use Developments)

Innovation was everywhere with the big product brands; focus on green, high efficiency, easier installation, increase in product features...In the Heat & Glo, Heatilator and Quadra-Fire booth key standouts included the Quadra-Fire EDGE, the first ever pellet fireplace, which was profiled on Apartment Therapy and HGTV. We had plenty to discuss with builders in AFUE rated product and high efficiency options, as well as patented IPI pilot technology, which saves a home owner $15 monthly on the gas bill by only lighting when needed versus a standing pilot.

The Quadra-Fire EDGE Pellet Fireplace, with contemporary front

Direct-Vent gas fireplaces also were the preferred product discussed by builders interested in earning LEED points or building to NAHB Green Building Standards. Watch this short video about Fireplaces that Green the Home.

Progress Lighting was showcasing tons of innovation in design, Energy Star fixtures, and new LED versions. The Westin series had recently received the 2008 Lighting for Tomorrow award - the 15w fixtures are ENERGY STAR qualified – the mark of quality for energy efficient, green friendly lighting and have a lifeline of 10,000 hours. The clean lines of this collection were appealing, well designed, and should be a great product for upgrade and option sales. The Progress booth was beautiful!

The Westin Lighting Collection from Progress

Aesthetics were also keenly on the mind of the builders I met. This had a great deal to do with the competitive buyers market right now, and the continuing consumer focus on design.

In the upper end, there were many ground breaking products that took your breath away - Whirlpool's launch of the Jenn-Air Oiled Bronze Suite was a standout. The warm copper and bronze tones had a striated finish and a lovely texture.

Jenn-Aire's New Oiled Bronze Suite

Heat & Glo showcased a number of unique contemporary and transitional looks. The move up and custom builders seemed very engaged in the new see thru large format Escape See Thru direct-vent gas fireplace, shown with a new texture and color in a beautiful Macchiato cast surround, (surround available in Summer 09).

Heat & Glo Escape See Thru Large Format Direct-Vent Gas Fireplace

Contemporary design was in demand by the upper end builder, the Heat & Glo RED 60" direct-vent linear fireplace was very well received. (Available Summer, 2009) We showed it wrapped in Absolute Black Granite, a very clean and compelling statement.

Heat & Glo Red 60

Emerging Consumer Markets were a common discussion point for agile builders seeking to capture the upcoming Gen Y market, as well as those building and developing mixed use, upper end urban multi family, active adult and even affordable housing. Heatilator had a terrific response on the Aveo Fireplace, which has a terrific price point and frames in less than a foot. Because storage is a great selling point with multi-family, we show cased the Aveo in an available optional shelving surround. (Isn't it adorable?!)

Heatilator Aveo Direct-Vent Gas Fireplace, frames in 11 1/2"

All in all, it was a terrific show, with the focus in the 'right stuff' that will help builders (and manufacturers) position themselves for success in Innovation, Design and with Emerging Markets.

I enjoyed meeting many of you who sought me out at the show. The 'Profit Solutions' Presentation that I presented at the show was well attended, by builders, design and architects. Click here to watch a short webinar if you were unable to attend. (yep, that's my voice...)

I also had several interviews, including this impromptu 30 second interview by Jim Adams of NewHomesDirectory.com. Yikes - could you sell your product in 30 seconds? Sometimes that is all we have! A little lipstick could have been helpful, but considering no notice, not bad. :)

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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 Retail Design Institute. Contact her at brownkr@hearthnhome.com or 952-985-6537.

Finding Profitable Solutions at The International Builder Show

The International Builder's Show will be held January 20th -23rd in Las Vegas. The focus this year for every builder and design center will no doubt be "How can I increase the number of homes I sell, increase the average dollar of upgrades and profitability of my business?"

I am very excited to announce the Hearth and Home series of seminars designed to help you do exactly that.

In addition, you won't want to miss the newest cutting edge product that will help differentiate your homes and commercial projects from the competition. We have a terrific solution to show you, no matter who you build for.

In our 'Profit Solutions' presentation, we will lay out 8 innovative ways to increase your sales of homes, drive more option and upgrade sales, and improve customer satisfaction, no matter who you build for. The presentations will run continually throughout the show.

I will be discussing ways to earn more profit through your design center, design trends in mantels and surrounds, and what the customer will be seeking in 2008 and beyond. Come join us and sit by our fire! In about 20 minutes, you will learn 8 different ways to make more profit with fireplaces. Every attendee will receive 20 minutes off of their feet, and a $5 gift card from your favorite coffee retailer!

Bonus Seminars on Housing trends from industry experts will be offered once every morning and afternoon.

“9 obvious (and not so obvious) trends in housing”
Presenter: Tom Miller

“The Mortgage Industry Perspective on 2009 Builder Profits: 8 Points for Success”
Presenter: Charles Perry

Find the Hearth and Home technologies booth in the central hall
Central Hall, Booth C5643 , near Kohler and Whirlpool. Look me up, I am looking forward to seeing you!

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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 Retail Design Institute. Contact her at brownkr@hearthnhome.com or 952-985-6537.

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.

'Green' and Baby Boomer Women - Free Phone Seminar Monday 12/8

The National Association of Baby Boomer Women is hosting a free phone seminar on Monday, 12/8/08 at 3pm EST. Diane MacEachern, author of Big Green Purse: Use Your Spending Power to Create a Cleaner, Greener World, will be offering listeners tips and guidelines for reducing their environmental impact during the holidays. She'll also cover topics such as green gifts to consider, holiday lighting, going organic--and not just for your foods, but for wines, beers, and other beverages. This teleseminar covers your entire holiday season, right down to the Christmas tree, and of course, the post-holiday season. There will be something for everyone searching for ways to be "eco-friendly!"

Monday December 8th, 3pm EST

Call 1-712-580-7706

Conference Code 1735162

The female baby boomer is the single most powerful group in US purchasing power. Listening in to the seminar may drive thoughts about better ways to speak to green in the new home sales process, and to meet the needs of this consumer in general.

The Big Green Purse is designed as a resource guide, guiding women how to 'Use your spending power to create a cleaner, greener world." Great resource, great reading!

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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.

European Kitchen Design Review

Mix of Natural Wood With Stainless Steel and Laminate - Zurich

Many of you know about my recent trip to Europe, including Amsterdam, Zurich, Lucerne and Milan. I brought back photos of kitchens that emphasize some common design elements. Enjoy!

Stand outs to me included:

• Mix of man made/technical materials with organic naturals
• Clean Lines
• Smaller footprint
• Use of graphic elements emanating from nature
• Key focus on great lighting

Graphic design elements and terrific lighting

Graphic design elements - etched glass room divider

The jury is out on this chandelier...

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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.

Options Magazine Article - Selling Through Experiences and Connecting With Your Customer

Options Magazine is one of the respected trade publications for the home builder design center audience. In the new edition, check out the article on page 20 that reviews selling through experience, and the differences of shopping patterns by gender. In the home design center environment, we must adapt our selling style to best meet the needs and buying behavior of the homebuyer.

Read the article here by clicking on the cover image of the new edition. Subscribe to electronic mailing of new future editions here (free of charge). For those of you who received a printed copy this week (hopefully few of you in this green focused environment), the issue went to press with several editing errors, you will find a clean copy of the article on line for printing and forwarding.
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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.

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.

101 Fresh Colors Inspired By Nature

Apartment Therapy had a great piece referencing House Beautiful's recent published color palette inspired by the elements. In 4 slide shows, House Beautiful showcases colors inspired by Earth, Air, Fire and Water.

(This is close enough to "Earth, Wind and Fire" to hook me into a mental earworm of "Shining Star" and "Boogie Wonderland" - "Honey, you... are... my shining star...")

"Fire"

The New Cosmo Modern Fireplace by Heat & Glo

Back to color - There are 101 colors in the presentation, within the following inspirational groupings: Earth, Air, Fire and Water. Click each of these links to see a slide show of paint colors. It makes sense that within each element, the colors work beautifully with each other. The swatches shown here are Apartment Therapy's top picks from each palette.

Color is the first element of design that is noticed by the viewer. It is also the least expensive update in merchandising a retail space as well as a home. In your design centers and model homes, where could you update a wall or room with color to create more visual impact, bring your presentation more 'current' and 'fresh', and connect to your home buyer?

Paint is cheap.
Maintaining design credibility with the home buyer with current minimal staff and budget? Priceless.

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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.

Betting On A Little Luxury

Heatilator Caliber Direct Vent Fireplace and Luxurious Blue Pearl Granite Surround

CVS drugstores recently announced the launch of a new (very) high end beauty shop, named "Beauty 360". The new concept will be strategically placed next to some drugstore locations, and will carry luxury skin care, cosmetics and fragrances, and offer manicures and other beauty treatments. Their positioning seems to compete with the luxury Sephora stores (now, there is a spot to kill an afternoon and a few hundred dollars!). Mary Lou Gardner, the senior category manager for beauty, is quoted as saying "If you create the right environment, you can sell any brand."

Unique retailer J Crew is also headed upscale, with a new focus of creating exciting spaces where shoppers want to "hang out", and bringing even more luxury into the brand, from higher end fabrics to high end details in the garment finishes. Even Godiva Chocolates is still opening new stores in traditional and lifestyle malls across the continent.

A recent post on EBrand marketing points out that even though customers are spending less in the market place overall, they are not giving up affordable luxuries. Creating a beautiful browsing experience enhances this consumer experience.

Most of us have chosen not to give up our Starbuck's habit, nor stop wearing cosmetics or getting our nails done. What does this mean to you and your design center?

Consumers are willing to invest in small luxuries that create a personal home environment unlike any other. The 'smaller' upgrades are often higher in gross margin, and the mark up less noticeable to a consumer than in a category such as , say, appliances , which may be price comparison shopped by the consumer on the Internet or local big boxes. Of course, it is mandatory to stay below the 'psychological price barrier', or it will not appeal to the consumer. In example, we will increase incidents and overall volume of upgraded fireplace surrounds when pricing is $999.00 versus $1100.00. Profit and margin are much better in the long run.

Focusing the design center experience on the experience takes the consumer eye off of upgrades and options as commodities, (read PRICE) and helps the consumer look forward to their home, as they 'designed' it, and the fact that it is unlike any other home. This also differentiates you as a builder. The experience can start before the consumer enters, continue through the browsing, consulting and selection process, and even end with a hand written thank you note.

Experience is about emotion, and for those of you who have heard me speak lately, you know I believe emotion connects with your home buyer unlike anything else. In "Unleash the Emotional Appeal Of Your Product" Rita McGrath, Harvard Business Review, McGrath drives us to strongly consider our target consumer segments, and the lifestyles and behaviors that make up these segments. She asks us to consider the situation of the consumer; their mindset, fears and expectations. Finally, consider the emotions that you can appeal to. The article encourages experimenting, and trial and error as you find what works the best with whom.

At Hearth and Home, we are having exceptional results offering affordable luxury in fireplace surrounds. Our assortment includes a few extremely design oriented, rich granites and marbles that are priced as 'best' in the good, better, best of our assortment. For a relatively small price, we find consumers (both at retail and in new construction applications) are very willing to pay for 'What I like" or "What matches" or in the active adult and move up - semi custom market "What I want". Blue pearl granite and marron brown marble are selling to move up, semi and custom and active adult buyers with terrific results.

Review your product assortment in every category for 'affordable luxury'. Place the best items high (yet touchable) in your displays, and let me know how it goes. We will talk about product placement and consumer perceptions of value in a future post. In the meantime, I'm off to Starbuck's.

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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