From HomeWorld Business:

HTI Buying Group’s One Voice member conference in Chicago will present a keynote by Albing International Marketing’s Robin Albing. She will examine how independent gourmet housewares retailers can effectively sell the emerging generation of Millennial consumers.

The keynote presentation, open to HTI Buying Group member retailers and invited guests, is set for 8 a.m., Saturday, March 2, at Chicago’s Drake Hotel French Room.

The One Voice Conference, which begins on March 1, coincides with the International Home + Housewares Show.

Albing’s keynote will highlight key characteristics of the Millennial consumer generation— their homes, their kitchens, their cooking habits, how and what they eat.

New Jersey-based Albing International Marketing (AIM)— with affiliate offices in Copenhagen, Tokyo, Frankfurt, Shanghai and Stockholm— specializes in marketing development and custom consumer research for the home furnishings industry.

Robin Albing is a leading expert on young consumers (Millennials), their homes and how they live. She has authored several reports on this topic including Millennials At Home (2010) and Millennials at Home…In The Kitchen (2012).

Albing’s breakfast keynote presentation will conclude HTI’s Third Annual One Voice conference. On Friday March 1, the conference will present a program of educational workshops and a sponsoring vendor exhibit— all held at the Vista Room in the McCormick Place South Building.

HTI President/Founder Bob Coviello directs the One Voice Conference. Coviello has integrated comprehensive retail training and information programs into HTI’s group buying platform for independent housewares retailers.

Gourmet Insider magazine is the official media sponsor of the 2013 HTI One Voice Conference.

AIM clients and friends have asked for information about how to market brands and products to Millennial consumers.  Here is some valuable information from AIM research and from Viacom, an organization which also conducts extensive research with Millennial consumers:

Q: How do Millennials differ from older consumers?

A: Millennials are the largest cohort in history — larger even than the Boomers. They have been groomed to be the ultimate consumers by their parents and marketers and there’s definitely fatigue, but they’re also the best at sniffing out what is not true.  Veracity is the key in all product and promotional efforts targeted at Millennials.

Q: What is the Millennials’ relationship with brands?

A: Brands are something to be skeptical of — guilty until proven awesome might be a good catch phrase, according to Colleen Fahey Rush, executive vice president, strategic insights and research for MTV Networks. That said, Millennials are most likely to align themselves and advocate for brands that they love because the brand has proven itself — this alignment is a form of self-expression — in Facebook or elsewhere.  Millennials have also rejuvenated their parents’ brands in the marketplace, a trend AIM calls “Ping Pong Branding.”  Examples of Ping Pong brands are Apple, Toyota and Burberry, brands that were popular when Boomers were young, abandoned by them, and then popularized by their Millennnial children in a newer, updated version. Consider the Toyota Prius and Apple’s i-products.

Q: How has the recession changed the value of a brand?

A: Brands that had great equity with Millennials at the start of the recession still have it — Apple, Nike, Target — as long as they continue to deliver and innovate. And, it’s a bonus if there is a legitimate cause built in. Categories without an innovative, Millennial-savvy brand have effectively commoditized for them, at least in terms of perception. Value is top of mind, especially for Millennials, 15 percent of whom are unemployed. The Great Recession has permanently shaped the way they think about money, products and brands.  AIM has been monitoring this change in behavior and believes that some of the attitudes will carry throughout life for the Millennials in much the same way that the Great Depression and World War II affected the “Greatest Generation.”

Q: How do Millennials shop?

A: Community — what we call “peer-ticipation”— plays a big part in how Millennials approach shopping; even if they go to a store alone, they’re in constant contact (by phone or mobile web) with their friends, asking for opinions and making decisions based on friends’ recommendations.  According to AIM research, Millennials not only consult the peers they know, but also fully research products online before buying.  Often the purchase itself is made online, but even if Millennials shop at Bricks-and-mortar stores, they do research online first.  And sometimes they use mobile devices and research online while standing in the store aisle.

Q: What part does the internet play in today’s shopping experience?

A: Brands need to have a strong online presence since that’s where a lot of research is done as well as the shopping. Brand’s sites need to be robust web sites that are clean design and easily navigable. As online interactions increasingly influence sales at offline stores, marketers and retailer are likely to better engage shoppers along the full path to purchase, rather than treating online and in-store interactions as silos.  In AIM research, Millennials cite the need for seamless transition from research to purchase.

(Editor’s note: Research from both primary and secondary sources from Albing International Marketing LLC and courtesy of Colleen Fahey Rush, executive vice president, strategic insights and research for MTV Networks (MTVN) and her staff across all of the network’s cutting-edge channels including Nickelodeon, VH1 and the venerable MTV.)

For additional information about Millennial consumers, visit AIM’s other blog, MILLENNIALS At HOME.

AIM has believed for quite some time that American companies CAN successfully and profitably manufacture here again and some of our clients – Lodge, Regalware, KitchenAid – are proving us right.  Other consultants  are also noting this trend.  Here’s an article from Boston Consulting Group, sent to us by one of our Millennial Movers, Erica Leffler of New York City:

Why Manufacturing Will Return to the U.S.
August 25, 2011
by Harold L. Sirkin, Michael Zinser, and Doug Hohner
 
For more than a decade, deciding where to build a manufacturing plant to supply the world was simple for many companies. With its seemingly limitless supply of low-cost labor and an enormous, rapidly developing domestic market, an artificially low currency, and significant government incentives to attract foreign investment, China was the clear choice.

Now, however, a combination of economic forces is fast eroding China’s cost advantage as an export platform for the North American market. Meanwhile, the U.S., with an increasingly flexible workforce and a resilient corporate sector, is becoming more attractive as a place to manufacture many goods consumed on this continent. An analysis by The Boston Consulting Group concludes that, by sometime around 2015—for many goods destined for North American consumers—manufacturing in some parts of the U.S. will be just as economical as manufacturing in China. The key reasons for this shift include the following:

·         Wage and benefit increases of 15 to 20 percent per year at the average Chinese factory will slash China’s labor-cost advantage over low-cost states in the U.S., from 55 percent today to 39 percent in 2015, when adjusted for the higher productivity of U.S. workers. Because labor accounts for a small portion of a product’s manufacturing costs, the savings gained from outsourcing to China will drop to single digits for many products.

·         For many goods, when transportation, duties, supply chain risks, industrial real estate, and other costs are fully accounted for, the cost savings of manufacturing in China rather than in some U.S. states will become minimal within the next five years.

·         Automation and other measures to improve productivity in China won’t be enough to preserve the country’s cost advantage. Indeed, they will undercut the primary attraction of outsourcing to China—access to low-cost labor.

·         Given rising income levels in China and the rest of developing Asia, demand for goods in the region will increase rapidly. Multinational companies are likely to devote more of their capacity in China to serving the domestic Chinese as well as the larger Asian market, and to bring some production work for the North American market back to the U.S.

·         Manufacturing of some goods will shift from China to nations with lower labor costs, such as Vietnam, Indonesia, and Mexico. But these nations’ ability to absorb the higher-end manufacturing that would otherwise go to China will be limited by inadequate infrastructure, skilled workers, scale, and domestic supply networks, as well as by political and intellectual-property risks. Low worker productivity, corruption, and the risk to personal safety are added concerns in some countries.

This reallocation of global manufacturing is in its very early phases. It will vary dramatically from industry to industry, depending on labor content, transportation costs, China’s competitive strengths, and the strategic needs of individual companies. But we believe that it will become more pronounced over the next five years, especially as companies face decisions about where to add future capacity. While China will remain an important manufacturing platform for Asia and Europe, the U.S. will become increasingly attractive for the production of many goods sold to consumers in North America.

This report, the first in a series, examines the economic trends that point to a U.S. manufacturing renaissance. It also explores the strategic implications of the shifting cost equation for companies engaged in global sourcing.

 

Seminar: Defining the New Gourmet Consumer –

3:00PM – 4:30PM, Javits Center 1A02-03
What makes your customers tick?  Join Robin Albing of Albing International Marketing for an in-depth explanation into “Millennial” consumers and their buying behaviors.  Subjects will include where they shop, what they buy, how they shop and what their kitchens look like.
The session will be moderated by Bill McLoughlin, editor of Gourmet Insider and executive editor of HomeWorld Business. 
Tickets $20 advance/$25 onsite.

Albing International Marketing recently conducted a survey of consumers across the US to determine Communication and Media preferences among three adult age cohorts:  Millennials (20-29 years old), GenXers (30-45 years old) and Baby Boomers (46 to 65 years old). 

When asked which TWO types of TV shows were of highest interest to them, the leading choice for all age cohorts was “Situation Comedies (such as Modern Family, How I Met Your Mother, Friends).”  45% of Millennials selected this category, 39% of GenXers and 35% of Baby Boomers.  “Cooking Shows (such as Food Network Shows)” were a top choice for 24% of Millennials and 20% of GenXers, but only 14% of Boomers.  “Comedy Shows (such as The Daily Show, Colbert report, stand up comedians) tied for second choice among Millennials at 24%, but were much lower for the other two cohorts (10% and 8%).  On the other hand, 22% of GenXers and 36% of Boomers selected “News or News Shows,” while only 6% of Millennials did.

Millennials and GenXers most often get their news “online,” 49% and 48% respectively.  Only 20% of Boomers get their news online. 44% of Boomers selected “Network News – ABC, NBC, CBS” as their main source of news versus 26% of Millennials and 32% of GenXers.  The breakdown for “Cable News – Fox News, MSNBC, CNN” was 16% (Boomers), 11% (GenXers) and 12% (Millennials).

When it comes to reading a book, Millennials are the least likely to turn to “Print,” 68% versus 81% of GenXers and 83% of Boomers.  Millennials are the most likely to turn to all types of electronic resources (laptop or desktop computer, e-reader, iPad, Mobile phone).

All cohorts use email to a large extent (84% of Millennials, 81% of GenXers, 77% of Boomers).  Texting, Twitter, Facebook, other social networks and blogs are used by significantly more Millennials than the other two cohorts.  LinkedIn and Print Magazines are used most by GenXers.  Print newspapers are used most by Boomers. 

For more information about this survey, contact AIM at aim@albing.com.

Robin Albing, AIM President and CEO, will participate in the upcoming Tuck India Business Conference at the Amos Tuck School of Business, Dartmouth College.  Albing will discuss opportunities for consumer good marketers in the mass market in India.  She will also share anecdotal information about successful (and unsuccessful) strategies for market entry into India.  The conference is scheduled for Friday April 29, 2011.  For more information, see the Tuck website.

With rising labor costs in China and consumer concerns about quality/safety issues, companies are starting to look at US manufacturing.  Take the time to listen to this informational segment on NPR’s “Here and Now”.  We were especially interested in the interview with Mark Dwight, the founder of SF Made.  He describes “value-added manufacturing,” which starts with off-shore sourcing of basic product and finishes the product with added design and high-quality features.  “Finding a ‘pure play’ Made in USA is increasingly difficult.  It’s a global economy…but should I (a manufacturer) be penalized just because a certain component is not made in my own country?  That’s a radical extreme.”

This is good news for our clients in the stemware business!  “A new poll shows vino is the drink of choice for 24% of 21-34 year-olds. The generation still prefers beer (at 37%), but more prefer wine compared with older Generation X drinkers (aged 35-46), who choose beer to wine by 41% to 16%, according to The Harris Poll. Drinkers tend to shift to wine and spirits as they get older, so if the trends hold, Millennials are likely to be pleasing the wine industry for years to come.”  Read the full article on the Ad Age Blog.

We survived safely in spite of incredible and inexperienced shaking, although some material damages for glasses, plates and pots etc.
were unavoidable at our home.
The earthquake of unusual level of 9.0 magnitude originated about 300km north of Tokyo, yet we suffered from a serious disruption in transportation system, required for safety check and went on out of service until next day. Massive commuters in center of Tokyo were obliged to walk a long way back home or stay for overnight at work places. Luckily, we stayed at our home at the time of incidence.
Now, we are confronted with a serious concern about spread of radioactive owing to damages of nuclear power plant, at some 250km
distance north-east from Tokyo. We still need watch carefully further development.
Further, we encounter with short supply of electricity (reportedly 25% reduction of supply capacity due to quake damages). It started from yesterday morning to implement electric power sharing program by
suspending electricity service couple hours a day in rotation by region and time zone. It caused quite serious confusion for railway operation, retail services and industrial activities.
Most schools and retail outlets went on closing yesterday.
Stock exchange market yesterday and today marked a significant dip consecutively. Everything so far appears unpredictable.
We hope to keep ourselves a positive attitude for an early return to normal life as soon as possible, but at the same time we realize a need for good patience to tackle the confronted difficulties ahead.
Best personal regards,
Kiyo

1.    Nespresso Pixie 

2.    Black + Blum Hot Pot BBQ

3.    HoMedics charging bags

4.    Capital Brands Baby Bullet

5.    Thermos UnderArmour Hydration Bottles

6.    Casabella Keith Haring 

7.    iSi Twist N Sparkle 

8.    Evolution Robotics Mint Automatic Floor Cleaner

9.    Zebag Wine Caddy and Rack

10. Dansk Light Mario Batali cast iron cookware