KBB - January/February 2012 - (Page 16)

CONSUMER Generational Success In 2012, knowing your client is key to business growth Welcome to a new year, one lled with hope for an up-trending economic recovery as well as an adjustment to new consumer realities. We have had two years to learn how to operate in an environment of slow growth and changing household diversity and a world where technology rules marketing strategies. As we move further into this second decade of the new millennium, it is time to embrace the changes for successful business growth and pro tability. The reality is that it is no longer enough to simply supply goods and services. Today’s value equation has expanded to include the emotional experience of browsing and purchasing. We no longer speak of “Return On Investment” (ROI) but rather “Return On Emotion” (ROE). “May I help you?” represents old-school service; “Tell me about your lifestyle?” brings new-school conversation into the selling process. Consumers are spending less and saving more, thus putting higher expectations on what they do purchase. Because of this, they expect to be emotionally engaged in the process. The degree of expectation varies by generation, but make no The Food Network (above) has a following among those ages 0-14, while Gen X embraces unique avors, such as those found in Das Foods’ Das Lolli lollipops (top right). And for the wellness-minded Zoomers, steam ovens, such as this one from Gaggenau (bottom right), may enjoy growing popularity. mistake that the marketing revolution has begun, and social media will continue to be a critical element in reaching tomorrow’s customer. TECHNOLOGY AND ENTERTAINMENT First it is imperative to understand every generation is unique, each with its individual set of needs and desires. We label the newest generation Digital-From-Birth (ages 0-14). This group is ethnically diverse and the tech-savviest generation to date, having been raised on computers from toddler age and with robots in the home (such as robotic vacuum cleaners). They are the Do-It-My-Way generation, expecting products to be interactive and able to “transform” and adapt to each individual. They are also very sophisticated: At the 2012 Fancy Food Show, the California Caviar Company displayed Caviar Kid. The good news for the kitchen industry is today’s youth loves to cook! They are watching the Food Network in record numbers, and we are seeing kitchen designs that take into account varying heights to accommodate several cooks in the kitchen. Gen Now (ages 15-34) approaches life in the same way they embrace the technology they grew up with: a 24/7 mentality for change. This generation is rewriting all the rules as the new adult majority (with an approximate population of 84 million). Cooking for them is an ecosystem of options—from fresh preparation to meals-to-go to everything in between. Rules don’t apply: Eating can be done anywhere and everywhere within the home, standing or sitting, and at various times throughout the day. The kitchen ceases to exist as a de ned area, instead merging into a multipurpose open space that embraces activities such as hanging out, cooking, eating, entertaining and re ecting. Take a tour of U.S. homes and you’ll clearly see interior design trends are in a major shift.“Doing more with less” has become the most disruptive mantra affecting interior design, and it’s being driven by these young adults who have high expectations but limited discretionary income. They may sacri ce the tub in the master bath but expect to have a phenomenal shower. The next group is Generation X (ages 35-44). We also call them the “entertaining consumer” because they love to use their home as a hive for friends and family. This has led to an increase in wine and alcohol drinking in the U.S. In fact, according to the Global Wine Consumption Report, last year America overtook France as the world’s largest consumer of wine. Gen X is a master at balancing work and life. They creatively save time 16 + K BB January/February 2012 / www.kbbonline.com / The Of cial Sponsor of KBIS www.kbis.com © 2010, Television Food Network http://www.kbbonline.com http://www.kbis.com

Table of Contents for the Digital Edition of KBB - January/February 2012

KBB - January/February 2012
Contents
Online Contents/News
Editorial
Show Director’s Note
Road to KBIS
Consumer
Web Savvy
Focus
Abroad
Trends
Products
Design
Mid-century Makeover
Modern History
Education
Ad Index
Last Word

KBB - January/February 2012