In many instances we see the forecasters saying that the "new normal" or the recovery will be a lot different than previous recoveries and that as the economy moves away from recession toward recover,y things will not return to the way they were two or three years ago. Behaviors of both consumers and suppliers will be different. Cash and capital will not be as plentiful as in the past. And even when people have the money, they will be a quite a bit more studious on when and how they spend it.
As the consumer starts to spend again and the economy starts to rebound, the new models will be significantly different and retailers will have to adapt these new behaviors of customers and competitors in order to thrive. What are some of those differences?
People will be looking more at sustainable products - in terms of the materials that are used (are they natural, do they use recycled materials, are they produced locally) and also in the way they are manufactured and shipped (are energy efficient processes used, is packaging using recycled materials)
More than half the people in the world will be living in cities for the first time in history. In addition, people are spending more time at home. Space and time saving innovation will become more important for product evolution.
The aging population will require designers to develop more ergonomic designs such that products are not only easier to handle but less complex and easier to use.
More young people are cooking, with men learning to cook as well. Whether this is due to the number of cooking shows on TV or the number of cooking games on smart phones is unclear. But hipper, eye appealing design products will emerge to meet this new market.
Consumers will become smarter and more discerning. First by become smarter buyers becoming better informed. Second by being more discriminating regarding when, where and on what they spend their money - looking for the best value not just the best price. Third they will be price aware using smart phones to compare both online and off line pricing.
With more people cooking and entertaining at home to save money, they will want to recreate a restaurant experience and will be looking for better quality cookware so they can replicate those great meals.
While there will continue to be the attitude of "if I buy a set of cookware from the leading vendor, I will have what I need." Over time, the realization that specific item for specific uses is much more effective. This will evolve to innovative items designed for niches of use and will include different products based upon the unique needs of ethnic users.
So there will be two divergent trends, one toward a common set of cooking tools and appliances and one toward unique special purpose items. Retailers may have to choose which market they want to serve as to do both could be expensive in terms of inventory and marketing.
This will provide an opportunity for online retailers to create specific niches where their expertise matches the unique needs and wants of a subset of consumers. These consumers will tend to be more loyal as they believe they can obtain quality products and superior values. It is then up to the retail to fulfill those needs consistently over time.
