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Riding the Housing Wave § § § New home sales and remodeling/renovation of existing homes are the two market forces that resulted in a 20. 7% increase in 2013 sales for members of the Kitchen Cabinet Manufacturers Association, who comprise 70% of all manufacturers of kitchen cabinets and bath vanities. Remodeling projects continue to record gains, as the National Association of the Remodeling Industry reported improvement in its Remodeling Business Pulse index for the first three quarters of 2014, 6. 07, 6. 29 and 6. 41 respectively, (on a scale of 1– 9). The $11. 6 -billion cabinetry industry is expected to reach annual sales of $15. 3 billion by 2016, and then $16 billion during 2018.
Focused on Increasing Home Values § The 2014 Houzz & Home Survey found that more than 50% of homeowners plan to stay in their homes for the long term and are remodeling their homes either to upgrade their functionality or increase resale value. § As with the 2013 Houzz & Home Survey, most are planning a bathroom remodel or addition (26%) during 2015 or 2016, with a kitchen remodel or addition (22%) second on the list. § All four cabinet sectors increased sales during each of the first 9 months of 2014. Year-to-date increases include total sales, +10. 0%; stock cabinets, +12. 7%; semi-custom cabinets, +7. 1%; and custom cabinets, +12. 3%.
Consumers’ Cabinet Choices § According to the J. D. Power 2014 U. S. Kitchen Cabinet Satisfaction Study. SM, consumers bought more cabinet units during 2014 than 2013, 17 and 12, respectively, and spent 14% more, or approximately $4, 756. § The study also found that 24% of consumers said instore displays were the most important source of information to help them decide which cabinets to buy and 40% were do-it-yourselfers when it came to cabinet installation. § IKEA replaced Thomasville as consumers’ first choice among cabinet brands, scoring 5 of 5 in 5 of the 6 ratings categories: overall satisfaction, design features, price, warranty and ordering and delivery.
The Feature-Rich Kitchen for 2015 § As the kitchen continues to become the central room in the home, some designers think 2015 will be the year homeowners move from contemporary kitchen styling to a hybrid of modern and traditional elements. § Among these hybrid styles are cabinetry, especially a center island that looks more like furniture and featuring legs; mixing materials, such as wood and marble; and Shaker-style cabinet fronts with gold, copper and bronze accents and fixtures. § Designers are also touting all-black cabinets and more natural finishes of marble, granite and wood that infuse kitchens with textured surfaces instead of glossy or smooth.
Advertising Strategies § With older adults the largest percentage of TV viewers, cabinet retailers will be able to reach the two-thirds of older adults who plan to stay in their homes for the longterm, but want to renovate, and do so more efficiently and effectively than other media. § Suggest that cabinet retailers offer homeowners that have recently purchased an existing home a free kitchen and/or bath design consultation to show them current trends and generate interest in remodeling projects. § With 40 percent of homeowners indicating that they install their own cabinets, suggest that cabinet retailers use television to promote and host a free do-it-yourself cabinet installation seminar.
Advertising Strategies § As more consumers start their research for large purchases on the Internet, it’s crucial for small businesses to have a strong web presence. An online portfolio is an important way to show off your best work and versatility. Try to show a range of styles to appeal to the most consumers. Feature a few of your favorites in television ads, and clearly communicate your web address so curious cabinetry consumers can look at what you have to offer. § Many cabinet projects—especially kitchens—have a reputation for being big and costly. Emphasize quick installation to make projects seem more possible and less inconvenient. Highlight affordability in your current television ads and send the message that no project is too small. Show the range of projects your business is prepared to tackle so consumers understand that not every update has to be major—or in the kitchen.
Social Media Strategies § Since women make most of the home-remodeling decisions, cabinet retailers should create a presence on Pinterest with pinboards that feature various cabinet styles and their integration into overall kitchen and bathroom designs. § Retailers should record their free do-it-yourself cabinet installation seminar on video for upload to social media sites and schedule the production of other video content, such as cabinet choices and showing the care and professionalism of their installation crews in customers’ homes. § Cabinet retailers can use social media to ask users to submit their questions about cabinets and their installation, and then provide answers within 24 hours, the topics of which could be expanded to become blog entries for the company’s Website.