NEW YORK— Soft consumer demand for cookware in key segments such as aluminum and stainless steel have led to an overall decline in sales in the category through the first nine months of the year, the Cookware Manufacturers Association (CMA) reported recently.
According to retail sales figures from CMA, aluminum cookware sales are down 9% year-over-year and stainless steel cookware was off 11% when compared to the first three quarters of 2016. A bright spot has been cast iron/porcelain on steel/copper cookware, which is measured in the same category, with an increase of 12% year-over-year from 2016.
Reasons as to why key categories such
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continued from page 1 as aluminum and stainless steel cookware have slumped in 2017 vary. Some industry experts pointed to the growth of copper cookware assortments that are offered by As Seen On TV vendors and are now carried by a host of retailers. Others feel the move away from multi-piece sets to open stock has allowed consumers to be more surgical in their purchase, which has led to the end-user spending less when purchasing cookware.
There is also a growing line of thought from some cookware suppliers that the industry as a whole needs to step up its effort to connect with consumers. Most advertising seen currently from suppliers within housewares features small kitchen electrics and the copper cookware offered by leading ASOTV suppliers.
But some cookware vendors are taking steps to more aggressively reach consumers. As first reported recently by HOMEWORLD BUSINESS®, Meyer Corp. recently debuted an infomercial campaign that spotlights its Circulon brand as part of an effort to re-energize the brand and ultimately drive consumers to retail stores.
“We are trying to find new ways to approach the consumer,” Darrin Johnston, managing director of Meyer, previously told HomeWorld.
Whether companies such as Meyer or other cookware suppliers further expand consumer marketing efforts in 2018 is an issue that will be worth watching.
Another challenge facing the industry is brand blurring. According to Penny Rosema, managing director of the CMA, brands are beginning to spread up and down pricepoint ranges, which has led to consumer confusion and market saturation.
“Both retailers and brands are challenged with coming up with ways to protect their positions,” she said.
The sales softness seen in cookware through the first nine month of 2017 has also perplexed some given the current strong levels of consumer confidence and shoppers showing a willingness to spend discretionary dollars on items for the home, as can be seen in strong sales from retailers such as The Home Depot and Home Goods.
But Rosema noted that a high level of consumer confidence does not always equate to consumers spending more at retail.
“While consumer confidence is strong, consumer confidence and consumer spending aren’t the same thing,” she said. “You have to look at how people are spending their money, not just what they are buying.”
One cookware category that has stayed hot is cast iron. As in past years, consumers are turning to the segment for a variety of reasons that include the versatility of product, pricepoints and continued innovation by suppliers that have made using cast iron cookware easier to use and maintain.
In addition, television cooking shows, which continue to influence the types of food consumers make and how they cook, continue to utilize a host of cast iron products. This serves to educate the end user about the products and the proper uses.
Looking ahead, while 2017 has been a challenging year for cookware, Rosema said that there are a variety of factors that could help the industry regain some momentum.
Among those factors, she said, is generational influence.
“Grandma goes to the bridal registry and picks out the new piece of cookware for the bride. As she’s investigating and learning about this new innovation or feature of the standard piece that she’s had, she walks away saying, ‘I want one too,’” Rosema said.
A crucial factor for both retailers and vendors will be omnichannel initiatives to ensure that customers continue to interact with the brand after purchase. This includes having a website, social media channels, live web channels and mobile applications in addition to the physical assortments. Staying in touch with consumers through the life of their cookware with blogs, recipes, and cooking hacks to make the process easier is critical and will help to build brand loyalty.
“Think about triggers to put your product top of mind,” said Rosema. “Social media is a factor— the ability to get video content, see consumer reviews, pick up new, creative ideas and get new recipes.”
However, she said that the cookware consumer is split into two and companies should develop a strategy to market to both of them for best results.
The first consumer, she said, is one that wants cooking to be easy and convenient. Manufacturers should look to focus on time-saving benefits to market to this consumer.
The other consumer, she said, wants to build their skills in the kitchen and considers cooking a hobby. These consumers could respond best to the social aspects of cooking and the exploration and appreciation of new culinary skills.
Going into 2018, Rosema predicted that non-stick improvements, space considerations, color and the cast iron resurgence would be top of mind with consumers.
Within the cookware category, Rosema explained that she believes supermarkets will be the retail channel to watch in the upcoming year as they are growing more sophisticated with cross-merchandising opportunities.
