Download
1 / 10
100 likes | 116 Views
Discover key insights on the booming paint and wallpaper industry trends for 2014 and 2015. Know the market forecasts, consumer preferences, advertising strategies, and more for a successful business ahead.
E N D
A Good Base Coat • For all of 2014, housing starts are expected to total 1.09 million, or a 17.2% increase over 2013. The forecast for 2015 is even better, at 1.36 million units, or a 25% increase compared to the 2014 projection. • Non-residential construction will increase 5.8% during 2014, and 8% during 2015. It is extremely important to paint and wallpaper retailers since painting contractors purchase more than 60% of all architectural paint sold in the US. • Real disposable personal income is expected to increase 3.1% for 2014 and 3.5% for 2015 and real personal consumption expenditures, $11.0 trillion and $11.3 trillion, respectively.
The Final Touch to Remodeling Projects • US homeowners’ interest in decorating or redecorating their homes is another driver of the paint and wallpaper industry. • Of the more than 100,000 homeowners surveyed during late 2013, 84% said they planned to decorate or redecorate during 2014 and 2015. • Homeowners’ largest remodeling projects were forecast to increase by double digits during 2014, reaching $153.8 billion for the 12-month period ending September 30, 2014.
Room for Independents • As of March 2014, there were approximately 8,000 US paint and wallpaper stores, generating approximately $8 billion in annual revenues. • Sherwin-Williams, with approximately 3,500 stores worldwide, and Benjamin Moore, with a North American retail network of more than 4,000 stores, dominate the retail paint landscape. • Despite the dominance of big-box home improvement chains and mass merchandisers, independent retailers are expected to gain a fair share of the market, due to the significant increases in building and remodeling.
Consumers’ Paint Preferences • According to the J.D. Power and Associates 2013 US Interior Paint Satisfaction SurveySM, Benjamin Moore was #1 among paint consumers for the third consecutive year. • Consumers chose Sherwin-Williams as the top paint retailer, based on high scores in three categories: services provided, staff and selection. • The survey emphasized the importance of customer service and professional advice since 83% of consumers said they were D-I-Y painters.
A Bright Future • Women will continue to be the major audience for paint retailers, since they make most of the decorating decisions in the home. Research has found that color influences their paint purchases more than brand names. • Much of the growth in business for painting contractors will parallel the large growth in the senior population, many of whom are predicted to remain in their homes and consider themselves do-it-for-me consumers. • US paint and wallpaper retailers are predicted to average an annual 3% increase in revenues from 2014 through 2018.
Advertising Strategies • Encourage retailers to put their advertising dollars to work on TV to build loyalty among a large consumer base since housing starts and remodeling projects are forecasted to peak during Q2 and Q3 2014, and into 2015. • Recommend to independent retailers that television spots that emphasize their customer service and professional advice will help them compete with big-box home improvement chains and mass merchandisers. • Paint and wallpaper companies should target new residents with promotions and coupons via direct mail. These stores should also offer loyalty programs in order to encourage customer retention, especially with contractors, interior designers, architects, and commercial clients.
Advertising Strategies • Suggest that retailers promote workshops or seminars for women that guide them in the selection of paint colors to complement the many decorating or redecorating projects that are forecasted for 2014 and 2015. • Offering in-store demos so consumers can come to learn how to use products and how to apply techniques is a good way of building brand recognition while promoting the products. • To reach female consumers, paint and wallpaper advertisers should look at primetime and daytime television programs that appeal to a range of women. Weekend and weekday design clinics and color courses are great extras to advertise to generate more interest in your store and let women know that you want to help them create their visions.
Advertising Strategies • Websites are great for all paint and wallpaper retailers, since they offer a space for video how-to guides, personality color palettes, ask-the-experts sections, and downloadable books with design and technique ideas. These web features should be advertised on television to drive traffic to the site, which will be the first connection stores have with consumers.
Social Media Strategies • Create and upload videos with painting tips, equipment techniques, the latest color trends and customer testimonials to YouTube. • Target women with the use of Pinterest pin boards, with design and decorating examples, decorators’ top choices in paint colors for the year and photos from your workshops/seminars. • Invite customers to participate in a contest by uploading photos of their redecorated and newly painted rooms to Facebook or other social media sites. Visitors vote on the best use of paint, with a store gift card as the prize.
