Study Shows Consumers Proceed with Caution

CHARLOTTE, NC — Kitchen designers have been significantly impacted by the current economic downturn, and are reporting that clients moving forward with a kitchen projects are altering their behavior to adjust for economic conditions.

That’s the key finding of a recently released research study conducted by the Research Institute for Cooking & Kitchen Intelligence (RICKI), a Charlotte, NC-based organization of manufacturers, retailers, wholesalers and others whose revenue derives from kitchen remodeling and related activities.

According to RICKI, the study – called “Kitchen Intelligence: A Designer’s Perspective” – revealed that today’s consumers “are compromising on the scope of the project, being extra cautious to stay on budget and within the scale typical for the neighborhood, and voicing concern about the long-term stability of suppliers due to concern that the company may not be in business for service after the sale.”

“This is not a large quantitative survey, but does represent what a number of designers across the country are hearing from consumers,” said Brenda Bryan, RICKI’s executive director. She notes that the study was conducted via online discussion groups, a format similar to that used in traditional focus groups but within a longer time frame, “allowing for thoughtful feedback given at the designer’s convenience.”

Nineteen certified kitchen designers nationwide from RICKI’s proprietary “Kitchen Designer Panel” participated in the project, which took place over a period of three days in early December, and also probed trends in both kitchen design and specific product categories, including refrigeration, dishwashers, range/ovens/cooktops, range hoods/ventilation, cabinets, cabinet hardware, faucets, sinks and countertops.

AIR OF CAUTION

Around two-thirds of the designers participating in the study reported that the slowdown in the economy has negatively impacted the number of kitchen projects they are doing – some “dramatically.”

Still, a number of designers have clients who are moving forward with kitchen projects. Those designers told RICKI that clients who are moving forward with a kitchen project are altering their behavior to adjust for economic conditions in the following ways:

• Compromise – Despite the “general angst” of the population at large, kitchen designers are still getting business, although clients are proceeding more cautiously than a year ago. In addition to tighter profit margins, surveyed designers say current conditions sometimes means compromising on design. Besides compromising on products and materials, designers say homeowners are mindful to stay within the kitchen’s original footprint, “planning around existing barriers so as not to increase the cost of a project.”
• Caution – Kitchen designers say clients are being “extra cautious” when selecting products and materials to ensure they stay within budget – “really shopping around,” “being very careful about every dollar spent,” “doing more research” and “legwork” on their own, and “considering less expensive items in order to still do the project,” according to RICKI. In addition, surveyed kitchen designers say homeowners are talking more about future resale and are more concerned about not overbuilding for their neighborhood.
• Concern – Designers say some clients are questioning a company’s prospective longevity. As one designer explained, “Clients consider companies closing their doors because of the economic crunch. Some decisions are based on warranty issues and service after the sale. If a company goes under, you lose that.”

As the economy has slowed, designers are seeing a corresponding downturn in demand for environmentally friendly products and materials – at least for the time being, RICKI said. According to designers in the study, requests for environmentally friendly options were increasing, but demand has waned recently.