Press Release

Tabletop Market Is Lagging as Consumers Taste in Setting Their Table Changes

Transforming the tabletop industry to be consumer centered, rather than product driven, is key to stimulating industry growth, Unity Marketing's new research report suggests

Stevens, PA June 16, 2006 — The tabletop market has been on a slow growth trajectory for the past five years, according to the latest research report from Unity Marketing. While industry sales lag, the tabletop industry is trying to find new directions that will inspire today's consumers to buy more of their products.

In a recent editorial in Tableware Today, Amy Stavis, editor/publisher, talks about a day-long symposium she hosted with independent retailers and vendors before the New York Tabletop Show. In answer to revitalizing the tabletop market, she writes, "We've got to get more excited about the beautiful and necessary products we offer this world. We're a much-needed commodity not a luxury." However, the new consumer insights study from Unity Marketing suggests that commoditization of the tabletop industry is at the root of the industry's slow growth, rather than the solution.

Forget Commoditization: Make Tabletop Products that People Think Are Cool!

"As a product category, tabletop products can be seen as both necessity, i.e. things people need and that serve a practical function, and luxury, i.e. things that people desire and that deliver an emotional boost," explains Pam Danziger, president of Unity Marketing and author of Let Them Eat Cake: Marketing Luxury to the Masses — as well as the Classes. "But things that are positioned primarily as practical, functional items become undifferentiated commodities in the consumers' eye so their purchase decision hinges primarily on price. Luxuries, on the other hand, are highly differentiated and are sold on an entirely different level where style and design are primary and where consumers are willing to pay a premium for unique, special products."

"Tabletop marketers need to put today's consumer, their passions, desires, and their luxury leanings first and deliver unique, highly differentiated, non-commoditized tabletop products that satisfy those desires. Unfortunately, too few companies are listening — really listening — to what the consumer wants. That is why Unity Marketing has published this new tabletop report so that marketers and retailers can understand today's consumer and their perspective and preferences for tabletop, dinnerware, stemware and glassware and flatware," Danziger says.

Consumers' Tastes Have Changed toward a Casual Luxury Lifestyle

A key finding in the new research is that consumers' tastes have shifted toward a more casual, but luxurious way of setting the table. "People want tableware they can dress up and dress down depending on the occasion. This affects marketers at both ends of the pricing spectrum, as people want tabletop that is better than everyday, but more casual than formal dinnerware," Danziger says. "It is in this intersection between casual/everyday and fine/formal — a new casual luxury — that the best growth opportunity for the tabletop industry exists."

Danziger continues, "The concept of 'casual luxury' sounds like a non-sequitur, but there are precedents in other product categories. Take watches, for instance, where the everyday is Timex, the luxury is Rolex and the 'casual luxury' is Swatch or Fossil. In cars, the everyday is Ford Escort, the luxury is Mercedes Benz, and the 'casual luxury' is Mini-Cooper, Toyota Prius, Scion xB or Honda Element. In these markets the 'casual luxury' brands are the hot ones. Tabletop marketers need to embrace the concept of 'casual luxury' and learn how to make their products and brands cool again."

Unity Marketing's Study Provides Information Tabletop Marketers Can Use to Drive Sales and to Be More Successful

Unity Marketing's Tabletop Market Report, 2006 gives tabletop marketers the most current consumer information, so that they can start to move with the consumer market, not against it. Tabletop marketers and retailers will get a new understanding of what today's consumer wants when it comes to tableware to enhance their dining and entertaining experiences. It examines what tableware consumers are purchasing, where they shop, how much they spend, their brand awareness and usage for over 40 tabletop brands and the reasons why they shop for tabletop.

The study includes results of seven focus groups with women active in the tabletop market, including one group conducted with brides and engaged women who registered for tabletop. A quantitative survey among 1,303 recent tabletop buyers is also reported. This survey sample had an average income of $69,300, slightly higher than the national average, and male/female ratio of 36 percent/64 percent.

Special Feature: The Four Personalities the Tabletop Customer

A special feature in the Tabletop Market Report, 2006 is a psychographic study of four different personalities types that make up the tabletop market:

• Neo-Conservative Conrad/Connie is the largest consumer segment, comprising 34 percent of the market, who as their name implies rather traditional about their use and preferences for tabletop. But make no mistake, they are neo-conservatives which means they embrace 'new luxury,' not old luxury formality. The majority of Neo-Conservative Conrad/Connie's agree or strongly agree with the statement, "My lifestyle is more casual, so I prefer to set my table with more casual, less formal tableware." And unique to this personality segment is an equal representation of men and women, thus the gender-neutral name. This segment also is the youngest of all, average age 36 years. They also spent the most buying tabletop in 2005.
• Casual Carol makes up the second largest segment in the tabletop market, representing 25 percent of the total market. She wants nothing to do with formal tabletop because it doesn't fit her lifestyle. Casual Carol is the second youngest segment, with an average age of 38.3 years and spent the least on tabletop.
• Formerly-Formal Frances, comprising 22 percent of tabletop consumers, used to be a traditionalist, but today she is marching to her own drummer when it comes to tabletop. She has relegated her formal dinnerware to the china cabinet and instead sets her table with the casual luxury styles she much prefers. For Frances, ease of use, convenience and comfort are key and formal tabletop just doesn't fit that mold. Frances is the second oldest of the personalities, 40.4 years.
• Helena the Hostest with the Mostest is the smallest and oldest segment with an average age of 42.4 years. While she also lives a casual lifestyle, Helena leans toward a more formal table presentation, especially when entertaining. Helena's primary use of formal dinnerware is for entertaining purposes, so she puts her formal collections to regular use. She also is the most likely to own holiday dinnerware to set a festive holiday table. She spent the most on tabletop last year and frequently gives tabletop as gifts.

Data included in the Tabletop Market Report

With a focus on consumers, their buying behavior, needs, desires and preferences, this research study includes research data and statistics about:

• Tabletop Market Size and Growth: What is the size of the overall tabletop goods market, as well as the key product segments (e.g. dinnerware, glassware, flatware, decorative accessories, servingware) and how rapidly is it growing? How is the tabletop market segmented by type of product? What is the size of the formal and casual tabletop segments?
• Demographics of the Tabletop Market: What are the demographic characteristics of people who buy tabletop products? How is consumers' buying behavior for tabletop influenced by demographic segments (e.g., gender, age, generation, HHI, size, composition, ethnicity/race, education, etc.)?
• Tabletop Buying Behavior: What are the primary characteristics of the consumers' buying behavior related to tabletop goods in general and the key product segments in particular (e.g. dinnerware, glassware, flatware, decorative accessories, servingware)? Why do they buy these goods and how do consumers' motivations different by product category segment? Where do they shop for the different types of tabletop products; what factors influence their decision making; how much do they spend buying each of the tabletop goods product segments and across the entire tabletop goods category?; what is the role of brand in tabletop goods product selection and shopping choices? How do different demographic segments differ in their shopping and buying behavior?
• Psychographic Profile and Segmentation of the Tabletop Markets: A psychographic profile of the tabletop buyers is developed in this report. The profiles identify different types or personalities of consumers of tabletop goods. These profiles identify different drives and motivations found among consumers in purchasing tabletop; what factors are more or less important in driving tabletop purchasing decisions; and how tabletop marketers and retailers can better understand the hearts and minds of their consumers. In essence, we will discover "why people buy tabletop."

For media: charts, tables and graphs are available by request.
Contact: Pam Danziger

About Pam Danziger and Unity Marketing
Pamela N. Danziger is a nationally recognized expert specializing in consumer insights for luxury marketers, whether they sell luxury to the masses or the 'classes.' She is president of Unity Marketing, a marketing consulting firm she founded in 1992.

Advising such clients as Lenox, Cartier, PPR, Rémy Amerique, Stearns & Foster, Prudential Fine Homes, Baccarat, The World Gold Council, The Conference Board and American Express, Danziger taps consumer psychology to help clients navigate and master the changing luxury marketplace. Her latest book, Let Them Eat Cake: Marketing Luxury to the Masses — as well as the Classes, (Dearborn Trade Publishing, $27, hardcover) is in book stores now. She is the author of the recent book, Why People Buy Things They Don't Need: Understanding and Predicting Consumer Behavior (Chicago: Dearborn Trade Publishing, 2004). She is working on her next book, Shops That Pop! Predicting the Future of Shopping set for publication in Fall 2006.

She has appeared on CNN's In the Money, NBC's Today Show, CNBC, CNN International, CNNfn, CBS News Sunday Morning, Fox News' Your World with Neil Cavuto, ABC News Now, NPR's Marketplace and is frequently called upon by the Wall Street Journal, New York Times, American Demographics, Women's Wear Daily, Forbes, USA Today, Associated Press, Los Angeles Times, Chicago Tribune for commentary and insight.

For media, Unity Marketing can make tables, charts and graphs available about the luxury market upon request.

Contact: Pam Danziger, 717-336-1600