Shop Talk - Jan/Feb 07

By Alisa Pucher

My poor father. Raised in the heartland in a patriarchal farming family, he successfully navigated business school and began a promising career in corporate finance. On the home front he was living the American dream—upwardly mobile, a nice house (with a dishwasher), a supportive wife, and three lovely daughters. I’m pretty sure that the day it dawned on him that even the cat and the dog were female was the day he realized that he didn’t stand a chance.

Hindsight being what it is, Dad should have kept a diary. His observations on how women behave and what women want would probably be in high demand right now. Do a Google search on “women consumers” and “female purchasing power” and you’ll see that Dad could have been to consulting and marketing what Richard Simmons was to exercise.

According to a BusinessWeek Online article, “I Am Woman, Hear Me Shop,” women make more than 80% of household buying decisions and women’s median income, while still behind that of their male counterparts, has grown 63% in the past 30 years. Much of the income shift is related to education. The American Council on Education reports that women represent 57% of undergraduates and 58% of graduate students at American colleges and universities.

Women’s purchasing power is also extending into many non-traditional industries such as financial services, hotels, automobile sales—even maintenance and power tools. In an interesting article in The New York Times titled “What Do Women Want? Just Ask,” Julie Gilbert, a vice president for Best Buy, says “Women are outspending men in our industry $55 billion to $41 billion. Not only that, they are actually influencing 90% of the purchases. It’s a new day in consumer electronics.”

I’ve never been to an independent floorcovering retailer forum that didn’t include thoughts on the big box retailers and their latest moves. According to the NPD Group, a consumer research firm, women account for 33 % of purchases in the big box stores and that number is up from 28% just three years ago. Special “how to” classes for women only, nicer product displays and sponsorship of home shows with very high female viewership is evidence that Home Depot and Lowe’s are working hard to capture more of the lucrative female market.

If I had to speculate on the advice Dad would offer to us it would be along the lines of, “You can’t beat them, so join them. And be quick about it, there’s profit to be made!” It’s a good time to remember that we’re not just a floorcovering industry, but a decorative products industry, and we should merchandise, market and sell accordingly.

There’s room for improvement at all levels of our industry—from manufacturing to retail. And if your client base is predominantly builders, you can’t rest on your laurels either. According to the National Association of Realtors, single women are the fastest growing segment of home buyers, representing 21%, compared to 9% for single men. Production builders are learning what custom builders have long known—that success depends on designs that are female friendly. Stores and a staff that understand and cater to your builder customer’s female clients will cement your relationships with the builders and mean more profitable upgrades for you.

The first step toward change is recognizing that an opportunity exists. If you’re a manufacturer, what does your product say to female consumers? Is it well styled and colored? Is product information relevant, organized and complete? Do your support materials inspire vision and validate her purchase decision? How about your displays? Are they female friendly? Will a woman feel free to touch and remove samples if needed? Have you ever asked women what they think about your products, fixtures and marketing?

And for those of us on the retailing side, our opportunities are just as great. What do our stores say about us to female consumers? Are they inviting and friendly? Does our product selection entice or overwhelm? Have we chosen to represent manufacturers who market well to women and are their displays in our stores current and attractive? How about our staff—can they relate to our women clients and “speak their language”? What message does our advertising really send, and have we chosen the right media?

You’ll probably not be surprised to learn that my Dad’s migraine headaches subsided exponentially as each daughter left the nest. In fact, they were completely gone by the time the cat and dog had each passed quietly of old age.

The answer is not as easy for those of us in the floorcovering industry. The passage of time will not change the trend of increased purchasing power in the hands of women, and we certainly don’t want our customers to “leave the nest.” In my next few columns, I’ll examine these issues and provide insight into the minds of female consumers and helpful suggestions for selling to this important market segment, suggestions that will create loyal consumers and improve your bottom line.

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