Ready, Set...

Issue Date: July 1, 2007, Posted On: 7/4/2007

By Marc Henderson

Even in a world of uncertainties there is one thing that can be expected: consumer preferences are going to be in a constant state of change. Some changes are more gradual than others, while some seem to sneak-up overnight without warning. The most dramatic change in consumer preference over the last few years, mostly taking place over the last year alone, has been the desire for more environmentally friendly goods. Of course, so-called green products are anything but new, yet the mass awareness of their presence most certainly is. At some point in the recent past, there existed a tipping point that transformed environmental awareness from a hippie's hobby to a focal point on the corporate agenda. It is nearly impossible to identify the actual tipping point, if it even was a single event that sent this locomotion rolling. Perhaps Al Gore's An Inconvenient Truth played a part, perhaps it was the unmatched strength of Hurricane Katrina, or perhaps it was any number of small events; nevertheless, the tides have changed, and in this case, most likely for the better. With this newfound recognition have come changes in nearly all industries. The flooring industry is just one of many places where consumers are looking to reduce their environmental footprint.

Looking at the industry from the outside in, the most easily recognizable change comes in the form of advertising. More and more companies are using the green angle in both their print ads and in their web correspondences. For example, Shaw Industries has just launched a new ad campaign playing off their stated commitment to environmental stewardship. What is more interesting though, is the reason that Kathy Young, the creative director at Shaw, gave as the rationale for why consumers are buying green, and thus the underlying motivation for why the company would choose such an advertising approach. She expressed that consumers were selecting green based upon the "feel-good aspect of choosing recyclable flooring." It is important to recognize here that the true motivation behind purchasing green goods is not to be a steward for the Earth, but rather to feel as though one is being a steward for the Earth. The important distinction between the two is that the former has a stronger staying power than the latter. This is worth noting because it is a reminder that trends are not stagnant and that the next best thing may be just around the corner, and you better be prepared for that occurrence.

This is not to say that environmentally friendly products such as bamboo and cork are going to be replaced in the near future; in fact, they will most likely remain pillars of the industry. To truly understand this, take a gander at the fashion industry. New designs surface in places such as New York City, Los Angeles, and Chicago; however, it takes years before that identical design saturates the markets of the Midwest. The same can be said for bamboo and cork, both of which are rapidly gaining market presence, yet neither of which have become commonplace in homes across America. This is an indication that their cycle is just beginning, and that many years of sales remain ahead. At this point, not even all flooring companies are offering these two star performers, and as a result, many homeowners do not yet know about their benefits. Certainly, more time is needed before bamboo and cork flooring have reached far and wide across the country. When that day comes, projections can then be made about how much longer they will last.

Beyond the changes in consumer spending that have been spurned by the increase in environmental awareness, the flooring industry has been simultaneously riding the housing market roller coaster. A few years ago when new home construction was dominating the market, there was an obvious and strong demand for flooring materials of all types. This rate of construction was by no means sustainable for any long period of time, and as to be expected, things have drastically slowed from where they were a few years ago. With so many homes on the market to choose from, consumers have very little incentive to build new. This translates into an overall reduced demand for flooring materials. However, this is not a reason to be discouraged, for all systems are cyclical. The key to success is being prepared for the cycles, being proactive about change, and being steadfast through lean times.

These periods where consumer spending is light, allow for a true evaluation of what styles are the strongest and which show promise over the long-term. On the other hand, during periods of exorbitant consumer spending, the data is so inflated that what may actually only be a fad can easily be mistaken as a lasting style. This can lead to miscalculations in sales and consequently in production. So be on your toes and get ready to run, for the times are changing.