TRENDS: NOW AND TOMORROW

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TRENDS NOW AND TOMORROW!

• Presented by Tony DeMasi
• President
• DeMasi Marketing
• 112 Adrossan Court
• Deptford NJ 08096
• Ph 856/227-6802 Email tonydem_at_juno.com

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TRENDS NOW AND TOMORROW!

• 4.7 JUMP IN RETAIL SALES
• New economic challenges will prompt consumers to
  find new resources for spending. Retail industry
  sales (which exclude automobiles, gas stations,
  and restaurants) will increase 4.7 from 2005.

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TRENDS NOW AND TOMORROW!

• Fewer Stores Bored Consumers
• The merging of giant retailers, such as
  Federated and May Company Department stores,
  leaves shoppers with a small choice of locations
  and merchandise. It could curb consumers passion
  for shopping and/or open the market for specialty
  shops.

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TRENDS NOW AND TOMORROW!

• SUPER TREND!
• LUXURY MARKET
• The luxury market (households with incomes of
  250,000) will increase in size and cause a
  major increase in sales of fine jewelry, autos,
  pampering products.

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TRENDS NOW AND TOMORROW!

• .LUXURY MARKET LEAPING!
• Hitting home runs on the high end Premium
  quality goods selling atpremium prices fuel
  exceptionally strong sales growth for luxury
  labels

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TRENDS NOW AND TOMORROW!

• .LUXURY MARKET LEAPING!
• LUXURY HANDBAGS
• Accessories retailer Coach is continuing its
  steady retail expansion in the US and plans to
  open about 100 stores over the next five years,
  bringing its total to 300

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TRENDS NOW AND TOMORROW!

• .LUXURY MARKET LEAPING!
• 66 of luxury consumers were involved in major
  home redecorating or remodeling projects in 2005
  and even more, 69, have plans for major home
  work in 2006

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TRENDS NOW AND TOMORROW!

• LUXURY MARKET LEAPING!
• The most popular indoor luxury is a fireplace,
  either wood or gas-burning, a feature in 65 of
  affluent consumers homes. Fireplaces are
  followed by home offices (64) and whirlpool
  baths, indoor spas and/or steam rooms (34).

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TRENDS NOW AND TOMORROW!

• LUXURY MARKET LEAPING!
• Outdoors luxury barbeque grills are owned by 70
  of luxury consumers, followed by patio and
  outdoor lighting (49) and luxury patio and lawn
  furniture (38 ).

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TRENDS NOW AND TOMORROW!

• BAD TIME FOR NON-PRESCRIPTION SUNGLASSES
• The eyewear industry may benefit as baby boomers
  begin to suffer vision problems associated with
  aging, but the non-prescription sunglasses market
  may not be as fortunate

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TRENDS NOW AND TOMORROW!

• FLIP FLOPS/ SANDALS
• Theyre comfortable and now fashionable. Flip
  flops and sandals decorated and in high demand
  all year (evening wear in cold months). This will
  increase the market for foot care products.

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TRENDS NOW AND TOMORROW!

• BAD MARKET FOR BATH PRODUCTS
• The nationwide saturation of bar soap and a drop
  in bath additive sales as consumers take showers
  is causing the bath products market to sink.

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TRENDS NOW AND TOMORROW!

• MAJOR MARKET FOR MOTOR CYCLES
• DINK Boomers tripping around on luxury cruisers
  joy-riding Gen Yers speed-freaking on sports
  bikes and wanderlustful women trekking on
  glamorous, yet fuel-efficient, scooters are a few
  of the factors fueling a growth spurt for the
  domestic motorcycle market

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TRENDS NOW AND TOMORROW!

• GREAT TIME FOR YOUNGSTERS TOYS
• The ITP (Infant, Toddler, Pre-school) toy market
  will grow to almost 5.2 billion at retail during
  2005-2010. The total increase for the five-year
  period will be 13.7, or 624 million.

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TRENDS NOW AND TOMORROW!

• SUPER TREND!
• Boomers Are Big Food Spenders
•  Whether theyre cooking, dining out, feeding
  their children, entertaining, or eating
  on-the-go, Baby Boomers are not afraid to put
  their money where their mouths are when it comes
  to food.

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TRENDS NOW AND TOMORROW!

• Food!
• 78 million strong, boomers spend more on
  household groceries and food than their Gen X-Y
  counterparts and seniors over 65.
• Boomers aged 45-54 spend 123 weekly on food
  compared with 102 for 25- to 34-year-olds, and
  75 for 65- to 74-year-olds.
• Overall, boomers make up the largest food
  spending demographic22.8 million spending 125
  or more for weekly groceries.

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TRENDS NOW AND TOMORROW!

• Food!
• Boomers trend to eat well is being passed on to
  future generations with a preference for fresh,
  natural, organic ingredients, as well as flavors
  that are exotic, sophisticated, and bold.
• They spare no expense to incorporate the highest
  quality foods into their daily family life.

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TRENDS NOW AND TOMORROW!

• Food!
• Middle Eastern, North African, and Eastern
  Mediterranean cuisines will take center stage, as
  word of their exquisite spicing varieties spreads
  from foodie circles to the mainstream.

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TRENDS NOW AND TOMORROW!

• Food!
• Green, white and even redif its a specialty
  tea, its a hot item.
• Consumers are gravitating toward exotic tea
  blends and fueling a tea market worth 6.8
  billion 
• The tea market will reach 10 billion by 2010

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TRENDS NOW AND TOMORROW!

• HAND-HELD TOOLS MARKET GROWING!
• With a flourishing economy and continuing low
  interest rates fueling new home construction,
  remodeling, and do-it-yourself home improvement,
  the hand tools market is expected to reach 7.4
  billion by 2010

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TRENDS NOW AND TOMORROW!

• COPPER!
• The rusty-colored metal is back big time! In
  jewelry, fashion accessories, shoes, etc.

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TRENDS NOW AND TOMORROW!

• PLENTY PETS PRODUCTS PROFITS
• Pet Products Find a 3 Billion Home Outside the
  Pet Store
• As pet owner tastes become more upscale, theyre
  likely shop outside traditional pet retail stores
  to purchase high-ticket luxury, gift, and
  human-brand products. The market for pet products
  in nontraditional outlets should reach nearly
  4.2 billion by 2010

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TRENDS NOW AND TOMORROW!

• PLENTY PETS PRODUCTS PROFITS
• Spearheading the pet product influx into
  non-traditional outlets are gift/luxury products,
  such as diamond-studded collars and faux mink
  coats, value-priced items, private-label and
  licensed fare, and human-style goods from some of
  the worlds top fashion names.

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TRENDS NOW AND TOMORROW!

• PLENTY PETS PRODUCTS PROFITS
• U.S. retail sales of pet oral care products
  reached 425 million in 2004, reflecting annual
  growth averaging 35 since 2000.
• This crosses multiple pet supplies categories,
  including food, biscuits/treats, rawhides, toys,
  supplements, toothpastes, toothbrushes, wipes,
  and assorted other OTC healthcare products

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TRENDS NOW AND TOMORROW!

• PLENTY PETS PRODUCTS PROFITS
• Pet owners
• 63 of U.S. households own a pet, which equates
  to 69.1 millions homes45 of U.S. households
  own more than one pet
• High-end items to spoil companion animals are
  must-haves for pet owners

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TRENDS NOW AND TOMORROW!

• CARPET AND RUG SALES SOAR!
• Carpet and Rug Sales Expected to Fly Past 20
  Billion by 2010
•  While tufted carpets and rugs account for 77 of
  the market, heavy growth in the woven sector
  helped 2005 overall sales reach 16.24 billion,
  with heavy demand from DIY home improvers and new
  home builders.

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TRENDS NOW AND TOMORROW!

• PHOTO PHENOMONEN.
• Photos reproduced on everything possible will be
  a hot product category.
• .. College students and grandmothers

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TRENDS NOW AND TOMORROW!

• COLOR CODES.
• - Red will return as a leading bright, in coral
  and raspberry shades.
• -Purple Moves in on Pink
• -Brown Gets Even Sexier
• Ethnic Influence Remains Strong

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TRENDS NOW AND TOMORROW!

• WORDS.
• Look for a huge surge in sales of products with
  words of encouragement, inspiration, etc.

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TRENDS NOW AND TOMORROW!

• COUNT ON CANDLES.
• The market for candles and home fragrances
  reached 8.4 billion in 2004, 14.1 over 2003
• 80 of adult Americans bought some kind of home
  fragrance product in the past year

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TRENDS NOW AND TOMORROW!

• NAUTICAL!
• Its going to be ship ahoy on everything this
  year! Nautical is a hot look in decorative
  accessories, home fashions, giftware, apparel,
  etc.

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TRENDS NOW AND TOMORROW!

• FINE TIME FOR KIDS FURNITURE
• ITP home furnishings and accessories surpassed 8
  billion in 2005, on the strength of a 5.2
  increase over 2004. Yoga Mommies affluent
  urbanites and suburbanites have spawned their
  own identifiable sector known as Hipster Babies
  or Elegant Babies who share their parents tastes
  for an upscale lifestyle

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TRENDS NOW AND TOMORROW!

• U.S. Fencing Market Continues Upward Trend
• Powered by a vibrant economy and strong housing
  and remodeling markets, sales of metal, vinyl,
  wood, and other fencing products are expected to
  reach 3.5 billion by 2010
• While customers want a product which is low cost
  and relatively maintenance free.

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TRENDS NOW AND TOMORROW!

• SINGLE AND SATISFIED!
• Today, there are about 100 million Americans aged
  15 or older who are single or unmarried. They
  head up nearly 53 million households or almost
  50 of all American homes

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TRENDS NOW AND TOMORROW!

• FASHION FINDS!
• With TV hits like Project Runway keeping fashion
  in the forefront of viewers minds, and retailers
  like Target and HM lining their shelves with
  designer stylings, 40.0 say that familiar labels
  are important to them when shopping for clothing

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TRENDS NOW AND TOMORROW!

• ALTERNATIVE MEDICINE
• The percentage of consumers using only
  homeopathic products and natural remedies has
  increased from 2 to 4 that's 1.2 million
  consumers and it's growing.  Both men and women
  are contributing to this growth and the data
  suggests that some are trading in their OTCs for
  natural remedies.

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TRENDS NOW AND TOMORROW!

• SUPER TREND!
• NATURAL CARE PRODUCTS
• Sales Rocket to 5 Billion in 2004, 7.9 Billion
  by 2010
• Sales of natural/organic personal care products
  through all U.S. outlets nudged 5 billion at
  retail in 2004, as the result of a 13.1
  increase. This represented the third straight
  year of double-digit gains phenomenal progress
  for such a large dollar base.

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TRENDS NOW AND TOMORROW!

• NATURAL CARE PRODUCTS
• The natural skincare category is expected to rise
  above 4.7 billion at retail in 2010, as the
  result of bullish total growth of 57.9, or 1.7
  billion, over the whole period starting with
  2004.

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TRENDS NOW AND TOMORROW!

• NATURAL CARE PRODUCTS
• Natural haircare is predicted to reach a retail
  level of just under 1.7 billion as of 2010. The
  total improvement during 2004-2010 will be a
  more-than-excellent 58.7, or 618 million.

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TRENDS NOW AND TOMORROW!

• NATURAL CARE PRODUCTS
• The outlook for natural oral care is bright, with
  1 billion in retail value forecast for 2010.
  Total progress during 2004-2010 will be 70.6, or
  416 million.

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TRENDS NOW AND TOMORROW!

• NATURAL CARE PRODUCTS
• Natural color cosmetics will exhibit a healthy
  glow during 2004-2010, finishing at 486 million
  at retail in 2010. Total expansion over the six
  years will amount to 44.6, or 150 million.

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TRENDS NOW AND TOMORROW!

• LAWN AND GARDEN MARKET
• The overall lawn and garden market is being
  driven primarily and fundamentally by the Two
  Booms the housing boom and aging baby boomers.
  These factors will continue to create strong
  underlying demand for LG products and services
  for years to come.

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TRENDS NOW AND TOMORROW!

• Licensed clothing designs for kids
• The use of licensed characters in young
  childrens apparel has helped drive sales to
  16.8 billion and are expected to top 20 billion
  by 2010
• Current kid favorites Blues Clues, Sesame
  Street, Sponge Bob Square Pants
• Shopper-parents nostalgic favorites everything
  from Mickey Mouse to Teenage Mutant Ninja Turtles
• Parent-Flatterers bespeak parents own
  lifestyles (e.g., the recent use of Jeep and
  Professional Golfers Association logos on
  infantwear .

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TRENDS NOW AND TOMORROW!

• LARGE SIZE CONSUMERS
• More U.S. adults are overweight and obese than
  ever before.
• Using the old definition (weight, height and body
  frame), the proportion of adults 25 years of age
  and over who are overweight increased to 83 in
  2005, up from 80 percent in 2002 and 2003. Using
  this same measure, and counting those who are 20
  or more overweight, 39 are obese

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TRENDS NOW AND TOMORROW!

• GAY BUYING POWER!
• The total buying power of the U.S. gay, lesbian,
  bisexual and transgender (GLBT) adult population
  in 2006 is projected to be 641 billion

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TRENDS NOW AND TOMORROW!

• Gift cardsGood for business
• U.S. retailers are increasingly finding profits
  from a new source Unused gift cards. The gains
  are the result by retailers to document the
  portion of gift cards that go unspent every year.
  

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TRENDS NOW AND TOMORROW!

• SUPER TREND!
• OLDER CUSTOMERS!
• On January 1, the oldest Baby Boomer turned 60.
  For the next 19 years, one Boomer will turn 60
  every 7.5 seconds.
• Representing nearly 33 of the U.S. population,
  this demographic will refocus businesses on how
  best to capitalize on a distinctive set of
  resolutions

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TRENDS NOW AND TOMORROW!

• OLDER CUSTOMERS, MORE STYLE
• They are more up for risk and more interested in
  looking younger not foolish
•  Products and services that deliver a younger
  appearance and outlook will surge.

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TRENDS NOW AND TOMORROW!

• OLDER CUSTOMERS, MORE STYLE
• By 2010, women 45 and older be the biggest
  spenders on clothing, shoes, and accessories.
• American Eagle, Gap, and Gymboree are expanding
  existing concepts aimed at older women or
  unveiling new ones.

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TRENDS NOW AND TOMORROW!

• OLDER CUSTOMERS, MORE STYLE
• Unlike past generations, older women have more
  disposable income and are willing to spend it on
  their looks.
• Hollywood and television shows such as
  ''Desperate Housewives" are also promoting the
  middle-age woman as sexy.

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TRENDS NOW AND TOMORROW!

• OLDER CUSTOMERS
• Business winners Fitness facilities, marketers
  of dietary supplements, online weight management
  information portals, psychological services for
  compulsive eaters, support networks, fitness
  franchises such as Body Pump

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TRENDS NOW AND TOMORROW!

• OLDER CUSTOMERS
• Boomers are recognizing the coming calamity of
  miniscule retirement savings and an insolvent
  Social Security system.
• Business opportunities Financial planning,
  mutual fund companies, long-term care insurance,
  debt consolidation services, adult education,
  employment agencies

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TRENDS NOW AND TOMORROW!

• OLDER CUSTOMERS
• The bet customer base is Grandparents
• The nation's 77.6 million baby boomers are
  heading into their grand parenting years and
  retailers are primed.
• grandparents spent 23 billion on their
  grandchildren in 2005.

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TRENDS NOW AND TOMORROW!

• EASIER STORE RETURNS POLICIES CUT IN OTHER
  SERVICES
• Stores are expanding their return policies to 90
  days, but charging for boxes and may charge for
  restocking of returned items

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TRENDS NOW AND TOMORROW!

• POP UP STORES/STORES ON WHEELS

Think customized Land Cruisers stocked with gifts
for men, including ties, scarves, wallets, cuff
links and shirts. High on the surprise factor,
low on the lounging factor, though.
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TRENDS NOW AND TOMORROW!

• Airport shopping malls
• Airports are becoming the new in shopping
  centers.
• They have many upscale shops, high security, easy
  parking
• They have extended hours
• They appeal to upscale shoppers

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TRENDS NOW AND TOMORROW!

• Multi-Channel Shopping The Rise of the Retail
  Chains
• Retail chains account for about 40 of online
  sales.
• Online shoppers expect their favorite retailers
  to offer a cross-channel shopping experience.

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TRENDS NOW AND TOMORROW!

• DATING SERVICES SOAR!
• 13 of the Boomers never married and 14 are now
  divorced. At least 25 the generation is
  searching for romantic connections.
• Business opportunities On-line dating services,
  companies marketing personal expression cards and
  gifts, community-based dating services, personal
  advertising services  

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TRENDS NOW AND TOMORROW!

• SUPER TREND!
• DOLLAR STORES STILL DO IT
• Consumers are shopping and spending more at
  dollar stores and other small format value
  retailers compared
• Despite an improving economy, most dollar store
  shoppers will continue to patronize dollar stores
  and will spend more than they did last year

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TRENDS NOW AND TOMORROW!

• DOLLAR STORES STILL DO IT
• 33 of monthly small format value store shoppers
  have household incomes of 50,000 or more.
• 75 of dollar store shoppers shop the format
  simply because they enjoy the experience

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TRENDS NOW AND TOMORROW!

• SURVIVAL TACTICS FOR BUSINESSES

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TRENDS NOW AND TOMORROW!

• 1. Catch a Wave. Retailers that apply innovative
  thinking can generate significant growth and
  financial performance. The needs of an aging
  population, ethnic consumers and the pursuit of a
  healthy lifestyle provide fertile ground for
  innovative solutions.

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TRENDS NOW AND TOMORROW!

• 2. Solve My Problem. Add value to the shopping
  experienceservices, information and support to
  the product mix to provide a complete solution
  for task-oriented shoppers. Presenting products
  in context and bundling products and services
  retailers create consumer value and competitive
  differentiation.

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TRENDS NOW AND TOMORROW!

• 3. Do It for Me. Demographic shifts and
  lifestyle changes are driving consumers into the
  do-it-for-me (DIFM) market. Retailers are
  increasing innovative services and conveniences.
  Installation services from home improvement and
  consumer electronics retailers and home meal
  replacement options are fast-growing examples of
  do-it-for-me innovations.

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TRENDS NOW AND TOMORROW!

• 4. Help Me Choose. Information overload, too
  many choices, more complex products and a lack of
  knowledgeable sales assistance create
  opportunities for retailers to develop innovative
  solutions for consumers. Allowing shoppers to
  sample the merchandise before buying, utilizing
  on-demand information kiosks, and creating online
  communities provide consumers the help they need.

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TRENDS NOW AND TOMORROW!

• 5. Come to Me. New distribution models are
  allowing retailers to connect with consumers
  wherever they areat home, at work or in the car.
  Mobile retailing and target marketing are
  gaining in popularity as time-pressed consumers
  seek greater convenience. New-style
  direct-to-consumer rental concepts also are
  serving an important consumer niche.

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TRENDS NOW AND TOMORROW!

• 6. Enhance the Experience. Retailers
  increasingly will differentiate themselves by
  using experiences to sell the dreamas well as
  the productand bring the brand to life. By
  making stores super-immersive and integrating
  branding into entertainment and other customer
  experiences, retailers are exploring ways to
  create memorable brand interactions that resonate
  with their target consumer.

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TRENDS NOW AND TOMORROW!

• 7. Make It Easy. Innovative process, service and
  design solutions that are simple, intuitive and
  in tune with shoppers needsalong with new
  technology toolscan save consumers time and
  effort. Retailers that implement easier and more
  rewarding customer experiences will realize sales
  growth and enhance customer satisfaction and
  loyalty.

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TRENDS NOW AND TOMORROW!

• 8. Do It My Way. As shopping becomes
  increasingly individualistic, innovative
  retailers will seek ways to provide more
  unexpected gratification to shoppers and allow
  them to express themselves in unique ways. In
  addition to mass customization and
  personalization, retailers are offering
  opportunities for customers to participate in the
  development of new products and services

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TRENDS NOW AND TOMORROW!

• 9. Help Me Connect. Social networking fosters
  community among consumers who share a common
  interest. Retailers are forging stronger
  relationships with consumers and earning their
  patronage by helping them to connect in ways that
  are important to them and by responding to their
  emotional and physical needs.

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TRENDS NOW AND TOMORROW!

• 10. Speed It Up. Consumers want it fast they
  want it now and, they want it first. The need
  for speed in the shopping process will continue
  to drive changes in store concepts, design,
  location, merchandising, transaction processing
  and payment.

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TRENDS NOW AND TOMORROW!

• Thank you!