Retail Observer

RETAILOBSERVER.COM MAY 2014 22 I t's no secret that the Millennial generation is influential. In fact, homebuyers in the 25- to 34-year-old age group make up the largest proportion of homebuyers today. 1 This significant audience may turn to retail for appliances and products that help make their new house feel like home. Anticipating Millennial consumers and their unique needs is critical to your success. GE Appliances has recruited a group of designers that are reflective of Millennials to help it understand the generation. Below are a number of trends they shared. Trends and talking points The do-it-yourself market is being fueled by Millennials, research from Better Homes and Gardens shows, with 18- to 34-year-olds more likely to buy fixer houses. 2 In your conversations with these consumers, you'll want to touch on easy changes they can make themselves, such as: • Start with a thorough cleaning and de-cluttering. When counters and floor space are clean, rooms look larger. • Strip old wallpaper and roll primer over dated paint colors. Put a fresh coat of paint on the ceiling, walls and trim. • Replace old drawer knobs and door handles. Update overhead lighting fixtures, install under-cabinet lighting and add new pendant lights over the kitchen's island, breakfast bar or a pub table and chairs. • Koehler notes that homeowners should pay particular attention to creating zones of light and make the best use of the intensity of light in the kitchen. The same study shows Millennials make up 45 percent of DIYers and are likely to mix materials and colors in their decors. Advise homeowners to limit their palette to white, black, the popular grays, earthen colors, and bronze or other metallic colors. Then, make the whole kitchen pop with bright accessories. GE research also has found that consumers age 25-44 made up more than 80 percent of U.S. home purchases in 2012. You'll want to suggest ways they can bring their sense of style into the kitchen. One solution would be the GE Artistry Series of affordable appliances for younger consumers, designed by GE Designer Tomas DeLuna, a Millennial himself. The appliance series features a simple, unique and approachable look designed to appeal to younger consumers. An average minor kitchen remodel in the United States now exceeds $18,500, and the price tag of a major kitchen remodel is nearly $54,000. 3 Young homeowners and first-time homebuyers typically can't spend that kind of money. With manufacturers such as GE offering more affordable options, consumers can make their budget go further. The entire Artistry line that includes four appliances—a gas range or electric range, bottom-freezer refriger- ator, over-the-range microwave and top-control dishwasher— is available for approximately $2,600. 4 Millennials with a myriad of projects in mind will enter your store, seeking advice and solutions. While each situation is different, keep these trends in mind as you begin the conversation and you'll quickly become a trusted retailer they are likely to turn to in the future. 1 According to real estate brokerage company, Redfin. 2 http://www.latimes.com/business/money/la-fi-mo-home-design-trends-20140228,0,6520346. story#ixzz2xvd8vNEG 3 "Remodeling Cost vs. Value Report 2013," Remodeling magazine, http://www.remodeling.hw. net/2013/costvsvalue/national.aspx 4 Model numbers: range, ABS45DF (electrical) or AGBS45DEF (gas); microwave, AVM4160DF; dishwasher, ADT521PGF; and refrigerator, ABE20EGE. M A N U F A C T U R E R [ N O T E S ] RO WIN OVER M ILLENNIAL CONSUM ERS

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