Joe Derochowski, VP of Circana, brought his expertise to the forefront once again in HFPA’s highly anticipated webinar, TEX Talk Textiles Today and Tomorrow. The session dived deep into the challenges and opportunities facing the industry, offering a roadmap for growth in these dynamic times.
The Business Landscape: Navigating Challenges and Seizing Opportunities
Derochowski highlighted a critical issue: a decline in the number of new products, urging the industry to reimagine strategies for growth. While the pandemic led to a boom in home products, the current decline poses challenges. Derochowski’s forecast indicates a tough period for the next six quarters, but growth is expected starting the back half of 2025 with a good 2026 .
Demographics Driving Change
Delving into demographic trends, Derochowski emphasized the impact of life changes on consumer behavior. From parents of 0– 5-year-olds to first-time home buyers and empty nesters, understanding the needs of different demographics is key. The shifting landscape includes a bubble in 2026-27 for home sales, also including kitchen and bathroom remodels. Derochowski urged us to think about the needs of consumers as they experience life changes and how we can solve the problems that come with those changes.
Consumer Spending Habits: A Closer Look
Examining current consumer spending, Derochowski identified trend drivers such as post-pandemic savings depletion, credit card debt, and cost of housing. Some habits forged during 2020 continue, like the preference for home-centric activities (eating, entertaining, working), and provide a silver lining for the industry.
2024 Focus: Essentials
In response to the industry’s underperformance in 2023, Derochowski advocates a shift towards essentials. How can you become essential? Beauty, well-being, and experiences are areas where growth is evident. And social media drives demand. The pandemic has given rise to opportunities, such as the surge in sales for deep carpet cleaners due to pandemic puppies. Think about sleep and home organization products’ role in well-being and a healthy lifestyle, and the home products needed for travel and provided in B&Bs.
Innovation: Key to Success
Derochowski stressed the importance of innovation, citing examples like the rise of hot air stylers. Americans love innovation and if it saves us a step, we are willing to pay for it. From essentials to home décor, the market is open to inventive solutions. He encouraged businesses to connect with consumers through well-being and lifestyle, seizing growth opportunities in areas like outdoor activities and organization.
Strategies for Success: Connecting the Dots
The talk concluded with actionable strategies for growth. Derochowski advised market players to tap into trends like the replacement phase in bath and bedding, capitalize on the rise of online shopping, and emphasize the importance of sleep and well-being in marketing efforts.
In essence, Joe Derochowski’s TEX Talk provided a comprehensive guide for the home textiles industry to not only weather the storm in the coming quarters but to thrive through innovation, strategic marketing, and a keen understanding of evolving consumer behaviors. The message is clear: seize the opportunities, adapt to change, and ensure that your products are not just wanted but deemed essential in the homes of consumers.
