CHHMA - EYE ON OUR INDUSTRY
Volume 11, Issue 05, February 03, 2011
Association News
“Mastering the Art of Negotiating” Seminar – Delta, BC
On Friday, March 11, 2011, CHHMA members will have an opportunity to attend a seminar on the art of negotiating in Delta, BC.
The seminar will be conducted by Don Carmont, a training and development specialist from SkillPath. For a profile on Don click here.
Whether you’re a deal-maker or a please-don’t-make-me-dicker type, you’re faced with negotiation situations nearly every day. It’s time that you learned or improved the skills needed to work with the people you deal with to get what you want and need. Whatever your challenge, learning stronger negotiating tactics and strategies will vastly improve the way you work and the results that come from your efforts.
“Mastering the Art of Negotiations” delivers the essence of negotiating in one power-packed day. From what’s really happening when two parties come together to how to look out for your interests … from what to say and how to say it to what’s better left unspoken … this workshop delivers. Understand the power that’s yours whenever you sit down at the bargaining table. Banish uneasiness so you can enjoy the negotiating process and see results.
On-Site Seminar Objectives: Understand the do’s and don’ts of successful negotiating. Get what you want for you and your organization.
For further details on the seminar topic, click here.
Date: Friday, March 11, 2011
Time: 9 a.m. – 3 p.m. (lunch will be provided)
Location: Offices of Task Tools
6800 Dennett Place,
Delta, BC V4G 1N4
Cost: $300 normally a session such as this would cost between $600 -$700 per person. It will be approximately a 4 to 5 hour seminar.
Register by telephone – 416-282-0022 ext. 21 or 1-800-488-4792
2011 Spring Conference & AGM: “Boom, Bust & Bounce Back”
We are pleased to announce that Mike Morley, Author, Speaker & Consultant will be conducting a break-out session titled Financial Management for Non-Financial Executives during the CHHMA Spring Conference & AGM taking place on Tuesday, April 5 at the International Centre Conference Facility in Mississauga, Ontario.
Mr. Morley is a certified public accountant who holds credit designations in Canada, the U.S. and the UK. He is a recognized authority in the field of credit and has more than 25 years experience in both consumer and commercial credit and collections. Mike is also the author of four books.
The break-out session is recommended for senior sales and marketing, logistics, and general managers without a financial background. Attendees can learn how to read a balance sheet, understand cash flow and operating statements etc.
Industry News
2011 International Home+Housewares Show
The 2011 International Home+Housewares Show, March 6-8, McCormick Place, Chicago is fast approaching. The show offers visitors the opportunity to see first-hand consumer lifestyle and product trends for all areas of the home, both inside and out, under one roof. Show attendance info includes: 60,000 professional attendees, 2,000 exhibitors from over 35 countries, 15,000 U.S. buyers and 6,000 international buyers from 100 countries.
In addition to the show itself, registration is underway for the 62nd Canada Night taking place at the Chicago InterContinental Hotel, Renaissance Ballroom, Sunday, March 6, 6:30 pm – 8:30 pm. This event is open to all Canadian vendors, agents and suppliers to the industry as well as Canadian retailers in town for the show. Canada Night provides an opportunity to mix and mingle with peers and customers in a convivial environment celebrating the common bond of being Canadian while enjoying the wine & beer bar and some excellent cuisine. For registration info, click here.
All international attendees to the show are also invited to attend an International Reception/Networking Party put on by the Housewares Export Council (HECNA) on Monday, March 7, 5:30 pm – 7:30 pm at McCormick Place, South Building Level, Level 4, Room S406a/Vista Ballroom. International attendees are invited to step off the show floor and right into the reception where they can enjoy cocktails, hors d’oeuvres and music while continuing to network.
RONA Acquires Quebec Plumbing Retailer
RONA inc. announced on Monday that they have acquired the assets of La Boutique Plomberie Décoration 25 Inc. through its Noble subsidiary. La Boutique de Plomberie Décoration 25 specializes in the retail sales of plumbing products and fixtures with one retail store and one parts outlet located in St-Eustache, Quebec. The company has over 25 years’ experience in the specialized plumbing market and count on an impressive inventory to supply projects for all types of consumers, specialized contractors, plumbers and general contractors.
“We’re very happy with this deal, which represents an excellent complement to RONA’s recent acquisition of Plomberie Payette & Perreault and plumbing distributor LGC in Quebec. We expect that it will generate significant buying synergies with our existing operations in this segment.” said Michael Storfer, Vice President of RONA’s Commercial and Professional Market.
The acquisition of La Boutique de Plomberie Décoration 25 is another step toward achieving the goal RONA set for establishing a national platform in the commercial and professional market. This is the sixth acquisition for the RONA Commercial and Professional Market division in the past twelve months.
Marketplace Trends
Canadian Consumers Changing Habits
Canadian consumers are “radically reassessing how they spend their money,” according to a study released last Thursday by American Express. The credit card company said Canadians are becoming more particular about getting value for their money, and there is more awareness of the ethical implications of their purchasing decisions. That’s based on a study of 1,000 Canadians, carried out in August by international research group, The Future Laboratory.
“Consumers are moving from the excessive, impulsive spending of the pre-recession era to more careful, considered spending, in which value for money and quality take precedence over branding,” the report said. “They are more thoughtful in what they buy, and looking for more meaning in their purchases, so they increasingly seek products that are ethical and environmentally friendly.”
Among the general shopping trends the study says will take hold in 2011 and beyond is a preference for buying goods that are locally produced. The study said 36% of Canadians in the study support local businesses because they want to have a positive impact on their communities. Almost half said the involvement of local firms in the production of goods affects their purchasing decisions, and about as many said they have become more aware over the last year of the environmental impact of their buying activities.
Toronto retail consultant Anthony Stokan, a partner at Anthony Russell and Associates who helped with the research, said there’s an increasing awareness among the masses about how their purchasing decisions affect the immediate community around them and bigger world in general. A few years ago, he said, buying decisions were almost solely based on personal reasons.
“I think the interesting thing about moving into this decade is people are making an assessment on every aspect of their behaviour, whether it’s driving distance in terms of purchasing, what the impact of that is in terms of the environmental footprint, what the impact is of importing goods or importing fresh food or fresh vegetables during the summer when they can be bought locally,” he said.
Mr. Stokan said the baby-boomer generation is driving much of the new consumption trends, given their ample financial resources and the freedom that comes from partial or full retirement.
The shopping habits of people in their 20s and 30s are also changing, but much of this end comes from a lack of financial resources, given the unstable job market they are dealing with, Mr. Stokan added. Canadians between the ages of 18 to 34 “are choosing to downsize and simplify their possessions,” American Express said. Among this group, 57% said they shop for things they “need,” versus 37% who said they shop for things they “want.”
On the other hand, baby boomers between 55 and 64 are looking to live it up. The survey found 87% of Canadians in this age group make luxury purchases, and 54% said being able to access to the Internet from almost anywhere affects their buying habits. “These seniors are experiencing a renewed lease of life and enjoying longer, more active and more engaged lifestyles, but they are also very environmentally conscious,” the report said.
Consumer trends toward more responsible purchasing and greater demand for quality were also found in parallel studies done by American Express in the United States, United Kingdom, Australia, Japan and Mexico.
However, Mr. Stokan said Canada is leading such changes. He said this is largely the result of Canadians being tech savvy and using the Internet in gaining more awareness of the products they buy and how their consumption relates to global issues.
Source: The Financial Post
Best Business Practices
Recessionary thinking: Smart Marketing Tips for Tough Times
Here are the final two tips of twelve for effective marketing in a down economy:
11. Utilize E-newsletters.
Make better use of your marketing dollars by transforming print newsletters into an e-newsletter. E-newsletters are a cost-effective way to maintain visibility with existing clients. Your e-newsletter should be posted on your website and can be sent out to your clients with a simple and inexpensive electronic mailing service. As with any newsletters or advertising, be sure to include a call to action so potential customers will contact you while the topic is still on their minds. Create ‘contact’ hyperlinks in your e-newsletter blasts so that it becomes very easy for the consumer to act immediately. Be sure that your e-newsletter prints well so that readers who prefer to have a paper copy for their files can do so while maintaining the integrity of your brand.
12. Measure Return on Investment.
Relationships are difficult to calculate and some marketing activities aren’t measurable by traditional figures and forecasts. However, there is no doubt that building and maintaining relationships over time brings in business. It is important to recognize that some marketing initiatives can, and should, be tracked so that success can be determined. Whenever you open a new matter or bring in a new customer, be sure to ask how and why they chose you over your competitors. Track this information and use it to measure your marketing activities. Outside of this important step, there are other items that can be tracked for return on investment including your website and SEO programs, e-newsletters, print and electronic advertising and client meetings and presentations. These activities should include a formal ‘call to action’ that is traceable over time. Trends will begin to emerge over a set period of time, whether quarterly or at 6 or 12-month intervals. Compare data and draw conclusions as you plan your subsequent marketing activities.
Marketing is an investment, not an expense.
Marketing is often viewed as an expense that can be cut. This is a dangerous mindset that needs shifting. Marketing is an investment in your clients and business. Careful evaluation of your investments and periodic rebalancing of your initiatives must happen. Choosing activities that are cost efficient and effective will prove that marketing is an essential component of any business in any financial climate.
Marketing your business takes a consistent effort over a prolonged period of time. Periodically stopping and starting your marketing practices will always hurt your business. Lost time and effort will directly affect your long-term success. Keeping visible, understanding target audiences and building loyal relationships with customers are just a few of the essential components of a successful marketing plan. Aligning your business goals and sticking with your marketing plans will pay off in the long run, regardless of the economic climate.
To see the full list of twelve marketing tips, click here.
Information provided by: Deb Scaringi, Consultant, Scaringi Marketing, www.scaringimarketing.com, deb@scaringimarketing.com
Economic News
Canadian Economic Growth in November Quickest in 8 Months
Statistics Canada reported on Monday that the Canadian economy grew 0.4% in November from October, the fastest pace in eight months. Growth was led by expansion in the oil and gas, retail, real estate and financial sectors.
Oil and gas extraction jumped 2.4% in November as crude petroleum production ramped up following maintenance to upgraders. In mining, iron ore extraction expanded 10.8% to its highest level since August. Wholesale trade grew 1.5% on higher trade in machinery and equipment, along with farm products, building materials and food, beverage and tobacco products. Retail trade rose 1.4%, the second largest monthly increase in 2010, on growth at clothing and food stores, and new car dealers. The finance and insurance sector rose 0.7% on higher volumes of trading in stock exchanges, as well as personal lending and mortgages. Activity among real-estate agents and brokers increased 7.6%, the fourth monthly increase.
Meanwhile, the manufacturing sector contracted 0.8% in November, with much of the drop due to temporary plant shut downs for retooling in the auto assembly industry, and shift reductions at auto parts plants. Construction also contracted 0.4% in November, as residential building construction declined on weaker demand for single and semi-detached homes.
The report highlights the economy’s continuing shift towards the services side. Services now account for 72% of Canadian output, compared with 2.8% for goods production.
Analysts said the rise in November output bodes well for final fourth quarter GDP annualized growth of 2.3%, which would match the Bank of Canada’s forecast, a marked improvement over the 1% advance in the third quarter.
Canadian Job Recovery Data Revised Downward
Canada’s economy has not yet recovered all the jobs lost during the recession, according to data revisions that show a slightly less positive picture of the jobs market than did original estimates.
Statistics Canada released revisions to employment figures last Friday. The new data shows bigger gains in December than previously reported, but fewer jobs created overall during the recovery. The revisions reflect the 2006 population census as opposed to using 2001 population data as well as updated geographical and job classification definitions. The new census data suggests the labour force is not as large as previously assumed. The new results show that the Canadian economy added 30,400 jobs in December rather than the 22,000 originally reported. The jobless rate still remained unchanged at 7.6%.
In its release, StatsCan said overall trends in the labour market during the 2009 recession and subsequent recovery remain unchanged. But the economy now appears to have lost more jobs during the downturn and to have gained fewer since the recovery began. Overall, 30,000 fewer people had work in December 2010 than at the prerecession employment peak in October 2008. Previously, StatsCan had reported employment levels fully recovering to slightly above October 2008 levels.
The agency said the economy lost 428,000 jobs (-2.5%) between October 2008 and July 2009, when the job market hit bottom. That compares with original estimates of 417,000 lost jobs (-2.4%). During the upturn, from July 2009 to December 2010, job gains were 398,000, or +2.4%, versus the original 463,000, or 2.8% reported gain. The U.S. economy for comparison, lost more than 8 million jobs, and so far has recovered fewer than one million of them.
Avery Shenfeld, chief economist at CIBC World Markets, said the changes are largely “trivial”. “This is not a material change in the direction of the economy,” he said. “There is some symbolism in getting back the very last job, but part of the explanation is that the population hasn’t been growing as quickly so there are not as many people to be employed as earlier assumed.”
U.S. Economy Gathers Speed
The U.S. economy gathered speed in the fourth quarter with a big gain in consumer spending and strong exports pushing demand ahead at the fastest rate since the second quarter of 1984. The Commerce Department reported last Friday that the U.S. economy grew at a 3.2% annual rate in the final three months of 2010, and could have risen 7.1% if businesses had not put the brakes on rising inventories.
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, grew at a 4.4% pace in the fourth quarter, the fastest rate since the first quarter of 2006. Growth also came from a pick-up in exports, which resulted in a narrower trade deficit. This helped offset the drag from business inventories, which increased a mere $7.2 billion (U.S.) after a $121.4 billion rise in the third quarter. Inventories, which had been the main driver of growth since the start of the recovery, subtracted from GDP growth for the first time since the second quarter of 2009. Investment in home building and non-residential structures were surprise additions to growth in the fourth quarter. Home construction grew at a 3.4% pace, while non-residential structures expanded at 0.8%, the first growth since the second quarter of 2008.
Even with growth quickening, progress in reducing unemployment has been slow. The jobless rate has been stuck above 9% since May 2009. Analysts say an expansion rate of at least 3% over several quarters is needed to cope with new entrants to the labour market and the unemployed.
Although U.S. businesses have been hesitant to hire, they have used their vast cash reserves to buy new equipment and upgrade their technology. Business spending on equipment and software notched its seventh straight quarter of growth, though the pace slowed to 5.8% from 15.4% in the prior quarter.
For the whole of 2010, the U.S. economy grew 2.9%, the largest gain since 2005. The economy contracted 2.6% in 2009.
CHHMA Events For 2011
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Canada Night
Sunday, March 6
InterContinental Hotel, Chicago, Illinois
Spring Conference & Annual General Meeting
Tuesday, April 5
International Centre, Mississauga, Ontario
Maple Leaf Night
Tuesday, May 10
The Mirage, Las Vegas, Nevada
Quebec Golf Tournament
Tuesday, May 17
Le Fontainebleau Golf Club, Blainville, Quebec
Ontario Golf Tournament
Wednesday, May 25
Angus Glen Golf Club, Markham, Ontario
Night at the Races
Wednesday, June 15
Woodbine Race Track, Toronto, Ontario
Industry Memorial Golf Classic
Tuesday, September 27
Blue Springs Golf Club, Acton, Ontario
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To register for all events visit our website at www.chhma.ca or call Pam Winter at (416) 282-0022 ext.21.
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"Eye On Our Industry" is published by the CHHMA as an information resource for our members. Member input regarding content and format is welcomed. Please contact Michael Jorgenson by email: mjorgenson@chhma.ca, or call at (416) 282-0022, ext. 34. CHHMA is located at 1335 Morningside Ave., Suite 101, Scarborough, ON, M1B 5M4 www.chhma.ca