Kitchen and Bath Insights: Middle-Market Malaise; Luxury-Market Strength
John Burns Research & Consulting’s Kitchen & Bath Market Index indicated weak sales in 1Q24. But with a twist: Weak sales does not indicate lackluster sales across the kitchen and bath (K&B) market. Instead, it reflects a struggling middle-market consumer paired with a more stable premium K&B customer.
According to John Burns, here are strategies to navigate this contrast:
Building product manufacturers: Can you maximize revenues by raising prices for the less price-sensitive premium segment while lowering prices or offering rebates for the rest of the market? Offer products that convey “affordable luxury.”
Homebuilders: If you build entry-level homes, focus on standardizing your kitchen and bath while aiming for “affordable luxury.”
Remodelers: Be upfront with your clients about ways they can save money on their projects. Counsel them frankly on need-to-have vs. nice-to-have upgrades to build trust, save them money, and help them adjust their expectations to the new pricing environment.
Designers: If you are already in the luxury space, you are most likely outpacing the market. Those working in lower price points might consider branching out into the premium segment.