The Q2 KBMI reveals changes in lifestyle and financial dynamics are leading to new challenges and opportunities for industry professionals. By Robert Isler

 

Let’s start with the opportunity. The pandemic is leading to increased demand for health and wellness products, with those involving antimicrobial items leading the way. In fact, 6 of the 11 products mentioned, from door handles to shower walls to countertops to window treatments, were antimicrobial. And along with that increased demand comes a willingness to pay more for these products. On average, more than 40% noted that readiness from their clients.


Returning to the overall findings, although the severity of COVID-19’s impact on the kitchen and bath industry has softened somewhat, it has led to changes that could be with us for the foreseeable future. Members who responded to the Q2 NKBA/John Burns Kitchen & Bath Market Index (KBMI) indicated that the pandemic’s effect stands at 6.4, on a scale where 10 is the most  profound. This is a noticeable improvement over the 8.1 in Q1. Overall demand for services continues to lag, with 58% stating it is somewhat/significantly lower than before COVID-19 hit, twice the 29% who say it is higher. Hardest hit is the design segment, where 62% cite lower demand.

Overall, 43% report major revisions in the mix of products and services required by consumers. These are led by changes in price-points and project size, with nearly 4 in 5 stating that both have gone south. As one respondent noted “We have steady demand, but most of it is at a much lower budget than we’re used to.”

Another mentioned what emerged as a recurrent theme: “We’ve never seen a shift in what luxury buyers want. What we’ve lost is the mid-range project. We are trying to get creative with value-priced products to drive margin, but it’s hard when budgets are tight.” A few observed that older clients are holding off on projects, likely because of COVID concerns, while younger ones are moving forward, albeit on a smaller scale.

Other consumer shifts were in the realm of K&B repairs and DIY projects. Nine of 10 respondents said that the trend has been to ask for more of these fixes rather than full redesigns, with nearly all respondents stating that the demand for DIY assistance has increased. Commenting on this, one respondent noted, “Consumers now want help with simple design work and consults compared to hiring us for a full remodel.” Another echoed a similar sentiment, saying “More homeowners are wanting to do a significant part of the work themselves to save money.”

Along with increased demand for antimicrobial products was a positive shift for other health-oriented items. This was led by air purifiers, touchless faucets and water-filtration systems.

Another common theme dealt with multigenerational living, with different age groups now living together because of the pandemic, particularly older parents. This has led to a need for design solutions that creatively accommodate them, such as curbless showers or even in-law suites. And, as the pandemic rages on, more than one designer noted the rapid shift in demand for outdoor living spaces and kitchens where social distancing is possible.

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