Page 34 - Lighting Magazine September 2019

2019 ForecastnHOW THESE STATS APPLY TO YOUnNow that you’ve got a pre y solid understanding of the business conditions and economics being forecast for 2019, how do you put your showroom in the best position for growth?nPam Danziger of Unity Marketing, a recognized expert on doing business in the luxury market, shares her perspective on some strategies that lighting show- rooms can use to gain market share in the coming year.nHere are a few takeaways from our discussion with Danziger on things that lighting showrooms may want to consider when strategizing for 2019:n For businesses such as lighting showrooms, the true age-de ned generations are more similar than di erent. Understanding and capturing the nancial demographic groups, however, is what will set your showroom on the right path for growth.n One of the most-talked-about demographics in the luxury-buying world are the HENRYs (High Earners, Not Rich Yet), who rank among the 65 to 75 percentile group of income earners. They’re just one step below ultra-luxury buyers, so it’s critical that lighting show- rooms know how to draw them in the door, and then keep them.n The prime home-buying period for most people is in their mid-40s. Earlier than that, they’re in the process of building their careers, and a er that they’re starting to downsize. That makes the HENRYs a very valuable group for lighting showrooms to target.n Everyone who reaches the level of an ultra-luxury buyer earns their stripes rst as a HENRY. Showrooms that are able to build relationships with HENRYs at this stage of their lives will likely bene t from their increas- ing purchasing power in the years to come.nThe forecast for the remodeling sector would not be complete without checking in with Metrostudy, the rm that maintains the nation’s most compre- hensive database of housing market information.nIn its latest Residential Remodeling Index (RRI), Metrostudy combines several economic indicators that point to increased prosperity for the remodel- ing industry with an increase in both projects and jobs throughout 2019.nShowing a more modest forecast for remodeling, the Harvard University Joint Center for Housing Studies reports that annual growth in national home improvement and repair spending is expected to so en in 2019, according to their Leading Indicator of Remodeling Activity (LIRA)*. The Harvard LIRA projects that year-over-year increases in residential remodeling expenditures will start to dri down- ward from a 7.7-percent high at end of 2018 to 6.6 percent by the third quarter of 2019.nRising mortgage interest rates and at home sales activity around much of the country will pinchnPREFERRED HOME IMPROVEMENT PROJECTS BY GENERATION SOURCE: REALTOR.COMnMillennialsn1. Install outdoor play equipmentn2. Install childproo ngn3. Install backyard landscapen4. Update sprinkler systems for lawn and garden 5. Install front yard landscapen32 enLIGHTenment MagazIne | January 2019nwww.enlightenmentmag.comnBaby Boomersn1. Install or repair gu ersn2. Repair shed, barn, or playhousen3. Repair gazebo or freestanding porch 4. Asphalt sealingn5. Repair exterior trimnGeneration Xn1. Repari outdoor play equipmentn2. Install oudoor play equipmentn3. Add or remove holiday lightingn4. Build or install vinyl-lined swimming pooln5. Build or install above-ground swimming pooln