Forbes reported recently on 5 trends for the 2013 Christmas shopping season. Let's take a look at those trends, and then see what they may suggest to our Factory Built Home Industry's professionals.
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The National Federation of Retailers projects a 2% decline in spending from 2012.
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Self-gifting is on the decline. Expect less impulse buying from shoppers in 2013.
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Discounts rule more than ever.
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We’re shopping earlier.
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A more 'seamless' online, in-store and mobile shopping experience. Per Forbes, “Nordstrom, Macy’s, Target, Walmart and Best Buy are all considered among the best retailers in providing a seamless experience.” which connects with customers at each of the touch points (from your laptop/PC to in store and hand-held devices often being used in store).
Let me be the first to say the obvious, namely that holiday shopping purchases vs. the 'big ticket' purchase of a home are apples and oranges. Still, do you see a pattern in the above that ought to move manufactured home retailers, communities and producers closer to the edge of their seat? We do!
First, consumers are becoming more penny wise. People want (or need) to save money! Imagine what happens when you intelligently offer consumers a way to save on their housing costs that still delivers great quality. Does that approach work? You bet, we use it successfully with our clients, so you should too.
Second, the trend to internet connected shopping is accelerating. Those who are tying into the growing use of mobile web surfing on smart devices, or are shopping online before going to the store mirrors the report we shared – linked here – from the National Association of Realtors and Google.
It pays to engage customers early online, and to offer ways to continue to engage them online during their shopping experience. Savvy businesses must engage shoppers online, and then be prepared to give consumers a user friendly “in store” (sales center, community center, professional etc.) experience.
There are a plethora of trends afoot that all hold strong potential promise for manufactured housing. This is why:
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UMH bought 5 more communities. Sam Landy and his company see the future is in affordable housing, and they are going after it.
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Carlyle jumped into the MHC space for the first time, a fact noted with interest by ELS Chairman Sam Zell in Chicago during his industry conversation.
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HUD-Code and MOD builders are starting to open up once shuttered plants and/or have longer lead times from existing factories.
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Clayton is doing their push, which includes their tie in with the hit show, Duck Dynasty.
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ELS Chairman Sam Zell noted that since they understood the business, he has never sold a personal share of his MHC stock. ELS, UMH and other players too numerous to mention, have continued to consolidate and invest in this space.
This doesn't mean that we lack for troubled waters to navigate. Rent control is a thorny issue in the communities world, as is chattel financing for retailers and MHCs, plus image challenges continue to hound us, etc., etc.
But every challenge has its opportunity in disguise in MH.
> We now have 102 congressman to co-sponsor HR 1779.
> Marketing and creating a better shopping experience for consumers are ever more within reach because of the Internet.
> Commercial lending is back for MHCs.
Sam Zell observed the business was easier a few years ago. For those of us around 10, 20 or 30+ years ago, we know that's true!
But there are plenty of good reasons for manufactured housing pros to go after the broader housing market and to engage more robustly in the political process to impact on regulations and laws.
In conclusion, there are multiple signals that in-spite of the road bumps, that better days lie ahead. Those who can't or won't adapt will fail or exit. But for those who understand or are willing to learn how to capitalize on economic and consumer trends, this is a grand time to be or get involved in our Industry. ##
PS: Check our many Exclusive and Red Hot Featured Articles for November and see the other new stories at MHLivingNews.com too.
L. A. 'Tony' Kovach
ManufacturedHomeLivingNews.com | MHProNews.com |
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