Marketing Home Products

A recent Wall Street Journal article announced that Febreze has joined the “$1 Billion Club,” noting the company’s recent success. While the housing market has certainly brought a lot of home products down with it, certain small aspects of daily home life are in fact flourishing. Febreze has managed to prosper during a stark decline in the industry, which has some people in the field scratching their heads.

What caused the trend? Some experts have suggested that more people are spending more time in their homes as a way to save money; as part of the aftermath of the recession, eating out less, driving less and spending less time at the mall have become increasingly important for a lot of families. Still, data suggest that people still splurge from time to time… just not in  the same ways.

Many families have started to spend their money on accessories for the home, giving reason to Febreze defying market trends lately with its recent profit gains. It seems perfectly reasonable that a family that spends most evenings indoors will want the home to look, feel and, as we’re seeing now, smell nice. The recent movement to all things green may also be at play here, as Febreze has been effectively labeled as a green product: simple and clean.

This news confirms the fact that Procter & Gamble are on a serious roll. The company reported just last year that it had acquired Ambi Pur, which would allow the corporate giant to spread its fresh air from 17 countries to 84. The expansion may prove to be a wonderful business decision, since many developing markets have been showing an ever-increasing demand for products like Febreze, which has helped to offset the slump in sales surrounding more developed markets.

Regardless of what the future holds for Febreze, businesses and consumers should take note: new consumer trends are reshaping industries in unexpected ways. This could be just the kind of push back that the home product market needs.

For quite some time, I’ve had a running list on Twitter of home and building products, experts and influencers. This gives me a quick reference to a specialized group of people and brands that focus completely on the home. When managed correctly, brands can take on their own personality within social media platforms just as well as individuals can. I’ve listed what I consider some of the most active and engaging brands here, but would love to hear your thoughts and add to the list. What are your favorite home brands to follow?

1.   Hafele (@hafeleamerica) – Cabinet, door, furniture and kitchen hardware

2.   Pella (@Pella_News) – Windows and doors

3.   Rinnai (@Rinnai) – Energy efficient water heating appliances

4.   WarmlyYours (@WarmlyYours) – Radiant floor heating

5.   Amtico International (@AmticoFlooring)

6.   DANVER (@outdoorkitchns) – Stainless steel cabinetry for outdoor kitchens

7.   Dacor Appliances (@DacorKitchen) – Luxury kitchen appliances

8.   YKK AP (@YKKAPAmerica) – Aluminum building products and wall systems

9.   Teragren Bamboo (@Teragren) – Bamboo flooring, countertops and panels

10.   Elmira (@ElmiraStoves) – Retro and antique appliances

11.   WoodTrac (@Wood_Trac) – Unique ceiling systems

12.   Crown Point Cabinetry (@crwnptcabinetry) – Custom, handcrafted cabinetry (The company also often uses Carlisle Wide Plank Floors (@CarlisleFloor) wood to build its products.)

13.   Gerber (@GerberPlumbing) – The plumbers’ brand for plumbing fixtures and faucets

14.   Columbia Forest Products (@PureBond) – Hardwood plywood technology

15.   ThermaSol Steam (@thermasol) – Steam showers

16.   IceStone (@IceStoneLLC) – Recycled glass and cement surfaces

17.   Hy-Lite / U.S. Block (@HyLite_Windows) – Block windows and decorative glass

18.   KraftMaid Cabinetry (@KraftMaid) – Semi-custom cabinetry

19.   Native Trails (@Native_Trails) – Artisan crafted sinks and tubs

20.   Nichiha (@nichiha) – Fiber cement siding

Follow me on Twitter @stevekleber

According to a recent article on Seeking Alpha, there is good news for investors—the housing sector is rising. As the following charts show, the lowest period for this sector was in July and September of last year. Since then, the index has been moving back toward the April 2010 high.

The first chart shows the Philadelphia Stock Exchange (PHLX) Housing Sector Index (HGX), which is comprised of companies in the building and remodeling of residential homes, mortgage insurers and suppliers of building material. As you can see, the index has been steadily increasing.

This chart shows the Dow Jones Home Construction Index, which has a similar increase in recent months. A move back to the April high of 333 would offer a gain of nearly 15% for investors.

The final chart shows the SPDRs Homebuilders ETF (XHB), which represents the homebuilding sub-industry portion of the S&P Total Markets Index. The S&P TMI tracks all of U.S. common stocks listed on NYSE, AMEX, NASDAQ National Market and NASDAQ Small Cap Exchanges. An increase is also visible on this chart, and the move above $18.50 is a break from the five week consolidation.

What do these charts mean? They mean that the housing market is going to be giving investors some pretty good opportunities over the next few months.

If these charts don’t give enough proof, the rise in stock prices for companies such as Mohawk Industries and Lowe’s Companies does. These stocks are either on top of the range or breaking through the top of the range.

If those numbers don’t raise your confidence, you should know that on February 16 housing statistics for January were 596,000… way above the expected 520,000.

As the recovery makes progress, the housing sector will continue to rise. So, if you are willing to do some work and put in some time, invest in these opportunities.

Note: images modified from SeekingAlpha.com.