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All of the NPD Worlds contain valuable information about what's hot, industry events, news, and other useful features. To stay abreast of retail trends across industries, visit us at:
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OCTOBER 2003 ISSUE 16W
 

Technology now makes it possible for one sleek piece of electronic equipment to replace three clumsy black boxes in the family room, and hectic family schedules mean at-home meal preparation is a rarity. These changes and others like them signal a new phase in the evolution of U.S. consumers' lifestyles and home environments. NPD's Industry Experts have examined U.S. homes, room by room, and share their perspectives.

High-Tech Family Rooms
Family room, great room, living room, media center -- whatever families call them, these rooms are the entertainment centers of today's homes. "In more and more homes, big-screen televisions are replacing smaller and older televisions. Families are adding to the media experience with surround sound audio systems to create theater-style gathering rooms," said Tom Edwards of NPD Techworld. "Less than 15% of homes in the United States now rely on broadcast television. Two-thirds of family viewing is from cable and another 18% get their programming from satellite, both high-quality sound and video. Even more entertainment comes from music videos or movies on DVDs or VCR tapes."

U.S. homeowners are beginning to shift their home computing equipment, formerly relegated to cramped home offices and spare rooms, to the family's primary living spaces. NPD Techworld's Stephen Baker reports consumers are responding well to marketers' attempts to offer products that serve both functional and design purposes in the home, purchasing PCs and other equipment that fit well into the family room environment. And technology's convergence, with single pieces of equipment now serving several purposes, is adding to tech's move to living spaces in the home. "Notebook computers, big sellers through 2003, have the advantage of portability but even if they remain stationary, their small form factor and unobtrusive styling make them suitable for the family room without requiring a redesign of the room's furnishings and layout," Stephen said. "The introduction of the Media Center PC has also forced consumers to reconsider where they set up their computer equipment. These products, developed by Microsoft and marketed by Gateway, HP and others, serve as TV tuners, digital music managers and TiVo-like recorders. With technology like this, why not put the PC in the family room?"

In addition, homeowners are rapidly adopting another form of technology that's making its way into family rooms: wireless technology, known as WiFi or 802.11. U.S. retail wireless sales were up 124% in dollars in the first seven months of the year, to over $300 million, nearly exceeding the dollar sales for all of 2002. Stephen Baker considers wireless to be today's most important technology. "With the use of wireless technology, rooms 'fall away,' and notebook computers can surf the Web from living room, bedroom or deck. Documents can be printed on the printer in the basement home office from the kitchen and, with devices just starting to hit the market in the second half of 2003, music stored on the PC in the den can be played on the stereo system in the family room. Wireless technology really will be the key to breaking down the walls in the home and enabling consumer computing throughout the house, regardless of what room you're in," he said.

The Kitchen: Family Nerve Center
Just as the family room has become the relaxation and entertainment hub of the home, the kitchen is America's nerve center. In many homes, bills are paid, meals are prepared and phone calls are made, all in the kitchen. And in some homes, the kitchen is a showplace featuring high-tech appliances and high-style design.

What's going on with the traditional use of the kitchen - cooking? Less and less, it seems to Arnie Schwartz of NPD Foodworld. "NPD's National Eating Trends service shows the number of meals prepared and eaten at home has been steadily slipping over the past decade, although due to the weak economy, we did see a slight rebound in the past year," he said. Despite the notable trend in cooking at home less frequently, the majority of consumers still opt to prepare their meals at home. The 18th Annual Report on Eating Patterns in America reports 60.3% of total meals are prepared and eaten in the home.

"When we do want to cook, we want to do it fast," Arnie continued. "The 30-minute meal is becoming more important to American households, especially on weekdays. Convenience-oriented foods, such as frozen meals, have become staples in many homes. Consumption of frozen foods is at an all-time high - the average person in the U.S. eats frozen meals/foods, including dinner entrees, breakfast meals, one-dish meal kits, appetizers and pizza, 71 times per year. This is a 23% increase over a decade ago!" A look at NPD Houseworld point-of-sale information comparing cooktop ranges to microwaves illustrates the significance of convenience cooking: sales of cooktop ranges are down 11%, while microwave sales are up 5%.

Stocking frozen foods is becoming more important, too. NPD Foodworld information shows 33% of households say their freezers are completely full, the highest level reported in 10 years. NPD Houseworld sales information indicates the freezer market is up 6% over the same period in 2002. Refrigerators with freezers on the bottom and side-by-side style refrigerators are growing. Sales of standard freezer-on-top refrigerators are declining.

According to both NPD Houseworld and NPD Foodworld, females remain rulers of the kitchen and preparers of the meals. "Adult females make up the majority of users of major appliances," said Donna Wallace of NPD Houseworld. NPD's research shows 63% of major appliance users are female and 65% are over age 35.

Although consumers may be cooking less, cookware sales have increased over last year and consumers continue to keep the kitchen as the showcase of American homes. U.S. consumers and homebuilders emphasize the kitchen, adding the latest food preparation and storage equipment, increasing the square footage devoted to these rooms and including sleek, colorful and stylish appliances in their designs.

Getting Away From it All: Bedrooms as Retreats
Several of our experts noted bedrooms, and master bedrooms in particular, serve many purposes. Many master bedrooms now feature built-in entertainment units housing DVD players or VCRS, televisions and stereos. Homeowners routinely equip bedrooms with telephone, cable and Internet access and some even install speaker systems to "pipe in" music from other parts of the house.

Master bedrooms also function as dressing areas for the heads of households. Men and women are continuing to add to their closets, but today "it's more about replacing the styles they have than building new wardrobes by starting from scratch," said NPD Fashionworld's Marshal Cohen. "We're also watching intimate apparel and sleepwear become more important, with sleepwear sales up more than 12% compared to the total apparel market, which is down 2%. Most of the growth is coming from nightwear categories such as pajamas, nightgowns, negligees and sleepshirts."

Fragrances are taking up more room in the master bedroom or on the vanity in the master bath. "On average, women own four fragrances and use two on a regular basis. On average, men own three bottles of fragrance, but use only two regularly," said Timra Carlson of NPD Beauty. Fragrances are also finding their way to other parts of the home, with top fragrance brands now offering consumers an array of home products featuring their favorite scents. Fragrant candles, potpourri and room sprays and fresheners reached $1.3 million in sales in 2002.

Kids' rooms have also become multi-purpose havens for entertainment and relaxation. NPD Funworld's Christina Charasse explains: "TVs and video game systems, computers for homework and stereos are typical for older kids, while their younger brothers may be more interested in playing with Yu-Gi-Oh! trading cards, action figures and role play toys based on this summers hot movies and Beyblade battling tops and arenas. Girls' bedrooms may be packed with today's favorite plush items, including the rejuvenated Care Bears, Furreal interactive cats and kittens and licensed items from the successful movie, 'Finding Nemo.' Girls' rooms are also home to Bratz fashion dolls, mini dolls such as Fashion Polly and of course, the perennial favorite for girls, Barbie."

For more on trends in the home, visit:
www.npdfashionworld.com
www.npdhouseworld.com
www.npdfoodworld.com
www.npdtechworld.com
www.npdfunworld.com