Member Login
Username
Forgot Password
GO

2018 CHHMA Spring Conference & AGM

Industry Needs Are Changing …. And So Are We

 

 

This year’s CHHMA Spring Conference & AGM was held at a new venue for the event – the Mississauga Convention Centre and for this first time, retail customers were invited to attend the full conference program (excluding the AGM).


Presentation topics provided attendees with key insights and forecasts on the economy (both domestically and globally); a look into the future on the megatrends and wild cards that lie ahead; and an understanding of millennials and how to successfully market to the single largest living generation of consumers.
 





 
Annual General Meeting

During the
Annual General Meeting, new CHHMA President Sam Moncada discussed some of the new approaches and programs that the association is planning on undertaking in order to enhance value for members.

Also during
the meeting, elections were held to update board positions for the next 12 months.

Here is the
new line-up of CHHMA Board of Directors for 2018-2019:

Executive:


Peter Laing (Recochem) elected for another
2-year term, returns as Chairman of the Board; Joe Comitale (Loxcreen Canada), returns a 1st Vice Chairman; Shelly Mlynarczyk (Henkel Canada) elected for another 2-year term, returns as 2nd Vice chairman; Steve Barker (IPEX HomeRite Products) returns as Treasurer; Dave Evans (Melnor) continues his position as Past Chairman.

Directors:


Elected for
a 2nd term: Patricia Noronha (Techtronics Industries Canada)

Newly
elected: Chris Bourke (Philips Lighting), Nuno da Silva (3M Canada), Denise Deacon (Oatey Canada), Krista Hamilton (McDonald Sales), Mark Travers (King Marketing).

Returning: Jeff Crews (Richelieu Hardware), Lee Harper (Southwire Canada), Gerry Lubanszky (Garant GP), Scott Ride (H. Paulin & Co.).


The
Association also acknowledged and thanked retiring directors Steve Dempsey (3M Canada), Jason Hutton (Salton), Peter Stojanov (Onward Sales & Marketing) and Dave Webb (Quest Brands) for their time and efforts serving on the Board.

In
addition, membership voted and agreed to amend the Association By-Laws relating to membership qualifications for sales agencies which will open up the opportunity for more agencies to join the CHHMA.

Specifically,
sales agencies are no longer required to have to represent one or more existing CHHMA manufacturer member.  However, agency members will not have the same voting rights as a manufacturing member, unless elected to the board, at which time they will have the same voting rights as a manufacturing member for the duration of their time on the board.Also, agency members cannot bring non-member manufacturers to any CHHMA function.

 

 





CHHMA Thanks Maureen Hizaka


During the Spring Conference Luncheon, the CHHMA acknowledged and thanked Maureen Hizaka, the longest serving employee of the association for her amazing work and dedication over the past 30 plus years, as she nears her retirement at the end of May. Maureen’s daughter Alexandra and son Scott were also able to join us on the day.

CHHMA Chairman Peter Laing is pictured presenting Maureen with a gift on behalf of the association board of directors and membership.
 














 
Speaker Presentations

The Economic & Financial Outlook
Brian DePratto, Senior Economist, TD Economics


For the 17th consecutive year, we have had the privilege to have a senior economist from the TD Bank speak at the Spring Conference and share their vision and expertise with our members.

This year, Brian
DePratto, Senior Economist from TD Economics was our opening speaker. A graduate of the University of British Columbia, Brian began his career with the Bank of Canada before joining TD Bank in 2014. In addition to producing the Canadian economic forecast, Brian also focuses on the day to day issues facing Canadians.

He also contributes to a number of TD publications, and his commentary is frequently featured in financial media. Brian also has a keen interest in the intersection of environmental issues and economics, and was honoured as one of Canada’s 2016 Clean50 Emerging Leaders for his work in this space.

During his presentation, Brian spoke of the recovering global economies last year: Canada 2.8%, Euro Zone 2.7%, U.S. 2.4% and Japan 1.9%. Regionally in Canada, Alberta led the way with approx. 4.5% growth in 2017 due to the oil & gas recovery plus of their younger generation, followed by B.C., Quebec and Ontario.

The unprecedented and unusual (adding stimulus to an economy that was already showing strength) fiscal stimulus undertaken by the U.S. government has led to large and repeated revisions to U.S. GDP growth. Therefore, the U.S. economy is expected to grow more than other G7 economies over the next two years: 2.8% for 2018, 2.7% for 2019 and 2.0% in 2020.

Canada is expected to have more moderate growth during this period in the 2% range.

TD sees the Canadian dollar trading in the .80 to .81 range so its current trading of around .78 is below value.

Wage pressures are beginning to heat up in Canada as certain labour becomes scarce. Jobs gains were very strong last year and although the market is expected to be good this year in will not match 2017 employment growth.In addition, minimum wage increases are contributing to prices pressures.e.g. many restaurants are increasing food prices do to the wage increases.

Household debt in Canada remains a vulnerability for the economy, in particular with younger households.Households are going to feel it more as rates begin to rise to more normal levels in 2019 and 2020.  Many homeowners have never had to deal with higher mortgage rates.

The Canadian housing market saw a drop-off at the beginning of the year by government design. Recent government intervention both federally and provincially with the introduction of new mortgage rules and foreign buyer taxes has had an impact on affordability and has cooled house purchases particularly in the GTA. House prices are also expected to decline this year.  New policies like these tend to have an impact for only a few months before markets tend to adjust. Therefore, it is projected that housing will pick up again later in the year leading to a more balanced market and a “soft” landing.

The “Trump Factor” (rising U.S. protectionism, fears of trade wars, NAFTA renegotiation or possible cancellation) is creating risk for Canadian and global trade and growth. Canada is highly dependent on trade with the U.S. so a lot is at stake.

The lowering of corporate tax rates in the U.S. is not likely to have a big impact for Canadian business in the short run but in the medium term companies may start to assess whether they should be setting up shop in the U.S. versus a Canadian location etc.

Brian also took a number of questions from the audience .

We would like thank Mr. DePratto once again for taking the time to speak to our members and the CHHMA will be making a donation to Parkinson’s Canada in Brian’s name as a token of appreciation.

Brian can be reached on twitter at @BrianDePratto and you can also follow TD Economics at @TD_Economics.





















 
What’s Next? How Our Future Will Be Affected by the Megatrends Ahead – and What You Can Do About It
Richard Worzel, Futurist


Richard Worzel is a Chartered Financial Analyst, best-selling author, and one of today's leading futurists, trend analysts, and innovation specialists.He is a professional member of the World Future Society and is in high demand as a speaker, consultant, and writer.

Richard makes his living by
helping corporations and industry associations plan intelligently for the future. He focuses on North America, but deals with global issues. His client list includes companies like Coca-Cola, Ford, IBM, Bell, the U.S. Navy Department of Medicine & Surgery, the National Research Council, the Clerk of the House of Commons of Canada, among many others.

The services he offers are
tailored to the needs of the client, but fall into the following major areas: Keynote Speeches, Workshops and Seminars, and Innovation Sessions. Companies can also ask him to work with their planning groups on an on-going basis, or for a specific part of their planning cycle. He also has been asked to assess companies in which a client is considering making an investment, especially in technology companies where he may have some familiarity with the field.

Mr. Worzel last spoke to
CHHMA members in 2008 where many of his forecasts did come to fruition such as the financial crisis and recession as well as the rise in the development of green energy. One prediction that has taken a bit longer has been the emergence of women as the dominant decision maker in business. He still feels this will happen just not quite as quickly as he initially thought.

During this year’s
presentation, Richard focused on three main areas of discussion: (1) Technology (2) Innovation & (3) Wild Cards.

Technology:


Amazon will continue its
dominance. They anticipated the impact of the internet on retail sales and have grown so quickly into a large player but also a flexible one, experimenting with new concepts and growth opportunities. The way we market and get products to consumers will continue to change and you need to embrace it or fall behind.

Consumers want “experiences”
so it not just about buying things.Companies need to develop this in their products and marketing plans.

Artificial intelligence (AI)
robots, cobots, self-driving cars etc. will change the way we buy things, ‘experience’ products. Amazon’s Alexa uses AI to interact with consumers. AI will animate the world around us. What could you do with AI if it was available for your products? e.g. self-controlling thermometers, smart power tools, AI on products could instruct you how to assemble the item or how to use it.

Identify what “experiences”
your consumers want. Steve Jobs was good at this.

Intel brought back smart
glasses. Augmented reality will also change the way we shop and work.

There is a potential for
retailers to have 3-D printers in their locations to reproduce low volume items, replacement parts.

Green
technology/environmental responsibility will continue to play an important part in the future.Companies will not only consider making physical changes like adding solar panels to their roofs etc. but also review all the processes of their operations to see they can be more efficient and reduce waste.

Automation in stores,
restaurants and the home will be factors.Robots and cobots (cooperative robots) will be there more to compliment humans than to replace them.

Innovation:


Innovation is extremely
difficult for companies to do.You have to try things you are not good at doing. Come up with new thoughts/ideas on old subjects.You have to be willing to fail!

The message is to make
innovation an every day event at your company.Look for small improvements; develop a steady stream of new ideas; use the opportunity matrix.

The bottom line is to be
first before your competition.“The best way to predict the future is to invent it.” Quote from Alan Kay, a famous American computer scientist.

Richard had a few comments on ‘Wild Cards’:


#1 Trump is getting
comfortable being President so expect he will make some erratic, potentially dangerous decisions e.g. cancel the NAFTA deal just to show he is tough.

#2 U.S. political uncertainty could freeze up the U.S.
government.

#3 The expectation is for
moderate growth for the Canadian economy but what if that is wrong – either
lower or higher; what contingency plans do you have?

#4 Stock market crash. Richard is nervous about the U.S. stock
market, reminds him of 1999. It is currently overvalued by historical standards, it is due for a fallback.

How do you identify wild
cards?

- Surprises will come
about. Companies that are best prepared to react will be in the best position to succeed.

- Think about situations you
are not currently thinking about. Ask questions like …. what might be the impact if ….was to happen? Then come up with a plan on how to deal with it.

- Undertake “environmental
scanning” to see what changes are coming.

- Think about a desired future
and then ‘backcast’ to see how to get there.

We thank Mr. Worzel for his
insight and for further information visit his website at futuresearch.com.
 
































 
Marketing to Millennials
Andrew Au, Co-founder & President, Intercept Group


In the final keynote presentation of the day, marketing expert Andrew Au provided insight into the core values, psychology, social media trends and shopping behaviour of millennials and how you can effectively engage and market to this important generation of consumers.

Andrew is the Co-Founder and
President of Intercept Group, a marketing agency that helps global brands win the head, heart and hands of Gen-Y and Z’ers across North America. Intercept empowers some of the largest global brands, including the likes of Microsoft, 3M, and 7-Eleven, as they shift from mass to millennial.

Through his innovative work
at the agency, Andrew was the youngest person to join the Entrepreneurs Organization at the age of 22. In 2016, he was named to the Forbes 30 Under 30 for Marketing & Advertising. As a regular contributor to Forbes, he lends his millennial expertise to articles and podcasts; from the interworking’s of the Met Gala to understanding millennials to digital disruption.

In 2017, Andrew was named
INROADS Alumni of the Year and celebrated in Washington DC alongside General Colin Powell, Tom Joyner, and other distinguished honourees. Today, he is regarded as a generation thought leader helping global organizations win Gen-Y and Z’ers, as consumers, professionals and employees.

New technology and a digital
age has been a major disruptor to the marketplace. And it has been millennials (those born between 1980 and 2000; now 18 to 38 years old) who have been propelling this fourth technology revolution.

There are 9.3 million
millennials in Canada, one third of the Canadian population and they represent the largest living generation right now and the will be the largest head of households in the next 5 to 10 years.

There are many stereotypes
of millennials and very much a misunderstanding of their value system. There is much more to them than just spending their time on social media.

If you want to successfully
market and sell to them, you need to understand them, know what they are thinking.

What social media/networks are they using?


Facebook is still #1
overall, however, Snapchat has eclipsed Facebook for the first time in the 18-22 age group (59.0% to 53.3%).

Overall: Facebook 48.3%, Instagram
26.5%, Snapchat 26.3%,Twitter 17.0%, LinkedIn 7.5% & Tumblr 7.4%.

Facebook is also the
preferred platform for news and consuming branded content at 66.3% followed by YouTube 36.9%, Instagram 22.9%, Twitter 11.9%, Snapchat 8.3%, Google+ 6.9%, Pinterest 6.7%, LinkedIn 5.5% and Buzzfeed 5.3%.

What is happening in their lives?


Travel ranks as the #1 thing
millennials enjoy to do. This is knowledge that companies can apply to their business/marketing plans in the type of messages and incentives that they offer.

Still, in the last year, 1
out of 3 millennials …. invested money 35.6%, signed a petition 30.9%, checked something off their bucket list 30.6% so it is not all fun and games. They are undertaking responsible activities as well.

What is on their minds?  What are they concerned about?


Environmentalism is as
protecting the environment 86.2% and global warming 78.2% ranked in the top 2 responses.

Millennials see the
environment as a shared responsibility between companies, government and themselves. So it is important for brands/companies to position themselves and communicate with this in mind (social responsibility).

Who do they want to have coffee with?


Barak Obama was picked #1
for two years running so they are aspirational.

How do they see themselves?


Millennials like to
self-identify as ‘innovators’ and ‘change-makers’.They are realists but optimistic about the future.

However, there is a gap in
regards to their work:only 50% said they currently earn enough money to lead the life they want; but 85% believe they eventually will.

75% are open to a new job
opportunity and 43% are actively looking for a new job.4 out of 10 do not expect to be working at their same employer one year from now.

How do they shop?


E-commerce has empowered the
consumer. How do companies/brands deliver against expectations?

85% of millennials look for
the best value when shopping; 80% will wait for a good deal to buy what they want.

Millennials are the best at
high-low budgeting.

How do you market to them?


Loyalty programs are
important to millennials (79.8%). This is an opportunity for marketers.

Preference for marketing
campaigns: Giving back to society #1; makes me laugh #2 along with protecting the environment #2. Drive awareness for a social causes. Teach them something new.

Focus on their value
system. Nail the content. Establish the ‘connection drivers’.

3 Main Marketing Principles:


(1) Marketing does not have
to be expensive (e.g. making a video and posting it can get lots of hits)
(2) Engage influencers to win the masses (talk to the right people to create the content)
(3) Design is a marketing
strategy (think about your products and how they relate to millennials’ living/work/transportation conditions etc.e.g. many are living in small condos so shelf space, counter space, room space is a factor.Many use public transportation and Uber versus driving a car).

How do you work with them?


A team environment, creating
a sense of community works well.

Millennials hierarchy of
needs:

- Values alignment

- Constant betterment
- Recognition
- Community
- Environment

Mr. Au took a number of
questions from the audience and we would like to thank Andrew for a very insightful and humourous presentation.
 



Canadian Hardware & Housewares Manufacturers Association | 1335 Morningside Ave., Suite 101, Scarborough, ON M1B 5M4
Telephone: (416) 282-0022   Email: pwinter@chhma.ca