The 1st Virtual DIY-Summit 2021 took place on 9th & 10th September. The theme was “The Roadmap to Recovery, Business after Covid 19”. Our European colleague Thierry Coeman attended on behalf of The Hardware Journal and gives us his own unique perspective on the presentations.
Day 1
For the very first Virtual DIY Summit, over 1,000 participants were registered on Day 1 of the two-part event. Opening the presentations, Tim Chuah, Head of Global Consumer Appliances Research at Euromonitor, appeared on the virtual stage in Cologne and immediately raised the bar to olympic heights with his vigorous presentation entitled ‘The Future of Home’.
Tim shared with the participants a brilliant analysis of the post-pandemic situation and its impact on Home Improvement.
Relooking the Future Home
Tim Chuah immediately shook the audience awake with the statement: “Homes have become a ‘hygienic sanctuary’. He converted his statement into an action plan: everyone in our industry must now clearly understand, that ‘a house` has made way for ‘a home’ and it is precisely this insight that offers countless opportunities for our sector. He stated that all their figures confirm that consumers will invest more and more in their homes.
Four drivers from House to Home
Tim underpinned his conviction with four drivers:
The housing stock: Homes will always need to be renovated, especially now as we have spent time doing them up, it`s just a matter of when.
The number of households is increasing worldwide, despite the stabilisation of the population.
Work and living habits have changed fundamentally, working at home has increased globaly by + 53%.
“Time” has been redefined, more and more time is being invested at home for relaxation, hobbies and preserving the “hygienic sanctuary”.
Tim also mentioned the impact of an ageing population with the baby boomer generation gradually reaching the age at which they have to leave their familiar homes in order to be cared for, but ideally many will be remaining at home. In other words, the functional design of homes will have to change drastically in order to provide self-sufficient home care and assistance.
This will be a huge challenge and opportunity for the Home Improvement Industry.
Tim introduced five multi-dimensional functions for the home of the future that will require five unavoidable necessities:
- creating a sanctuary,
- creating living conditions for later on in life,
- considering a 360° automated environment,
- a sustainable home interior and
- an optimal harmony between the concept of space whilst spending more time at home.
In this regard he sees eight priorities which together will offer the sector a golden future:
Connectivity: The need to accelerate further investment in Smart Homes; not only with ‘smart technology’ but mainly as vigilant platforms. In the near future, homes will be ‘connected’ with Local Government Health Services or Local Authorities providing information, care or assistance 24 hours a day as appropriate.
Automation: The trend of automation is fully extended to all parameters of the ‘home experience’: easing the burden of housekeeping, maintenance, security and safety, climate control and healthcare.
Hygiene: In the aftermath of the pandemic, extra vigilance for hygiene has become a daily habit. In the near future, technologies and equipment are foreseen that will both automatically clean and also disinfect our living spaces.
Sustainability: Climate change is suddenly not only close at hand, but also at home. The house of the future will be equipped with efficient energy systems, recyclable processes, water purification/saving. In this context, the principle of repairing instead of throwing away becomes crucial.
Space: The home of the future will be increasingly multifunctional and by definition multi-modular, with furnishings that are constantly adapted to changing living needs. There are great opportunities for companies that will offer home services to provide ‘made-to-measure’ furniture. The future home will have to be adaptive to not only the scale of all these transformations, but the pace at which they arrive.
Time: Time and Space collide in the future home as lifestyles are changing rapidly. The organisation of home interiors knows no compromise: it’s all about convenience. The balance between domestic and working lives requires new adaptations.
Health: The home of the future – taking into account the ageing of the population – will be designed as a self-contained nursing and care space; not only for physical, but also for psychological purposes.
Supportive Care: All the conditions must be in place for people to be able to stay at home as much as possible from now on, even with a disability. Studies show that recovering from illness or accidents at home increases life expectancy. The future home must therefore be designed to offer comfort and support throughout its entire life cycle.
Breakthrough Retailing
Day Two
The Keynote speaker at the Virtual DIY Summit on Day 2 was Jim Inglis a former top executive at Home Depot. Jim Inglis’ presentation focused on what can we all learn from a best in class retailer over a period of four decades when it comes to business strategy in our Home Improvement, DIY and Trade Stores.
Many of the answers can also be found in his no-nonsense book “Breakthrough Retailing” recently published.
Jim Inglis likes to be called a ‘street fighter’ and he has no qualms about doing so with more than a half a century of operational expertise under his belt. He served in executive positions with Home Depot, the dominant world market leader, from 1983 till 1996, first as VP Merchandising and later on as VP Strategic Development.
“Breakthrough Retailing” is definitely a blueprint and operating manual for a business owner or manager running a home improvement or DIY store anywhere in the world. Through 10 guidelines, Jim explains in a very accessible way, what the secrets are to performing exceptionally in a highly competitive world. He masters the unique art of backing up each one of these guidelines with a concrete action plan.
Jim`’s presentation and his book defines the distinctive character of a company’s culture and also illustrates how a change at the top of an organisation can undermine its success story, even if only temporarily. Jim literally tells the story of a change process – through trial and error – and substantiates the transformation with numerous examples that can be applied regardless of the size of the store. What’s more, he clearly has a single mission: to show, through his unique storytelling ability, how anyone can become ‘best of class’ in a world of constant transformation, especially in our DIY and Trade business during this uncertain post Covid period.
10 Guidelines about Leadership and Culture
10 core principles that drive a high productivity retailing business, from a ‘Disrupter’ to a ‘Leader’:
- Merchandising is an art
- Your brand is your most valuable asset
- The right price is solely determined by Customer Perception
- Success is measured by Gross Margin Return on Inventory Management
- Every day low prices demands every day low cost
- Advertising is an investment, not an expense
- Self-Service is the best service
- Retailing must transition from product orientation to a service agenda
- Hire, train and keep the right people
- Culture drives performance
Culture drives Performance
The key takeaway of Jim Inglis’ argument is that he turns the fundamental beliefs of Home Depot’s management strategies across the different management styles – into ‘achievable’ action plans.
His quotes are striking:
“people are not blind or stupid, they are always looking for value”
“Don’t give the customer any reason to ever shop anywhere else”
“Educate people on the WHY instead of the HOW”
The key message of the presentation and the book is that retailing is all about getting the focus right. And guess what: It’s all about the customer!
