Statistics from the Department of Commerce confirm the feeling that the bottom has dropped out of the furniture market, with fourth quarter sales of the nation's home furnishings and furniture retailers down some 13 percent from comparable 4Q2007 sales.
Unity Marketing's research gives a forward look at trends coming to the high-end furniture market
Commenting on the downturn in the high-end furniture market, Pam Danziger president of Unity Marketing and author of a new trend report about the luxury furniture market, said, "Our research measured a dramatic restructuring of affluent consumers' priorities back in the middle of 2007. That enabled us to predict a sharp downturn in affluent consumer spending months ahead of when their cut back was felt by businesses."
Indeed, the average amount spent on luxury furniture, lamps and rugs by the typical affluent household in 2008 was down 7.3 percent from previous year, according to the new trend report, The High-End Furniture Market Is Never Going Back Like It Was Before -- Get ready for business after the recession.
But rather than sit back and wait for the overall market to improve, furniture companies and their retailing partners can get ahead of the marketing curve by focusing on the underlying consumer attitudes and motivations that get them to buy and turn that intelligence into strategies.
"Targeted and focus marketing research that looks not just at consumer behavior, but underlying attitudes is the answer. This is Unity Marketing's specialty and what sets Unity's research apart from other research firms. It is important for marketers to look beyond quarter-to-quarter buying patterns and examine why people buy," Danziger says
"Our most current research in the home market paints a picture of consumer behavior throughout 2009, and the picture is a challenging one for marketers," she says, noting that her company recently completed an in-depth study of the home market for companies that need a comprehensive view of the home furnishings market. By contrast, the new trend report is for those executives who want just a focused look at only the high-end market for furniture, lamps and rugs.
According to Danziger's research, about one million fewer affluent households are buying high-end furniture, and the amount of money they are spending in the category is declining as well. This translates roughly into a $2 billion drop in sales of high-end furniture between 2007 and 2008.
Report gives strategies for succeeding in changing furniture market
Clearly, 'business as usual' just won't cut it for high-end furniture marketers looking to be competitive in the new, recession-scarred marketplace. The new trend report provides a topical and timely look at the market for high-end furniture, along with a succinct analysis of trends influencing affluent shoppers and action steps that furniture marketers and retailers can take to overcome the challenges they face in the current market.
Marketers will learn:
What kinds of stores high-end furniture customers are visiting, and which store types present the greatest competitive challenge for traditional furniture retailers.
What kinds of products are still popular among furniture consumers, and how their buying patterns have changed.
What affluent consumers say about their expectations for future purchases.
What factors luxury consumers say are most likely to draw them into a store.
What demographic is still spending on luxury furniture, and what appeals to them most.
How consumers are shopping today; where they are and how to reach them.
What message the affluent consumers finds irresistible.
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