Home Furnishings Market Poised For Growth: Is Your Company Ready?
Home furnishings a prosperous and growing market segment, but accessing key consumers depends on careful targeting and messaging
STEVENS, PA July 30, 2012 – The home furnishings market is on an upswing. According to a new survey, Home Is Where the Luxury Is, Unity Marketing projects the luxury sector of the home furnishings market to grow over 5 percent in 2012 to reach just over $100 billion.
Unity Marketing is not alone in its positive predictions for the home furnishings market. As we wait for full reporting of data from the second quarter 2012, these gems give us reason for optimism:
Sales of home furnishings in the U.S. are expected to shoot higher in the second quarter, with in-store sales increasing nearly 8 percent to $23.222 billion and online sales increasing 28.4 percent, according to an IBM analytics-based forecast.
Combined in-store and online sales of home furnishings are expected to grow 16.6 percent in the second quarter from same period last year.
Additionally, the Census department’s Advanced Monthly Retail Sales reports that they expect home furnishings and furniture store sales will grow 9 percent from 2011 totals for the first half of this year.
The market for home furnishings is healthy, but marketers can’t expect sales to be effortless.
Is your company going to get your share of this prosperous and growing market?
“Finally, we have a segment of the market that has rebounded from the recession to be healthy and showing signs of growth,” says Pam Danziger, president of Unity Marketing and author of Home is Where the Luxury Is: A Study of Luxury Consumers and Their Furnishings, Redecorating and Remodeling Purchases. Unity Marketing’s newest report shows consumers are ready to invest in their homes, but only if the marketing messages they receive match the consumers’ own desires.
“For example, home furnishings marketers should be pleased to learn that income is not predictive of participation in the home furnishings market, so HENRYs (HHI $100K-$250K) are just as likely as ultra-affluents to be spending on sprucing up their homes. This is great news, since HENRYs who make up 90 percent of the affluent consumer segment are the heavy lifters of the economy,” says Danziger.
“Our research also shows home furnishings consumers view their homes as a retreat or a refuge, and they look for items that make them feel calm and comfortable. This is to be expected after a turbulent economic recession; consumers want a place to retreat from the stress of the outside world. And, since it looks likely that the housing market in most parts of the country will not rebound to pre-recession levels for several years, consumers are wise to invest in making their current homes a sanctuary.”
The data and analysis home furnishings marketers need to effectively reach their most valuable consumer is contained in Home is Where the Luxury Is 2012, a comprehensive report that shows who is buying home furnishings, where they shop, how much they spend, and what marketing messages resonate with them.
More About the Research
This trend report will be a powerful tool to help you benefit from a vital and growing luxury home market. It covers two surveys among luxury consumers giving different perspectives on their luxury homes.
Home Furnishings Purchases: The latest, conducted in April 2012, covers luxury consumers who purchased of home furnishings items, including decorative items as well as furniture, bedding, art and others (excluding home electronics and major home appliances). The survey same was 1,271 affluent (top 20 percent income) luxury consumers. Average income $274.8k; 44.8 years; 45 percent male and 55 percent female.
Major Home Projects: Affluent luxury consumers involved in major home projects (2010). This survey was conducted among 1,349 affluent luxury consumers (Average income $306.7k; 44.8 years; 45 percent male and 55 percent female). Results were compared with similar study conduct in 2008 among 1,024 affluent luxury consumers (Average income $204,800; age 45 years; and men 36 percent/women 64 percent 2008 income weighted to 2010 income sample)
To understand the market for luxury home goods and services, specifically:
Profile the luxury home furnishings consumers, what they buy, where they shop, how much they spend and most importantly, why they buy
Market size and growth of the luxury home furnishings market
Attitudes and motivations in home furnishings purchases
Factors that influenced home purchases
Places where luxury consumers shop for their home
Use of a decorator or designer and why they use a decorator
Favorite styles of home decorating
Trends in major home projects, 2008 to 2010
Trends in amount spent on major home projects
Personalities of luxury home consumers and how to sell to them