Know what they want, and they will come.
Being stuck inside for months during shelter-in-place orders has inspired a new focus on the home, family, comfort and security. Consumers have a new invested interest in finding ways to elevate their home experiences with home furnishings being top of the list. Interested in seizing ways to capitalize on this consumer mindset, we’ve teamed up with leading research firms Decision Analysts, Resonate and MRI/Simmons to identify trends and opportunities pertaining to the furniture Industry.
Not surprisingly, home furnishing sales dropped 35% during the months of March – May 2020. Conversely, online home furnishings browsing increased by over 200%. While buying furniture online was once limited to a small segment of the market, we see its revenue continuing to grow into the double digits. And despite the web not being the preferred avenue to buy furniture, it’s still projected to represent 27% of total revenue by 2021. To keep the slippery slope of online competition at bay, brick & mortar retailers need to elevate their digital presence and consider marketing partners to help leverage emerging tech and best-in-class digital strategies.
In addition, brands need to begin pinpointing their highest value customers and learning exactly what their hearts desire. Currently, too many consumers struggle to find furniture that fits their style among a subpar, mass-produced sea of sameness. We are all individuals who want our different styles, preferences and needs catered to in unique ways. Brands that can deliver this personalized understanding of their consumers can foster personal dialogues, trusted long-term relationships — and much-needed revenue.
Targeting specific messaging to resonate with consumers at the right moment is worth its weight in gold. For example, with 8.3 million projected first-time homebuyers needing to furnish homes over the next three years, the ability to target them with personalized messaging is a huge opportunity.
An especially important group of new home buyers to pay attention to are Millennials. Once anticipated as the generation to avoid purchasing a home, Millennials have recently overtaken GenXers as the largest generational group in the mortgage market, likely making up more than 50% of lendees moving forward. And with over 4.8 million Millennials turning 30 this year, it’s time to target them with messaging and furniture that gets their attention and fits their style. Looking for partners to help brands understand this demographic’s digital footprint and actions will prove key to connecting and delivering what they want.
When it comes to identifying your highest value customers and truly understanding what makes them tick — we can help. By connecting our enormous consumer databases with your customer database, we can pinpoint who you need to talk to and what they want to hear.
