Seeking Multipurpose Majesty
Once identified as the generation to avoid purchasing a home, Millennials now have overtaken GenXers as the largest age band in the mortgage market. Projected to dominate the home buyers’ game, Millennials represented 37% of new home mortgages in 2021. Boomers are close behind at 32% and GenXers projected at 24%. And bringing up the rear is GenZ at 2%, as they age into home buying.
Younger Millennials (age 25-30) and Older Millennials (age 31-40) entered the housing market in 2014 as first-time home buyers. This 80-million-strong audience now represents 37% (and more) of home furnishings to date. And their spending power will only continue to increase in this category as they grow into their homes. Now, it’s just a matter of knowing how and where to connect with them.
This group has debt, student loans and now mortgages to top it all off, so when it comes to furnishing their new digs, they’re looking to minimize their spend. That means they’re hungry for pieces that are less expensive –and multifunctional. And when it comes to credit cards, they’re not big fans, so alternate financing options are a must. As for browsing and shopping, they want it all online whenever and wherever they can. That requires omni-channel connections, strong digital content and personalized everything as table stakes. And if it’s possible to bag a roomful of furniture in one transactional fell swoop, then all the happier they’ll be.
As the youngest hit 25 and the oldest 40, they comprise a broad age range, so properly targeting them with products that fit their specific lifestyle is critical. One way to interest both ends of the spectrum is by mixing high-low product offerings together. As for helping them zero in on what floats their boats, providing design inspiration can be instrumental. When it comes to speaking to their eco-friendly principles, it’s key to identify merchandise that makes the grade. And of course, as the evolving landscape unfolds, understanding how their homes serve their dynamic needs is critical. The combination of remote work environments, comfy living spaces, and a curated sense of design are all equally important to Millennials, who see their homes like Swiss Army Knives.
So as vitally important as it is for retailers to select merchandise, focus on lifestyle, and establish a dynamic digital environment, with robust design options and personalized experiences – having the right marketing strategy is equally essential. To attract and acquire new Millennial shoppers across both offline and online environments, retailers must be able to get the word out and say it perfectly. And that’s where we come in.
Unbound’s nimble team of problem solvers is ready to help you seize this tremendous Millennial opportunity while helping navigate the generational differences in the furniture category with confidence and precision. Our vast experience and focus on audience profiling will identify opportunities, resolve challenges, and develop real-time solutions to drive revenue for years to come.