by Latest segment of Consumer Insights Now delves into planned furniture spending of consumers earning $150,000 and up
HIGH POINT — For high-income consumers shopping for furniture, quality and brand are key factors, equating to trust and durability in furniture, which also is often viewed as an investment rather than a commodity purchase.
They also plan to spend more than the typical consumer shopping for furniture and also plan to buy more items this year than those earning less than $150,000.
Those are among the many takeaways in our latest edition of Consumer Insights Now, which publishes starting this Monday and runs four successive weeks thereafter through April 20.
Sponsored by Bread Financial, the survey was fielded last month among 825 consumers who are either the primary or joint furniture purchase decision maker. All respondents have household incomes of $150,000 or more and plan to purchase home furnishings this year.
In this income group, however, respondents said they plan to make three furniture purchases, spending $5,000 in total, or more than 1.7 times households making less than $150,000.
As expected, sofas and sectionals remain the top area of interest, sought by 47% of those surveyed, followed by area rugs, 39%; mattresses for the primary bedroom, 35%; lamps and occasional tables, each 27%; reclining chairs, 23%; primary bedroom furniture and dining furniture for the dedicated dining area or kitchen, each 22%; office furniture, 21%; and outdoor furniture 20%.
Other top categories include: home entertainment furniture, 14%; mattresses for the guest bedroom, youth bedroom furniture and guest bedroom furniture, each 13%; lighting fixtures, 12%; and mattresses for the child’s bedroom, 7%.
Key to understanding the mindset of these consumers is that quality remains a top consideration, much more than price, as they have the disposable income to afford this attribute. For those making $150,000 to $174,999, quality was most important for 82% of those surveyed compared with price, at 18%. For those earning $250,000 or more, quality was a key attribute for 95% of those surveyed, compared with 5% who said price.
Also, some 62% of those surveyed said brand was an important factor in their purchase decision for furniture and bedding, compared with 27% who were neutral and 11% who said brand was not important. Several other key elements include quality, trust, familiarity and past experience, plus durability.
For those who said that brand was not important, the following factors were a bigger influence in their decision: design and comfort, price and value, and functionality. They also said they were open to all options available and more focused on their personal style.
Still, while many appear eager to spend on furniture this year, it’s not as big a priority as some other areas, including saving for retirement, travel, health care expenses and family expenses such as college and weddings, for example. Spending on new furniture ranked at No. 5 below those areas, followed by spending on entertainment such as concerts and sporting events and finally a new car.
These are some of the key areas of interest in the first installment. So we don’t give away the entire survey, other areas of interest in this week’s installment include mortgage rates that trigger the purchase of a first and a second home; retailer versus brand loyalty; and concerns about finances and inflation (yes this is a concern for high earners, too).
Obviously from this data, the high-income earner is an important consumer segment and will continue to be as upper-middle and upper-end resources largely focus much of their design and overall value equation on this part of the market.
As noted, this is the first in five reports on the high-income consumer.
The publication schedule is as follows:
+ March 23 – High-Income Shoppers Overview
+ March 30 – Designers
+ April 6 – Furniture Stores
+ April 13 – Home Design
+ April 20 – Second Homes
