CIN Week 5 analyzes how the economy will impact furniture buying

Half of shoppers surveyed said they plan to put some purchases on hold because of inflation and higher prices

HIGH POINT — There’s been a lot of talk about how the economy, ranging from inflation to interest rates and their impact on housing activity, have impacted furniture sales.

In our latest installment of Consumer Insights Now to be published this coming Monday Oct. 21, we address head on how the economy will impact what people plan to buy and spend in the coming months heading into next year. The results of our research, which includes a detailed survey among 1,800 consumers, also includes a mix of men and women ages 18-74 and a mix of generations, ethnicities, household incomes and homeowners/renters.

A key finding in the research sponsored by Bread Pay and PayTomorrow is that half of shoppers plan to put some purchases on hold because of inflation and higher prices, with the majority of these on-hold purchases planned for next year. Half of those surveyed said that inflation was a key factor, with lower income households and younger shoppers the most impacted by inflation and price increases.

For example, 56% of those planning to put some purchases on hold are earning below $50,000, compared with 49% of those earning between $50,000 and $99,999 and 40% of those earning above $100,000. And as expected, the largest number, 57%, are Gen Z consumers ages 18-27, followed by 55% of younger millennials ages 28-35 and 52% of older millennials ages 36-43. This compares with 49% of Gen X consumers ages 44-59 and 40% of baby boomers ages 60 and up.

The sofa/sectional, which is the highest sought-after product segment, also just happens to be the category that people plan to put on hold with 33% saying they plan to delay such purchases. It was followed by 27% of consumers that said they planned to delay a mattress purchase and 24% saying they planned to delay buying bedroom. Other products in the Top 10 include: recliners and outdoor furniture, 21% respectively; home entertainment furniture, 18%; office furniture and occasional tables, 16% respectively; dining furniture, 15%; and kitchen furniture, 14%.

Many of those surveyed — between 38% and 43% — plan to delay their purchases of upholstery, mattresses and bedroom furniture until the first half of next year. Between 39% and 43% plan to delay their purchases of recliners, outdoor furniture, entertainment and office furniture, occasional tables and dining and kitchen furniture until the second half of next year.

The survey also shows the areas competing with furniture in terms of overall spending. In order, the categories were as follows: vacations in the U.S., at 47% of those surveyed; concerts, 25%; sporting events, 20%; a vacation abroad, 14%; college expenses, 12%; and weddings, 7%.

And nearly 25% are planning to spend money on a cellphone, followed by 19% planning to spend on a TV; 18% on a computer; 14% on a new car and/or home repairs respectively; 13% on a gaming system and home appliances respectively; 9% on home renovations and yard equipment; 5% on a new home; and 3% on a new roof. Without giving too much away, the survey also shows where different generations and income levels are planning to spend in the aforementioned areas.

Also worth noting is that 29% of those surveyed said none of the above, which could mean they may be putting these purchases off. Or plan to spend money on other areas such as pets, health care or even hobbies such as music or sporting activities.

Another area we considered in this report was quality versus price. Some 56% of those said they would be willing to spend more for quality when buying a sofa, compared with 70% when buying a mattress and 50% when buying primary bedroom furniture. In addition consumers defined quality by category in specific terms such as durable, comfortable, easy to clean, made of real wood, solid construction and made with quality fabrics and materials, not to mention stylish and functional.

Shoppers were more prone to be price driven in these categories: area rugs, 63%; office furniture, 61%; entertainment, 51%; and primary bedroom furniture, 50%. The data also shows the types of consumers that tend to be more quality driven versus price driven.

And one out of three shoppers tend to be a retailer loyalist, compared with 68% who said they are open to trying new retailers (again broken down further by age and income levels) compared with 28% who said they were loyal to specific manufacturers, against 72% who said they were open to trying new brands.

We hope this information proves useful as you formalize your buying plans and strategies to compete in the marketplace. As our research shows, it’s not just other manufacturers or retailers you are competing against, but other industries all looking for consumers to spend money on their products.

The news sound both familiar and daunting. But the good news is the data gives you plenty of time to formulate marketing/advertising plans of attack to bring consumers through the door and open their eyes to a wealth of product they may not be able to resist in the coming weeks and months ahead.

+ Sept. 23 — Consumer Insights Now Second Half Overview

+ Sept. 30 — The Living Room

+ Oct. 7 — The Primary Bedroom

+ Oct. 14 — Mattresses

+ Oct. 21 — The Economy

+ Oct. 28 — The Design Report

Thomas Russell

Home News Now Editor-in-Chief Thomas Russell has covered the furniture industry for 25 years at various daily and weekly consumer and trade publications. He can be reached at tom@homenewsnow.com and at 336-508-4616.

View all posts by Thomas Russell →

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