by The 18-29 age group likes the platform’s low prices and affordability, convenience and ease of shopping along with a wide selection and quick delivery
HIGH POINT — This week’s edition of Consumer Insights Now, sponsored by Bread Financial, explores the appeal that Amazon is having on Gen Z consumers ages 18-29.
The survey showed that the platform is the top retailer for this age group, accounting for three of 10 purchases. It’s also the single-largest platform for buying sofas, with 38% saying they purchased a sofa on Amazon. This was followed by occasional tables and office furniture at 33%, primary bedroom at 32% and 26% for a mattress.
The reasons cited include low prices and affordability, convenience and ease of shopping, along with quick delivery, wide selection and a belief in Amazon’s quality based on product reviews.
Price is key as 58% of those surveyed said they shop mostly based on low prices, although 42% said they would be willing to pay more for quality. Price-sensitive shoppers were more in the 18-23 age group as were renters, those with incomes under $75,000, single and with poor or fair credit scores. Those seeking better quality tended to be homeowners, married, ages 24-29, earning more than $75,000 and with good to excellent credit scores.
In order and shown in the chart below, categories they are willing to spend more for include mattresses, sofas, kitchen furniture, living room chairs, dining furniture and office furniture.
Yet while many are shopping on price now, they will trade up based on several key milestones, including when they get a long-term job, are more financially stable and plan to move into a new home. They also will upgrade as furniture gets worn out or needs to be replaced, which also ties in with a desire for better quality and improved comfort.
Forty-one percent of those surveyed said they plan to trade up in one to two years, and 40% said they plan to trade up in three to five years.
At that point in their lives, some 58% surveyed said they plan to shop at either local furniture stores or well-known brands such as Ashley, Rooms To Go and La-Z-Boy, for example, while 50% said they plan to continue shopping on Amazon.
Thus, Amazon continues to pose a substantial competitive challenge to mainstream brick-and-mortar retailers, and possibly even more than retailers such as Walmart and Target. The same could be said for lifestyle retailers such as Crate & Barrel, Pottery Barn and others, along with home improvement stores such as Lowe’s and Home Depot and warehouse clubs such as Sam’s and Costco as indicated by the above responses.
So in reaching this consumer, the brick-and-mortar retailer has an opportunity to understand their wants and needs and develop a marketing approach that speaks to this. Of course, the marketing also will make sense if it highlights younger people in their homes and highlighting the things they like to do at home such as watching TV and movies, entertaining friends and family, listening to music and playing video games.
In many ways these consumers are not really much different than older consumers. A key difference, of course, is that they are still early in their careers and thus are still working their way up to financial stability. But they want the same things as older more financially established consumers, including a comfortable place to call home. Obviously that’s good news for furniture wholesalers and retailers as it ushers in a whole new population that can be served with the best the industry has to offer in comfort, value and style. So while they may not have much money now, they will be your customer soon and for many years to come.
Here is an overview of this season’s Consumer Insights Now reports on Gen Z
Sept. 21 – What’s motivating Gen Z shoppers?
Sept. 28 – A look at how Gen Z consumers shop for furniture?
Oct. 12 – Gen Z furniture buying Part II – An in-depth analysis of Gen Z furniture and mattress shoppers,
including furniture brands, finance offers and working with designers
