Furniture Zone

What furniture consumers are looking for in a recession?

2011-12-15T09:34:00.001-08:00

Economists may debate whether we’re in recession, but consumers have already decided that we are—and have changed their purchasing behavior accordingly. Two trend analysts—Faith Popcorn and Britt Beamer—have answer to peer into the crystal ball and weigh in on the opportunities during these tough times.

Faith Popcorn

“Out on the street, no one is asking if we are in a recession,” said trend analyst Faith Popcorn. “They're asking when it will end and where our economy will be by then.”

According to Popcorn, whose BrainReserve consultancy tracks 17 megatrends for major corporations, consumers are changing their shopping behaviors and rethinking their priorities in ways that have special relevance for home furnishings retailers.

A BrainReserve survey fielded in June revealed that consumers are reducing consumption and putting a greater emphasis on their homes. “A full 90 percent of the sample is considering opting out for a simpler life,” Popcorn said. “Four out of five are inclined to buy less. Seventy-two percent want to remove the clutter from their lives.”

The data also shows that there are many pro-home trends that furniture retailers may be able to capitalize upon. Respondents said that they are spending more time at home due to budget constraints, reprioritizing their spending to feather their nest, and investing in home entertainment to save money on going out.

“It’s called the entertainment center for a reason,” Popcorn said. “Retailers should concentrate on how to accessorize and amplify that experience. Think oversize chairs and sofas, modular sofas that are re-configurable, tables that keep food hot (or cold), and entertainment centers that provide storage.”

Of course, when budgets are tight, low prices are always good, but Popcorn said that people are willing to weigh long-term costs against short-term savings. “Appeals that account for the total cost of ownership make sense. I’ll buy a new heating system, because it is energy efficient and makes sense in the long term. ‘Built to last’ is a message that’s likely to resonate today.”

Britt Beamer

Britt Beamer, founder of America’s Research Group, has been studying how the Recession Consumer differs from the consumer of five or 10 years ago. He’s suspicious of claims that less spending outside of the home will translate into more “feathering of the nest.”

“The problem is, if I’m part of a typical two-income family, increases for gas and groceries have taken $500 per month out of my disposable income,” Beamer explained. “Gas prices have ripped out the heart of the furniture industry. The consumer is so focused on getting their basic bills paid that new furniture gets postponed for a long time.”

Beamer said retailers need to reconsider their message during the recession. “Screaming ‘Four years no interest’ isn’t going to do it anymore. Recession Consumers want the discount, not the financing. When you’re struggling, and don’t know if you’ll have a job in 18 months, you don’t want a bunch of bills hanging around your neck.”

Instead, Beamer challenges retailers to create a master narrative for promotions.

“It creates legitimacy,” he continued. “First, you have an inventory clearance sale, which you can use to set up for the next event, which in turn becomes: ‘Hey, now that we are rid of excess merchandise, we can offer great deals on new products’.“

Following this message sequence keeps the consumer alert to future sales. “Too many retailers just jump from one promotion to another and never explain to the consumer what to expect,” he concluded.

Which media is the right conduit in these times? Beemer recommends television commercials (creates immediacy), direct mail (able to target to existing customers) and print (use fewer images, but make them incredible deals), in that order.

Consumer panel shares views on casual furniture shopping experience

2011-12-15T09:30:00.001-08:00

A revealing consumer panel discussion during the International Casual Furniture & Accessories Market offered retailers and vendors insights to keep their businesses going in the tough economic climate.

The panel of six local consumers immediately broke into halves with vastly different outlooks. Robert Gibbs and Noel Ross, a pair of thirtysomethings living in downtown Chicago, were diligent and studious shoppers holding out for the perfect look, while Pamela Preschlack, Leigh Moss, Mary Kay Ryan and Ginny Wells, four stay-at-home mothers from the tony Lake Bluff suburb, had more bottom-line demands.

Both Ross and Gibbs expressed frustration over finding the right kind of furniture for their limited outdoor spaces.

“I'm looking for something different,” Ross said. “Comfort is my biggest priority, but I want to create an oasis by the grill. I've been searching for a long, long time.”

She added her shopping efforts were so fruitless in Chicago-area stores that she considered buying online, a prospect Gibbs said he was open to from the start. The moms, however, said they use the Internet strictly as a research tool.

“I definitely do my initial shopping online so I can narrow my choices to store A or store B,” Preschlack said. “But in the end, I definitely want to see it first hand.”

When she does visit stores, Preschlack said she looks for durability first. She said she was willing to pay more for a chair, table or chaise that will last at least five years, and she wasn't alone.

“I want my furniture to be able to handle the harsh elements we have here in Chicago,” Wells said. “I expect to have it for at least 10 years. I also want to know the cushions will still be available if I need replacements in the meantime.”

The only shift in allegiances on the panel came when the participants discussed their in-store shopping habits.

Gibbs, the lone male, said he preferred to be left alone.

“I find it irritating when people try to sell me something,” he said. “I don't want to get trapped. I'd rather just take my time browsing without having to worry about that.”

The other panelists valued the customer service experience.

“When I'm at a specialty store, I'm willing to spend more because the people there are knowledgeable and are willing to deliver the furniture,” Wells said. “They're also local, so I know they'll be there for me if I have any issues.”

“I like talking with someone back and forth,” Ross said. “It's like having my own interior designer to help me make decisions. They have to understand me more than sell me, though. If they make that effort, I can talk to them forever.”

All six panelists said they enjoy planning their outdoor spaces on their own.

“It starts with me looking through interior design magazines, although now more and more I get inspiration from the design shows on television,” said Preschlack. “But I still like print. I tear out photos of what I like.”

When retailers offer interior design services, the panelists balk. Gibbs said he is wary of the cost. Even if such services are free, he said, charges will probably be incorporated into the price of the furniture. Other panelists said they simply don't need interior design help.

“With the amount of space I have and the amount of time I use my casual furniture, it's probably not worth me using a designer,” Ryan said.

The most valuable insight may have come from something the panel couldn't discuss — flow-through cushions. When moderator Cinde W. Ingram, Casual Living editor-in-chief, asked the consumers if they value such new technologies, they were baffled — and thrilled.

“I've never heard of flow-through cushions,” Preschlack said. “In fact, I never put my cushions out this year because I kept having to put them up and take them back out again every day.”

Although aware of performance fabrics, panelists agreed there are plenty of new features and technologies in outdoor furniture they were unaware of. And that extra bit of knowledge would probably go a long way toward selling them.

“Flow-through cushions sound great,” Wells said. “I definitely want that for next year.”

Nanotechnology In Fabrics

2011-11-11T08:08:00.000-08:00

The world is changing rapidly in textiles and clothing with nanotechnology and you are likely seeing these innovations with performance fabrics for upholstery.

Nanotechnology (sometimes shortened to "nanotech") is the study of manipulating matter on an atomic and molecular scale. Generally, nanotechnology deals with developing materials, devices, or other structures possessing at least one dimension sized from 1 to 100 nanometres.

Three firms in Iran have made clothes by using nanotechnology that require less washing. Moreover, characteristics such as anti-microbe, anti-virus, anti-bacterial, and anti-fungi can be created in the clothes by using nanotechnology. The resistance against depreciation increases in such products due to nanotechnology.

Nanotechnology has also enabled scientists to make material for raincoats, for example, that will not get wet.

"Eddie Bauer... is currently using embedded nanoparticles to create stain-repellent khakis. This seemingly simple innovation will impact not only khaki-wearers, but dry cleaners, who will find their business declining; detergent makers, who will find less of their product moving off the shelf; and stain-removal makers, who will experience a sharp decrease in customers."

A new nanotechnology-enhanced fabric tag by Odegon Technologies...could help us ditch chemically iffy deodorants without leaving innocent bystanders gasping for oxygen.

In upholstery, the influx of nanotechnology ...can mean lower cleaning costs for end users and new products for upholsterers to offer their customers.