Generational buying patterns
Baby boomers still rule
By Furniture Today Staff -- Furniture Today, February 24, 2003
This huge generation, born between 1946 and 1964, likely will shell out half of all the dollars spent on furniture this year, according to Furniture/Today's latest consumer survey.
But baby boomers hardly have the field all to themselves. The much smaller Generation X will account for one-fourth of furniture spending. And the boomer's children, variously called Generation Y, the echo boomers and other names, are turning 26 this year and are in the market for furniture big-time. More than half of Gen Y will be shopping for furniture this year.
The furniture industry long has understood the importance of baby boomers in the marketplace. First, of course, there are lots of them — 78 million. They are, for the most part, at the peak of their earning power. The median household income for younger boomers, between 39 and 47, shopping for furniture this year is $55,000. The median income for older boomers, 48 to 57, looking for furniture is $60,000.
Some are getting additional windfalls as their frugal parents leave them with inheritances ranging from modest to considerable. Their spending may be moderated by the need to take care of elderly parents on one hand and care for and educate children on the other. And with retirement looming nearer, some may be shifting some funds to savings.
Gen-Xers, born between 1965 and 1975, comprise 23% of households planning to purchase furniture this year. If they spend as planned, they will account for a fourth of 2003 furniture spending. This generation largely has shaken its "slacker" image and is starting to earn good salaries — Gen X households planning to purchase furniture this year earn a median of $47,500.
Three other factors make them lucrative prospects for furniture: A much larger number have purchased houses at a younger age than the boomers did, they're marrying and they're having children, all prime triggers for furniture purchases.
The up-and-coming Gen-Yers, the children of the boomers, potentially could exceed their parents' influence on the furniture market. In 2003, they account for only 5% of households planning to buy furniture, and 5% of the potential dollars. But if the industry wants to build loyal customers, this is the group to court. By 2010, there will be 78 million Gen-Yers with the oldest at age 34, prime time for setting up housekeeping and buying furniture.
