Bedding tops list of planned buys
By Kay Anderson and Dana French -- Furniture Today, January 30, 2005
High Point — More than 50 million households plan to purchase furniture this year, and nearly half — about 26 million households — plan to purchase more than one product.
If all households purchase what they say they will and spend the maximum amount they've budgeted for each product, the 15 product categories included in Furniture/Today's exclusive Consumer Buying Trends survey will garner more than $72 billion in sales.
The survey covers 2,500 consumer households whose demographic characteristics closely match those of the nation as a whole, and was conducted for Furniture/Today by Chicago-based NFO.
Bedding on the move
Bedding once again tops the list of planned buys. In 2004, 12.8% of U.S. households purchased bedding; in 2005, 14.1% say they plan to buy a mattress/box spring. If the nearly 16 million households actually spend the amount they've budgeted, the category will top $10.3 billion in sales.
More than 7.5 million households plan to buy master bedroom this year, giving the category a potential of $10.6 billion in sales. Wooing members of Generation X and Generation Y will be the key to reaching that potential. Together, the two groups account for 49% of households planning to buy master bedroom. The older of the two groups, Gen X, plans to spend a median of $1,000; Gen Y, now in their 20s, has budgeted a median of $500 for master bedroom.
The stationary sofa category could reach $10.1 billion in sales this year if the 9.8 million households planning to buy one follow through. Demographic groups planning to buy a stationary sofa at rates higher than their presence in the population include Generation Y, African-Americans and families with children.
In general, appealing to Generations X and Y and turning them into customers will be critical this year. Both groups plan to buy furniture at rates exceeding their presence in the population. Both are getting married, settling into first homes and having children — all reasons why more than half of the households in each group are looking to buy furniture.
Generation X currently is between ages 30 and 39, and Generation Y is between 20 and 29. Top potential buys for Gen Y include master bedroom, kitchen/dinette table and chairs, and occasional tables. Top buys for Gen X include youth/other adult bedroom, master bedroom and entertainment centers.
Additionally, Gen X plans to spend top dollar on their purchases. While Gen X accounts for 23% of households planning to purchase furniture this year, the group accounts for 28% of the dollars they plan to spend. The 76-million-strong Gen Y, while planning to spend less than the more established Gen X, have the potential to be as potent a force in the marketplace as their parents, the baby boomers.
Baby boomers remain a major force. The 78 million boomers account for 41% of all households planning to buy furniture this year. Younger boomers, born from 1956 to 1964, plan to buy stationary chairs, motion sofas and kitchen/dinette table and chairs at high rates. Older boomers, born from 1946 to 1955, plan to buy futons/sofa-sleepers, reclining chairs and stationary sofas at high rates.
Hispanic power
The nation's 41.3 million Hispanics are now the largest ethnic group. Nearly three-fifths of all Hispanic households plan to buy furniture this year. Topping their shopping lists are youth/other adult bedroom, which they plan to buy at a rate 2.3 times higher than their presence in the population, and futons/sofa-sleepers and master bedroom.
Hispanics have budgeted a median of $800 for youth/other adult bedroom, a median of $200 for futons/sofa-sleepers and a median of $775 for master bedroom.
African-Americans, a group only slightly smaller than Hispanics, also plan to buy furniture at rates exceeding their presence in the population. Top buys for African-Americans include master bedroom, futons/sofa-sleepers, youth/other adult bedroom and desks/other home office.
Affluent households, those with incomes of $75,000 or more, comprise 30% of households planning to buy furniture. This group accounts for 46% of the plan-to-spend dollars this year. Top buys for the well-heeled include dining room, stationary chairs, youth/other adult bedroom and occasional tables.
| Consumer buying plans in 2005, by product category | ||
|---|---|---|
| Percentage of households planning to buy in 2005 | Sales potential* in $ billions | |
| *The 2005 sales potential calculated for each product category assumes all households planning to buy actually make a purchase and spend the maximum amount planned. Actual sales figures for each product category in 2005 may be higher or lower. Source: Furniture/Today market research |
||
| Mattress/boxspring | 14.1% | $10.3 |
| Stationary sofas | 8.8% | $10.1 |
| Desks/other home office | 7.6% | $3.5 |
| Reclining chairs | 7.5% | $4.4 |
| Master bedroom | 6.8% | $10.6 |
| Entertainment centers/armoires | 6.1% | $4.9 |
| Kitchen/dinette table, chairs | 5.5% | $3.6 |
| Occasional tables | 5.2% | $2.0 |
| Motion sofas | 5.0% | $6.8 |
| Curios | 4.7% | $2.1 |
| Youth/other adult bedroom | 3.9% | $3.4 |
| Dining room | 3.8% | $6.6 |
| Glider rockers | 3.0% | $1.4 |
| Stationary chairs | 2.4% | $1.2 |
| Futons/sofa-sleepers | 21% | $1.1 |
-
Bedding tops list of planned buys
Jan 28, 2005
Featured Company
-
Brandwise Inc.
Brandwise serves a model - not just an industry - by integrating, automating, and optimizing the entire sales channel, from wholesale Suppliers to their Reps and the Retailers they service. In short, our software helps Reps and Suppliers sell more and create... more
VIEW ALL GALLERIES
