Share this on

Occasional, entertainment buying trends

By Dana French -- Furniture Today, November 27, 2005

According to Furniture/Today's exclusive Consumer Buying Trends survey, about 13 million households plan to buy either an occasional table or an entertainment center this year. If all buyers follow through with their plans and spend the maximum amount they've budgeted, spending for both categories will reach nearly $9 billion.

In terms of the number of households buying and share of total dollars spent, midpriced occasional pieces appear to be winners this year, with the high end holding its own and promotional pieces losing ground.

Households buying a midpriced occasional table, spending between $200 and $399, accounted for 22% of all buyers in 2004 and comprise 38% of all potential buyers this year. Households buying at the high-end accounted for 28% of buyers in 2004 and represent 26% of potential buyers this year.

Households buying a midpriced entertainment center/armoire, priced between $500 and $999, accounted for 14% of all buyers last year and comprise 24% of all potential buyers this year. With high-end centers and armoires, households spending $1,000 or more accounted for 14% of buyers last year and 18% in 2005.

Occasional table target consumers by price point:

High — Households with annual incomes of $100,000 or more account for one-third of those planning to spend $400 or more on occasional tables in 2005. Add households earning between $75,000 and $99,999 and you've accounted for 56% of households planning to spend $400 or more. Other likely buyers include Baby Boomers, married households and those that own or are buying their homes.

Middle — High-income households also reach down the price point scale. Households with incomes of $75,000 or more make up almost half of those planning to buy midpriced occasional tables. Middle-income households, those earning between $40,000 and $74,999, account for another one-third of those planning to buy at middle price points. Other likely demographic groups buying a midpriced table include families with children and households living in a house.

Low — Households making less than $40,000 account for 54% of those planning to buy a promotional table this year. Other potential buyers planning to spend less than $200 include Generation Y, households living in an apartment and renters.

Entertainment center/armoire target consumers by price point:

High — Households making $75,000 or more represent 60% of potential entertainment center buyers at the high-end. Generation X, currently between ages 30 and 40, comprise 39% of households planning to buy. Other potential high-end buyers include families with children, those who own or are buying their home and African-Americans.

Middle — More than half of households planning to buy a midpriced entertainment center/armoire this year have incomes of $75,000 or more. Other likely demographic groups planning to spend between $500 and $999 include Baby Boomers, households living in the Northeast and those who are married.

Low — Households earning less than $40,000 a year account for 49% of those planning to buy a promotional recliner in 2005, and households earning between $40,000 and $74,999 comprise another 33%. Other potential buyers planning to spend under $500 on an entertainment center include households living in the South, Hispanic households and renters.

	Occasional tables	Entertainment centers/armoires
Percent of U.S. households planning to buy in 2005	5.2%	6.1%
2005 sales potential*	$4.0 billion	$4.9 billion

% of households buying	% of total plan-to-spend $'s	*Sales potential $ in millions**	% of households buying	% of total plan-to-spend $'s	*Sales potential $ in millions**
*The 2005 sales potential assumes all households planning to buy actually make a purchase and spend the maximum amount planned. Actual sales figures in 2005 may be higher or lower.
High 26%	High 57%	$2,280	High 18%	High 55%	$2,695
Middle 38%	Middle 31%	$1,240	Middle 24%	Middle 25%	$1,225
Low 36%	Low 12	$480	Low 58%	Low 20%	$980

Who's buying by price point?
% of households planning to buy in 2005:
	Occasional tables			Entertainment centers/armoires
	Low	Middle	High	Low	Middle	High
	$199 & below	$200 to $399	$400 & above	$499 & below	$500 to $999	$1,000 & above
Source: Furniture/Today Consumer Buying Trends Survey, 2005
By household income
Under $30,000	37%	10%	9%	34%	8%	4%
$30,000 – $49,999	23%	22%	12%	26%	19%	14%
$50,000 – $74,999	24%	20%	23%	22%	20%	22%
$75,000 – $99,999	4%	30%	24%	12%	23%	32%
$100,000 or more	12%	18%	32%	6%	30%	28%
By generation
Generation Y Born 1976 to 1987	13%	10%	12%	12%	11%	&1%
Generation X Born 1965 to 1975	28%	28%	20%	32%	31%	39%
Younger Baby Boomer Born 1956 to 1964	13%	20%	29%	19%	17%	18%
Older Baby Boomer Born 1946 to 1955	19%	14%	18%	19%	22%	18%
Happy Days Generation Born 1936 to 1945	19%	28%	15%	15%	19%	21%
Senior Senior Born 1935 or before	8%	&1%	6%	3%	&1%	4%

Budgets
Occasional tables
Median $200
	% of the 5.2% of households that plan to buy in 2005 an occasional table
Under 100	15%
$100 – $199	21%
$200 – $249	26%
$250 – $399	12%
$400 – $599	19%
$600 or more	7%

Entertainment centers/armoires
	% of the 6.1% of households that plan to buy in 2005 an entertainment center/armoire
Under $125	16%
$125 – $224	22%
$225 – $499	20%
$500 – $699	12%
$700 – $999	11%
$1,000 – $1,999	12%
$2,000 or more	7%

By region
Percentage of households in each region that plan to buy in 2005
	Occasional tables		Entertainment centers/armoires
		$ median plan to pay		$ median plan to pay
Source: Furniture/Today Consumer Buying Trends Survey, 2005
Northeast	4.9%	$200	6.6%	$500
Midwest	4.3%	$200	5.0%	$300
South	5.8%	$200	6.2%	$300
West	5.6%	$200	6.8%	$300

About the survey

This exclusive consumer data originates from the responses of 2,500 households to a survey conducted in January 2005. Furniture/Today had National Family Opinion poll 7,500 U.S. households via an online survey to examine home furnishings shopping and purchasing patterns in 2004 and buying plans for 2005, as well as how much they spent and plan to spend for each product category.

Because of the sample size and a respondent profile closely matching the demographics of all U.S. households, survey data can be projected nationally with a margin of error of plus or minus less than 2%.

The research was analyzed by Furniture/Today's research department, led by Senior Research Specialist Dana French and Director of Market Research Kay Anderson.

The sponsor of the published report, Bush Furniture, had no involvement in collecting, analyzing or reporting the data.

Terms

Households: All those living together in one housing unit, including family members or unrelated individuals.

Household income: Combined income of all household members.

Median: Divides the responses into two equal portions, half above and half below the median amount.

Sales potential: The 2005 sales potential assumes all households planning to buy actually make a purchase and spend the maximum amount planned. Actual sales figures in 2005 may be higher or lower.

Generation Y: Born between 1976 and 1994. Survey data is for adult members only, those 18 to 29, born between 1976 and 1987.

Share this on

Consumers budgeting less for purchases in '05

Oct 16, 2005

Also by this author

Also by Dana French

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

Related Resources

Atlanta International Gift & Home Furnishings Market

Here is a selection of products shown at this month's International Gift & Home Furnishings Market here.

Networking at the 13th annual F/T Leadership Conference

NAPLES, Fla. — Industry executives and guests took the opportunity to network and play golf during down time at Furniture/Today's 13th annual Leadership Conference here this month.