Research shows market potential of Generations X, Y
By David Perry -- Furniture Today, June 12, 2006
Henderson, Nev. — Think those famous Baby Boomers, long the darlings of home furnishings marketers, are driving most bedding sales? Think again.
While Baby Boomers continue to flex their clout in buying mattresses, they are taking a back seat to the "X" and "Y" factors — Generations X and Y. Gen X consumers were born between 1965 and 1975, and Gen Y between 1976 and 1994.
Together those potent demographic groups accounted for 52% of the dollars spent on bedding last year, according to Furniture/Today's consumer research, highlights of which were presented at the newspaper's Bedding Conference here.
The research reveals that Younger Baby Boomers (born between 1956 and 1964) accounted for 20% of the dollars spent on bedding last year, while Older Baby Boomers (born between 1946 and 1955) accounted for 17% of the dollars.
But their younger counterparts outspent them.
Generation Y generated 29% of all dollars spent on bedding last year, the Furniture/Today research revealed, and Generation X was not too far behind, at 23%.
They did that in part by purchasing bedding at a higher rate than consumers in other demographic groups.
For example, 32% of households in the Generation Y segment purchased bedding last year, the highest percentage of any demographic group. Close behind is Generation X; 30% of the households in that segment purchased bedding last year.
Also adding to the potency of those two demographic groups is the fact that they tend to spend at the high-end of the market. Twenty-five percent of Gen Y households spent $1,000 or more last year, while Gen X was close behind at 23%.
The combination of the higher purchase rates and the tendency to buy better beds gives Generation X and Y consumers a big edge in the marketplace. Households in Generation Y spent $3.1 billion on bedding last year — tops among all groups — while Generation X shelled out $2.4 billion, the Furniture/Today research indicated.
Younger Baby Boomer households spent $2.1 billion on bedding last year, with Older Baby Boomers not too far behind at $1.8 billion.
The two other major demographic groups — the Happy Days Generation (consumers born between 1936 and 1945) and Senior Seniors (born in 1935 or before) — were far behind the younger groups. The former spent $700 million on bedding last year, with Senior Seniors bringing up the rear at $500 million.
The consumer research is based on responses from 1,135 households to a survey conducted in August and September 2005. 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 less than 3%.
The research showed that Generation X and Y consumers are more prone to purchase bedding at furniture stores than are other demographic groups. The numbers were 35% of Generation Y households, 28% of Generation X households, 10% of Younger Baby Boomers and 17% of Older Baby Boomers.
Older Baby Boomers were most prone to buy at bedding specialty stores, with 26% of the households in that group purchasing at those stores last year. An equal percentage of households in Generation X and Y — 23% — bought bedding at a specialty store last year.
Overall, the research revealed that 32% of bedding purchases were made last year at furniture stores, compared with 30% at bedding specialty stores. But spending levels are much higher at the specialty stores, the research found — a median spent at bedding of $700, compared with $500 for furniture stores.
Sealy sponsored the research presentation at the Bedding Conference.
