Industry needs to understand Gens X and Y
By Gary Evans -- Furniture Today, August 29, 2005
Charleston, S.C. — Since they've been around for a while, the furniture industry has learned to sell to the baby boomers. Now it's got to get in sync with Generation X and Generation Y.
It's a big opportunity for everyone, said Charles Kennedy, speaking here to the marketing division of the American Home Furnishings Alliance.
That's because, as generations move from one lifestage to the next, "they take along a lot of baggage, but they don't take furniture to a new place. You have to look at what that furniture will be," he said.
Kennedy spent a decade studying viewer reaction to Fox-TV programs, marketing concepts and brand imagery before becoming a senior vice president of social trends for Connecticut-based DYG, which helps businesses stay on the leading edge of today's fast-changing consumer environment.
The way to do that, he said, is to study the background and lifestyle of each group to see what motivates them to buy. And the two newer generations are a little harder to decipher because, unlike the baby boomers who've been around for 20 years, Gens X and Y are relative newcomers.
What makes them what they are?
Gen Y is the 17 to 29 age group, sometimes known as "The Twisters" because they're between adolescence and adulthood. Since they grew up during the technology bubble of the '90s, they expect great wealth, and some plan to be company CEOs by 25. Thus, they're a generation that has a hard time facing reality.
Kennedy said this group has a "gold star" mentality that makes them susceptible to celebrity-endorsed products. Part of that lies in their assumption that they could be celebrities themselves by starring on "The Apprentice" or other so-called reality TV shows, or even become famous by winning the lottery. They're drawn to any product or experience that can put them in the spotlight, so it's up to furniture makers and retailers to figure out how to do that.
Brand appeal is important, since Gen Yers have lived with brands from birth, from Beanie Babies to cell phones. Yers are almost single-handedly responsible for the multi-million-dollar "phone ring" industry, Kennedy said.
Retailers who want to reach this group have to make it a fun experience "from the time they walk into the store," he said. In short, they have to be fun facilitators. After all, this is the group that gets its news from "The Daily Show," which Kennedy described as "the one 'news organization' with no credibility to lose."
Gen Yers also want relevant choices that allow them to "see themselves in this piece of furniture" — a prop, so to speak, for their evolving identity.
On the other hand, Gen X, the 30- to 40-something age group, could be subtitled the "anxious" crowd. They've been through economic expansions and contractions, have the highest divorce rate ever, and are the first wave born after the women's liberation movement. "Latchkey children" is a term linked to this group.
Because of their roller-coaster ride, they wait longer to marry, and some never do — about 30% of Gen Xers are single. Kennedy said businesses need to recognize and serve the growing singles market. In all, 43% of U.S. adults are single, he said. Once married, however, Gen Xers expect to stay married, with experts predicting the divorce rate will be much lower than for boomers.
As parents, Xers go from protecting to pampering to preparing. School and tutoring, not counting SAT preparation, is a $3 billion business, according to Kennedy. Gen X parents believe someone in China or India is ready to take their child's job, so they go out of their way to get them educated, he said. That gives furniture manufacturers and retailers an opportunity to create and market a home office for kids, he noted.
Kennedy said the furniture industry can get in sync with Gen X by creating products and services that reduce (or at least not contribute to) the stress, tension and time crunch Xers feel daily.
The industry also can play to the "friendship deficit" so many Xers feel by helping them connect with friends through products such as game tables and wine racks, he suggested.
Also, this generation likes products with a story, such as the National Geographic Home collection.
Kennedy headlined a three-day AHFA marketing division session here that also covered topics ranging from media relations to features of award-winning homes.
