Affluent Households Purchase High-End Product
Dana French -- Furniture Today, April 26, 2013
Affluent households comprised 21% of all households buying furniture and bedding in 2012 and 29% of the total dollars at retail, about $24.4 billion. Affluent households are defined as those having incomes of $100,000 or more. Twenty-one percent of U.S. households fall into this category. (see chart below)
This exclusive buying information hails from Furniture/Today's 2013 Consumer Buying Trends Survey. The exclusive survey of 3,000 U.S. households provides nationally- representative purchase incidence data and demographic characteristics of furniture and buying households.
High-income households purchase luxury, high-end products. Data shows the affluent spent two times more on master bedroom, a median of $999, compared with a median of $499 for lower and middle class buyers. They spent 1.6 times more on bedding; 1.7 times more on formal dining and 1.5 times more on stationary sofas last year.
Affluent buyers accounted for one-third of the total dollars spent on stationary sofas last year, spending nearly $4.2 billion. With bedding, they comprised 29% of sales, adding $3.5 billion worth of retail sales.
Census data shows that 31% of all Asian- American households have incomes of $100,000 or more; 22% of all White households are affluent; 12% of Hispanics; and 10% of African-American households are defined as affluent.
High-income households comprise nearly one out of five of those planning to buy furniture and bedding this year. By age, 33% of the potential affluent buyers are younger than 45; 26% are between ages 45 and 54; 25% between 55 and 64; and 16% are 65 and older. Nine out of 10 affluent households planning to buy in 2013 live in a house; 84% are married; 91% own or are buying their home; and 72% are formally educated, holding a four-year college degree or higher.
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