Futurist outlines where society is headed at WithIt Conference

Aging populations, migration and urbanization will impact furniture marketing

Joan Gunin -- Furniture Today, August 22, 2008

CHARLOTTE, N.C. - Global social trends, including aging populations, new migration and growing urbanization, as well as the decline of the traditional family, will have a major impact on how products such as furniture are marketed in the future, a leading futurist told attendees at this month's WithIt Education Conference.

Andy Hines, director of custom projects for the Houston-based consultancy Social Technologies, gave WithIt members a glimpse of where society is heading in his presentation, "Top 20 Global Trends." After his talk, he moderated a panel of three industry leaders, who discussed how to turn these societal trends into business opportunities.

Discussing global trends in a panel discussion at the WithIt Education Conference were Jena Hall, left, Aspenhome; Andy Hines, futurist; Jim Gabbert, Gabberts, Edina, Minn.; and Cary Benson, Natuzzi Americas.

Panel members included Cary Benson, president of Natuzzi Americas; Jim Gabbert, chairman and CEO of Minneapolis-based Gabberts; and Jena Hall, vice president of merchandising and design for Aspenhome.

Speaking from a retailer's standpoint, Gabbert said, "a lot more needs to be done" to develop closer relationships with tomorrow's emerging customers. "This is an opportunity to innovate and to give people reasons to buy new furniture. We must stimulate them to buy."

All of the panelists, including Benson, who is well over 6 feet tall, spoke of the importance of providing creature comforts and ergonomic fit. Benson discussed hunting for a recliner that offered sufficient room for his lanky frame, while Hall talked about the increasing popularity of gathering tables.

While not all of today's families dine together, rising wealth within immigrant and ethnic communities is creating a new opportunity for larger casual dining tables that accommodate shared meals, Hall said.

There is also a need to embrace new technology by offering more functional furnishings outfitted for electronic devices, she said.

The panel keyed in on marketing and merchandising opportunities tied to the master bedroom. Many of today's consumers have a second master bedroom that is being used for a guest room or for children returning home from college. Second bedrooms also are popping up more in vacation homes.

"Dual master bedrooms, statistically, is a new trend," Hines agreed.

The luxury segment is experiencing inflation, not deflation, Benson said, asking why people don't invest in high-quality furnishings the way they do in fine jewelry.

"A few years ago, it was said that a diamond (engagement) ring was supposed to represent three months salary. Why is there not a similar percentage-to-furniture ratio?"

The "rising wealth" segment identified by Hines in global markets also provides a new opportunity for luxury products as consumers worldwide become more conscious of brands and status. But these consumers are demanding, Hall said. "They are more selective about spending their money on disposable goods."

Gabbert said the industry "has done a terrible job of branding," and Hall added that consumers can identify "channels of distribution (such as Ikea and Pottery Barn) but not specific manufacturers."

Building brand success is a complicated business, Gabbert said. He questioned whether the popularity of Toyota's Prius model is due to a subculture interested in environmental friendly features or merely in its role as a status symbol.

After Hines pointed out that the Prius had been in development since 1996, Gabbert said that such a "breakthrough in innovation takes a lot of time and money. This industry is not willing to take time to develop something new. Instead, they are rolling out something (for market) every six months.

"They don't have the courage to step back and take the time to develop something really worthwhile."

Kelly Peterson, left, The Hearst Group; Chris Bryant, Mollie Allen, WOW Legacy Award nominee Emily Kiker Morrow, and David Sigmon, all of Shaw Inds.; and Jerry Cohen, Cohen Tauber.	Sarah Cooney, left, Circle Furniture, Acton, Mass.; Rico Berrios, American Leather; Roz Murray, The Parson’s Table; Cary Benson, Natuzzi Americas; WOW Legacy Award nominee Peggy Burns, Circle Furniture; and Bob Duncan, American Leather.
Jennifer Rumple, left, Shannon Baugh, Jennifer Ledford, Francine Parsons and Chris Little, all of Lexington Home Brands.	Anne Wear, left, Lauren Estep and Kate Payne, all of McNeill Communications Group, with Kristin Hawkins, Broyhill.