Is cheap chic?
Has the furniture industry lost its chance to get consumers off their low-price fixation and into thinking about the joys of a beautifully furnished home?A Reuters report this month suggests that the recession has led more people to list price as a top priority over location, quality and service.
“What’s so intriguing these days, whether you work on Wall Street or in Wal-Mart, is that it has absolutely become chic to be cheap,” National Retail Federation President and CEO Tracy Mullin told an audience at the group’s annual trade show in New York.
I don’t know about you, but I’m thinking home furnishings might be a different story. Consumers may be in less of a rush to part with their hard-earned disposable income these days, but when they are ready to buy, I don’t think the discount on quality and customer service will be as drastic or that the pressure for a low price will be much greater than it has been for years.
But what if it is? Is there opportunity here for everyone? For high-end stores to promote the incredible values at the middle and bottom of their price spectrums, and for midpriced and lower-end stores to gain customers who are stepping down?
Sandra commented:
Cheap is not the same as spending responsibly. The majority of Americans cannot afford to spend $3,000 or more for a sofa and wouldn't even think about it when there are good quality options that they can afford. You cannot presume that everything that is cost effective is poor quality and cheap. Many of my clients, and I work with a wide range of incomes, would spend more for something made in the USA, but so much of our product is made in other countries it has become common to find the same pieces in a high end store with a brand name and a much higher price tag that you see in lower to mid range stores with a different brand and a more affordable price tag. I carry a wide range of options in my shop for all price ranges. It is really kind of crazy selling a sofa for $4,000 thinking that people will hand it down or it will become an heirloom piece, we live in a disposable society and thanks to ever changing trends and styles people know that they probably won't be hanging onto anything for very long so why waste the money.
