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Online furniture – it will be a big deal
The Internet is going to have a profound impact on the furniture business. How can I make such a bold prediction when there have been so many online furniture failures and so few successes? No one said this was going to be easy. It is much easier to SPEND money on a furniture website than it is to MAKE money with one!
Marketing and selling furniture online is very different than through retail stores. Success not only requires taking into account the unique aspects of our products and our distribution channel, but also an in-depth understanding of the Internet and how people use it. It requires “Thinking Outside the Retail Box.”
THE INTERNET IS A BIG DEAL!
Who uses the Internet? Almost everyone…
Accessing the Internet is a normal part of everyday life for a large and growing percentage of our population. Did you know that more Americans have an Internet computer in their home today than have cable television? Over 68% of the US adult population uses the Internet. Usage exceeds 80% if you adjust for income (households over $35k per year), education (people with more than a high school education), and age (people under 50). How does this compare with your target customer?
What do people use the Internet for? Research…
More than three quarters of all Internet users go online to conduct research, most often looking for information about products and services they intend to buy. It is predicted that the Internet will influence 34% of all US retail spending in 2007. It is important to distinguish between online research and online purchasing. The Internet will play a much larger role as a consumer product information utility than as a direct selling medium. This will especially be true for big-ticket furniture, which is more complicated to purchase and deliver than many other product categories.
Why is the Internet such a big deal? It’s faster, cheaper, better, easier and more …
If the Internet is the information superhighway, then retail furniture stores can be described as information single lane dirt roads with frequent stops and intersections. The Internet can solve information problems in ways much faster, cheaper, and better than ever before possible.
OK, so how does this affect (me) the furniture business?
Have you ever stopped to think about how much information exchange is required to sell furniture? Whether we realize it or not, most of us are in the information distribution business.
When consumers shop for furniture, when retailers sell and market furniture, these are essentially “information problems.” When manufacturers market to retailers, and when retailers buy merchandise for their showrooms, these are essentially “information problems.” We acquire and distribute tremendous amounts of information across the furniture value chain from the design and production of products through to the decorating and furnishing of each consumer’s home. We do it manually, we do it inefficiently, and we do it at great expense.
*Can we cost effectively offer customers more choice?
*Can we create online tools that help our salespeople provide and customers obtain the decorating and furnishing assistance they need?
*Can we attract customers without going broke and attracting bill collectors?
The Internet can help us solve “information problems” faster, cheaper and better. I am not predicting that the Internet will replace furniture stores, furniture salespeople or furniture advertising. I am quite certain, however, that it will help streamline inefficient processes to better distribute information.
Let’s figure this out together…
The Internet will have an impact on our business. Translating this opportunity into winning strategies won’t be easy. Our goal with this blog is to create a forum, to learn from each other, and to address this exciting, once in a lifetime opportunity. We invite you to join our dialogue, share your ideas, opinions, questions, successes and failures.
We should all be able to benefit by collaborating. It doesn’t take much to build a website. Everyone can find a kid to build one. BUT there’s a big difference between a website and a successful website.
The challenge is to create something that generates value for your business that helps make money and differentiates your company. The challenge is to build and grow it without wasting your precious financial and human resources. Success requires thinking outside the box.
We hope you will join us here in “Thinking Outside The Retail Box.” We will discuss such topics as online marketing, shopping behavior, website design, Internet customer service, digital product content, business and channel integration, email marketing, search engine optimization, and much more. If you want to recommend a topic, tell us about a great website, or share a story, please contact us or post a comment.
misspatrik commented:
yes i think the internet will impact many industries tremendously and it is undoubtedly a great way to advertise. however, it will not be as successful for the furniture industry as it might be for others. when people purchase furniture, they want to see it, feel it, try it out. they can't do that online. so i ask, are there any ideas as to help consumers overcome this problem?
An educated party commented:
I find what you say so interesting and relevant especially when I myself am an educated Interior Designer who tried retail for 7 months and saw how and why a bricks and mortar store can suceed or fail. I would think that to sell furniture over the net, which I also did, takes good product, good delivery, customer service, and all the other things that are important in retail. The problem that is prevails in retail is that you can have a knowledgable sales person, who cares and does everything she/he can to make the sale then they have to let it go to the powers above them to handle it, that is where things usually go wrong. All people want is honesty, to be informed about what they are purchasing, and to be told about quality. We all have seen inexpensive dining room sets that look great, but may not last forever. There is nothing wrong in telling your customer that. I purchase off the web and also from high end houses too and it depends on the needs of the people. If they have 4 kids under 12, their furniture should be made like Key City Upholstery, which holds up well, is 10 way hand tied. If you have a large home, and have a living room you never use, why not pick something less expensive because it won't take a beating. The problem on the web and retail is that the sales people don't care - it is old school. Sell what you have and don't depend on repeat business. That is going to mean OUT OF BUSINESS since competition is going to get really bad and if you don't show your customers that you are different than the car salesman down the street, well, you may sell one sofa, and nothing more. If you would like to e-mail me, please do at maxwellinteriors@mac.com Thanks
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