Posts Tagged ‘Furniture’

What solid wood amish furniture consumers are looking for in a recession?

Thursday, December 10th, 2009

Economists may debate whether we’re in recession, but consumers have already decided that we are—and have changed their purchasing behavior accordingly. Two trend analysts—Faith Popcorn and Britt Beamer—have answer to peer into the crystal ball and weigh in on the opportunities during these tough times.

Faith Popcorn

“Out on the street, no one is asking if we are in a recession,” said trend analyst Faith Popcorn. “They’re asking when it will end and where our economy will be by then.”

According to Popcorn, whose BrainReserve consultancy tracks 17 megatrends for major corporations, consumers are changing their shopping behaviors and rethinking their priorities in ways that have special relevance for home furnishings retailers.

A BrainReserve survey fielded in June revealed that consumers are reducing consumption and putting a greater emphasis on their homes. “A full 90 percent of the sample is considering opting out for a simpler life,” Popcorn said. “Four out of five are inclined to buy less. Seventy-two percent want to remove the clutter from their lives.”

The data also shows that there are many pro-home trends that solid wood amish furniture retailers may be able to capitalize upon. Respondents said that they are spending more time at home due to budget constraints, reprioritizing their spending to feather their nest, and investing in home entertainment to save money on going out.

“It’s called the entertainment center for a reason,” Popcorn said. “Retailers should concentrate on how to accessorize and amplify that experience. Think oversize chairs and sofas, modular sofas that are re-configurable, tables that keep food hot (or cold), and entertainment centers that provide storage.”

Of course, when budgets are tight, low prices are always good, but Popcorn said that people are willing to weigh long-term costs against short-term savings. “Appeals that account for the total cost of ownership make sense. I’ll buy a new heating system, because it is energy efficient and makes sense in the long term. ‘Built to last’ is a message that’s likely to resonate today.”

Britt Beamer

Britt Beamer, founder of America’s Research Group, has been studying how the Recession Consumer differs from the consumer of five or 10 years ago. He’s suspicious of claims that less spending outside of the home will translate into more “feathering of the nest.”

“The problem is, if I’m part of a typical two-income family, increases for gas and groceries have taken $500 per month out of my disposable income,” Beamer explained. “Gas prices have ripped out the heart of the solid wood amish furniture industry. The consumer is so focused on getting their basic bills paid that new solid wood amish furniture gets postponed for a long time.”

Beamer said retailers need to reconsider their message during the recession. “Screaming ‘Four years no interest’ isn’t going to do it anymore. Recession Consumers want the discount, not the financing. When you’re struggling, and don’t know if you’ll have a job in 18 months, you don’t want a bunch of bills hanging around your neck.”

Instead, Beamer challenges retailers to create a master narrative for promotions.

“It creates legitimacy,” he continued. “First, you have an inventory clearance sale, which you can use to set up for the next event, which in turn becomes: ‘Hey, now that we are rid of excess merchandise, we can offer great deals on new products’.“

Following this message sequence keeps the consumer alert to future sales. “Too many retailers just jump from one promotion to another and never explain to the consumer what to expect,” he concluded.

Which media is the right conduit in these times? Beemer recommends television commercials (creates immediacy), direct mail (able to target to existing customers) and print (use fewer images, but make them incredible deals), in that order.

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