Table of Contents
- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Executive Summary
- The furniture market is inherently strong, but not this year...and
probably not 2009
- Competitive context--deflationary imports
- Segments are large and mostly trend together, but lots of movement within
- Retail channels dominated by furniture stores, but others gain ground
- Major drivers are new home sales and discretionary income
- The biggest companies have also been the growth leaders
- Brand qualities
- Innovation and innovators
- Advertising and promotion needs updating
- Consumers don' t seem very engaged for such large purchases
- Market Size and Forecast
- Key points
- Low consumer confidence dampens disposable income expectations
- Not much light in the tunnel yet
- Figure 1: Total U.S. sales of home furniture, at current prices, 2002-12
- Figure 2: Total U.S. sales of home furniture, at inflation-adjusted
prices, 2002-12
- Competitive Context
- Key points
- Rising foreign imports drive down average prices, thus dampening overall
furniture sales
- Segment Performance
- Key points
- Figure 3: Furniture and bedding sales, by segment, 2007
- Figure 4: U.S. sales and forecast of home furniture at current prices,
by segment, 2006 and 2007
- Segment Performance--Dining Room, Living Room and Bedroom Furniture
(excluding bedding and upholstered furniture)
- Key points
- Dining: Weak market in 2007-08 drives casual furniture and accessories
- Youth/infant: Less affected by economic slump
- Figure 5: U.S. sales and forecast of dining room, living room and
bedroom furniture (excluding bedding and upholstered furniture), at current
prices, 2002-12
- Segment Performance--All Other Furniture (Outdoor, Office, Computer,
Kitchen)
- Key points
- Entertainment: Flat-panel TVs leading the charge
- Occasional: "Functional" and "green" vs. "lean"
- Figure 6: U.S. sales and forecast of all other furniture (outdoor,
office, computer, kitchen), at current prices, 2002-12
- Segment Performance--Upholstery
- Key points
- Upholstery: Home theatre popularity driving sales
- Figure 7: U.S. sales and forecast of upholstery, at current prices,
2002-12
- Segment Performance--Bedding and Bedding Furniture
- Key points
- Bedroom/bedding: Stagnant overall, but growth at high end
- Figure 8: U.S. sales and forecast of bedding and bedding furniture, at
current prices, 2002-12
- Retail Channels
- Key points
- Figure 9: Graph: U.S. sales of home furniture, by retail channel,
1997-2007
- Figure 10: U.S. sales of home furniture, by retail channel, 1997-2007
- Retail Channels--Furniture Stores
- Key points
- Conventional furniture stores
- Home furnishing/specialty furniture stores
- Bedding specialty stores
- Figure 11: U.S. sales of home furniture at furniture stores, 2002-07
- Retail Channels--All Other Channels
- Key points
- Other retail sales channels
- Figure 12: U.S. sales of home furniture in all other channels, 2002-07
- Retail Channels--Mass Merchandisers
- Key points
- Mass merchandisers
- Figure 13: U.S. sales of home furniture at mass merchandisers, 2002-07
- Retail Channels--Department Stores
- Key points
- Department stores
- Figure 14: U.S. sales of home furniture at department stores, 2002-07
- Market Drivers
- Key points
- Slow housing sales hurt furniture sales
- Figure 15: New houses sold in the U.S., by region, 2004-07
- Discretionary income drives furniture purchases
- Figure 16: Households with discretionary income, by age of head of
household, 2000
- Figure 17: Households with discretionary income (2000) compared to
incidence of furniture purchase, 2007
- Consumer sentiment colors notions of discretionary income
- Figure 18: Historic consumer sentiment index, 2001-07
- Leading Companies
- Key points
- IKEA
- Wal-Mart
- Select Comfort
- Tempur-Pedic
- Leading companies in various aspects of the furniture industry
- Figure 19: Sales of leading home furniture stores, 2005 and 2006
- Figure 20: Sales of leading home furniture retailers, 2005 and 2006
- Figure 21: Sales of leading furniture sources, 2005 and 2006
- Figure 22: Sales of leading bedding retailers, 2005 and 2006
- Figure 23: Sales of leading bedding producers, 2005 and 2006
- Brand Qualities
- Value
- New age/high-tech
- Quality and high end
- Innovation and Innovators
- GMROI
- Vertical/single branded stores
- Showrooms offering inspiration, convenience, and novelty
- Green buildings
- Specialty bedding
- Advertising and Promotion
- Key points
- Figure 24: Ashley Furniture HomeStore television ad, 2007
- Figure 25: IKEA television ad, 2007
- Figure 26: Levitz Furniture ad, 2007
- Figure 27: Premier Bathrooms television ad, 2007
- Consumer--Lifestage Story
- Key points
- Different lifestages, different furniture price ranges
- Lifestage drives needs for different furniture types
- Figure 28: Furniture purchase, by lifestage, May 2006-June 2007
- Figure 29: Amount spent on furniture, by age, May 2006-June 2007
- Figure 30: Types of furniture purchased in past 12 months, by lifestage,
May 2006-June 2007
- Consumers--Importance of Necessity and Style
- Key points
- Style shouldn' t be ignored
- Sources for style choices
- Figure 31: Reasons for buying furniture, February 2008
- Figure 32: Sources for style choices when buying furniture, February
2008
- Consumers--Home Ownership
- Key points
- Homeowners make good furniture marketing targets
- Figure 33: Types of furniture purchased in past 12 months, by Home
Ownership, May 2006-June 2007
- Figure 34: Types of furniture purchased in past 12 months, by home
ownership, May 2006-June 2007
- Consumers--Retail Channel Choices
- Key points
- No shortage of places to buy furniture
- Age and income level: Main indicators for customer retail channel
preferences
- Figure 35: Retail channels where furniture is purchased, February 2008
- Figure 36: Retail channels where furniture is purchased, by age,
February 2008
- Figure 37: Retail channels where furniture is purchased, by income,
February 2008
- Consumers--The RTA Niche
- Key points
- RTA furniture: Bridging the income gap
- It' s a generation thing
- Hispanics really like RTA furniture
- Figure 38: Purchase of ready-to-assemble furniture in the past 24
months, by age, February 2008
- Figure 39: Purchase of ready-to-assemble furniture in the past 24
months, by income, February 2008
- Figure 40: Purchase of ready-to-assemble furniture in the past 24
months, by race/ethnicity, February 2008
- Consumers--Time Spent Deciding what to Buy
- Key points
- Value furniture stores can expect shorter sales cycles
- Figure 41: Time spent researching furniture purchased, February 2008
- Figure 42: Time spent researching furniture purchased, by age, February
2008
- Figure 43: Time spent researching furniture purchased, by gender,
February 2008
- Figure 44: Time spent researching furniture purchased, by income,
February 2008
- Appendix: Trade Associations
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