This month, we are highlighting the furniture and home furnishing industry in a series of upcoming blogs posts, reports and case studies. In this installment of our furniture sequence, become familiar with one of the most impactful industries in the United States’ economy.
According to CIT, the furniture industry in the United States is continuing to outpace the U.S. economy, attributing superior sales performance in the bedroom and dining room furnishing departments. The furniture vertical is performing twice as well as the overall economy, growing at a rate of 6 to 7 percent YoY.
The US furniture sector has been steadily growing since 2009, indexing 146.9 in August 2016. Supported by a macroeconomic environment, furniture sales are projected to rise as home sales and home furnishing expenditures increase.
As disposable income has increased, the furniture and home furnishings industry has enjoyed considerable growth. Furniture Today, a leading online furniture news source, reported that US furniture sales will reach $122 billion by 2020 over the next five years, a 3% compound annual growth rate.
Though US consumers value going online as a way to search and find information on products, furniture eCommerce is still in a nascent stage.
Furniture eCommerce is growing fast in the US. However, there is still a gap between online product research and online furniture purchase. Many consumers prefer to research online but purchase in-store.
The Consumer Buying Trends Survey conducted by Furniture Today shows that millennials have become the largest consumer group in the US furniture and bedding market.
- In 2014, they represented 37% of the market, a significant increase compared to the 14% they represented in 2012.
- In fact, from 2012 to 2014, millennials’ share of spending on furniture and bedding more than doubled, from $11.1 billion to $27.0 billion—catapulting the group to the core of many retailers’ growth strategies.
- Millennials are very active social media users, highly adept at using technology, and naturally more trusting of online sources and more comfortable making purchases on their digital devices than older generations are.
Interested in the full report on the state of the furniture industry? Continue reading in the deck below.
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