After the outbreak of the pandemic, all manufacturers and buyers witnessed a period from worried about factories were not able to open its door under government regulations and therefore generate the result of the delay in supply and shipping, to hold on to all orders until the pandemic in buyer’s cities become better. It is a once of the whole life, none of us can anticipate what will be the next. But what was then after the pandemic outbreak, we all saw an incredible increase in consumer spending on household products. We are all aware that consumer demand for our products is the key for our business, but what are those, and how to understand deeply.
A. What are those factors that influence customer demand for furniture?
B. Key factor affecting the furniture business – Housing Market Forecast
Factors that influence customer spending and demand.
- general economic conditions
- consumer disposable income
- fuel prices
- recession and fears of recession
- war and fears of war
- outbreaks of disease (such as the COVID-19 pandemic)
- adverse weather
- availability of consumer credit
- consumer debt levels
- conditions in the housing market
- interest rates
- sales tax rates and rate increases
- consumer confidence in future economic and political conditions
- consumer perceptions of personal well-being and security.
We are unable to control many of the factors affecting consumer spending, but we need to identify and analyze factors affecting our business, to anticipate consumer preferences and buying trends, expectations for getting more from business, therefore to adjust our designs to keep up with trends or following the footsteps to improve the service as from the leading furniture players.
For example, current shoppers would like to expect their purchases arrived within 3 days on a free of delivery deal, businesses should accommodate the shipping policies accordingly.
If offering free delivery is not an option, offset the bad results of giving discounts or free items could also be preferred.
E-commerce furniture retailers like Wayfair and Allmodern are already leading the way on this trend, offering fast, free shipping that’s now become the norm.
Key factor affecting the furniture business – Housing Market Forecast
We see from below chart housing inventory is finally starting to tick up!
- Mortgage rates are low. Due to the pandemic, authorities need to help to relieve the pressure of the civilians and stimulate consumption. Shortly after taking office, the Biden-Harris Administration extended the foreclosure moratorium and mortgage forbearance enrollment period for homeowners with government-backed mortgages to provide relief to struggling homeowners.
2. Working from home is also a stimulus of the housing market booming. We don’t know when we will be able to get back out in the world again under the current circumstances of no idea when the pandemic could end, thus pursuing a more spacious indoor and outdoor room can be looked at. Neither a playroom with entertainment equipment or a working room with delightful decorations.
So dedicated rooms for working, schooling, and entertainment are required, thus caused the increase of big housing sales.
- Largest tranche of millennials is another reason boasting the housing market sales. Our target group for selling furniture to as well, featured with the wiliness of purchasing stylish, innovative, and functional products. They were born between 1989 and 1993, are hitting their thirties — the age when first-time homebuying really kicks into gear. We are now right in the middle of this five-year period, which means that millennials make up a huge percentage of consumers and have immense buying power.
The below chart shows that Millennials (those 25-35 rather than the more widely accepted grouping of 23-39) spend a lot on home improvements.
Furniture selling is closely related to the housing market, and furniture trends is interconnected with the major buying group.
In conclusion, the housing market will be strong in a way to boast the furniture and household products businesses, manufacturers and sellers need to identify and analyze the market trends and to anticipate and respond in a timely manner to drive the growth and gain the market share.