Docstoc

Furniture Trends 2008

Document Sample
Furniture Trends 2008 Powered By Docstoc
					Consumer Behavior Report                                                                                 v6. 4/29



April 2008: Home Furniture & Appliance Trends

Overview

    Report Highlights
        The majority of consumers, 53 percent, identify Web sites as the primary source they use to
        help decide what and where they will make their next big-ticket furniture or major appliance
        purchase.
        PriceGrabber.com’s Indoor Living Channel shows a 121 percent increase in online traffic
        since its launch in August 2007. Similarly, the Outdoor Living Channel shows strong month-
        over-month growth in traffic (82 percent) and referrals to merchants (65 percent) in February
        and March 2008.
        Of the 81 percent of survey respondents overall who say they research online prior to
        purchasing furniture or appliances, 31 percent indicate that they purchase online.
        Overall, 72 percent of survey respondents indicate “free home delivery” increases the
        probability that they’d make a purchase online, while 28 percent indicate “free home
        installation” as a reason to purchase online.
        Forty-three percent of survey respondents indicate the ability to find better prices online as
        the number one reason to purchase furniture or appliances online, while 54 percent of survey
        respondents indicate the need to see the actual product as the main reason they would not
        make their next home furniture or major appliance purchase online.
        Overall, 39 percent of those surveyed stated they expect to buy more home and personal
        products online in the next 12 months compared to 23 percent of those who were asked the
        same question in August 2006.
        Notes from the Green: EnviroWood is the latest in eco-chic patio furniture. A synthetic
        material made from 100 percent recycled plastic, most often plastic milk jugs, EnviroWood is
        built to last a lifetime, tougher and more resilient than treated wood.


    What is the Consumer Behavior Report?
    The Consumer Behavior Report is designed to give merchants, media and industry analysts’
    insight into shopping trends, pricing and market share. Each month, a different topic will be the
    focus of the report.


    What is the Home Furniture & Appliance Trends Report?
    Home furniture and appliances are the topics of PriceGrabber.com’s April 2008 Consumer
    Behavior Report. Home furniture and appliance trends and data were collected from the Home
    Furniture and Appliance Survey conducted in August 2006, with 1,417 online consumers, and
    again in late March 2008, with 1,945 online consumers. Additional data is sourced from Market
    Reporter, a statistical database that tracks consumer shopping behavior on PriceGrabber.com.
    The Notes from the Green section is compiled by Olivia Zaleski, an ecofriendly blogger for
    PriceGrabber.com’s ShopGreen section. The focus of the ShopGreen section is to provide more
    than 20,000 products to help consumers live a greener lifestyle. PriceGrabber.com is a major
    shopping comparison engine, with more than 26 million unique users per month and up-to-date
    daily pricing of products supplied by more than 12,500 sellers.
                                                                               CONSUMER BEHAVIOR REPORT
                                                                                              April 2008




Home Furniture & Appliance Trends
Online Consumer Trends
        The majority of consumers, 53 percent, identify Web sites as the source they use to help
        decide what and where to make their next big-ticket furniture or major appliance purchases.



              Sources to be used when deciding what to buy and where
                to make next furniture or major appliance purchases


                Friends/family

                   Magazines

                     Catalogs

             General retailers

     Specialty furniture stores

                    Web sites

                                  0%    10%       20%       30%       40%       50%       60%

                    Source: PriceGrabber.com Home Furniture and Appliance Survey March 2008



        Shopping behavior on PriceGrabber.com shows a significant increase in online traffic for the
        Indoor Living Channel (121 percent) since its launch in August 2007 through March 2008.
        Within this period, the categories driving the increased traffic in the Indoor Living Channel
        include: Home Improvement (98 percent), Bath Remodeling (96 percent), Home Furnishings
        (87 percent), Kitchen Appliances (64 percent) and Bedroom (61 percent). The spike in
        November and December 2007 reflects the holiday spending frenzy.
                                                                                                                                        CONSUMER BEHAVIOR REPORT
                                                                                                                                                       April 2008




                                                                               Indoor Living Channel Trend


                                    Traffic (instances)




                                                                                                                        08



                                                                                                                                   08



                                                                                                                                              8
                                                                                        7
                                                                             07




                                                                                                     7



                                                                                                                 7
                                                                 07




                                                                                                                                             -0
                                                                                        -0



                                                                                                  -0



                                                                                                              -0



                                                                                                                      n-



                                                                                                                               b-
                                                                           p-
                                                               g-




                                                                                                                                          ar
                                                                                      ct



                                                                                                 ov



                                                                                                          ec



                                                                                                                     Ja



                                                                                                                              Fe
                                                                        Se
                                                           Au




                                                                                   O




                                                                                                                                         M
                                                                                             N



                                                                                                          D
                                                                                                         M onth


                                                                   Traffic within Indoor Living Channel (instances)
                                                          Source: Omniture Data August 2007-March 2008 channel traffic by instances

         The Outdoor Living Channel shows a spike in shopping behavior as consumers prepare for
         the outdoor living season. This channel is off to strong month-over-month growth in traffic (82
         percent) and referrals to merchants (65 percent) in February and March 2008. The categories
         within the Outdoor Living Channel primarily responsible for the increased traffic from August
         2007 to March 2008 include: Barbecue & Patio (88 percent) and Gardening & Nursery (44
         percent).

                                                                               Outdoor Living Channel Trend
              Traffic (instances)




                                                                                        7




                                                                                                                                               8
                                                               7



                                                                           7




                                                                                                 07



                                                                                                              07



                                                                                                                          8



                                                                                                                                   08
                                                                                      -0




                                                                                                                                             -0
                                                              0



                                                                           0




                                                                                                                         0
                                                           g-



                                                                        p-




                                                                                                -



                                                                                                             -




                                                                                                                               b-
                                                                                                                      n-
                                                                                  ct




                                                                                                                                          ar
                                                                                             ov



                                                                                                          ec
                                                          Au



                                                                      Se




                                                                                                                     Ja



                                                                                                                              Fe
                                                                                  O




                                                                                                                                         M
                                                                                             N



                                                                                                         D




                                                                                                         Month

                                                                      Traffic within Outdoor Living Channel (instances)

                                                          Source: Omniture Data August 2007-March 2008 channel traffic by instances


Online Research and Purchase Confidence Increases
      Consumers are actively researching online and purchasing products online with increased
      confidence within the following product categories: Home Furniture, Major Appliances, Home
      Furnishings and Outdoor/Patio Furniture.
                                                                           CONSUMER BEHAVIOR REPORT
                                                                                          April 2008



Of the 81 percent of online consumers who say they research furniture and appliances
online, 31 percent indicate that they expect to also purchase online.


                        Research and Purchase Behavior

                19%
                                           31%
                                                     I will research and purchase
                                                     online


                                                     I will research online and
                                                     purchase offline


                                                     I will research and purchase
                                                     offline

             50%


            Source: PriceGrabber.com Home Furniture and Appliance Survey March 2008

The Home Furniture and Appliance Survey conducted in August 2006, with 1,417 online
consumers as compared to a similar survey conducted again in late March 2008, with 1,945
online consumers, shows a strong increase in consumer’s online purchasing confidence.
Consumer confidence in shopping online for furniture and appliances has increased
substantially in the past few years based on results seen from two different surveys. The
tables below highlight the percent change in consumer response during the latest survey.

The growth in likelihood to purchase online is as follows: Home furniture (156 percent), major
appliances (85 percent) and Outdoor/Patio Furniture (62 percent)


                Consumers who answered: "I will most likely purchase online"
                              (August 2006 vs. March 2008)

         200%

                      156%
         160%

         120%
                                        85%
          80%                                                                     62%

          40%
                                                            0%
           0%
                 Home Furniture   Major Appliances   Home Furnishings       Outdoor/Patio
                                                                              Furniture

                              % increase from August 2006 to March 2008
            Source: PriceGrabber.com Home Furniture and Appliance Survey March 2008/August 2006
                                                                                   CONSUMER BEHAVIOR REPORT
                                                                                                  April 2008




               Categories                       I will research online           I will most likely
                                                  before purchasing              purchase online
                                               March-08 August-06             March-08 August-06
               Home Furniture                     77%           74%             23%             9%
               Major Appliances                   87%           84%             24%            13%
               Home Furnishings                   79%           72%             29%            29%
               Outdoor/Patio Furniture            69%           66%             21%            13%
               Source: PriceGrabber.com Home Furniture and Appliance Survey March 2008/August 2006


Free Home Delivery Continues to Drive Online Purchases
   Online retailers in the home furniture and appliance categories should note that consumer perception
   of high delivery costs and reservations about installation procedures are among reasons shoppers
   have been reluctant to purchase big-ticket items online. Overall, 72 percent of survey respondents
   indicate “free home delivery” would make them more likely to purchase online, while 28 percent
   indicate “free home installation” as a reason to purchase online.

                      Which offer would make you more likely to purchase furniture
                                     or a major appliance online?


                   100%
                                                                                Free home
                    80%
                                                                                installation
                    60%
                                                                                Free home
                    40%
                                                                                delivery
                    20%

                      0%
                                   Male               Female

               Source: PriceGrabber.com Home Furniture and Appliance Survey March 2008



Future Trends – Balancing Best Price and Free Shipping Against In-store Product
Evaluation
   The ability to find better prices online remains the main reason to purchase online. When asked to
   choose the main reason they would purchase home furniture and major appliances online, 43 percent
   of respondents indicated the ability to find better prices online as the number one reason, and an
   additional 20 percent selected free shipping and delivery. Fourteen percent indicated a larger
   selection of products and sellers as their main reason to make their next purchase online.

   In PriceGrabber.com’s March 2008 Home Furniture and Appliances Survey, 43 percent of consumers
   indicated that they are able to find better prices online compared to 34 percent in the August 2006
   survey. Moreover, since 2006, twice as many survey respondents have indicated that the ability to
   shop from home is a main reason to make their next major home furnishing purchase online.
                                                                                                   CONSUMER BEHAVIOR REPORT
                                                                                                                  April 2008




       M arch 2008: Which of the following
        will likely be the main reason you                                                      August 2006: Which of the
      would make your next major furniture,
                                                   Convenience - Ability to shop              following will likely be the main
          appliance, or home furnishing            when I want                                 reason you would make your
                                                                                              next major furniture, appliance,
                  purchase online?                 Larger selection of
                                                                                               or home furnishing purchase
                                                   products/merchants/retailers
                                                                                                           online?
                                                   Dissatisfaction with previous in-
                   1%                              store service/support
                           9%                      Ability to shop from home                            7%
             20%                                                                                                    21%
                                                15.5
                                14%                                                           18%
                                                   Ability to find better prices online
                                  1%
                                                   Free shipping/delivery                                                13%
                                 12%
                                                   Other
                                                                                                                     1%
             43%                                                                                   34%              6%


    Source: PriceGrabber.com Home Furniture and Appliance Survey March 2008/August 2006



    Traditionally, consumers preferred to “touch and feel” large items prior to purchasing. The recent
    survey shows that shoppers have grown more comfortable purchasing these products online. When
    asked recently to select the main reason they would not make their next home furniture or major
    appliance purchase online, 54 percent of respondents said it was the need to see the actual product
    compared to 70 percent of respondents in August 2006. In 2008, a larger portion of consumers, 25
    percent, compared to four percent in 2006 indicated the cost of home delivery as the main reason
    they would not purchase online.

                                                                                          August 2006: Which of the following is
 March 2008: Which of the following                                                         the main reason you would NOT
  is the main reason you would NOT            Not confident the                              make your next home furniture,
    make your next home furniture,            customer service will
                                                                                             appliance, or home furnishings
    appliance, or home furnishings            equal a local retailer
                                                                                                   purchase online?
          purchase online?                    Need to see the actual
                                              product first
                                                                                                        7%         11%
                                                                                                   4%
                 5%      9%                   Better prices at a local
                                              store                                           8%

      25%                                     Cost of home delivery


                                              I'm afraid to make large
                                              purchases online
        7%
                               54%
                                                                                                                 70%
Source: PriceGrabber.com Home Furniture and Appliance Survey March 2008/August 2006



    Overall, 39 percent of those surveyed stated they expect they will buy more home and personal
    products online in the next 12 months compared to 23 percent of those surveyed in August 2006.
    Only 10 percent of online consumers do not expect their online shopping behavior to shift.
                                                                                     CONSUMER BEHAVIOR REPORT
                                                                                                    April 2008




                       Over the next year, when thinking about home and personal
                       products, do you expect to shop and purchase online more
                                     than you did over the last year?




                                      51%                         60%

                                39%

                                            10%             23%
                                                                         17%



                                    March 2008                 August 2006
               Yes, I expect to buy more online in these categories in the coming year
               I will shop online about the same
               No
             Source: PriceGrabber.com Home Furniture and Appliance Survey March 2008/August 2006


  Notes from the Green
     Outdoor Innovation

     The latest trend in outdoor furniture design happens to be environmentally friendly - “recycled
     plastic lumber” or as the industry calls it, “EnviroWood.” Everything from Adirondack Chairs to
     Shell-Back Chaise comes in this material.

     EnviroWood is a synthetic material made from 100 percent recycled plastic, most often plastic
     milk jugs. Built to last a lifetime, tougher and more resilient than treated wood, “recycled plastic
     lumber” does not rot, warp, crack, splinter or absorb moisture. Treated with UV-stabilized
     coloring, it provides the look of “real wood” painted or plain. The plastic is also impenetrable to
     critters.

     In addition to being a strong, sturdy and ultra-low maintenance material, EnviroWood is an
     excellent choice for the environment. By repurposing plastic, it keeps bottles, milk jugs and other
     everyday plastic items out of the landfill. Just one EnviroWood Adirondack Chair, for example, will
     put 500 discarded milk jugs to use.


Disclaimer
     The data, market trends and analysis in this report were prepared by PriceGrabber.com. The
     primary data included in this report are results from the Home Furniture and Appliance Survey
     and Market Reporter. The survey was conducted from March 17, 2008 to April 4, 2008, with
     1,945 respondents. The Notes from the Green section is compiled by Olivia Zaleski, expert green
     consultant and PriceGrabber.com blogger. The confidence interval for all results is 95 percent
     with a margin error of approximately +/-3 percentage points for the entire sample.

     This report may not be reproduced, distributed or published by any person for any purpose
     without PriceGrabber.com’s prior written consent. Please cite source when quoting.

     Source: PriceGrabber.com
                                                                    CONSUMER BEHAVIOR REPORT
                                                                                   April 2008



For media inquiries, to schedule phone interviews, or for journalists who would like to request
additional data and/or a custom survey for their needs, please contact Carolyn Chiang by phone
at (415) 365-0397 or by email at Carolyn.Chiang@bitepr.com.

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:135
posted:8/30/2009
language:English
pages:8