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Home Furnishings Starter Packages for Millennial Newlyweds

Posted by Joe Gargiulo | Tue, Jun 21, 2016 @ 10:00 AM

There was enormous temptation to abandon this story before it was even written because the opinions of online resources are all over the board. The buying habits of Millennials (born circa 1980 −2000) have been a robust business topic for quite some time, but experts can’t agree on whether or not the demographic is a fully engaged marketing segment. Among the doubters are those who say only the leading edge of the generation is able to impact the furniture market. Ultimately, those concerns proved to be the very reason this article needed to be written because the data shows that Millennials (Generation Y) are, and will continue to be, purchasers of home furnishings as dealers seek new opportunities to increase sales.

Just the Facts

Home Furnishings Starter Packages for Millennial NewlywedsThe statistics affecting Generation Y home ownership and home furnishings can be framed by the Chinese principles of yin and yang — one dark and feminine, the other bright and masculine.

On one hand, the median age of marriage has risen from 23 years in the 1970s to 30 years in the 2010s (Goldman Sachs Global Investment Research) while on the other, 93% of Americans ages 18 − 34 want to own a home sometime in the future (Trulia).

Furthermore, the percentage of young married people living independently has dropped from 56% in 1960 to 23% in 2012, but at 32%, Generation Y was the largest group of homebuyers in the US during 2015 (multiple sources including Furniture|Today and Better Homes and Gardens). Naturally, they will need to invest in a variety of items to prepare their new dwellings for everyday living as well as entertaining.

“Gen Y, sometimes called the Ikea generation, is the group least satisfied with their furniture … and the most interested in upgrading to enhance their homes,” said Jennifer Scott, managing director of the PR firm hired to conduct a 2008 study by the American Home Furnishings Alliance. “Key ‘furniture moments’ that trigger purchasing for this group include marriage, a first home, first job or promotion, and a baby.”

The bright side is supported by some serious statistical firepower about Generation Y as interior furnishings customers:

  • They are the largest generation in US history (92 M vs. 77 M Baby Boomers)
  • The $27 B they spent on furniture and bedding in 2014 represented 37% of all households
  • 20% of households is planning or working on an interior-design project
  • 13% are making a home office, workspace or family communications center
  • 25% plan to add or upgrade outdoor furniture to make exterior spaces feel like a room
  • 30% say interior furnishings are a decorating priority, surpassed only by paint at 39%

Corroborating that Millennials are indeed buying in the vertical, it’s time to consider what interests them.

Small Spaces

Home Furnishings Starter Packages for Millennial NewlywedsMany Americans are downsizing or simply choosing small living spaces such as micro-apartments, tiny houses or small houses (up to 1000 sq. ft.).

“Boomers and Millennials are going to want smaller pieces of furniture because they have less space,” said Mike Dudgens, managing director and southeast regional manager of CIT Commercial Services. He points to Crate & Barrel as having the wisdom to offer “more compact furniture pieces.”  CrossCheck discussed this same selling point in an earlier article.

“Furniture manufacturers are responding to downsizing baby boomers and the growing appeal of urban living by reducing the scale of dressers, coffee tables, night stands and the like,” stated ABC News in a 2014 business article. “They are compressing home offices into a single fold-out cabinet … and cutting back the length of sofas and entertainment centers.”

Thus, the wise furniture dealer will make it a point to consider downsizing trends while formulating starter packages for Generation Y newlyweds.

Versatility

In addition to going small, multifunctional pieces may be a more inviting solution for those seeking dynamic urban lifestyles.

“Millennials are literally living in their living rooms,” said Dana French of Furniture|Today. “The all-important, young consumer group has taken multi-tasking to a new level: entertaining, consuming media, eating, working and even sleeping in the living room.” Consequently, stocking furniture that addresses those needs presents a huge marketing advantage.

Perhaps no other company has seized the opportunity like Parnian’s “furniture that moves.” Grandpa’s recliner has morphed into the epitome of versatility and functionality with the help of create solutions (albeit too expensive for most newlyweds). Nevertheless, assimilation usually follows innovation, so there is reason to believe a competitor will recreate those styles more affordably sometime soon.

Another player in the versatile furniture game is Resource Furniture, the maker of transforming furniture, wall-bed systems, stealth kitchens, work-station solutions and more items designed to maximize small living spaces with elegant styling.

More affordable solutions in this realm are all over the web including the DIY network site.

Strategy

Advising newlyweds on purchasing home furnishings is hardly new. A short silent comedy, “The Newlyweds,” was released in 1909, depicting the lighter side of a newly married couple buying furniture to furnish a flat.

In 1963, and long before the word “Millennial” was conceived, money-management consultant Mary Feeley wrote the article ”How to Buy Furniture: ABCs for Newlyweds” in The Free Lance-Star (Fredricksburg, Va.). Quite the visionary, Feeley offered advice that still stands today:

  • Choose pieces in scale with the house or apartment
  • Pay attention to workmanship
  • Don’t shop impulsively
  • Don’t try to furnish the entire house or apartment at one time

Home Furnishings Starter Packages for Millennial NewlywedsHer last point should send furniture dealers into all-hands-on-deck mode. Imagine a store working with a couple on decorating one room at a time, or starting at one end of the house and moving toward the other. Items used in the kitchen, bath and bedroom can be borrowed from family and friends as newlyweds focus on decorating the living room. The possibilities are endless as the dealer helps the pair devise a strategy and timeline within their budget. Talk about establishing brand loyalty. Eventually, the home will be completely furnished and the unwanted items can help another young couple settle in.

Don’t forget to offer a discount since Generation Y has a lower mean income and is more value-conscious (33% vs. 27%) than older generations (Goldman Sachs) as well as the need to promote the service via advertising, mailers, email marketing and social media channels.

Gifting

Older boomers may have purchased their last piece of furniture for themselves, but they may be interested in buying for newlywed children or grandchildren. Develop a strategy for successfully communicating with young buyers or those shopping with their parents. The dealer’s planning and problem-solving capabilities can be mentioned as part of an ongoing campaign to help newlyweds in the promotional efforts mentioned above.

Another option for local home furnishings dealers is to bark like a big dog by offering an online wedding gift registry. Family and friends will know exactly what to buy and in the correct color and size. Consider staging kitchen, living room, bath and bedroom décor in photos with items priced separately or as an ensemble, and promoted with an offer to set up in-store appointments. What about making house calls with product samples, swatches and virtual design planners on a notebook computer?

Perhaps there’s a nearby specialty store that sells items not in your marketing mix. For example, include a table lamp from a local lighting store in a living room set as part of the registry. To reciprocate, the lighting store plugs your bridal registry in all of its online, print and email promotions.

Summary

Looking ahead, Generation Y will greatly impact the home furnishings industry as it reaches its prime years of earning and spending. Statistics ad nauseam prove their desire to shop online, garner the best values, and reduce their carbon footprint in the process. It is also given that smartphones will play an increasing role in the shopping experience. So will the power of peer reviews via social media channels.

With an affinity for technology, these digital natives cannot recall a time when retail prices were only available in person, in print ads or via the telephone. They also reject brand loyalty and have less money to spend since they carry more debt than previous generations.

Millennials may be putting off marriage a few years longer than their predecessors, but the numbers show that they are indeed marrying and buying homes that will require furnishings. Thus, it can be assumed that young newlyweds are purchasing furniture somewhere and not eating dinner while sitting on the floor unless it is by choice. Undoubtedly, they will want to be ready for Mom and Dad, or grandma and Grandpa when entertaining family becomes a priority. The question is, will dealers be ready for them?

When young customers are ready to buy, dealers using CrossCheck's Multiple Check service are well-positioned to offer the most convenient payments solution on the market. The program allows consumers to write 2 – 4 checks to be deposited over a 30-day period and choose each deposit date. Learn more about Multiple Check by downloading our free guide.

Multiple Check Insider's Guide

Topics: Home Furnishings

Written by Joe Gargiulo

Marketing Specialist Joe Gargiulo has 25-plus years in marketing, communications and copy writing. As a writer, he enjoys connecting story leads to all aspects of the human experience.