RETAILER
PERSPECTIVE
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Dave
Garretson |
Seven
Obstacles Retailers Must Overcome:
Customers Speak Out About Why They Dislike Furniture Shopping
Some people might consider my dear friend Silvia a
spendthrift. She and her husband Mike have two new recreational
vehicles, a brand new 4200 square foot home, and three rooms
covered floor to ceiling with the colorful toys of their two
young daughters. Like many Americans, they also have mounds
of consumer debt.
Heres the surprise. Look in their living room. The
only thing youll find to sit on thats less than
15 years old are the matching throws covering two ragged sofas.
Whats up?
When I asked, Silvia explained without a moments hesitation
as she plopped wearily into her well worn armchair. Its
not worth shopping for new furniture. Ive dont
have the time to shop. How can I when Ive got these
kids in tow? I dont know what Id look for, anyway.
And its all the same and its all so expensive.
Unfortunately, Silvias no anomaly. Despite the fact
that the average size of new houses in the U.S. has grown
by 25% since 1980, furniture spending has dipped from 1.2%
to 1% of total consumer spending during this same twenty years.
In fact, consumers disdain for furniture shopping was
recently described on the front page of The Wall Street Journal
just a few weeks ago. In their article, Ever Wonder
Why Furniture Shopping Can Be Such a Pain? authors James
Hagerty and Robert Berner point out how atypical this distaste
for furniture shopping is: While Americans splurge on
cars, appliances and electronic toys, many approach buying
furniture with the sort of dull dread that usually precedes
an IRS audit.
But, why? To find out, I consulted business reports, customer
surveys, and industry pundits. While they ranked customer
complaints differently, surveys and researchers uncovered
the same basic laments.
I Cant Measure Quality.
Today, more than ever, shoppers are looking for discounts
and bargains. But according to the findings of a jointly sponsored
study by Hearst Magazines and The Homes Furnishings Council
earlier this year, price is not the overriding concern for
consumers buying furniture. Regardless of whether they are
in the market for low- or high-end product, customers want
value.
Yet, from the perspective of the furniture shopper, quality
is elusive. According to Americas Research Group, a
well-respected research group that surveys approximately 5,000
furniture shoppers nationwide regarding their furniture shopping
plans for the coming year, 84% of American consumers say they
cant measure quality in upholstery. Two-thirds admit
they cant measure quality in case goods. Since most
of the product is hidden from view, they explain, they cant
see inside to assess quality. Feel their frustration? Consumers
cant assess whether theyre getting fair value
for their dollars. And theres little satisfaction for
the customer who after spending hundreds or thousands of dollars
walks out of the store not knowing if they got their moneys
worth.
The Salespeople Push Me.
When asked why customers disliked furniture shopping, nearly
a quarter surveyed by the Home Furnishings Network cited service
factors especially pushy or high pressure salespeople
who follow customers around or descend on them.
Surveys show that pushy salespeople are particularly irritating
to women. And dont forget - women control 74% of all
furniture purchases. According to Gerry Meyers, Marketing
Consultant and expert on womens spending and buying
habits, when a woman says they want to think about a purchase,
theyre not asking to be sold harder. Theyre telling
you they want time to think about it.
Although surveys show that pushy salespeople are more of
a problem for consumers than salespeople that ignore them,
consumers do want to know what they need to know to make educated,
pragmatic choices. Consumers are more educated and knowledgeable
than ever before and often know the questions to ask. Consequently,
according to a yearlong study commissioned by HFN and High
Points Magazine last March, consumers expect more information
on product attributes and benefits.
But heres the key. They only want it when they ask
for it.
All Furniture Stores Look the Same.
Consumers are clearly bored by furniture shopping. According
to another recent survey by ARG, eighty-three percent of customers
surveyed complain that all furniture stores look the same.
Britt Beemer, of Americas Research Group, explains
why. In High Point, retailers walk into manufacturers
spaces and say, Look, Im real busy, let me see
your two best sellers. Ultimately, if everyone has everyones
two best sellers, well achieve 100% boredom that consumers
say they see everyday in our stores.
This problem is a continuing source of frustration for todays
busy shopper. The longer work week and the increase in the
number of two-career families means that for many consumers,
time is their most valuable commodity. This means less time
to shop - and less tolerance for aggravating situations. Ten
years ago, people were willing to visit two to three stores
before purchasing. Now the average is one to two stores. Consumers
are frustrated by the hassle of traipsing from place to place
only to find the same selection of merchandise.
Retailers are Unfaithful.
This one comes as no surprise. Consumers expect a store to
deliver on advertised promises. When retailers promote an
item and dont have it in stock, one in four people say
they will not return to that store to buy again.
Who knows whether furniture retailers are guilty of this
any more than other retailers. But one thing is for sure.
The consumer today is again saying one thing, Youre
not going to make my life a hassle.
If you advertise it, you better have it. When furniture retailers
dont deliver, the customer feels lied to. And todays
customer does not forgive and forget.
The Prices are Too High.
While research consistently shows that value and quality
are of utmost importance to furniture shoppers, price does
matter.
And furniture is expensive. Its the second most expensive
retail item next to automobiles. For some people, theres
a level of discomfort that comes with spending that amount
of money when, theyre not sure what it is theyre
getting with respect to product quality. Research shows that
customers today plan on changing their décor within
the next ten years. Theyre looking for less expensive
merchandise that fits their current lifestyle and budget.
I Have to Wait Too Long.
I just heard this one the other day from a friend of mine
who just moved into a new house and spent about $2500 on living
and dining room furniture. He had to wait seven weeks before
his furniture was delivered. That is, seven weeks after he
paid for it.
The furniture industrys delivery performance reminds
ABC Carpets Mr. Evan Cole of another century.
And customers agree. Its not unusual for customers to
cancel orders after waiting too long.
Lets face it. Were just not used to this kind
of thing. Most of the time we get immediate gratification,
immediate feelings of satisfaction after we acquire a new
possession. Like when you buy a car. Sure, its a little
painful to shell out thousands of dollars, but isnt
that pain quickly replaced by pleasure when you proudly drive
the shiny new car off the lot moments later? When you buy
furniture, you have to sit for weeks in your empty living
room with that nasty sting of having spent several thousands
of dollars with nothing to show for it but a long wait and
an empty room.
I Cant Find Anything I Like.
In a survey this past summer, sponsored by HFN, more than
a quarter of the people surveyed, who shopped seriously but
did not buy, complained that they couldnt find anything
they liked. And according to Americas Research Group,
twenty percent of consumers they surveyed also complained
about their inability to find what they wanted because of
inadequate selections, poor selections, and low quality.
At the same time, customers also report feeling overwhelmed
by the sea of fabrics and styles to choose from, and walk
away frustrated by not being able to make up their minds.
Bob Nightengale of the Home Furnishings Council believes that
customers perceptions of furniture style categories
complicates the decision. Understanding what classifies as
contemporary or traditional differs
greatly and customers become easily confused.
Nonetheless, most marketing experts agree that customers
still want lots of choices and crave more individuality in
furniture than they do in, say, cars. The common lament among
customers is a seeming absence of new, appealing products.
But dont get disheartened. For better or for worse,
there are several reasons why the furniture industry has suffered
in the last two decades that has nothing to do with retail
savvy.
Economic and demographic trends are part of the explanation.
When furniture shoppers were asked why they decided not to
buy, many cited non-retail issues such as the need to save
for retirement, the need to save for childrens education,
and concern about health care costs for themselves and their
parents. These collective responses today represent at least
19 to 26% of the reasons why consumers shopped for furniture
this year but did not buy anywhere. Five years ago, non-retail
issues represented less than 1% of all responses. Bob Nightengale,
President of the Home Furnishings Council, explains. I
think what people consider discretionary income today is becoming
very, very small. And, I dont want the furniture industry
to be a part of this category, and frankly, I think we are.
Beemer believes that theres another big obstacle that
is essentially out of the retailers control: consumers
lack of brand awareness. Few manufacturers advertise brand
names to consumers on a mass level, and in turn, consumers
are not familiar with brands when they shop. According to
Beemer, consumers are uncomfortable spending money on expensive
products whose brand name they dont recognize.
Another issue is that changing social norms have taken the
heat off customers. Fewer and fewer people entertain at home.
And since nobody but the family sees the home décor,
Americans are spending less to furnish their homes.
But theres hope. Baby boomers are in their prime furniture-buying
years, and The American Furniture Manufacturers Association
projects a 13% jump in industry shipments this year.
Retailers can catch this wave by avoiding retail snafus and
delivering what the customer wants. The shopper has spoken.
They want fair value for their dollars at stores with a wide
selection, professional salespeople and inventory in stock.
They want to feel you respect their time and money by making
it easier to buy smarter. According to Beemer, The stores
that are best prepared to serve the customer fully will win.
Its Now Scientifically Proven: Only 2.8%
of Your Customers are Jerks
After making a name for himself surveying hundreds of thousands
furniture shoppers nationwide, industry expert Britt Beemer
offers futon retailers great advice.
Some would say that when it comes to furniture retailing
wisdom, Mr. Britt C. Beemer is the man.
Beemer
is the Senior Research Director of Americas Research
Group, a national firm which performs consumer behavior research
across North America, interviewing up to 250,000 consumers
annually. ARG also compiles the National Furniture Buying
Index which is used by major retailers across the U.S. to
gauge furniture shopping plans for the coming year.
He has gained national acclaim for his research on consumers
shopping and buying habits and his work has been cited in
the Wall Street Journal, Investors Business Daily, Business
Morning, Morning News, US News and World Report, and many
others.
From his home base in South Carolina, Beemer offered an interview
with Futon Life chock full of sound advice for futon retailers:
On holding a sale: Dont just call a sale randomly.
Give customers a good reason for a sale. And give them authentic
and significant discounts such as 40-50% off suggested retail
or an extra 10-15% off the everyday price.
On furniture advertising: Unfortunately, furniture
ads are usually driven by price-slashing or credit terms.
There are no people in the ads. Thats a problem. Furniture
buying is an emotional purchase so products must be connected
to positive human feelings and experiences. Youve got
to go for the full-color emotional appeal.
On furniture manufacturers biggest mistake: Furniture
manufacturers get virtually no consumer input when designing,
so its not surprising that when the retailer buys it
and shows it, it doesnt sell. The industry needs to
get consumer input on the front end.
On home decorating trends: What we hear over and over
again is that people dont want to live in a museum.
Traditional style furniture is on the way out. People want
a look and feel thats more casual, more comfortable.
People are also changing their home furnishings more frequently
and thus, for this and a few other reasons, are buying furniture
thats less expensive.
On retailing in the 21st century: Low price/low quality
loses. Good value wins. Good customer service wins. Convenience
wins one stop shopping and ease of purchase.
On the secret to retail success: The retailer must
really understand and accept that the consumer is not their
enemy. Weve done the research. Only 2.8% of customers
are jerks who make the retailers life miserable. Yet
store policies are established and rigidly adhered to because
of these few people. Basically, the retailer has to trust
their customers. Honest advertising and a 30-day unconditional,
money back guarantee are the things that are going to provide
the level of service that sets retailers apart and meets the
needs of todays shopper.
Andrea Mainardi is a freelance writer who works out of
her new home here in Providence, RI. She is a regular contributor
to the pages of Futon Life and will be presenting an article
on the women of the futon industry in our next issue.
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