As the largest generation in the history of the United States, millennials are already having a significant impact on the economy. By 2020, the generation will make up an estimated 30 percent of US retail sales, spending some $1.4 trillion per year. As individuals born throughout the 1980s and 1990s transition into adulthood, establish their careers, and begin to build homes and families, their effect on several industries is poised to grow even larger.
Millennials already buy more furniture than any other collective group, being responsible for 37 percent of total home furnishings sales in 2014. Their buying power has continued to increase significantly in recent years, and they now comprise the fastest-growing market segment in the furniture sector. Between the peak home-buying ages of 25 and 45, millennials are likely to ramp up their furniture-buying activities going forward.
It’s quite clear that millennials represent a huge business development opportunity for furniture companies. One of the most effective ways for brands to cater to this highly-influential generation is via marketing. To do so, they must become more in tune with millennial lifestyles, preferences, and styles.
Consider Millennial Culture
By understanding the causes and values that are important to their millennial customers, companies can reach them on a more meaningful level that is likely to garner lasting loyalty and trust. Market researchers have observed that millennials tend to value individuality and, therefore, likely to seek out and enjoy personalized shopping experiences.
For this reason, furniture retailers should strive to make in-store experiences unique for customers, positioning their brick-and-mortar locations as resources for detailed product information, style advice, and a guided shopping experience. When possible, companies can also implement features such as personalized recommendation emails or online home design tools to offer mobile shoppers a more individualized experience.
Millennials also tend to be quite socially conscious. They are aware of what is going on in the world around them and frequently dedicate themselves to causes that seek to better it. For this reason, it benefits retailers to take advantage of cause marketing whenever possible.
By leveraging resources to support a humanitarian cause, a company can establish a kinship with consumers while demonstrating that it is a socially responsible organization. Research conducted by Cone Communications concluded that over half of millennials – specifically, 66 percent – are more likely to give their business to companies they perceive as socially responsible.
Corporate social responsibility initiatives are an excellent opportunity for organizations to inspire customer loyalty and strengthen their brand images. However, it is vital that companies are authentic in their social engagement efforts. Consumers are likely to pick up on philanthropic initiatives that are shallow and merely for show. As a result, it is important for brands to choose causes that are making a genuine impact, be consistent in their contributions, and make their activities known to consumers.
For example, Ashley Furniture’s A Hope to Dream initiative partners with communities and the NFL to ensure that local children have quality beds and bedding. The company’s Ashley for the Arts program brings approximately 30,000 people to Arcadia, Wisconsin, for a music and arts festival with plenty of local flavor.
Leverage Technology to Your Advantage
Technology is firmly engrained in the millennial lifestyle. It has served as the foundation for many of their social experiences and continues to be an integral part of business, entertainment, and daily life. As such, millennials are well-versed in engaging with both individuals and organizations over the web. This means that businesses have a good chance of reaching them in the online spaces where they reside.
In many cases, online interactions are the preferred form of communications for these digital natives. One study by the Center for Generational Kinetics discovered that, if given the option, 40 percent of its millennials would choose to conduct customer service interactions completely online.
In addition to helping firms improve the efficiency of their customer service, taking full advantage of technology to market products and interact with consumers can help furniture companies provide a more modern and engaging customer experiences. Companies that maintain an active presence on social media platforms are inviting customers to engage with them in a familiar and easily accessible way while at the same time providing a visual introduction to their products.
When incorporating technology into their marketing strategies, furniture companies should carefully consider which social platforms to be active on based on their targeted demographics. This will help ensure that they are funneling resources only into the platforms frequented by their prospective customers. In order to track the success of their social media engagement strategies, it is also crucial that companies set up platforms to collect data on the results of their social media activity.
Keep an Eye on Style Trends
As the millennial generation grows to comprise a greater and greater segment of the furniture-buying population, millennial tastes and preferences are beginning to influence aesthetic trends in the furniture sector. Historically, consumers have often associated complex and ornate furniture with elegance and quality. However, millennial shoppers are increasingly favoring simple and sleek styles. Clean lines and monochrome color palettes with minimal ornamentation allow millennials to display their individuality through their own unique accessories.
However, millennials do appear to favor complexity in one regard. When it comes to modular and multipurpose furniture, millennials are drawn to pieces that will allow them to save valuable square footage in their small living spaces and enjoy a great deal of functionality from a single product.
As technology is interwoven within the millennial lifestyle, brands are likely to have an easier time marketing pieces designed to accommodate common technologies. In addition, the social awareness of this generation has made sustainably sourced materials an incredibly powerful selling point.