Home Furnishings Report 2008 FINAL - Unity Marketing...FINAL 19 s • Foundations oor Coverings or...

The Home Furnishings & Decor Report 2008

October 28, 2008 -- FINAL Page 2

INTRODUCTION ............................................................................................................................................................ 11

Objectives of the Research Study ....................................................................................................................................................................... 11

Two Surveys -- Two Different Consumer Market Perspectives – in One Study ...................................................................................... 13

Specific Products, Brands and Data Points Presented in this Study ........................................................................................................ 14 Demographics .......................................................................................................................................................................................................... 14 What They Have, What They Own ........................................................................................................................................................................ 15 Definition of Luxury in their Lifestyle and in terms of Home Furnishings Purchases ..................................................................................... 15 Recent Major Home Changes ................................................................................................................................................................................. 16

Figure 1: Major Home Changes in Past Year, all respondents general and luxury survey ......................................................................... 16 Figure 2: Detail of Rooms and Home Features .............................................................................................................................................. 17

Home Furnishings Products Purchased, Amount Spent and Where Bought ..................................................................................................... 18 Categories of Stores Included in Study ................................................................................................................................................................. 21 Where Consumers Gather Decorating Advice & Their Favorite Decorating Styles .......................................................................................... 22

Figure 3: List of Decorating Styles Included in the Survey .......................................................................................................................... 23 Special Investigation: Use of Home Decorators and the Internet for Decorating Guidance ............................................................................ 24 More about Shopping for Home Furnishings ........................................................................................................................................................ 24 Attitudes about Home Furnishings and Home Decorating .................................................................................................................................. 25

CHAPTER 1: DEMOGRAPHICS OF THE HOME FURNISHINGS' CONSUMERS ........................................... 26

Defining Home Marketers' Primary Target Market ....................................................................................................................................... 26 Home Changes in Past Year ................................................................................................................................................................................... 27

Figure 4: Incidence of Major Home Renovations in past year and planned for coming year (General and Luxury Surveys) ................ 27 Home Changes Planned for Next Year .................................................................................................................................................................. 28

Demographics that Define the Consumer Market for Home-Related Products ..................................................................................... 29 Gender of Home Consumers ................................................................................................................................................................................... 29

Figure 5: Gender Distribution (General and Luxury Surveys) ..................................................................................................................... 29 Age of Home Consumers ......................................................................................................................................................................................... 30

Figure 6: Age of Home Consumers (General and Luxury Surveys) .............................................................................................................. 30 Marital Status ......................................................................................................................................................................................................... 31 Household Income ................................................................................................................................................................................................... 31

Figure 7: Household Income of Home Consumers(General and Luxury Surveys) ...................................................................................... 31 Home Ownership ..................................................................................................................................................................................................... 32



Number of People Living in the Home and Presence of Children ....................................................................................................................... 33 Ethnicity .................................................................................................................................................................................................................. 33

Figure 8: Ethnicity (General and Luxury Surveys) ....................................................................................................................................... 33 Occupation ............................................................................................................................................................................................................... 34

Figure 9: Occupation s of Home Consumers (General Survey) ..................................................................................................................... 34 Education Levels ..................................................................................................................................................................................................... 35

Figure 10: Education Levels (General Survey) .............................................................................................................................................. 35

What They Have, What They Own ...................................................................................................................................................................... 36 Value & Size of Home Consumers' Residences ..................................................................................................................................................... 36

Figure 11: Value of Home Consumers' Residence (General Survey) ............................................................................................................ 36 Size of Home ............................................................................................................................................................................................................ 37

Figure 12: Size of Primary Residence (General Survey) ................................................................................................................................ 37 Size of Lot ................................................................................................................................................................................................................ 38

Figure 13: Size of Home Lot (General Survey) .............................................................................................................................................. 38 → Key Finding: The Prime Target Market for Home Marketers ........................................................................................................................ 39 Luxury Indoor Home Features ............................................................................................................................................................................... 41

Figure 14: Luxury Home Features (General Survey) .................................................................................................................................... 41 Outdoor Home Luxury Features ............................................................................................................................................................................ 42

Figure 15: Outdoor Home Luxuries (General Survey) .................................................................................................................................. 42 Luxuries They Have and They Own ...................................................................................................................................................................... 43

Figure 16: Luxuries Owned (General Survey) ............................................................................................................................................... 43

Definition of Luxury in their Lifestyle and in Their Homes ........................................................................................................................ 44 Figure 17: Definition of Luxury (General Survey) ......................................................................................................................................... 44

→ Key Finding: Implications For Home Marketers on Luxury Positioning ..................................................................................................... 45 Luxury as Part of the Home Consumers' Lifestyle ............................................................................................................................................... 46

Figure 18: Home Consumers Lifestyle and Approach to Living (General Survey) ...................................................................................... 46 → Key Finding: How to Position Products for Maximum Appeal to Home Consumers .................................................................................... 47

Home Consumers' Preferred Decorating Styles .............................................................................................................................................. 49 Figure 19: Favorite Decorating Styles (General & Luxury Surveys) ............................................................................................................ 49

CHAPTER 2: ABOUT SALES & GROWTH IN THE HOME FURNISHINGS MARKET ................................... 50

Consumer Spending on Home Furnishings ...................................................................................................................................................... 51 Figure 20: Home Furnishings Consumer Market, Sales & Growth 2002-Proj. 2008 ................................................................................... 51



Consumer Spending on Home Improvements ................................................................................................................................................. 52 Figure 21: Consumer Expenditures on Home Improvements& Maintenance 2006-2007 ........................................................................... 52

Total Consumer Expenditures on Home ........................................................................................................................................................... 53 Figure 22: Total Home Expenditures 2006-2007 ........................................................................................................................................... 53

Connecting Unity Marketing's Survey with Government Statistics .......................................................................................................... 53 Figure 23: Connecting Government Data Sources with Unity Marketing's Survey .................................................................................... 54

Home Furnishings Product Sales 2007 .............................................................................................................................................................. 55 Linens, Home Decorating Fabrics, Window & Wall Covering Product Sales ..................................................................................................... 55

Figure 24: Linens, Home Decorating Fabrics, Window & Wall Coverings Product Sales 2007 (to households with income $50,000 or more) ................................................................................................................................................................................................................. 55

Furniture, Mattress and Foundations, Lamps and Lighting and Floor Coverings or Rug Product Sales ....................................................... 56 Figure 25: Furniture, Mattresses and Foundations, Lamps and Floor Coverings Product Sales 2007 (to households with income $50,000 or more) ............................................................................................................................................................................................... 56

Outdoor, Lawn, Patio and Garden Products Product Sales ................................................................................................................................. 57 Figure 26: Outdoor, Lawn, Patio and Garden Products Sales2007 (to households with income $50,000 or more) .................................. 57

Kitchen and Laundry Major Appliances, Kitchen and Bath Fixtures, Cabinetry, Countertops and Other Building Products Sales............ 58 Figure 27: Kitchen and Laundry Appliances, Kitchen and Bath Fixtures, Cabinetry, Countertops and Other Building Products Sales 2007 (to households with income $50,000 or more) ....................................................................................................................................... 58

Home Furnishings Sales by Channel of Distribution .................................................................................................................................... 59 Figure 28: Home Furnishings Sales by Channel of Distribution 2007 ........................................................................................................ 59

Linens, Home Decorating Fabrics, Window & Wall Covering Sales by Channel of Distribution ..................................................................... 61 Figure 29: Linens Channel of Distribution 2007 (households with income $50,000 or more) .................................................................... 61

Furniture, Mattress and Foundations, Lamps and Lighting and Floor Coverings and Rugs Sales by Channel of Distribution ................... 62 Figure 30: Furniture Channel of Distribution 2007 (households with income $50,000 or more) ............................................................... 62

Outdoor, Lawn, Patio and Garden Products Sales by Distribution Channel ..................................................................................................... 63 Figure 31: Outdoor Channel of Distribution 2007 (households with income $50,000 or more) .................................................................. 63

Kitchen and Laundry Appliances, Kitchen and Bath Fixtures, Cabinetry, Countertops and Other Building Products Sales by Channel of Distribution ............................................................................................................................................................................................................. 64

Figure 32: Kitchen Product Sales by Channel of Distribution 2007 (households with incomes $50,000 or more) .................................... 64

→ Key Finding: Implications of Industry Sales and Channel of Distribution Data for Home Marketers ....................................... 65

CHAPTER 3: ABOUT CONSUMERS' & THEIR HOME IMPROVEMENT PROJECTS ................................... 67



Major Home Changes ............................................................................................................................................................................................. 68 Figure 33: Major Home Changes (General and Luxury Surveys) ................................................................................................................ 68

Home Purchasers and Their Remodeling/Redecorating Activities ...................................................................................................................... 70 → Key Finding: Home Changes Link to Specific Product Purchases ................................................................................................................. 70

Spending on Home Changes in Past Year ......................................................................................................................................................... 71 Figure 34: Spending on Home Changes by Demographics (General and Luxury Surveys) ........................................................................ 71

Spending by Type of Home Change ....................................................................................................................................................................... 72 Figure 35: Spending on Home Changes by Type of Change (General and Luxury Surveys) ...................................................................... 72

Home Changes Planned for Next Twelve Months .......................................................................................................................................... 73 Figure 36: Home Changes Planned for Coming Twelve Months (General and Luxury Surveys)............................................................... 73

→ Key Finding: Links Between Past and Future Home Changes ..................................................................................................................... 74

Planned Spending on Home Changes in Past Year ........................................................................................................................................ 75 Figure 37: Expected Spending on Home Changes in Coming Year (General and Luxury Surveys) .......................................................... 75

Rooms and Features Involved in Home Changes ........................................................................................................................................... 76 Rooms Involved in Home Changes ........................................................................................................................................................................ 76

Figure 38: Rooms Involved in Home Redecorating, Remodeling, Adding On Changes (General and Luxury Surveys) .......................... 76 Features Involved in Home Changes ..................................................................................................................................................................... 77

Figure 39: Features Involved in Home Redecorating, Remodeling, Adding on Changes (General and Luxury Surveys) ........................ 77 Rooms Planned for Changes in Coming Year ....................................................................................................................................................... 78

Figure 40: Rooms Planned for Changes in Coming Year (General Survey) ............................................................................................... 78 Features Planned for Changes in Coming Year ................................................................................................................................................... 79

Figure 41: Features Planned for Home Changes (General Survey) ............................................................................................................ 79

→ Key Finding: Implications For Marketers of Key Finding On Home Changes ................................................................................. 80

CHAPTER 4: ABOUT CONSUMERS' & THEIR HOME PRODUCT PURCHASES ........................................... 82

What Products They Purchased .......................................................................................................................................................................... 83 Figure 42: Home Goods Purchases Past Year (General Survey) .................................................................................................................. 83

Demographic Distinctions in Home Goods Purchases .......................................................................................................................................... 84

Spending on Home Goods ..................................................................................................................................................................................... 86 Figure 43: Spending on Home Goods by Income Segment (General Survey) .............................................................................................. 86



Details about Linens, Home Decorating Fabrics, Window & Wall Coverings Purchases ..................................................................... 88 Type of Linens Products Bought ............................................................................................................................................................................ 88

Figure 44: Type of Linens Products Bought in Past Year (General Survey) ................................................................................................ 88 Spending on Linens by Demographic Segment ..................................................................................................................................................... 89

Figure 45: Linen Spending by Demographic Segment (General Survey) .................................................................................................... 89 Where People Shopped for Linen Products ........................................................................................................................................................... 90

Figure 46: Where Linens Consumers Shopped In Past Year (General Survey) ........................................................................................... 90 → Key Finding: Implications For Marketers of Key Finding On Shopper Preferences ................................................................................... 91 More About the Most Recent Linens Purchase ..................................................................................................................................................... 93

Figure 47: About last linens purchase, was it bought on sale or at regular price; a luxury or ordinary brand; bought due to need or desire (General Survey) .................................................................................................................................................................................... 93

→ Key Finding: Implications For Marketers on Premium or Luxury Brand Positioning for Linens ............................................................. 94 Linens Product Features Rated Very/Extremely Important in Influencing Most Recent Purchase ................................................................. 95

Figure 48: Product Features Rated Very or Extremely Important to Linens Shoppers (General Survey) ................................................. 95 → Key Finding: Implications For Linens Marketers .......................................................................................................................................... 96

Details about Furniture, Mattresses & Foundations, Lamps & Lighting, Floor Coverings and Rugs Purchases .......................... 97 Type of Furniture Goods Bought ........................................................................................................................................................................... 97

Figure 49: Type of Furniture Products Bought in Past Year (General Survey) ............................................................................................ 97 Spending on Furniture Goods by Demographic Segment .................................................................................................................................... 98

Figure 50: Furniture Spending by Demographic Segment (General Survey) .............................................................................................. 98 Where People Shopped for Furniture Goods ......................................................................................................................................................... 99

Figure 51: Where Furniture Consumers Shopped In Past Year (General Survey) ...................................................................................... 99 More About the Most Recent Furniture Goods Purchase .................................................................................................................................. 100

Figure 52: About last furniture goods purchase, was it bought on sale or at regular price; a luxury or ordinary brand; bought due to need or desire (General Survey)..................................................................................................................................................................... 100

→ Key Finding: Implications For Marketers on Premium or Luxury Brand Positioning for Furniture Goods ........................................... 101 Furniture Goods Product Features Rated Very/Extremely Important in Influencing Most Recent Purchase .............................................. 102

Figure 53: Product Features Rated Very or Extremely Important to Furniture Goods Shoppers (General Survey) ............................... 102 → Key Finding: Implications For Furniture Goods Marketers ....................................................................................................................... 103 Furniture Goods Retailer and Product Brand Preferences ................................................................................................................................ 104

Figure 54: Retailer and Product Brands Purchased by Furniture Goods Consumers in Past Year (General Survey) ........................... 104

Details about Outdoor, Lawn, Patio and Garden Products Purchases ................................................................................................... 105 Type of Outdoor Products Bought ........................................................................................................................................................................ 105

Figure 55: Type of Outdoor Products Bought in Past Year (General Survey) ........................................................................................... 105 Spending on Outdoor Goods by Demographic Segment ..................................................................................................................................... 106

Figure 56: Outdoor Spending by Demographic Segment (General Survey) .............................................................................................. 106



Where People Shopped for Outdoor Products ..................................................................................................................................................... 107 Figure 57: Where Outdoor Consumers Shopped In Past Year (General Survey) ...................................................................................... 107

More About the Most Recent Outdoor Goods Purchase ..................................................................................................................................... 108 Figure 58: About last outdoor goods purchase, was it bought on sale or at regular price; a luxury or ordinary brand; bought due to need or desire (General Survey)..................................................................................................................................................................... 108

→ Key Finding: Implications For Marketers on Premium or Luxury Brand Positioning for Outdoor Goods .............................................. 109 Outdoor Goods Product Features Rated Very/Extremely Important in Influencing Most Recent Purchase ................................................. 110

Figure 59: Product Features Rated Very or Extremely Important to Outdoor Goods Shoppers (General Survey) .................................. 110

Details about Kitchen and/or Laundry Major Appliances, Kitchen and Bath Fixtures, Cabinetry, Countertops and Other Building Product Purchases .............................................................................................................................................................................. 111

Type of Kitchen & Bath Goods Bought ................................................................................................................................................................ 111 Figure 60: Type of Kitchen & Bath Products Bought in Past Year (General Survey) ................................................................................ 111

Spending on Kitchen and Bath Goods by Demographic Segment ..................................................................................................................... 112 Figure 61: Kitchen and Bath Spending by Demographic Segment (General Survey) ............................................................................... 112

Where People Shopped for Kitchen and Bath Goods .......................................................................................................................................... 113 Figure 62: Where Kitchen and Bath Consumers Shopped In Past Year (General Survey) ....................................................................... 113

→ Key Finding: Implications for Specialty Custom Kitchen and Bath Stores ................................................................................................ 114 More About the Most Recent Kitchen and Bath Goods Purchase ..................................................................................................................... 115

Figure 63: About last kitchen and bath goods purchase, was it bought on sale or at regular price; a luxury or ordinary brand; bought due to need or desire (General Survey) ......................................................................................................................................................... 115

Furniture Goods Product Features Rated Very/Extremely Important in Influencing Most Recent Purchase .............................................. 116 Figure 64: Product Features Rated Very or Extremely Important to Kitchen and Bath Goods Shoppers (General Survey) .................. 116

Kitchen and Bath Goods Retailer and Product Brand Preferences ................................................................................................................... 117 Figure 65: Retailer and Product Brands Purchased by Kitchen and Bath Goods Consumers in Past Year (General Survey) .............. 117

CHAPTER 5: WHERE CONSUMERS GATHER DECORATING ADVICE THAT INFLUENCES THEIR PURCHASES ................................................................................................................................................................ 118

Including Special Investigations into the Role of Internet and Decorators in Home buying and Decorating Decisions ......... 118

Sources that Were Useful in Helping Consumers Learn About Home Items to Buy ........................................................................... 119 Figure 66: Sources Found Very or Extremely Useful in Learning About New Items to Buy for Home (General Survey) ....................... 119

→ Key Finding: Implications For Home Marketers on Connecting with Target Consumers ........................................................................ 120

Specific Media Sources That Supported Consumers' Purchases and Decorating Decisions ............................................................ 121 Figure 67: Specific Media Sources Used in Support of Home Purchase and Decorating Decisions (General Survey) ........................... 121



The Most Valuable Media Source for Home Purchases and Decorating Decisions .......................................................................................... 122 Figure 68: Most Valuable Media Source Used in Support of Home Purchases and Decorating Decisions (General Survey) ................ 122

Special Investigation — Role of the Internet in Home Product Purchases and Decorating Decisions .......................................... 123 Ways Home Consumers Used the Internet in Support of Home Product Purchases or Decorating Decisions .............................................. 123

Figure 69: Specific Ways Home Consumers Used the Internet in Past Year (General Survey) ................................................................ 123 → Key Finding: Implications For Home Marketers on Internet Presentation ............................................................................................... 124 Features that Influence How Consumers Shop for Home Items Online ........................................................................................................... 125

Figure 70: Features of Internet Shopping that Are Very or Extremely Important to Home Consumers (General Survey) ..................... 125

Special Investigation — Use of Home Decorators or Designers ............................................................................................................... 126 Figure 71: Use of Home Decorator or Designer in Past Year (Genera and Luxury Surveys) .................................................................... 126

Type of Decorator Employed ................................................................................................................................................................................ 127 Figure 72: Type of Interior Decorator Used (General and Luxury Surveys) .............................................................................................. 127

Factors that Influenced Home Consumers in Using a Decorator ...................................................................................................................... 128 Figure 73: Factors that Influenced Home Consumers to Use a Professional Decorators (General and Luxury Surveys) ....................... 128

→ Key Finding: Implications For Home Decorators and Designers ................................................................................................................ 129 How Using a Decorator Impacts Consumers' Spending ..................................................................................................................................... 130

Figure 74: Spending on Home by Consumers Using Decorators and Those not Using Decorators (General Survey) ............................. 130

CHAPTER 6: ABOUT SHOPPING FOR HOME GOODS ..................................................................................... 131

Types of Stores Where Home Consumers Regularly Shop ......................................................................................................................... 132 Figure 75: Where Shopped for Home, Regularly, Occasionally, Rarely or Never (General Survey)......................................................... 132

→ Key Finding: Internet Is an Important Shopping Venue for Home Shoppers ........................................................................................... 133 Favorite Stores for Home Shoppers ..................................................................................................................................................................... 135

Figure 76: Typical Stores Where Consumers Shop for Home Items (General Survey) .............................................................................. 135

Experiences Rated Important in Influencing Home Consumers to Shop .............................................................................................. 136 Figure 77: Shopping Experiences Rated Very or Extremely Important (General Survey) ........................................................................ 136

Activities that Influence the Home Shopper Most .............................................................................................................................................. 137 Figure 78: Shopping Activities That Influence the Home Shopper (General Survey) ............................................................................... 137

→ Key Finding: Ways to Enhance the Shopping Experience for Home Consumers ....................................................................................... 137

Trends in Home Shopping .................................................................................................................................................................................. 139 Figure 79:Trends in Home Shopping this Year (General Survey)............................................................................................................... 139

Trends in Future Home Shopping ....................................................................................................................................................................... 139 Figure 80: Trends in Home Shopping in Coming Year ............................................................................................................................... 139



CHAPTER 7: ABOUT HOME CONSUMERS' ATTITUDES AND PERSONALITIES ..................................... 140

Attitudes about Home .......................................................................................................................................................................................... 141 Figure 81: Attitudes about Home (General & Luxury Surveys) .................................................................................................................. 142

Five Different Personalities of Home Consumers Emerged ...................................................................................................................... 144 Figure 82: Five Personalities of Home Shoppers (General and Luxury Surveys)...................................................................................... 144

Personalities by Survey Sample ........................................................................................................................................................................... 145 Figure 83: Personalities Distribution among Survey Samples (General & Luxury Surveys) ................................................................... 145

How the Personalities Answered Each Attitude Question ................................................................................................................................. 146 Figure 84: Attitude Statements by Personalities (General& Luxury Surveys) .......................................................................................... 149

Personality In-Depth: Decorating Stylist ........................................................................................................................................................... 149 Personality In-Depth: Professional ..................................................................................................................................................................... 150 Personality In-Depth: Not-That-Into-Home ....................................................................................................................................................... 151 Personality In-Depth: Cocooner .......................................................................................................................................................................... 152 Personality In-Depth: Impulse Shopper ............................................................................................................................................................. 153 Field Guide to the Home Consumer Personalities .............................................................................................................................................. 154

Figure 85: Field Guide to the Home Consumer Personalities ...................................................................................................................... 155

CHAPTER 8: ABOUT MAXIMIZING SALES TO THE HOME CONSUMER MARKET ................................. 156

How Affluent Consumer's Are Adjusting their Spending in Light of the Current Economic Crisis ............................................... 157 Figure 86: How Affluent Consumers Are Changing Their Shopping Behavior (3Q2008 Luxury Tracking Study) ................................ 157

Home Redecorating & Remodeling Is Passion for Many Americans ....................................................................................................... 159 The Demographic Characteristics that Define the Prime Consumer Market for Home-Related Products .................................................... 160 What They Have, What They Own ...................................................................................................................................................................... 161 How Luxury Is Defined ......................................................................................................................................................................................... 162 Shopping for the Good, Better or Best in Home Items ....................................................................................................................................... 163

Home Furnishings Market Overview ............................................................................................................................................................... 165 Connecting Unity Marketing's Survey with Government Statistics ................................................................................................................. 166 Home Furnishings Sales by Channel of Distribution ......................................................................................................................................... 167 Implications of Industry Sales and Channel of Distribution Data for Home Marketers ................................................................................. 168 Redecorating vs. Remodeling Changes ................................................................................................................................................................ 169 Spending on Home Changes ................................................................................................................................................................................. 172 Rooms Involved in Home Changes ...................................................................................................................................................................... 173



Features Involved in Home Changes ................................................................................................................................................................... 173

About Home Product Purchases ....................................................................................................................................................................... 173 Demographic Distinctions in Home Goods Purchases ........................................................................................................................................ 174 Spending on Home Goods ..................................................................................................................................................................................... 175 A Closer Look at Linens ....................................................................................................................................................................................... 175 A Closer Look at Furniture, Mattresses, Lamps, Floor Coverings .................................................................................................................... 179 A Closer Look at Outdoor/Patio ........................................................................................................................................................................... 180 A Closer Look at Kitchen and/or Laundry Major Appliances, Kitchen and Bath Fixtures, Cabinetry, Countertops and Other Building Products ................................................................................................................................................................................................................. 181

Ways of Influencing the Home Consumer ....................................................................................................................................................... 182 A Closer Look at the Internet as It Influences Home Shoppers ........................................................................................................................ 183 A Closer Look at the Role of Interior Decorators ................................................................................................................................................ 184

More on Shopping for Home .............................................................................................................................................................................. 186

Attitudes and Personalities of Home Consumers ......................................................................................................................................... 188 Five Personalities Make Up the Home Consumer Market ................................................................................................................................ 189



INTRODUCTION OBJECTIVES OF THE RESEARCH STUDY This report summarizes the results of a major research initiative conducted for a select group of forward-thinking home furnishings

marketers. Under the guidance and direction of these companies, this research study explores the consumer market for home

furnishings, with a specific focus on the needs, desires and passions of home furnishings consumers, including furniture and

decorative home furnishings buyers. Furniture and home furnishings product companies; furniture and home furnishings retailers,

including internet and direct marketers, home builders and remodeling contractors; and home decorating services companies will

benefit from the new insights presented in this report into the home furnishings customers’ mindset.

Through consumer research, including quantitative surveys conducted among 1,360 consumers active in the home redecorating and

remodeling market (referred to as the general survey) and a special investigation into the luxury home market gathered through a

survey of 1,026 affluent consumers (incomes $100,000 and above, and referred to as the luxury survey), this study helps marketers

and retailers tap into the psychology of people who buy home furnishings and decorative accessories in order to understand their

drives, motivations and passions in making home decorating decisions and purchases. The insights provided in this report will help

marketers and retailers understand their consumers better. In this way, they can discover new marketing strategies and opportunities

that will help them reach their target consumers more effectively and more productively.

This study brings a special emphasis not just on what home furnishings products consumer buy, but also on why they buy and where

they shop for these goods. These insights translate directly into actionable strategies and tactics that marketers can use to build their

businesses. Understanding the mindset of the home furnishing consumer, their desires and needs, is critical for companies to forge a

path to market growth.



With a focus on consumers and their buying behavior, needs, desires and preferences, this research study will include research data

and statistics about:

• Home Furnishings Market Size and Growth: What is the size of the home furnishings market, including furniture and

decorative home furnishings? How is it segmented by type of product and service? How rapidly is it growing? What are

future growth trends in the segments in the market?

• Demographics of the Home Furnishings Market: What are the demographic characteristics of home furnishings buyers?

What are the key demographic differences found among and between buyers of the different products and service segments

(e.g., gender, age, generation, HHI, size, composition, ethnicity/race, education, etc.)?

• Buying and Shopping Behavior of Home Furnishings Consumers: What are the primary characteristics of the consumers’

buying behavior related to home furnishings products and services? What kind of shopping experiences do consumers crave

and what kind do they disdain? What motivates them to buy home furnishings and how can marketers tap these motivators

through branding and marketing communications initiatives? Where do home furnishings consumers shop for the different

types of products and services? What factors influence their decision making? How much do they spend buying each of the

products and services segments and across the entire category? What is the role of brand in product and services selection and

shopping choices? How do different demographic segments differ in their shopping and buying behavior?

• Favorite Home Furnishings Brands, Stores & Designers: A major thrust of the research is to understand the brand

preferences of home furnishings customers in both their product selections and retail shopping choices. What designers,

product brands and retailers do they think of for their purchases? How do these competing brands rank in terms of consumer

awareness and usage?

• Psychographic Profile and Segmentation of the Home Furnishings Markets: A psychographic profile of the home

furnishings consumer is presented in this study. The profiles identify five different types or personalities of consumers of

home furnishings products and services. These profiles identify each personality’s drives and motivations in purchasing home



products. By understanding the psychology of different types of shoppers, marketers will discover what factors are more or

less important in driving each personality’s purchasing decisions and how consumers' different attitudes and motivations

influence what they buy and how much they spend. These insights will help home furnishings product and service marketers

and retailers better understand the hearts and minds of their consumers.

TWO SURVEYS -- TWO DIFFERENT CONSUMER MARKET PERSPECTIVES – IN ONE STUDY Two surveys were conducted among two different types of consumers in order to provide marketers with perspectives on two distinct

markets – the home furnishings market among the 'classes' and the masses. Both surveys were conducted in July 2008 and cover the

same study period, July 2007 to the present. The two surveys were:

• General survey – This survey was conducted among a representative sample of households with incomes of $50,000 and

above who had been or planned to be involved in a home redecorating or remodeling project in the past or coming year. A

total of 3,036 respondents were surveyed to identify those 1,360 consumers that met the survey qualifications and completed

the survey. The average age of the general survey sample was 44.3 years; household income was $123,900 with 20 percent of

the sample falling within the $50,000-$74,999 income range and 24 percent in the $75,000-$99,999 range and the remaining

56 percent having incomes of $100,000 or more. The gender split of the general survey sample was 65 percent female and 35

percent male. In the general survey all survey questions were included.

• Luxury survey -- This survey was conducted in association with Unity Marketing's quarterly Luxury Tracking study. The

survey sample was 1,026 affluent consumers (qualifying income of $100,000 or more) and who purchased one or more

luxuries in the three month study period. A total of 692 luxury survey respondents qualified to complete the home-related

questions included in the survey by having been involved or planned to be involved in a home redecorating or remodeling

project in the past year or coming year. The average age of the luxury consumers surveyed was 45 years; household income



averaged $204,800 with 51 percent of those surveyed having incomes of $100,000-$149,999 and the remaining 49 percent

with incomes $150,000 and above; and 64 percent were female and 36 percent male respondents. For the luxury home survey,

only a selective set of home-related questions were asked.

A statistically-significant sample of affluent consumers were included in the general survey, so where data was not included in the luxury survey, findings from the most affluent ($150,000 and above) consumers in the general

survey will be reported

While not all questions from the in-depth home survey were asked in the luxury survey, the answers to those missing questions can be

derived from the general survey where a statistically-significant sample of affluent luxury consumers (household incomes of $150,000

and above) were included. In total affluent consumers with incomes of $150,000 and above represented 20 percent of the total general

survey. Therefore, in the coming analysis where the luxury survey doesn't provide data, we will report findings from the general

survey from the sample of affluents ($150,000 and above).

Note: The average income of the most affluent consumers (i.e. those with incomes $150,000 and above) in the general survey was

$230,700, which corresponds most closely to the average income of the consumers in the luxury survey ($203,800).

SPECIFIC PRODUCTS, BRANDS AND DATA POINTS PRESENTED IN THIS STUDY The general consumer survey conducted among active home furnishings buyers was divided into the following sections which provide

an outline for this report:

Demographics

The demographic data contained in this report helps marketers identify the key descriptive characteristics of their primary target market.

Marketers can use the demographic data contained in this report to identify the key descriptive characteristics of their primary target

market. The demographic composition of the home furnishings market gathered in this survey describe the consumers' gender; age;



income with special emphasis on the affluent market with incomes $150,000 and above; marital status; home ownership; children and

number of people living in the home; occupation; educational attainment; and ethnicity.

What They Have, What They Own

In order to understand the opportunities for home furnishings marketers to sell into their target market, basic information was gathered about their homes, what they own and what they have.

In order to understand the opportunities for home furnishings marketers to sell into their target market, basic information was gathered

about the respondent's homes, what they own and what they have. Specifically, data was collected about the size of the consumers'

primary residence; size of their home lot; specific types of luxury features included in the home, such as whirlpool baths/indoor spas,

gourmet kitchens, fireplaces, etc.; specific types of outdoor luxury features, such as outdoor hearth, pool, garden water features, etc.;

luxuries owned, such as boats, collections of art, antiques, etc.; and second home or vacation home ownership.

Definition of Luxury in their Lifestyle and in terms of Home Furnishings Purchases

These insights provide powerful guidance for marketers and retailers targeting the more upscale market to position their products most effectively.

In order to understand the dynamics of luxury in the mindset of the luxury consumer, respondents were asked to define luxury in terms

of their lifestyle in general as well as what luxury means in terms of their home furnishings purchases. These insights provide

powerful guidance for marketers and retailers targeting the more upscale market to position their products most effectively.



Recent Major Home Changes

Respondents were qualified to take the survey because they were involved in a home decorating and/or remodeling project in the past

year (study period July 2007 until present) or

had plans to be conduct a home decorating

and/or remodeling product in the coming

year (from July 2008 until July 2009). All of

the total 3,036 respondents were surveyed in

the general survey in order to identify the

core 1,360 respondents active in home

products and/or planning on being involved

in a home project. The luxury survey was

conducted among 1,024 affluent

respondents. Figure 1 illustrates the results

of the qualifying question about major home

projects in the study period.

Figure 1: Major Home Changes in Past Year, all respondents general and luxury survey

Overall 53 percent of both general survey

and luxury survey respondents reported they

had done one or more of the following things:

• Redecorated their home, involving only minor changes such as paint, furniture and new decorations (42 percent general

survey; 36 percent luxury survey)

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

Any Home Changes

Redecorated Home

Remodeled Home

Bought Existing Home

Expanded/Added on to Home

Built New Home

Bought/Built Vacation/Second Home

Bought Time Share

53%

42%

16%

6%

3%

2%

2%

2%

53%

36%

17%

8%

3%

4%

5%

3%

Major Home Changes in Past YearGeneral Survey & Luxury Survey

General Survey (Inome $50,000 and above; n=3,036 respondents) Luxury Survey (Income $100,000 and above; n=1026 respondents)



• Remodeled their home, involving

hammers and saws and major structural

changes (16 percent general survey; 17

percent luxury survey)

• Expanded or added onto their home (3

percent both general and luxury survey)

• Bought an existing home as a primary

residence (6 percent general survey; 8

percent luxury survey)

• Built a new home as a primary

residence (2 percent general; 4 percent

luxury)

• Bought or built a second and/or

vacation home (2 percent general; 5

percent luxury)

• Bought time share for vacationing (2

percent; 3 percent luxury).

Figure 2: Detail of Rooms and Home Features

Other than buying and/or building a vacation home and buying a time share, there was virtually no statistically significant difference

between the respondent's based upon income. In other words, all income groups were equally likely to have been involved in a major

home project in the past year with the exception of vacation home and time share which was most associated with the more affluent

Rooms in Home Project Features Changed Bathroom Bathroom Cabinets Den/Library Bathroom Countertops Dining Room Bathroom Fixtures (e.g. faucets, shower, bathtubs, toilets) Exercise Room Ceramic Tile Floors Garage Ceramic Wall Tile Kitchen Concrete/Masonry Work Living Room Exterior Doors Master Bedroom Garage Doors Office Hardwood Flooring Other Bedrooms Kitchen Cabinets Porch/Patio Kitchen Countertops Other Rooms Kitchen Fixtures (e.g. faucets)

Laminate Flooring Lighting/Lighting Fixtures Roofing Siding, including vinyl/metal Skylights Swimming Pool, in‐ground Vinyl Flooring Wall Paneling Windows



respondents. Data points collected in the survey section about major home changes included spending on current project and budget

for planned project; rooms involved in the major home project; and home features changed.

Home Furnishings Products Purchased, Amount Spent and Where Bought

Information was gathered about what types of home furnishings were bought, how much was spent and in what type of store or shopping venue those purchases were made.

Survey respondents were queried about four key categories of home furnishings products, including:

• Linens, Home Decorating Fabrics, Window & Wall Coverings, specifically:

� Accent Pillows

� Bath Linens (such as sheets, towels, etc.)

� Bed Pillows

� Comforters, Bed Spreads and/or Throws

� Duvets and/or Shams

� Feather Beds and/or Mattress Covers

� Home Decorating Fabrics for upholstery, window treatments, curtains, drapes, pillows, slipcovers, bed spreads,

duvets or fabrics for other custom applications

� Ready-made curtains, drapes, sheers or other fabric window coverings

� Sheets and Pillowcases

� Table Linens (such as tablecloths, napkins, placemats, etc.)

� Wall coverings, including wall paper, fabric accents, etc.

� Window Coverings (such as blinds, shades, shutters or other 'hard' window coverings, etc.)



� Other linens, fabrics, wall or window coverings

• Furniture, Mattresses and Foundations or Box Springs, Lamps and Lighting Fixtures, & Floor Coverings or Rugs,

specifically:

� Upholstered Furniture (such as sofas, chairs, ottomans, etc.)

� Wooden Furniture (such as tables, bureaus, cabinets, book cases, armoire, bed frames, etc.)

� Decorative Lamps (including plug-in table and floor lamps)

� Lighting Fixtures (including installed hanging lighting fixtures, chandeliers, recessed lighting, track lighting, spot

lights, etc.)

� Rugs and carpets, including wall-to-wall and area rugs

� Mattresses & Box springs and/or Sleep Systems

� Other floor coverings (such as wood, tile, stone, etc.)

� Other furniture, lamps and floor coverings

• Outdoor, Lawn, Patio & Garden Products, specifically:

� Barbecue Grills and/or outdoor cooking equipment and supplies

� Chimneas, fire pits/places and/or outdoor wood stoves or gas heaters

� Fencing and/or landscape timbers, borders, etc.

� Furniture for decks, patios, outdoors (including lawn furniture, tables, chairs, umbrellas, etc.)

� Garden Statues and/or decorative statuary

� Garden Shelters (including greenhouses, trellises, arbors, gazebos, sheds, other outdoor shelters, etc.)

� Lighting accents (including spot lights, path lights, etc.)



� Porch and patio decorative accents (such as flags, signs, wreaths, mats, wind chimes, other decor accents)

� Power gardening equipment (such as lawn mowers, tillers, edgers, leaf blowers, snow blowers, etc.)

� Water gardens, fountains, waterfalls, other water features

� Decorative pots, window boxes, planters

� Other outdoor, lawn, patio, garden products

• Kitchen and/or Laundry Major Appliances, Kitchen and Bath Fixtures, Cabinetry, Countertops and Other Building

Products, specifically:

� Kitchen Appliances (such as stoves, refrigerators, ovens, wine coolers etc.)

� Kitchen Cabinets

� Kitchen Countertops

� Kitchen Faucets

� Other Kitchen Fixtures, such as sinks, etc.

� Bathroom Cabinets

� Bathroom Countertops

� Bathroom Faucets

� Other Bathroom Fixtures (such as sinks, tubs, toilets, etc.)

� Laundry Appliances (such as washers, dryers)

� Air Conditioning, Cleaning, and/or Filtration Systems

� Water Conditioning, Cleaning and/or Filtration Systems

� Home Security Systems



� Other Building Products

Within each major product category (e.g. Linens, Furniture, Outdoor and Kitchen/Bath) the amount of money spent in the past year

was gathered, thus allowing the reporting of spending within category and total across all categories.

Categories of Stores Included in Study

Further the respondents reported where they made their purchases of the products in the past year, thus allowing marketers and

retailers to understand the channels of distribution for each major product category. The types of stores included in the survey were:

• Department Store, such as Macy's, Sears, JC Penney's, Bloomingdales, Dillards, Nordstrom, etc.

• Specialty Fashion and/or Gift Shop or Boutique

• Specialty Home Furnishings Store, such as Pier 1, Pottery Barn, Bed, Bath & Beyond, Linens & Things, Kirklands,

Brookstone etc.

• Furniture Store, such as Ethan Allen, Domain, Heritage, or local furniture store

• Specialty Mattress Store, such as Mattress Firm, Mattress Giant, Sleepys, Health Back Store, etc.

• Specialty Window Coverings Store

• Specialty Wall Coverings Store

• Specialty Custom Kitchen and/or Bath Shop including Cabinet Store, Kitchen and Bath Show Room, etc.

• Specialty Garden Center and/or Patio/Outdoor Living Store

• Specialty Appliance Dealer and/or Electronics Store, such as Best Buy, Circuit City and/or exclusive specialty appliance store

• Art Gallery, Custom Framing Shop and/or Antique Store

• Warehouse Club, Outlet Store, and/or Discount Store, such as Wal-Mart, Target, Costco, etc.

• Through Internet



• Via Mail Order or TV Shopping

• Home Improvement store, Hardware store, such as Lowe's, Home Depot

• Craft and/or Hobby Store, such as Michaels, Hobby Lobby, JoAnn's

• Interior Decorator/Designer

• Home Design Store/Showroom, such as Expo Design Centers

• Plumbing Wholesale Showroom

Finally, specific questions were asked to help marketers understand the mindset of the consumer when making these home furnishings

product purchases. Specifically, respondents shared whether their last purchase within the category was bought on sale or at a

discount, whether it was a luxury or an ordinary, mass brand and whether the item was bought out of need or desire. Respondents also

shared the relative importance of various factors in influencing their most recent purchase, such as articles and reviews, advertising,

brand name, Internet research, etc. By analyzing these factors marketers can gauge the relative effectiveness of their marketing efforts

and allocate resources accordingly to those factors that are most influential in getting the consumer to buy.

Where Consumers Gather Decorating Advice & Their Favorite Decorating Styles

Understanding the media sources that home consumers rely upon for decorating advice and information enables marketers to more effectively target their primary consumer through communications and advertising.

Following the detail sections of the survey which specifically address the four key product categories, the survey turned to asking

about decorating decisions and where consumers get their decorating inspiration. They were asked to rate the usefulness of key

resources in helping them decorate, including television, Internet, magazines and home decorators, among others. The results of this

question enable marketers to more effectively target their consumer communications and advertising. In addition, they were asked to

identify media sources which helped them in their decorating planning, such as Better Homes & Gardens magazines, Country Home,



HGTV and others. (The complete list of media sources included in the survey are available at Unity Marketing's website

http://www.unitymarketingonline.com/cms_home/homedecor/Home_Report_2008/Home_Brands_2008.php)

Respondents also shared their preferred decorating styles from a list including:

• Asian

• Casual

• Contemporary

• Cottage

• Country

• Early American

• Eclectic

• Formal

• French Country

• Mediterranean

• Mission

• Modern

• Scandinavian/Swedish

• Shabby Chic

• Southwestern

• Traditional

• Tuscany

Figure 3: List of Decorating Styles Included in the Survey



Special Investigation: Use of Home Decorators and the Internet for Decorating Guidance

The results of these questions will help home decorators and Internet websites position their services to attract the best clientele.

In both the general and the luxury surveys, consumers were asked if they used an interior decorator or designer in their current project.

If they used a decorator or design, respondents answered additional questions about what type of decorator they used and what value

the decorator brought to their project. This can provide powerful insight for home decorating professionals in positioning their

services.

Further, they were also asked about the role that the Internet played in their project, either for research, decorating ideas and/or

ordering products, the results of which can help Internet providers position their services as well.

More about Shopping for Home Furnishings

The results of these questions support retailers in better positioning their store to capture the loyalty of the best home furnishings shoppers.

In addition to gathering detail data about where people made their most recent home furnishings purchases, an additional series of

questions were asked pertaining to home furnishings shopping in general. Respondents rated the importance of each type of store

depending upon whether they turn to that store regularly as a shopping source, occasionally, rarely or never. Further, respondents

were asked to rate store and service features that most powerfully motivate them to shop for home furnishings. Finally, they were

asked to name specific stores where they typically shop for home furnishings, identifying store brands from an aided list. The results

of these questions support retailers in better positioning their store to capture the loyalty of the best home furnishings shoppers.



Attitudes about Home Furnishings and Home Decorating

Analysis of the attitude statements helps marketers understand the mindset of different types of consumer personalities that make up the overall home furnishings marketplace.

It enables them to understand the mindset and psychology that distinguished the best from the worst target for their marketing promotions.

The survey concluded with a series of 29 attitude questions that respondents were asked to rate in terms of how strongly they agreed

or disagreed with each statement. The result of this battery of attitude questions is used to segment or cluster the consumers surveyed

into different personality types distinguished by different motivations in home furnishings shopping and decorating and distinct

shopping behaviors. An analysis of the attitude statements helps marketers understand the mindset of different types of consumer

personalities that make up the overall home furnishings marketplace.

By understanding the different personalities that make up the home furnishings market, marketers and retailers can more effectively

tailor their marketing and advertising messages to each type of personality. It enables them to understand the mindset and psychology

that distinguished the best from the worst target for their marketing promotions.

Home Furnishings Report 2008 FINAL - Unity Marketing...FINAL 19 s • Foundations oor Coverings or...

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