Key Trends Shaping the Market
Small businesses gaining popularity for home decor.
Increased consumer spending on furniture.
Rising importance of online presence for small retailers.
Industry Challenges
Ashley Furniture introduces a surcharge due to global shipping issues.
Flexsteel follows suit with similar measures.
Impact of global supply chain disruptions on pricing strategies.
Consumer Behaviors
Millennials and Baby Boomers leading in spending at small businesses.
The significant role of social media in discovering small retailers.
Emphasis on the value of personalized customer service.
Segment Breakdown
Consumer Shift to Small Businesses
78% of Americans shop at small businesses for home decor monthly.
Millennials (80%) lead this trend, motivated by local economy support (64%) and search for unique products (47%).
Small businesses perceived to offer higher quality (43%) and foster community connection (40%).
Gender and Spending Patterns
Home decor is the second most popular purchase among women.
Average monthly spending at small businesses: Millennials ($135), Baby Boomers ($130).
Furniture tops spending categories, surpassing groceries.
The Digital Age Influence
31% of consumers avoid small businesses without a website.
Gen Z prefers online shopping convenience.
Social media platforms crucial for small business visibility.
Ashley Furniture Surcharge Announcement
New surcharge effective July 15: 1% on domestic goods and bedding, 3% on other products.
Causes: Global shipping demand, port congestion, Suez Canal disruptions.
Flexsteel also implemented a surcharge due to similar challenges.
Case Study: Impact of Personalized Service
Customer’s decision influenced by knowledgeable RSA, leading to a purchase far exceeding the initial budget.
Highlights the value of personal customer interactions in driving sales and building trust.
Redefining Value Propositions
Emphasis on lifestyle improvements over product features and prices.
Importance of storytelling in marketing to resonate with consumer values.
Strategies to enhance customer connection and loyalty.
Financing Options: A Key Sales Driver
Benefits of private label credit cards in boosting sales and fostering loyalty.
Special promotions attract customers and encourage repeat business.
Wells Fargo Home Furnishings® credit card program: Key features and benefits for retailers.
