Today most marketing is targeted at Millennials, those aged 18-34, after all they are America's largest consumer group having surpassed the Baby Boomers, ages 51-69. However, as marketers are starting to shift away from the Boomers and towards the Millennials, they have completely forgotten about Generation X, ages 35-50. While Generation X may be the smallest of the three groups, there are still 66 million of them out there, and more importantly they are spending a lot of money!
According to a recent report by Furniture Today, Generation X accounts for 33% of all money spent on furniture, which came out to almost $32 billion in 2014. Their furniture buying increased by a whopping 43% from 2012 to 2014. And when it comes to outdoor conversation groups, area rugs, motion sofas, mattresses, and stationary chairs, they are spending more money than any other generation. A lot of this may be due to some of their desires they have in their house. According to a survey done by Apartment Therapy the number one must have for a Generation Xer in their home is hardwood floors, this could easily explain why they account for 40% of all money spent on area rugs. After hardwood floors, they also want lots of light, outdoor spaces, open floor plans with large rooms, and closet space. That need for outdoor space could easily explain why Generation X spends 42% of all the money that is spent on outdoor conversation groups.
The survey also looked at how Generation Xers redecorate their homes. In the last two years, 71% of all Gen Xers have painted walls in their home, this is followed by 66% who bought decorative accessories, 65% who bought wall decor, 64% who bought lamps, 63% who bought window treatments, and 59% who bought light fixtures. Those last three make sense when you consider lots of light being one of the must-haves in a home. When it comes to rugs, 55% of Gen X has bought a new one in the last two years, easily explaining how they spend 40% of all the money on rugs. With mattresses, 36% of Generation X has bought a new mattress in the last two years which is why they account for 37% of all the money spent on bedding.
Certainly these are numbers that are hard to overlook, but just in case you've overlooked Generation X to focus on Millennials, you probably are still in pretty decent shape. Gen Xers are about just as tech savvy as Millennials, and the money you spend on online marketing won't be lost on them. On average, Gen Xers will visit five different web sites when buying furniture, and six different web sites when buying accessories. These are shoppers that are well informed and know exactly what they want before they even walk into a store. In other words, you better have a pretty good web presence if you want to sell to these younger generations.
If you need spend some more time rethinking your marketing, why not let DSA Factors help out. We will do all of your credit checking, handle your collections, and speed up your cash flow so that you can pay those marketing guys to sell your products. We've been specializing in the furniture, accessories, and giftware industries for over 25 years, so leave it to us to factor your accounts receivable so you can focus on the more important stuff.