Most furniture manufacturers and furniture stores like to cater to a specific demographic. Those who sell low to mid range priced furniture are targeting the middle class, while those who offer high end, luxury furniture are targeting the wealthy. While these two demographics are certainly important, there is another demographic that is often overlooked but perhaps even more important, that is those who are not yet rich but will be one day.
20% of all Americans households make between $100,000 and $250,000, but yet they account for 40% of all expenditures. This is pretty comparable to the 80% of American households who make less than $100,000 but only account for 50% of all expenditures. Only 2-3% of American households make more than $250,000, and they account for the other 10% of expenditures.
So who are these not people who are on the verge of becoming rich? Most of them would be between the ages of 35 and 54 as it is between these ages when most employees will earn their highest salaries. This also corresponds to the ages that are most likely to spend the most on furniture. However, those aged between 35 and 44 tend to spend 1.5 to 2 times more on furniture than those aged between 45 and 54.
This means that if you are a furniture manufacturer there is a lot of opportunity if you are marketing towards the younger crowd that is almost rich. This group is primarily composed of Generation Xers, an age group that is typically overlooked in favor of the much larger Baby Boomer and Millennial generations. As many manufacturers are starting to shift there attention to the up and coming Millennials, it would be a good idea for them to also focus on Generation X, who actually share a lot of similarities with the younger Millennials.
While most luxury lines like to portray a sense of exclusiveness and status, this is not something that appeals to the soon be rich, a group that is largely opposed to the excesses of the top 1%. Instead, luxury lines looking to tap into this market need to appeal more to their individuality and lifestyle, while at the same time offering a strong online presence in both the form of eCommerce and social medias.
If you are currently working on expanding your line to cater to those who are becoming rich, now might be a good time consider factoring accounts receivable. The funds you receive through factoring are not a loan, you can use them however you like, whether it is for new product development, new marketing initiatives, or anything else. Give DSA Factors at 773-248-9000 and start getting funded tomorrow!