Zolak's Furniture Industry Digest: October Insights You Can't Miss

Top News from the Furniture World

Ashley Furniture's Connected Home Experience

#Technology

Ashley Furniture, the largest furniture retailer in North America, has partnered with Samsung to launch The Connected Home Experience, powered by Samsung SmartThings. This innovative interactive showroom, located in Brentwood, Tennessee, allows consumers to explore stylish furnishings alongside smart technology in an immersive setting.

Key metrics:

• 200+ connected devices and compatibility with over 3,800 products from 340+ brands

• Plans to expand this experience to more Ashley stores, reaching an even wider audience

Industry insight: The collaboration highlights a growing trend where furniture retailers and tech companies are joining forces. As consumers demand more integrated home solutions, this blending of traditional furniture with smart home capabilities is creating exciting new opportunities for the industry. Retailers who follow Ashley's lead could capture a bigger market share, especially among younger buyers who prioritize smart living solutions.

SOURCE: Samsung

Koala Living Integrated AI-Powered Zolak Showroom with a Built-In Configurator

#Technology

Koala Living is taking customer experience to the next level. They’ve teamed up with Zolak to integrate the Zolak Showroom and its advanced configurator. Now customers can visualize and customize multiple furniture bundles. They can do this in predefined interiors or even their own rooms.

Key features:

• Multi-object visualization and interactivity. Customers can see and arrange multiple pieces at once. Whether in a digital environment or their own homes.

• AI room mapping. The AI scans customer-uploaded photos. It detects objects and accurately maps out room layouts.

• Precise product dimensions. Products display true dimensions for better decision-making.

• Virtual projects. Users can create, save, and return to their design projects anytime.

• Centralized data hub. A digital management hub for real-time stock levels and content updates.

• Full lifecycle management. 3D modeling, content creation, and visualization are all in one place.

• Customer behavior tracking. Koala Living captures how customers interact. This provides insights for smarter product development and marketing strategies.

Key metrics:

• Engagement stats. A total of 1,250 users engaged with the showroom for a little more than one month. They generated 1,589 room views.

• Time spent. Users averaged over 4 minutes in the showroom. This enhances key behavioral metrics, improving SEO rankings and increasing conversion likelihood.

• Product interaction. Each session saw users interacting with an average of 7 products. They added 3 to their room scenes, leading to over 10 products considered per visit.

• Strong purchase intent. 66 users downloaded their results. This indicates strong purchase intent.

Industry insight: Koala Living’s integration of Zolak not only gives them a competitive edge but highlights a broader industry shift. Today’s buyers crave personalized, interactive, and seamless shopping experiences. By adopting immersive technology like Zolak, retailers can close the imagination gap, empowering customers to visualize products and make confident choices. This shift accelerates decision-making and boosts sales potential. 

SOURCE: Koala Living

Barbara Costello’s Family-Oriented Collection with Birch Lane

#Marketing & Design Partnerships

Barbara "Babs" Costello, known to millions as the heart behind @BrunchWithBabs, has partnered with Birch Lane to bring her cozy, family-first style to life. As Birch Lane’s first brand ambassador, Babs introduces over 50 pieces of classic furniture and decor, all inspired by her love for family and tradition.

Key highlights:

• Over 50 Items. This collection offers a wide range of home essentials.

• Huge social media influence. With more than 7 million followers on TikTok and Instagram, Babs knows how to connect with her audience.

• Family-focused. As a mother of four and grandmother of nine, Babs keeps family at the heart of her designs.

Industry insight: This collaboration marks a growing trend—social media influencers are playing a huge role in home decor. Expect to see more of these influencer-driven collections making waves in the industry.

SOURCE: Birch Lane

Upholstery, Sectionals, and Sofas in 2024

#Industry Trends & Insights

The latest CIN Consumer Furniture Buying Survey reveals eye-opening insights into what shoppers are craving. From sofas to sectionals, and occasional furniture, the trends are clear, and furniture retailers need to take note.

Key highlights:

• Fabric sofas are the go-to for 62% of shoppers. Only 18% are opting for leather. Not sure? That’s another 18%.

• Sofas are still the heart of the living room. 36% of shoppers are planning to buy one by the end of 2024. And for millennials? Sectionals are a hit—35% are looking to get one.

• More than half of buyers are ready to pay extra for sofas that are durable, comfortable, and stylish. Quality is key.

• Even though online shopping is on the rise, most people still want to touch and feel the furniture before making a decision.

• Most shoppers plan to spend between $1,000 and $1,999 on their new sofa.

• Occasional tables and recliners are also in the mix. Shoppers are focused on durability and functionality here too.

• Personalized spaces are on the rise. 24% want help styling their living rooms, and 48% want a full home makeover with expert advice on colors, layouts, and furniture choices.

Key metrics:

Industry insight: The demand for sofas and sectionals is steady, with fabric being the clear favorite. Shoppers value quality, durability, and customization. And while online shopping grows, in-store experiences still matter. If you’re online-only, make that shopping experience as personal as you can. Custom design services are also trending—24% need help designing their living room, and 48% want guidance for their entire home. Are you offering this personalized touch? If not, now’s the time to start.

Important Furniture News Roundup

#Marketing & Consumer Behavior

• Retail sales trends. September retail sales dipped by 0.32% from the previous month. But there’s a 0.55% year-over-year increase. E-commerce is booming, with a 15.21% jump in sales. National Retail Federation. 

• Shopping preferences. A Brooks Bell survey reveals that in-store furniture shopping is still king, especially among Baby Boomers and younger Millennials. Accesswire.

• Gen Z’s shopping preferences. Gen Z values convenience, mobile-friendly shopping, and ethical practices. Firstinsight.

• The impact of return policies on shoppers. Stricter return policies are turning away 69% of consumers. Younger shoppers feel this especially hard. SupplyChain247.

• Holiday spending trends. The National Retail Federation forecasts a winter holiday spending increase of 2.5% to 3.5% in 2023, projecting total spending between $979.5 billion and $989 billion in November and December, up from $955.6 billion last year. National Retail Federation

• Who’s buying furniture? Gen Z and Millennials are set to drive nearly 70% of furniture purchases soon. Sofas and sectionals are leading the way. Statista

• Consumer behavior shifts. Millennials are increasingly gravitating towards reused furniture due to financial constraints, influencing new furniture sales. Technavio.

• Consumer willingness to pay. Over 50% of consumers prioritize quality when purchasing sofas, while 70% value quality mattresses. Furniture Industry News.

#Industry Trends & Insights

• Holiday retail forecast for 2024. Bain & Company predicts a 3% growth in U.S. retail sales this holiday season. Non-store sales are expected to soar by 9.5%. Modern Retail.

• Mattress buying trends. 25% of consumers plan to buy a new mattress, with a preference for queen sizes and hybrid/memory foam options. Older generations show higher intent to purchase, emphasizing the importance of product quality. Home News Now.

• Sustainability trend. The British Furniture Manufacturers (BFM) wrapped up its 2024 regional meetings at Mobus Fabrics' showroom in Brighouse, West Yorkshire, emphasizing sustainable practices in furniture production. The event highlighted eco-friendly alternatives to traditional chemical treatments, bringing together 11 member organizations from various sectors. BFM.

• Bedroom furniture trends. In the second half of the year, 22% of consumers plan to buy bedroom furniture, with younger millennials and Gen Z at the forefront. Older shoppers are more willing to spend over $750 on a bed, prioritizing warranties, storage, and sustainability—though most won’t pay extra for eco-friendly options. Personalization is in: 43% prefer mix-and-match furniture over coordinated sets, favoring a more customized look in their spaces. Home News Now.

• Outdoor furniture trends. 20% of Gen Z shoppers plan to purchase outdoor furniture in the second half of 2024, surpassing baby boomers (12%) and Gen X (14%). Half of the respondents plan to spend between $100 and $500 on outdoor furniture, highlighting the budget-conscious nature of younger buyers. Casual News Now.

• Multifunctional designs. Growing demand for multifunctional and ready-to-assemble (RTA) furniture caters to space efficiency needs in smaller living environments. Technavio.

• The luxury furniture market. Projected to rise by USD 9.54 billion between 2024 and 2028, the luxury furniture market faces challenges in the UK, where sales for luxury furniture group Sanderson Design dropped by 11%. In contrast, North America saw a 4% sales growth, indicating positive movement outside the UK and Northern Europe.. Technavio

• The office furniture market. Expected to grow by USD 118.1 million from 2024 to 2028, driven by advancements in connectivity. Despite some interoperability challenges, it’s set to expand at a CAGR of 10.11%. Demand is rising for adjustable, eco-friendly, and tech-integrated furniture as residential and corporate spaces adapt to flexible working environments. Technavio.

#Technology & Logistics

• Import cargo outlook. Despite a dockworkers strike, October import volumes are projected to increase by 3.1% year-over-year, with the National Retail Federation estimating 2.12 million TEUs. National Retail Federation.

• East & gulf coast port strikes. Ongoing disruptions are affecting supply chains, forcing companies to adapt through stockpiling and rerouting. Gartner.

• Logistics challenges. Potential labor strikes and China’s Golden Week holiday could disrupt supply chains. Furniture companies are advised to plan ahead by effectively communicating forecasts and booking shipments early to mitigate delays. Benzinga.

• Furniture imports on the rise. Total furniture imports hit £717.2 million in July 2024, an 11.4% jump from July 2023. Big Furniture Group.

• Labor shortages. Skilled labor shortages are posing challenges to production capabilities, impacting the overall supply chain. All Things Supply Chain.

#Design & Aesthetics

• Trisha Yearwood's youth collection. Country star Trisha Yearwood is launching a youth furniture line with Legacy Classic|Modern Furniture, designed to grow with children, priced between $499 and $699. Furniture Today.

• Crate & Barrel x Athena Calderone. The collaboration returns for a second collection, inspired by Athena Calderone’s chic Tribeca home, blending elegance with Art Deco vibes from the 1930s. With over 90 pieces, including furniture, décor, and textiles, the collection offers a mix of materials and moody hues that create a sophisticated, modern twist on classic designs. House Beautiful.

• Coway's Design Excellence Shines at 2024 IDEA Awards. Coway Co., Ltd. achieved five finalist positions at the 2024 International Design Excellence Awards (IDEA), celebrating 15 years of recognition. Highlights include the BEREX Pebble Chair, the multifunctional BEREX Massage Bed, and the compact Icon Water Purifier 2. This success underscores Coway's commitment to innovative design and functionality, positioning the company for future growth in a health-conscious market. Coway.

• Evolution in color marketing. In a groundbreaking move to celebrate its 15th anniversary of selecting a Color of the Year, Sherwin-Williams has introduced its inaugural Color Capsule of the Year. This curated assortment features nine colors, each chosen to reflect the brand's entire collection and the evolving trends in design. Sherwin-Williams.

• Gen Z's interior design trends may not age well. While Gen Z embraces unique styles like squiggle mirrors and kitschy mushroom prints, seasoned designers worn these trends could become sources of cringe in the coming years, much like previous generations’ design choices. House Beautiful. 

#Finance & Economy

• September furniture sales. $11.58 billion, reflecting a 2.3% decrease year-over-year. Home News Now.

• Impact of interest rate cuts. The Federal Reserve’s recent interest rate cuts could breathe life into the housing market. NPR.

• Decline in consumer confidence. The Consumer Confidence Index dropped from 105.6 to 98.7 in September, signaling economic concerns regarding income, business conditions, and the job market. CNBC.

• Container shipping cost. Average of $3,216 for a 40-foot container—lower than peak 2021 prices but still above pre-pandemic levels.These elevated costs continue to impact global supply chains and pricing. Drewry.

• Payment preferences across generations. A majority of shoppers prefer to pay in full at the time of purchase, with a notable inclination among Baby Boomers. However, younger generations show a growing interest in monthly installment options and buy now, pay later services. Credit cards are the most commonly used payment method, especially among Gen Z shoppers. Home News Now.

#Company & Brand Updates

• Big Lots store closures. Big Lots is restructuring and closing more stores, with a total of 553 closures since filing for bankruptcy. CBS News.

• Bassett furniture's restructuring. Bassett is taking action with a five-point plan to boost profitability. Furniture Today.

• The RoomPlace is facing bankruptcy. The RoomPlace is facing bankruptcy, potentially leading to more store closures. Furniture Today.

• Sam Levitz Furniture closure. The 71-year-old family-owned business closure marks a significant loss in the retail landscape. KVOA.

• Templeton furniture closure. Templeton Furniture is closing its doors after 53 years due to economic pressures. Furnture Today

• MillerKnoll reports mixed results. A 6.1% drop in sales but a 2.4% rise in orders, anticipating improvements across its divisions. MillerKnoll.

• Ikea's price strategy. Ingka Group is investing over €2.1 billion in price reductions, resulting in increased store visits and online traffic. Ingka.

• Group Bayport acquires NorthCape. This expands their lineup of customizable products to over 10,000, adding 3,000 new items and more options in promotional products and outdoor furniture for consumers and businesses. Businesswire.

• Norwalk Furniture’s growth is driven by real-time insights. Jim Newlin, Norwalk Furniture’s President, drives growth by using real-time feedback from designers and retailers to fill product gaps. Big Furniture Group.

• Lovesac unveils AnyTable. The AnyTable can serve multiple functions—used as an in-line table, an end table, or even a standalone coffee table. Customers can choose from various configurations, including shelves and drawers, making it a practical storage solution for blankets, toys, or electronics. Lovesac.