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The U.S. Market for Home Office Furniture
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Jun 1, 1997
128 Pages - Pub ID: LA466
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- Executive Summary
The Products
- Background of Market
- Three HOF Product Categories
- Five Product Types
The Market
- Manufacturers' Shipments Top $1.1 Billion in 1996
- Table 1-1: U.S. Manufacturers' Shipments of Home Office Furniture,
1992-2001 (dollars): Ready-to-Assemble, Case Goods/Contract
Retail Sales Estimated at $1.7 Billion in 1996
- RTA Category Is Over Half the Market
- Figure 1-1: Share of U.S. Manufacturers' Shipments of Home Office
Furniture by Product Category, 1992 vs. 1996 (percent):
Ready-to-Assemble, Case Goods/Contract
- Desks Account for Close to Half of HOF Design
- PC and Home Office Trends Spell Strong Future
The Marketers
- A Growing Number of Players
- Shifting Market Shares for RTA, Case Goods, and Contract
- Innovation and Diversification Are Name of the Game
- Flexibility and Innovation Apparent in Multi-Use Products
- Over $56 Million Devoted to Consumer Advertising
Distribution and Retail
- Most Sales Are Direct to Retailers
- Two Main Types of Outlets
- Mass-Market Outlets
- Specialty Outlets
The Consumer
- About One in Twenty Americans Is WAHer
- One in Ten WAHers Is HOF Purchaser
Scope and Methodology
- Market Parameters
- Report Methodology
- The Products
Scope of Report
- Home Office Furniture vs. Total Office Furniture
- Background of the HOF Market
Product Categories and Types
- Three HOF Product Categories
- Product Distribution Outlets
- Two Standard Market Segments: Wood and Non-Wood
- Five HOF Product Types
- Desks
- Computer Furniture
- Storage
- Seating Products: Two Forms
- Tables
- The Market
- Figure 3-1: U.S. Manufacturers' Shipments of Home Office Furniture,
1992-1996 (dollars)
Market Size and Growth
- Home Office Furniture Difficult to Segregate
- Methodology of Sales Estimates
- Sales Top $1.1 Billion in 1996
- Table 3-1: U.S. Manufacturers' Shipments of Home Office Furniture,
1992-1996 (dollars)
- Retail Sales Estimated at $1.7 Billion in 1996
- Figure 3-2: Share of U.S. Manufacturers' Shipments of Home Office
Furniture by Product Category, 1992 vs. 1996 (percent):
Ready-to-Assemble, Case Goods/Contract
Market Composition by Product Category
- RTA Category Is Over Half the Market
- Case Goods Account for Most of Balance
- Contract Furniture a Tiny Presence
- Table 3-2: Share of U.S. Manufacturers' Shipments of Home Office
Furniture by Product Category, 1992-1996 (dollars and percent):
Ready-to-Assemble, Case Goods/Contract
- Sales by Product Segment: Non-Wood Accounts for Three-Quarters
- of TOF Sales
Market Composition by Product Type
- Desks Account for Close to Half of HOF Design
- Computer Furniture Second in Home Office Furniture
- Storage a Standard Part of Both Markets
- Seating and Tables a Negligible Part of HOF Design
- Table 3-3: Market Composition by Product Type in 1996 and %
Change from 1992: Home Office Furniture vs. Total Office
Furniture (percent): Desks, Systems/Computer Furniture, Storage,
Seating, Tables
Market Composition by Region and Season
- Purchasing by Region
- Purchasing by Urbanicity
- Sales by Season
Factors Affecting Market Growth
- PC and Home Office Trends Spell Strong Future
- Increasing Ownership of Personal Computers
- Number of Home Office Workers Rising
- HOF Market Runs Countercylical to Economy
- Upgrading the Home Office
- More Home Offices Comprise Dedicated Rooms
- Marketers Courting Consumers with New Products
- Furniture Stores Placing More Emphasis on HOF
- Figure 3-3: Projected U.S. Manufacturers' Shipments of Home
Office Furniture, 1996-2001 (dollars)
- Figure 3-4: Projected U.S. Retail Sales of Home Office Furniture,
1996-2001 (dollars)
Projected Market Growth
- Manufacturers' Shipments to Near $1.9 Billion in 2001
- Table 3-4: Projected U.S. Manufacturers' Shipments of Home
Office Furniture, 1996-2001 (dollars)
- RTA Goods to Post Double-Digit Growth
- Case Goods to Post Slower Growth
- Table 3-5: Projected Share of Manufacturers' Shipments of Home
Office Furniture by Category, 1996-2001 (dollars and percent):
- Ready-to-Assemble, Case Goods/Contract
- Retail Sales Projected at $2.7 Billion in 2001
- Table 3-6: Projected U.S. Retail Sales of Home Office Furniture,
1996-2001 (dollars)
- The Marketers
Industry Structure
- A Growing Number of Marketers
- Marketers Classified by Category
- Niche Marketers Include Producers of California Oak
- Four Classes of Marketers
- Table 4-1: Selected Marketers of Home Office Furniture
(category and product type): 22 Marketers
Competitive Situation
- Shifting Market Shares for RTA, Case Goods, and Contract
- The Rise of Ready-To-Assemble
- Case Goods Marketers Situated in Higher-Priced Fare, Different
- Retail Channels
- Past and Current Elements of Market Shift
- Consumer Trends Will Continue to Alter Market
- RTA Manufacturers Compete Mainly on Price
- Price-Factor Also Important in Case Goods Arena
- HOF Competition in the Contract Arena
- Cross-Category Competition on the Rise
- Broader Industry Concerns
Competitive Profile: Ameriwood Industries International Corp.
- A Leader in Wooden Ready-to-Assemble
Competitive Profile: Bassett Furniture Industries, Inc.
- A Veteran in Residential Furniture
Competitive Profile: Bush Industries, Inc.
- Active in Both RTA and Case Goods
Competitive Profile: DMI Furniture, Inc.
- A Turbulent History, But Recovery in Sight
Competitive Profile: Furniture Brands International, Inc.
- A $1.7 Billion Furniture Behemoth
Competitive Profile: Kimball International, Inc.
- A Giant in Case Goods and Contract Furniture
Competitive Profile: Ladd Furniture, Inc.
- Case Goods HOF One of Three Operating Groups
Competitive Profile: O'Sullivan Industries Holdings, Inc.
Competitive Profile: Sauder Woodworking Co.
- Among the Top Ten U.S. Furniture Manufacturers
Competitive Profile: Stanley Furniture Company, Inc.
- Focused in Upper-Medium-Priced Residential
Marketing Trends
- Innovation and Diversification Are Name of the Game
- Home Office Design Spurred by Recognition in the Trade
- Mid-Range Segment Expands
- Home and Commercial Office Markets Coming Together
- Lifestyle Positioning Part of Marketers' Strategies
- Home Office Furniture Is Fashion-Oriented
- Marketers Working More Closely with Retailers
New Product Trends
- Flexibility and Innovation Apparent in Multi-Use Products
- Design Joins Price as Major Consideration
- Computer Function Is Key Consideration
- Ergonomics Enter the Home
- Lighting Becomes Part of the Furniture
- Universal Compatibility within Product Lines
- Space Efficiency Is Essential, But So Is More Workspace
- HOF Function Includes Product Mobility
- Hiding the Home Office, and Making It Secure
- Unique Materials Add More Variety to the Mix
- New Products as Collections and Modular Configurations
Consumer Advertising and Promotions
- Over $56 Million Devoted to Consumer Advertising
- Three Companies Account for Most Spending
- Ethan Allen Is Biggest Spender
- FBI Spends Almost as Much
- Haworth and Bassett Are Other $1 Million-Plus Spenders
- Smaller Spenders Include O'Sullivan and Ladd
- A Variety of Media Used
- Internet Also Used
- Examples of Consumer Advertising
Trade Advertising and Promotion
- Trade Advertising
- Trade Shows Important for Showcasing Wares
- Growing Number of Marketers Offer Retailer Assistance
- Examples of Trade Advertising
- Distribution And Retail
Distribution
- Most Sales Are Direct to Retailers
- Wholesalers Used by Smaller Retailers
- Indirect Sales Through Interior Designers and Architects
Retail Outlets
- Two Main Types of Outlets
- Mass-Market Outlets
- Specialty Outlets
- Alternative Outlets
At the Retail Level: Mass-Market Outlets
- The Primary Channel of Distribution
- Office Superstores Are Leading Mass-Market Outlet
- Other Mass-Market Retailers
- Smaller Office Supply Stores Feature HOF Products,
- Compete with Office Superstores
- Mass Retailers Capitalize on Existing Strengths,
- Expand Departments
- Margins in the 35%—40% Range
- Assortment Centered on RTA Goods
- Retailers Aiding in Assembly
- Advertising and Promotion
- Trends in Advertising Home Office Furniture
At the Retail Level: Specialty Stores
- Late Entries into Home Office, But Growing Interest
- Furniture Stores Increasing Market Presence
- In-Store Location of Home Office Furniture
- Furniture Galleries Another Source
- Home Furnishings Retailers Featuring Home Office Furniture
- Oak Specialty Stores Are Hot
- Margins
- Retailing an Office Rather Than Furniture
- Marketers Work with Retailers to Develop Sophisticated Sellers
- Retailer Advertising and Promotion
Distribution Strategies Used by Marketers
- A Variety of Distribution Channels Used
- Marketers of Oak Home Office Furniture
- The Consumer
- The Consumer
- The Simmons Consumer Survey
- Data Available for Those Who Work at Home and Make
- Home Office Furniture Purchase Decisions
- About One in Twenty Americans Is WAHer
- Most WAHers Are Full-Timers, But Part-Timers More Likely
- to Be WAHers
- WAHer Demographics: A Professional Profile
- Table 6-1: Demographic Characteristics Favoring Working at Home,
1996 (U.S. adults who work at home)
- One in Ten WAHers Is HOF Purchaser
- HOF Purchasers Pull in Big Household Incomes
- Occupation Another Strong Indicator
- Table 6-2: Occupation of Those Who Work at Home and Purchasers
of Home Office Furniture, 1996 (U.S. Adults)
- Purchasing Skews to College Graduates
- Table 6-3: Education of Those Who Work at Home and Purchasers
of Home Office Furniture, 1996 (U.S. Adults)
- Age Another Significant Marker
- Whites Are Primary HOF Purchasers
- Metro Residency Important for HOF Purchaser Subgroup
- Large Majority of HOF Purchasers Spend $1,000-$4,999
- Table 6-4: Demographic Characteristics Favoring Purchase of
Home Office Furniture in Last 12 Months, 1996
(U.S. Adults who Work at Home)
Appendix I: Addresses Of Selected Companies
Appendix II: Examples Of Advertising And Promotions
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