RSR Research: The Economy - How Can You Be Sad Sitting on an Orange Couch?
Through a special arrangement, what follows is an excerpt of a current article from Retail Paradox, RSR Research's weekly analysis on emerging issues facing retailers, presented here for discussion.
Conventional wisdom has it that, in uncertain times, consumers hold off on discretionary purchases until the better times (hopefully) ahead. One would be hard pressed to find something more easily put off than a new couch or a dining room set, and yet at least to one industry insider, consumers (and the retailers that service them) aren't going to let tight money prevent them from cheering up the home.
According to Karen Olsen, Vice President of Marketing for Merchandise Mart Properties, floor traffic was up 30 percent this year at their recent High Point Furniture Market event. Such a jump in attendance might seem counterintuitive, given what's happening in the U.S. economy. In fact, it's not getting tough - it's been tough for home furnishings - for the last 1.5 years.
But things may be changing, according to Ms. Olsen. "It could very well be that people were coming to our buildings because we had a lot of new manufacturers launching new products, and there were new and exciting things going on that buyers were very interested in." Like what? According to the executive, "we could see that a lot of manufacturers were cutting back, laying people off, and so now some very talented people are out in the marketplace starting their own companies and launching innovative new products - and buyers are excited!" The company also featured a Trend Center at the tradeshow, which according to Ms. Olsen, "was designed to inspire people to think differently about what was going to inspire consumers to buy home furnishings, and take those ideas back and implement them into their plans going forward."
From a dour market, the entrepreneurial spirit flourishes. Says the marketer, "color is really big - and that shows that people are really trying to put some excitement back into the industry. They're trying to bring the depressed attitudes from the economy up a level, and get people excited about the home furnishings industry again. For the last year and a half, it's been neutral, muted colors - now we're seeing bright colors everywhere."
According to Ms. Olsen, with money being tight consumers aren't going out as often as they used to, and therefore if they have something in their house that helps make them happy, they feel better. "There was one designer that was talking about a bright orange couch that she had just launched, and she said, 'how can you be sad sitting on an orange couch?' People were just very upbeat, realistic of course in terms of what's going on in the economy, but for the first time in a year and a half, very enthusiastic - it was a positive experience for everybody," she said.
Discussion Question: Do you think tough times drive the entrepreneurial or creative spirit? Why or why not?