Millennials represent a major force of change in the furniture industry.
Driven by instant gratification and accustomed to product customization, they place a premium on authenticity, self-expression and personalization. For furniture makers, an expanded customization offering translates into new business challenges and made-to-order manufacturing requirements. To better manage complexity and a rapidly expanding number of variants, furniture manufacturers can adopt an end-to-end MTO process.
Born between 1981 and 1996 as defined by Pew research, millennials account for approximately a quarter of the world’s population. Currently the most populous generation, their combined purchasing power worldwide is set to reach $1.4 trillion according to projections by consulting firm Accenture. This makes them the largest furniture-buying consumer demographic today.
Although creating a home interior that reflects personality and personal tastes is a common desire among furniture buyers of all ages, millennials are unique in the extent of their desire for self-expression. They have spent years building their personal brand on social media, and when choosing home furnishings, they look for pieces that reflect their unique style.
Millennials are driving the furniture industry’s widespread customization trend, influencing older age demographics in the process. In addition to the implied business challenges of customization offers, furniture makers should be advised that millennials aren’t willing to wait long for new furniture deliveries or compromise at all on their exacting quality standards.
Today’s furniture marketplace is turning millennial
For this generation, currently the largest furniture-buying consumer demographic, furniture customization is a must-have rather than a nice-to-have. Older generations are following their lead. Demand for furniture personalization is increasing around the world, and among all age groups.
So who are the millennials?
Born between 1981 and 1996
A quarter of the world’s population
First generation of digital natives
Only 6.5% are brand loyal
Express their personal style
Want instant results
$1.4 trillion combined global spending power
For many industry experts, millennials are the most demanding customers of our time. Fortunately, satisfying demand for customized furniture doesn’t mean sacrificing production efficiency, speed and profitability. End-to-end made-to-order production can overcome the limitations of current manufacturing processes for customized furniture. By adopting the right MTO approach, it’s possible to manage multiple variants, modules, materials and models with ease.