consumer snapshot
18 | JUL.19 http://www.furniturelightingdecor.comW
hether a brick-and-mortar store or an
e-commerce site, retailers everywhere
are competing with the Amazon Effect.
This all-encompassing phrase acknowl-
edges how the online retail giant has disrupted
the retail industry with competitive pricing and
convenience. Amazon Prime has spoiled shoppers
with the promise of free two-day shipping, and what
was once considered a luxury is now a requirement
and an expectation for many, according to recent
consumer research.
In a 2018 study from global consulting firm
AlixPartners, 29 percent of shoppers planned to
purchase home furnishings for delivery in the next year
and 26 percent planned to purchase furniture. This is
up from 25 percent and 20 percent, respectively, in
2017, indicating a growing trend.
But as this interest in home furnishings and
furniture deliveries continues to rise, so do consumer
expectations. According to the research, 96 percent
of shoppers say the choice of free shipping impacts
their ordering decisions. Shoppers are increasingly
abandoning online shopping carts for shipping-related
reasons. Fifty-three percent of consumers surveyed
by same-day delivery service provider Dropoff aban-
doned an online purchase because of slow delivery.
Many online retailers are opting to work with
third-party logistics companies to satisfy consumers
whose needs are evolving.
Traditional carriers, such as
the U.S. Postal Service, UPS
and FedEx often are not an
option for home furnish-
ings retailers, whose
goods are generally too
large. Dropoff noted that
43 percent of consumers
— and 50 percent of
Millennials — expected
“much faster” shipping times
from retailers in 2018. And not
everyone expects it to be free.
Forty-three percent of consumers
and 54 percent of Millennials have
paid extra for faster delivery.
So what does the consumer of the future
want from their shipping experience? Based on
years of data from U.S. and international surveys,
AlixPartners predicts the customer of the future will
increasingly head to the web for larger items like
furniture and appliances and will expect so-called
“white glove” delivery — value-added services that
traditional shipping carriers do not provide, such as
furniture assembly or product installation. FLDBy Amy McIntosh GOODLUZ - STOCK.ADOBE.COMINSTANT GRATIFICATION
WAVE 3
THE FUTUREÌ Large, high-value, bulky items
(furniture, appliances)
Ì Concerned about delivery convenience
Ì Seeking value-added services
(assembly, setup and maintenance)SOURCE: ALIX PARTNERS, “OPENING NEW DOORS FOR HOME DELIVERY,” MAY 2019.
Wa ve s of C ha nge
AlixPartners developed a maturity model that separates e-commerce and home
delivery trends into three waves based on years of consumer research.
WAVE 1
1990s – LATE 2000sÌ Small, low-value items (books, media
and small appliances and electronics)
Ì Concerned about transaction
security and shipment reliability
Ì Seeking variety in purchase optionsWAVE 2
LATE 2000s - PRESENTÌ Everyday items (groceries,
cosmetics, cleaning supplies)
Ì Concerned about speed of delivery
Ì Seeking low-cost items and fast,
inexpensive shipping29% OF
CONSUMERS SURVEYED
PLAN TO PURCHASE
HOME FURNISHINGS
FOR DELIVERY IN THE
NEXT YEAR.