Abstract
This study aims to identify and describe design strategies that address the consumer behaviour of millennials in South African furniture retail stores. Research identifies the global importance of the furniture retail industry, and the role it plays in the retail market. The study identifies the rising growth in the market, the potential for extended growth, and the importance and influence of the furniture market on the economy. Although the local furniture industry has great potential for growth, it is currently a net importer, which negatively influences localisation and the unemployment rate. Millennials are the second largest consumer group and are projected to become the largest by 2030. This renders them critical to expansion in the industry.
The literature review considers the consumer behaviour and characteristics of millennials by describing their interests and personality traits. The study also defines the South African group, the born-frees, as an important consumer group. This group is compared to the millennial group, which indicates a strong alignment of their characteristics and behaviour. The study investigates millennial consumers’ shopping behaviour to understand why they are so strongly attracted to the omni-channel retail model and how they respond to brands. The study identifies three main furniture retail models and presents an overview of the South African furniture retail industry. Pertinent retail store design theories and strategies are discussed. The study identifies a literature gap and conducts precedent studies to investigate how global furniture retail stores target the millennial consumer.
The study employs qualitative research using the Appreciative Inquiry (AI) method. Data are collected through semi-structured interviews and analysed using thematic analysis. Three major themes are identified from the analysis, namely (1) targeting millennials: consumer behaviour and characteristics, (2) furniture retail offering in South Africa: differentiators, drivers, and opportunities, and (3) retail environment and experience. The themes are used to identify the design strategies that are referred to in the main research question. The study presents three design strategies employed by local furniture retail stores to address millennials’ consumer behaviour: (1) supporting the product offering in the retail environment, (2) conveying product knowledge and brand values in stores, and (3) enhancing the consumer experience through retail design.
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The study concludes that local furniture retailers understand millennial consumers’ behaviour and characteristics and aim to target the consumer group through specific retail design strategies. AI encourages future thinking and allows the study to consider ‘what could be’. Local furniture retail can expand and contribute positively to the South African economy. Retailers can begin to achieve this through localisation of their product offerings, finding a balance between the product and design offering of quality and affordability, and accommodating the broad range of local cultures and styles. Retail stores can accommodate product offerings through adapting the retail environment and store experience and introducing a cohesive consumer journey.
Keywords: millennials, born-frees, furniture retail, consumer behaviour, consumer culture, design strategies, Appreciative Inquiry, brand identity.