REVITALIZING THE VALUE OF THE DESIGN ECO-SYSTEM TO INSPIRE CONSUMER DESIRE

Progress follows potential. We are together on our way toward revitalizing the market for interior design, creating more clients for designers and enhancing the experience for designers shopping in the design centers throughout the country.

Aimed at potential consumers of design, and interior designers who serve them, we are part of an initiative that proposes to inspire more desire for design, and attract them to discover the value of working with interior designers who successfully guide them through the system of acquiring and owning good design.

Just who are these potential consumers of design? Departures Magazine (a unit of American Express Publishing) profiled them recently and generously shared the following information with us. They continue to provide support to all of us as we market to the most discerning customer in the world.

The top 10% of America’s financial pyramid control roughly 80% of the nation’s financial wealth and account for more than half of all retail consumption. They total some 12 million households with annual discretionary income starting at $100,000 and assets averaging about $2 million.

The Annual Survey of Affluence and Wealth in America, conducted by American Express Publishing and the Harrison Group among households with discretionary income of $100,000+ shows that:

• Being relatively new to money they are not as familiar with top-tier brands as they should be and need trusted docents to help educate and inform them. Only 7% regularly use an interior designer.
• These people are still spending, including on luxury goods and services, but are exercising caution and scaling back to a degree disproportionate to financial necessity.
• Wealthy consumers seek craftsmanship, quality, authenticity, good design, and value.
• One of the top 10 areas on which they continue to spend is home furnishings. Yet, more than half of the wealthiest respondents still haven’t furnished their homes in a way that reflects their economic status.
• Those further along the arc of maturation seek advice and sourcing from design experts, while many are trying to meet interior designers.
• The home environment is “as important or even more important than ever” to virtually all our respondents.
• Nearly two thirds plan to renovate/remodel or redecorate between now and the end of 2010

Takeaways:

• Home-related spending is part of an overall lifestyle spend, which means designers aren’t just competing within the design sector.
• These prospective clients are clearly in need of docents who can authenticate and curate home design and help them along arc of maturation.
• It’s equally important to educate and inform the consumer directly – and – by attracting them, informing them and surrounding them by the ‘design eco-system.’