Much like America’s middle class — which fell from 61% in 1971 to 50% in 2021, according to a new Pew Research Center analysis of government data — the “middle” price point of outdoor furniture has shifted as well.
This was apparent at Las Vegas Market, where higher-end brands like Three Birds Casual, Sunset West and O.W. Lee sat in showrooms around full-line brands like Ashley Furniture, Flexsteel and Furniture of America — which now has an entire Vegas showroom dedicated exclusively to its outdoor line.
While this collection of brands may have once represented the high and promotional ends of the spectrum, the entrance of internet brands like Amazon, as well as ones with physical and online presences like Target and Walmart, into the outdoor category, has shifted these once promotional brands to a lower-middle price point.
I often talk about how full-line furniture manufacturers and retailers are changing the way outdoor is sold and looked at, but this shift is something that can actually benefit everyone in the industry.
Back to the economic comparison — a report by Democracy Journal says, “Politicians typically see the middle class as something to create with the gains of economic growth. But in fact, the opposite is the case: The middle class is the source of economic growth. A strong middle class provides a stable consumer base that drives productive investment.”
So if a middle class in the economy creates growth, the same thing might be possible in the outdoor industry.
Besides the obvious exposure to outdoor furniture that bigger brands and retailers offer, by coming in at slightly higher price points than Amazon but lower than luxury goods brands, they’re filling a hole in the industry that could eventually steer people toward higher-priced goods in the future.
Since Ashley Furniture entered the outdoor business back in 2016 — and others followed suit — many have wondered how full-line manufacturers will affect the industry, and in my opinion, it seems they have the potential to do more good than harm.
Not only do they bring attention to the category on a wide scale, they offer a great starting point for many younger people to buy outdoor that they can actually afford. Then, as we’re seeing with Gen X right now, they will eventually move on to higher-end furniture. And because they had that experience with outdoor furniture, it will inform their next outdoor purchase.
If we think positively about how each player in the industry can fit into a certain niche, we’ll see there are more than enough customers for everyone to service.
