Badcock & Home Furnishings E-commerce

Part
01
of five
Part
01

Home Furnishings E-commerce: White Space Opportunities

Two furnishing eCommerce white space opportunities that Badcock can take advantage of include personalized recommendations for their web store as well as taking advantage of omnichannel.

Personalized Recommendations

  • Sana Commerce noted that personalized recommendations are a significant boon of eCommerce.
  • Sana also notes that furniture companies are beginning to take advantage of these personalization aspects of their online web stores.
  • As a trend, personalized recommendations are becoming a requirement for eCommerce in general.
  • The report of consumers survey carried out by the Retail Industry Leaders Association (RILA) revealed that about 63% of participants are interested in personalized recommendations.
  • Most of the consumers are willing to give away data to get personalized recommendations.
  • About 64% of consumers would want automatic coupons and loyalty points.
  • While these statistics do not only cover furniture, Sana Commerce corroborates that this trend affects furniture sales as well.
  • According to Sana, millennial buyers are especially in tune with personalized recommendations.
  • Advanced web store search is an important feature of personalized recommendations as consumers may have very specific requirements or requests.
  • Advanced searches help push esoteric or exotic furniture, which in turn increases sales.
  • Personalized recommendations for furniture requires a strong data architecture.

Omnichannel

  • Channels refer to access methods for a business, such as web stores, brick and mortar stores, apps, and social media.
  • Omnichannel refers to the complete linking of these various channels so that a consumer's experiences on one channel can be continued on another channel.
  • Companies in the home furnishing eCommerce space are beginning to utilize the opportunity of omnichannel.
  • One omnichannel method is for the online catalog to be reflected in the brick and mortar store and vice versa.
  • Online catalogs, as mentioned above, can have personalized recommendations which are white space opportunities.
  • These personalized recommendations can be used at brick and mortar stores for consumers to see and feel the furnishing products.
  • Virtual Reality, high definition photos, 3D images, and others are an omnichannel innovation in the furnishing space, which allows consumers to view detailed representations of the furniture.
  • Omnichannel shoppers are estimated to have 30% more lifetime value than single-channel shoppers according to a LightSpeed study on furniture stores going omnichannel.
Part
02
of five
Part
02

Badcock: Demographic Analysis

In the past, Badcock targeted rural and low to middle income customers. Ultimately, the company expanded its customer base to include more affluent customers as a target for some its high-end offerings.

Badcock: Competitors

  • The primary competitors of Badcock include the following: Ashley, IKEA, Copeland, Masco, Baker, Glenarbor, Cheese Kingdom, Giorgi Bros, Lexington, Roche Bobois, Henredon, Christopher Guy, HHG, Stanley, and Kindel.

CUSTOMER DEMOGRAPHICS OF BADCOCK

Average Age and Gender:

  • Based on Badcock's Facebook page, its top fans are mostly females. Out of the 61 listed top fans of Badcock, 51 (83.61%) are females. Therefore, the majority of Badcock's top customers are females.
  • As the average age of IKEA's (competitor of Badcock) target customers is between 18-35 years, it is reasonable to assume that the majority of Badcock's customers belong to the same age group or are relatively young.
  • Both males and females have been identified customers of IKEA and therefore, Badcock, with the majority being female.

Average Income:

  • As per Florida Trend, the company was established by Henry Badcock in 1904 and located in Mulberry, Florida. It was one of the very first establishments to provide financing for furniture, effectively targeting shoppers in rural areas. Therefore, in its early days, rural customers were some of the primary customers of Badcock.
  • As IKEA's target customers consist of members of the low and middle income group, it can be assumed that Badcock has a similar primary target audience. However, Badcock employed some marketing efforts to attract high-end shoppers as well in the past.
  • Additionally, although there is no breakdown of the customer's income available in the public domain, based on the statements mentioned below, it is reasonable to assume that Badcock's customers include high-end individuals/families:
  • As stated by Don Marks, President and CEO of Badcock, "We’ve brought in a higher-end customer... Our credit business is growing, but nowhere near as fast as our cash business."
  • Badcock obtained Standard Furniture's paper-laminate suites several years ago, along with wood imports supplied by Kemp Furniture and American WoodCrafters, in addition to the products it already had from Founders Furniture.
  • According to President and CEO Don Marks at the time, the product was more expensive than other items offered by Badcock, and the shoppers it was targeted at was primarily high-end individuals.
  • Therefore, the majority of Badcock's customers are from the low to medium income group with some the high-end customers.

Education Level:

  • While reviewing IKEA's target customer demographics, we found that the level of education attained is university or higher. Therefore, it can be concluded that the majority of Badcock's customers are well-educated.

Ethnicity:


ADDITIONAL FINDINGS

  • Another source revealed that shoppers of IKEA are a part of the working class. Regarding home furnishing solutions, these individuals seek value for their money. Meanwhile, its customer base is largely made up people between 20-50 years of age. Additionally, they have a preference for home solutions that are stylish and modern.
  • The target demographics of IKEA reside in economically developed municipalities with a rather fast pace of life, which would also be true for Badcock.

CONCLUSION

  • In conclusion, based on our research from historical sources that provided information on the initial customer base of Badcock, as well as data from its key competitor IKEA, we found that Badcock, at first, targeted rural and low to middle income consumers. However, later, the company expanded its customer base and included more affluent shoppers as a target for some its high-end products.

Research Strategy:

Our research began by searching through various media sources such as MSpark, Smart Business, Furniture Today, Florida Trend, Business Wire, and others. We hoped to find the customer demographics included in any of the press releases or other media articles as most of the time, the interview of any marketing person or CEO/President discusses the company's customers. However, none of these sources could provide the desired information, though they discussed some relevant data. We then explored databases such as Similar Web and K-meta, hoping they would provide some information on Badcock's target customers. These websites provided an analysis of the traffic location, source, etc., but none of the data was specific to the customer demographics of Badcock.

Next, we searched through market research reports such as PR NewsWire, A Technology Market, Market Watch, IBM, Global NewsWire, Statista, and others. We hoped that, as these are market research reports or the industry-specific reports, they would discuss the customer demographics for a particular market of which Badcock belongs. However, these sources mainly addressed market data, key competitors, sales, etc., but none of the available information was sufficient to identify the average age, income, education level, and ethnicity of Badcock's customers.

Afterward, we observed Badcock's product positioning, target market, marketing strategy, etc. We hoped that the company discussed these details, which would help identify its customer demographics. Nevertheless, after a thorough search through industry-specific reports, company press releases, and others, we could not find the requested information. However, one of its old articles mentioned that according to Badcock's CEO and President Don Marks, "by the 1990s, the company continued to add stores, but furniture customers had changed, small towns no longer dominated the landscape, and Badcock hadn't kept up... We had a company that didn't have solid strategic direction." This occurrence could be one of the reasons why the customer demographics information is not readily available as they did not have any specific strategy for its target customers or product positioning, etc. Also, we found that the article published in Florida Trend (2005), was the only source we came across that mentioned at least some information concerning the customers of Badcock. So, we included it in our brief.

Also, we observed Badcock's Facebook page to see if we could obtain some insights on its customers. We found that its Facebook page has added a 'Top Fans' tag, and after analyzing those supporters, we found that there were a total of 61 top fans with the majority being females (about 83%). Later, we decided to adopt an alternative strategy and looked for the customer demographics of Badcock's key competitors, including IKEA. We searched for the customer demographics such as average age, income, education level, and ethnicity the companies. While searching through various reports and articles, we were able to find the target customer demographics of IKEA.

Therefore, based on the strategies outlined above, we established that the information for a demographic analysis for Badcock's customers such as the average age, income, education level, and ethnicity of Badcock's customers is not available publicly. In the absence of any direct sources to identify the customer demographics, we used an alternative route and provided its customer demographics based on its key competitor's (IKEA) target demographics. We chose to do this because as a key competitor of IKEA, Badcock also would have an almost similar customer-base or customer demographics.
Part
03
of five
Part
03

Badcock: White Label Brands

Verona, Magnavox, Electrolux, and Porter are examples of white label/private brands that Badcock sells in addition to its product line of residential furniture items.

VERONA COLLECTION

MAGNAVOX

  • Badcock sells a range of different smart televisions manufactured by Magnavox, a leading manufacturer of popular appliances found in homes.
  • The prices of these TVs vary based on size. A 43 inch smart LED (Light-emitting diodes) TV costs $398, while a 40 inch LED TV costs $298, and finally, a 32-inch smart LED TV costs $248.
  • The smart versions feature a built-in Roku TV system that allows streaming of favorite TV shows and music from supported apps, including Netflix, YouTube, Hulu, Vudu, HBO, etc.
  • Badcock has not published any information showing the popularity of these Magnavox TVs. Besides, it does not provide a breakdown of its sales broken down based on branded collections. However, on Consumer Affairs, there are 155 reviews and ratings for Magnavox TVs with an overall score of 2 stars.

ELECTROLUX

  • Badcock sells a range of products from Electrolux, a multinational home appliance manufacturer for professional use. Its main products include "washing machines, microwave ovens, cookers, refrigerators, vacuum cleaners, dishwashers, and air conditioners."
  • Each item sells for a different price. For example, the Electrolux front load washer costs $899.95, but the one fitted with a dryer too costs $1,598.
  • Badcock has not provided data showing the performance of Electrolux products on its e-commerce site or major publications. However, on Ferguson Showrooms, it has over 1,500 reviews with an average review score of 4.7 stars.

PORTER DESIGNS

  • Badcock also sells dining furniture from Porter Designs, a maker of the best and affordable styles in contemporary furniture design.
  • Badcock currently sells the Porter 5 piece dining set collection for $348. This stylish, contemporary and casual dining set is constructed of mango solids and features classy upholstered seats and acacia veneers.
  • The Porter 5 piece dining set collection is ideal for enjoying great moments with friends and family.
  • Unfortunately, there is no data provided on Badcock website regarding how popular Porter 5 piece dining set is among its buyers. However, on Ashley Furniture HomeStore, the Porter 5 piece dining set collection had 10 reviews with an overall score of 4.1 stars.

RESEARCH STRATEGY

To provide some examples of white label/private brands that Badcock sells, your research team commenced with an extensive search on the products listing section of the company's website. We identified 4 examples of white label/private brands sold by Badcock. We have provided these examples and the pricing on Badcock's website. However, Badcock does not provide any indication or rating on the popularity of these products with customers on its website, hence, we expanded our search to external review sources for any hint on the popularity of these products.

Our next approach was to search for other online stores that sell these products. We found customer reviews and ratings from other online stores which we have provided as a hint into the popularity of these products to the general consumers.


Part
04
of five
Part
04

Badcock: Competitive Landscape (1)

Ashley Homestore, Kanes, Schewels, and American Signature both offer living room furniture, bedroom furniture, kitchen and dining room furniture. Ashley Homestore, Kanes, Schewels have more than 70 years of experience in the furniture retail industry.

ASHLEY HOMESTORE

  • Ashley Furniture is a furniture retailer headquartered in Texas USA. The company has an estimate of 48 employees and was founded in 2002.
  • The company is family-owned.

PRODUCTS

  • The company offers a wide range of products including living room furniture, bedroom furniture, kitchen and dining room furniture, baby and kids furniture, outdoor furniture, home office furniture, home decor, rugs, and lighting.
  • Living room furniture includes sofas and couches, power seating, futons, recliners, tables, living room sets, and storage cabinets.
  • Bedroom products include beds, dressers, drawers, makeup vanities, mattresses, beddings, bedroom benches, and nightstands.
  • Outdoor furniture includes patio furniture, outdoor seating, outdoor dining, sofa and patio sets, and patio accessories.

REVENUE

  • According to Zoominfo, the company has an estimated revenue of $27.3 million.

COMPETITIVE ADVANTAGE

  • The company has more than 70 years of experience in furniture and it designs timeless styles that are livable, comfortable, and affordable.
  • The company has dedicated customer care and knowledgeable sale associates that promise an exceptional shopping experience. The company offers easy checkout and delivers on the client's time.
  • Ashley Homestore offers a wide range of products that stand out with designs inspired by travels around the world. The quality of their products is tested for a longer duration.
  • The company offers the best prices and has a wide range of financing options for clients' convenience.

WEAKNESS

  • Weak advertisements and sale strategies. Several customers point out that the company's sales strategy is weak as it did not appeal to them.
  • Low-quality products. Several customers complain of furniture falling apart after a short time.

KANES

  • Kane's is a company that offers quality furniture. The company was founded in 1948 in St. Petersburg.
  • The company has 18 stores in Florida. It has stores in Melbourne, Orlando, Tampa, and Naples.

PRODUCTS

  • The company offers a wide range of products for bedrooms, living rooms, home offices, mattresses, accents, outdoor, and dining.
  • Bedroom products include beds, dressers, mirrors, chests, media chests, and nightstands.
  • Living room products include sofas, loveseats, sleepers, chairs, recliners, lift recliners, ottomans, occasional tables, chaises, TV consoles, and wall units.
  • Dining room products include dining chairs, stools, china cabinets, buffet, servers & racks, and bars.

REVENUE

COMPETITIVE ADVANTAGE

  • The company has more than 70 of years experience in the industry and has always aimed at providing "the best customer service".
  • The company is evolving with time by redesigning its website and inventory for customer satisfaction.
  • The company contributes to the community by working to make the community a better place. It has various initiatives such as Enterprise Village.

WEAKNESS

  • The company's insurance cover for their products is limited as several customers complain of the inability of the cover on the fabric.
  • Low quality of products offered by the company. Several customers have complained about products that wear and tear at a fast rate than anticipated.

SCHEWELS

  • Schewels is among the oldest retailers of furniture in the United States. The company was established in 1897 Lynchburg, Virginia by Elias Schwel.
  • The company is operated and owned by Marc and Jack Schewel.

PRODUCTS

  • Schewels offers a wide range of products for bedrooms, living rooms, dining rooms, mattresses, appliances, and electronics.
  • Living room products include sofas, loveseats, sectionals, chairs, recliners, sleepers, groupsets, bookcases, entertainment centers, and cabinets / Consoles.
  • Bedroom products include bedroom furniture, dressers, beds, bedding accessories, bedroom groupsets, chests, desks, nightstands, and vanity tables.
  • Dining Room products include side tables, cabinets, groupsets, mirrors, and tables.
  • Electronic products include televisions, TV Accessories, game systems, home theater, stereo systems, and computers.
  • Appliances include heating and cooking appliances, dishwashers, refrigerators, and freezers.

REVENUE

  • The estimated revenue for Schewels for the third quarter of 2019 is $106.6 million.

COMPETITIVE ADVANTAGE

  • Schewels is one of only four oldest retailers of furniture in the United States.
  • The company has more than 100 years of continuous operation using the same name.
  • Schewels offers a wide range of financing options and also have a lease to own option.

WEAKNESSES

  • Several customers have complained of the poor quality of the company's products. One of the customers says he purchased a recliner that broke down only after four months.
  • Inefficient customer service is one of the weaknesses of Schewel as customers complain of the level of support they receive after purchase.

AMERICAN SIGNATURE

  • American Signature is a furniture retailer that was founded in 1948.
  • The company's president is Jonathan Schottenstein.

PRODUCTS

  • The company offers a wide range of products including living room furniture, bedroom furniture, mattresses, dining room furniture, kids furniture, and accents.
  • Living room products include sofas, sectionals, chairs & chaises, recliners & rockers, sleepers, and TV & media centers.
  • Dining room products include dining sets, dining tables, dining chairs, cabinets & storage, bars, and counter & bar stools.
  • Bedroom products include bedroom sets, chests & dressers, nightstands, upholstered headboards, daybeds & futons, and adjustable bases.

REVENUE

COMPETITIVE ADVANTAGE

  • The company offers high-quality products to its clients at affordable prices.
  • American Signature offers products that represents the latest style trends. They also provide products according to clients' preferences.
  • The company offers a wide range of financing options and also have a lease to own option with affordable monthly payments.
  • The company also provides a 5-year protection plan that covers accidents, stains, and structural damage to leather, fabric, and wood.

WEAKNESS

  • Poor after-sales services. A number of customers complain of longer period taken before they get assisted after making a purchase.
  • Partial disclosure of information to customers. Several customers complain of not being told in advance the terms of sale.
Part
05
of five
Part
05

Badcock: Competitive Landscape (2)

Wayfair, Joybird, and Joss & Main are furniture retail companies offering online shopping and shipping to their customers. Joss & Main is a subsidiary of Wayfair. Below is a deep overview of the topic.

WAYFAIR

COMPANY OVERVIEW

PRODUCTS

  • Furniture
  • Outdoor
  • Bed and Bath
  • Rugs
  • Decor and Pillows
  • Storage
  • Lighting
  • Kitchen
  • Baby and Kids
  • Renovation
  • Appliances
  • Pet

REVENUE

COMPETITIVE ADVANTAGE

  • Based on the demand conditions in the market, Wayfair decided to "automate" activities on its platform. This brought consistency in serving customers and also improved the quality of the products.
  • Wayfair offers good returns on capital expenditure: The company is always successful at accomplishing new projects and building new revenue streams, hence, generating good returns on capital expenditure.
  • The company is dedicated to having a good relationship with it is customers by providing good brand equity among potential customers. This has led to a higher level of customer satisfaction.
  • Wayfair has a strong base of reliable suppliers of products, this has made the company to overcome any supply shortage.

WEAKNESSES

  • Wayfair is losing opportunities to it is competitors because it has poor product demand forecasting.
  • Financial planning of the company is not done properly and efficiently. The company's asset ratio and liquid asset ratio shows that Wayfair can manage its finances better than what it is currently doing.64jkm,
  • The company has lost a small market share in niche categories because it is unable to tackle the challenges being posed by the new entrants in the market.
  • The company has been unable to merge with firms that have a different working culture.
NOTE: On this website, Fern Fort University, there is a deep overview of Wayfair SWOT analysis.

JOYBIRD

COMPANY OVERVIEW

  • Joybird is a company that specializes in manufacturing high-quality, customized, and mid-century modern furniture. It sales it is products online through its website.
  • The company was founded on the idea that "people should never settle when it comes to their home furnishing, but rather have the freedom to be boldly original".
  • The company was founded in 2014 by Andres Hinostroza, Joshua Stellin, Alex Del Toro, and Christopher Stormer. JoyBird is headquartered in Commerce, United States.
  • In 2018, the company was acquired by La-Z Boy Inc. at an undisclosed amount.

PRODUCTS

REVENUE

  • The company's revenue in 2017 before being acquired by La-Z Boy Inc in 2018 was $55 million.

COMPETITIVE ADVANTAGE

WEAKNESSES


JOSS & MAIN

COMPANY OVERVIEW

PRODUCTS

Joss & Main provides the following products on it is website:
  • Furniture
  • Outdoor
  • Kitchen and Tabletop
  • Windows
  • Home Improvement
  • Decor and Pillows
  • Bedding and Bath
  • Rugs
  • Lighting

REVENUE

COMPETITIVE ADVANTAGE

  • Joss & Main offers special limited sales events. During these special buying events, members save more on the special products highlighted. These events offer a special collection of products at great prices.
  • To increase the convenience for its customers, the company launched a mobile application specifically for shopping. This made shopping to be fast, easy, and convenient.
  • To stay ahead of its competitors, the company actively seeks to stay informed on what its customers want and it does anything to achieve that change. This has created a good relationship between the company and its customers.
  • The company also collaborates with celebrities such as Courteney Cox, Orlando Bloom, among others who endorse some of its products/collections. This has helped the company to reach to a wider range of consumers.

WEAKNESSES


RESEARCH STRATEGY

To find information pertaining to this research, we went through various reputable sources such as Craft, Owler, NY Times, including the individual company's websites. On these sources, we could find relevant information to answer the research questions.





Sources
Sources

From Part 04
From Part 05
Quotes
  • "Wayfair is an online retailer of home products for bedrooms, living rooms, kitchen and dining, home entertainment, bathrooms and more. The Company offers browsing, merchandising and product discovery for a range of products from various suppliers. It operates through two segments: U.S. and International. Wayfair provides its clients with numerous products for the home sector under various brands."
Quotes
  • "In 2002, the duo founded Wayfair on a shoestring budget in a spare bedroom of Steve's house. By carefully analyzing Internet search patterns and results, Steve and Niraj recognized a market opportunity to sell stereo racks and stands online. What would grow to become the largest ecommerce destination for home furnishings and décor started with just one single website and soon grew to more than 250 standalone sites selling everything from barstools to birdhouses."
Quotes
  • "SWOT analysis is a vital strategic planning tool that can be used by Wayfair managers to do a situational analysis of the company . It is an important technique to analyze the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) Wayfair is facing in its current business environment."
Quotes
  • "Joybird was founded on the idea that people should never settle when it comes to their home furnishing, but rather have the freedom to be boldly original."
Quotes
  • "The company manufactures its custom, mid-century modern upholstered furniture in Tijuana, Mexico. According to the release, the company saw annual revenue last year of some $55 million."
Quotes
  • "The company promises a full refund if you return an order of under $7,500 any time in the first year after purchase. It also offers 24/7 customer service, various customization options and step-by-step production updates. A “lifetime warranty” covers the sofas’ frames, springs and backs; the fabric and foam are guaranteed for three years."
Quotes
  • "Joybird offers a decent selection of sofas in different styles and sizes, plus it includes in-house delivery and set up as part of its low shipping fee."
Quotes
  • "Joss & Main is a major furniture retailer that offers online shopping and shipping to its customers. The decor is offered at reasonable prices and features a variety of collections that reflect current trends in design and styles."
Quotes
  • "Joss & Main is a subsidiary of Wayfair.com that was founded by Wayfair LLC in 2011 as a new sub-organization/division of their popular home furnishings company. Joss & Main is a membership-based website offering all kinds of inspirational decor items via spotlight collections that highlight a variety of styles and design trends, as well as special daily events."