Housing Crisis Affects Home Fashion Retail
The economic crisis is affecting every industry. The home fashion retail industry has been affected as seriously as the housing industry itself. These affects can be seen through the demand of home fashions by the consumer, the supply and demand of materials needed for new construction homes, and the purchasing power of the consumer themselves toward products available on the market. All of these face a serious future unless the economy and the housing industry begin to increase to attract interest and affordability of the consumer once again. The cost of home fashions and the interest of the consumer are both at all time low levels. Home fashion prices seem to be low, but the interest of the buyer is also low. The buyer is extremely skeptical of shopping and spending. They are afraid to spend due to the cost of what is needed on a daily basis for family needs. Considerations for home improvements and desire to redecorate and update have now been placed on the back burner. Although prices at the retail stores have been slashed to low and tempting prices, the consumer is now reconsidering extravagant needs and their simple I want it, got to have it thoughts. Janis Tham makes a good statement about the consumer and their ability to decorate during this difficult recessional time. She states that, “The time for lavish spending on white elephants is over. Now is the time to learn from the Shakers and go simple. Form and function. Everything should have a reason to be in a room. Everything in the room should go with the decor and the color scheme.” The new home building era has slowed which affects the home fashion retail business. This means that new supplies such as refrigerators, lighting, flooring, cabinets, window treatments, etc. are low and not in demand as they were just three months ago. Contractors appear to be producing little to no building. With the slow housing demand, they are waiting for the sale of the home before investing in attractive décor which is money from their pockets and interest incurring on their loans. Furniturestyle.com sums it up by saying, “The home furnishings industry isn’t weathering the one-two punch of a recession and a housing market bust very well, partly because people aren’t moving into new homes that they need to fill, partly because furniture is both a big ticket and an easily deferrable purchase.” Also, financing for home furnishing becomes a difficult process when your home is worth less than what you owe for it. Most people don’t have the cash to go and buy new décor with financing being harder to obtain today due to the banking credit and mortgage meltdown.Works Cited:<http://www.furniturestyle.com/NewsandEvents/EtcPage/tabid/80/Default.aspx?ContentID=12411&AuthorID=9> Tham, Janice. “Recession Home Decorating Tips: How To Save Money As You Decorate Your Home”. <http://www.articlesbase.com/home-improvement-articles/recession-home-decorating-tips-how-to-save-money-as-you-decorate-your-home-635446.html>