Change is driving US manufacturers and importers challenged by the global marketplace, with retailers looking to survive in troubled economic conditions. A changing customer base, increased costs and the importance of offering a pleasurable buying experience are making many re-evaluate their roles. The perception that the residential furniture market is product driven has been replaced by the realisation that success is customer driven.

The US furniture stores are almost a minority at the major markets because of foreign retailers, and the many alternative channels through which consumers can purchase furniture. Canada has been a long-time source, but Europe tends to grow and recede with the relative value of the currencies. Mexico is growing rapidly as a source, while in Asia, Taiwan, Singapore and even the Philippines grew in the 1980s, only to fade somewhat in recent years as Malaysia, then Thailand, then China and now Vietnam burst on the scene.

About 45% of all wood furniture and 15% of all upholstered furniture sold at retail in 2002 was not made in the US. That understates the phenomenon when you add in imported component parts or pre-sewn upholstery covers that are mated to domestic frames. Residential wood furniture imports were up 20% in 2002, according to the US Department of Commerce and the American Furniture Manufacturers Association.

The market is now open to larger furniture for bigger homes, downsized furniture to appeal to more buyers and lightened woods for less formal looks. There are also contemporary and European Country designs aiming to target younger customers. Added to these, there is particular growth in home theatre furniture, multimedia-orientated pieces (such as leather with glass and metal) and home office optionals.

An important sea change is the realisation among many in the market that their customer base has changed, that they have to take marketing as seriously as design and function, and that the customer's buying experience really matters. For a number of producers, there is the dawning perspective that complementing customer lifestyle needs can drive sales, and that price cannot be the complete answer.

In keeping with that, the industry has turned to classic and traditional design themes that evoke a sense of comfort and familiarity for American consumers. From re-interpreted standards to reproduction heirlooms, manufacturers have presented a link to the past, intended to both inspire and comfort consumers with furnishings that arouse sentimentality and provide an important link to yesteryear.

Retailers are also re-inventing retail to meet or exceed customers expectations. And they are working hard to make shopping a pleasurable experience, re-designing stores for comfort, or planning events to bring customers into the store.