The era of new customers - how to respond to their needs?
Is it your goal to efficiently select an assortment to meet customer needs and generate high profits? If so, you probably recognize that this is becoming quite a challenge these days.
Is it your goal to efficiently select an assortment to meet customer needs and generate high profits? If so, you probably recognize that this is becoming quite a challenge these days. Your experience is very important here, but is it enough in this age of galloping change? And another question - are you able to meet customer needs and solve the problem of non-rotating goods on the shelves by following your own patterns? We all know the answer. Additional knowledge about the contemporary customer and his needs may prove useful.
The data you have at your disposal on the groups of customers visiting your shop will probably enable you to respond appropriately to their needs. At the same time it can be valuable to supplement this knowledge with reliable information on changes in consumer behaviour in the decoration sector in recent years. The main reasons for this are the global lockdown and the media.
One of the most authoritative studies on the impact of a pandemic on consumer behavior is PwC's Global Consumer Insights Survey 2021 [1] of consumers in 22 countries around the world. Here are the major changes identified in the survey:
Źródło: PWC.com, PwC’s June 2021 Global Consumer Insights Pulse Survey
While pandemic changes affect most product types and can be looked at globally, the impact of Media is particularly evident in the decorating industry. How the Internet, trade magazines and television have transformed the way people think about interior design is evident in every country. For example, Netflix, which is watched by over 200 million people worldwide, now provides 12 very popular shows on interior design. Another example is the TV channel HGTV, which is breaking viewership records all over Europe.
Translating the changes described above into the language of a potential customer in the decorating industry, we may hear from them:
In light of the redefined needs expressed by customers, it is worth considering whether to introduce some changes that will allow to create an even better offer. How to do it? You can imagine specific groups of customers who visit your department. It will be extremely helpful here to know the rules of dividing customers according to the latest marketing knowledge. There are 3 groups of customers:
When discussing Generations X, Y, and Z, it’s also worth mentioning the Baby Boomer generation. Below is a brief overview of each generation:
- 1. Baby Boomers (born 1946–1964) - 1. These customers value tradition, quality, and durability. They tend to choose classic and proven products, placing importance on longevity, functionality, and comfort. This generation often prefers shopping in physical stores and appreciates face-to-face service.
- 2. Generation X (born 1965–1979) - 2. This generation is somewhat more open to innovation than Baby Boomers but still values quality and functionality. They are customers who balance between traditional and modern solutions, often guided by practicality but open to new trends, especially if they offer tangible benef
- Generation Y (Millennials) (born 1980–1995) - This generation grew up during a time of rapid technological development and globalization. They are customers who navigate the digital world with ease, making them prefer online shopping while still appreciating the opportunity to experience products in person. They are highly aware of their needs and expectations and are more open to new experiences and innovations.
- Generation Z (born after 1995) - This is the youngest group of consumers, already making a significant impact on the market. Generation Z are digital natives who have never known a world without the Internet, and social media serves as their primary source of information and inspiration. They are very conscious of what they purchase, expecting products to be not only aesthetically pleasing but also ethical and aligned with their values. They want brands to be authentic, transparent, and responsive to their individual needs. Technological innovations are crucial for this group—they readily embrace smart products that integrate new technologies into their daily lives. Their preferences are often influenced by social media trends and influencers. Additionally, Generation Z is more environmentally conscious than previous generations, placing a strong emphasis on sustainability and responsible shopping.
According to a survey conducted by Globally Cool B.V. [2] on consumer trends in the European interiors and home textiles market, the Y customer group, also known as Millenials, is becoming dominant in Europe. It is the customers from this generation who will dictate trends in mass sales. Among Millenials, two types of customers can be distinguished:
- strongly following current trends, strongly influenced by changes driven by trend forecasters
- who focus on clarity and originality and are driven by a strong sense of individual identity.
Both of these trends are forcing stores to create more flexible and diverse offers.
To meet the expectations of different generations, it's crucial to adopt a strategic approach to product assortment and marketing. Understanding the unique needs and preferences of each generational group allows you to create a more targeted and effective offer. Here's how you can tailor your product range:
- For Baby Boomers: Focus on offering high-quality, durable, and functional products. Emphasize classic designs and materials that have stood the test of time. Highlight reliability, comfort, and longevity in your product descriptions and marketing campaigns.
- For Generation X: Blend tradition with modernity. Offer products that are both practical and trendy, with an emphasis on quality and functionality. Provide a mix of traditional and innovative items, appealing to their desire for balanced and thoughtful choices.
- For Millennials: Ensure your product range includes both trendy and unique items. Be flexible in adapting your offer to the latest trends, while also providing solutions that allow customers to express their individuality. Focus on products that combine functionality with modern design and reflect values like sustainability and ethical production.
- For Generation Z: Prioritize innovation and sustainability. Offer products that align with the latest technological trends and eco-friendly practices. Ensure your brand is authentic and transparent, with a strong presence on social media. Engage with this generation by showcasing products that not only meet their aesthetic expectations but also resonate with their values of social responsibility and environmental consciousness.
By tailoring your offer to the specific needs of each generation, you can better meet customer expectations and build stronger relationships with your target audience. Each group looks for something different, and understanding these nuances is key to successful product management and marketing.
Sources:
1. PWC.com, PwC’s June 2021 Global Consumer Insights Pulse Survey
2. CBI.eu, What trends offer opportunities or pose threats on the European home decoration and home textiles market?
3. Ergostore.pl, Baby Boomers i ich zwyczaje zakupowe - jak sprzedawcy mogą wykorzystać potencjał tego pokolenia?
4. Brief.pl, Millenials: cechy pokolenia Y
5. Accenture, fashionbiznes.pl, Jak kupuje generacja Z
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