The experiment with widespread remote work began in March. Six months later, executives have drawn different conclusions about its effect on productivity, creativity, inclusion and culture. 

“As a result the COVID calamity will prompt a long-overdue phase of technological and social experimentation, neither business as usual nor a fatal blow to the office. This era holds promise but also brings threats, not least to companies’ cultures,” according to The Economist.

One challenge is not to the office, but to its furniture suppliers. Commercial office furniture suppliers experienced a shock due to COVID-19. However, they were able to branch out to the B2C space. 

How have B2B furniture brands adjusted their ad spend and how are they reaching new customers amid the pandemic? 

We encourage you to subscribe to our blog for the latest data surrounding the advertising industry. We will provide daily updates as COVID-19 continues to make its mark on the US economy.

WFH complicated business as usual for furniture suppliers

Traditional office suppliers were not prepared for the COVID-19 shock. Office furniture purchases went from sales, delivery, and assembly by the truckload to individual orders. Consumers wanted affordable, ergonomic chairs that they could order online and put together themselves easily.

This led to a number of complications, spanning from pricing to logistics. 

“We’re not used to dealing with the end user—if we get a call from a customer about a missing screw, we’re not set up to handle that,” said Soren Stig-Nielsen, president of LINAK U.S. Inc. These new consumer patterns are not likely to change until there is a vaccine, and even after that, it’s unclear what percentage of the workforce will fully return to the office. 

Some leaders, like Herman Miller’s Lori Gee, say they believe that the office will continue, even if it is in the form of small, satellite offices. 

There is an unmet demand for kid-sized desks and chairs as well. Between mid-July and August, the term “kids desk” rose 3783% and “computer desk” increased 257% on Amazon, according to Profitero. However, unfortunately for parents, there is a shortage of furniture and many items are backordered.

The pandemic forced office furniture suppliers to pivot. As individuals set up their office and schooling spaces, traditional B2B furniture companies began to advertise and sell in the B2C market.

MediaRadar Insights: How did B2B furniture suppliers change their advertising in response to their new buyers?

Commercial furniture brands increased ad spending by 235% this year, when compared to the time frame in 2019. This increase in ad spend happened as soon as WFH became the norm for many Americans. At the same time, traditional furniture brands saw a 7% decline in advertising year-to-date (YTD).

This is due to the explosion of needs for home office goods. The top brands driving this increase include Varidesk and X-chair.

Normally commercial furniture brands advertise exclusively in the world of B2B media, and although they are still advertising significantly in B2B publications, we are now seeing commercial furniture ads in the world of B2C marketing. For example, the X-Chair has been running commercials on TV.

Before Americans needed to set up a functional home office, these ads were exclusively targeted towards businesses. Now, we even see a subtle change in the creative with the copy and the “home office approved” stamp in the upper corner.

Many industries pivoted during this pandemic, not least office furniture companies. Corporations are cancelling their commercial leases, telling employees they may or may not return to the office even after the vaccine is widely distributed. When they do, it is likely that many companies will offer flexible work schedules. 

With these widespread changes to work and office set-ups, it is hard to predict the furniture needs of future businesses. Furniture companies will need to stay agile and responsive to the changes as they come—but for now the focus is on the home office. 

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But how are your neck and wrists doing?

Last week, we covered how software solutions that facilitate remote work, like Microsoft Teams and Zoom, responded quickly to coronavirus by doubling their ad spend in Q1.  

Now we want to look at another part of successful remote work — at-home office setups. 

While furniture stores at large have been hurting due to coronavirus, stores that sell office furniture have seen an increase in demand.

We encourage you to subscribe to our blog for the latest data surrounding the advertising industry. We will provide daily updates as COVID-19 continues to make its mark on the US economy.

The office furniture market was already looking positive

Even before coronavirus was on our minds, the office furniture market was expected to thrive over the next few years. MarketWatch forecasted a 5.52% year-over-year growth. 

While the report pointed to an increase in commercial spaces and number of employees across the globe, what we are seeing this quarter is a greater need for home office furniture.

“One area where we are selling pretty well compared to others is office furniture,” said Henrik Elm, global supply manager at brand owner Inter IKEA Group. “People are working from home and they have identified needs in their homes for it.” 

Similarly, Best Buy is experiencing an increased demand in office furniture for people working remotely. 

Many companies are willing to support their employees in their transition to remote work by offering them stipends to buy the furniture and supplies they need. 

Shopify offered its employees $1,000 stipends to buy desks, lamps and other furniture items they would have in the typical office.  

Furniture brands adjust their ad strategy in response to new market

Overall furniture ad spend has dropped since the COVID-19 pandemic hit the US, but companies seem to be taking it in stride by switching up their ad creatives.

The first three weeks of March saw a 52% reduction in overall ad spend. Some of this may be seasonal. Last March, we also saw a dip in ad spend, but it was less pronounced.

In March 2019, overall furniture ad spend was down 25% compared to the first three weeks of February 2019. 

Despite the decrease, furniture companies are still averaging over $5M in weekly ad spend so far this month. 

Much of the decreased ad spend targets consumer purchases: mattresses, tables, couches, shelves and so on. 

However, some furniture companies are advertising these products more, just with a subtle messaging adjustment and a nod to people’s new realities. 

For example, Raymour & Flannigan released new creative in the last couple of weeks, promoting “The Comfort of Home.” They put additional dollars behind the creative and boosted TV investment. In March they spent $1.4M on TV promoting the spot, compared to $658k spent in February. 

Office furniture advertising increases

More dramatic changes are happening among companies that already focus on office furniture, and companies that can pivot in that direction. 

For example, the standing desk company, Varidesk, has spent more on advertising in the first three weeks of March than the past 5 months combined.

Other furniture companies have shifted their creative focus from consumer products to home-office furniture.

Take for example, Ashley Furniture. The company released a new TV spot that makes reference to the “bright side” of spending your whole day with your kids and pets, showing a working mom at her desk in a new home office.  

Everything around us is changing as the COVID-19 pandemic carries on. It appears to leave nothing untouched — especially how we view the relationship between work and home. This is impacting how furniture stores are responding in their ad spend and their creative messaging.  

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