2006 UNIVERSE STUDY OF THE INTERIOR DESIGN PROFESSION. March 2006 Conducted By: MARKET PROBE INTERNATIONAL, INC. SYNDICATED WITH

Transcription

1 2006 UNIVERSE STUDY OF THE INTERIOR DESIGN PROFESSION March 2006 Conducted By: MARKET PROBE INTERNATIONAL, INC. SYNDICATED WITH

2 Table of Contents Background and Objectives Part I: Profile of the Interior Design Universe Part II: Profile of Interior Design Firms Part III: Profile of the Leaders at Interior Design Firms Part IV: Information Sources

3 About Market Probe International, Inc. Market Probe International has extensive industry specific research experience in airlines, travel, computers and technology, publishing, automotive, advertising/communications, pharmaceuticals, retailing, human resources, fragrances and beauty products. Market Probe International studies cover a broad spectrum of subjects and issues: Advertising Awareness, Penetration Communications, Reactions, etc. Awareness, Usage, Attitudes, etc., including Customer Satisfaction and Retention Analyses of Trade-Offs and Preferences Behavior/Operating Patterns and Decision Criteria New Product and Service Development, including Concept Testing and Evaluation Attitudes and Opinions Market Probe International offers worldwide research capabilities covering 24 worldwide markets. In addition to conducting research throughout the U.S., the company is associated with... EuroNet - an association of independent research companies in 18 European countries LARC (Latin American Research Center) - providing research in 17 Central and South American markets AsiaNet - offering research throughout the Far East Market Probe International is led by Alan Appelbaum, President, and Gabe Galgo, Executive Vice President. As key members of the research team, Mr. Appelbaum and Mr. Galgo have a combined experience in the research field of over 40 years. Market Probe International partial client list: Abbott Laboratories Chanel Citibank Conde Nast Publications Consumers Union DDB-Needham Advertising Deloitte & Touche Consultants EuroRSCG G&J USA Gucci Hachette Filipacchi Publishing Hearst Corporation Herman's Sporting Goods Heublein, Inc. J. Crew John Wiley and Sons Kmart Liberty Mutual Insurance Lord Dentsu Advertising Louis Vuitton Marshall Field Navy Service Exchange Program Neiman Marcus Newsweek Magazine Nobel Biocare Pfizer Food Science Group Primedia Prudential Bache Saks Fifth Avenue The Gap Tiffany & Co. Time, Inc. Tweeds Ziff-Davis Publishing

4 Background, Objectives & Methodology The Study: This landmark study addresses the entire professional interior design universe covering all market segments. The original Universe Study was conducted in Subsequent Universe Studies were conducted in 1994, 1997, 2000, and Part I of this report deals with the size of the interior design universe. The total number of U.S. firms employing at least one interior designer The total number of designers employed by these firms The total dollar volume of design products specified by these firms Part II of this report develops a complete profile of the design firms that make up the interior design universe. Dollar volume of product specified and future expectations Types of projects worked on annually Range of market segments design firms are involved in Types of design products specified annually Part III of this report develops a complete profile of the designers who make up the interior design universe. Personal profile of designers Years of specifying Length of time spent at their firm Where the designers are located Part IV of this report looks at the sources of information used by designers Relationship with manufacturers' sale reps Internet usage Tradeshow attendance Receivership & readership of professional design publications 1

5 Background, Objectives & Methodology The Sample: The total population, or universe, of design firms from which respondents were randomly selected contacted is 78,344 based on the SIC code listings by Dun & Bradstreet. Standard Industrial Classification (SIC) codes were developed by the US Office of Management & Budget to provide a uniform method of collecting, analyzing, and releasing industry statistics used by the government, academics, researchers, the business community, and the general public. The targeted respondent was the most senior level or highest-ranking designer at the firm who actually specified, recommended, or selected interior design products. Market Probe International purchased the calling list from Info USA, an independent list source. The Method: Phase I - In October 2005, over 2,000 telephone interviews were conducted to identify firms which qualify for inclusion in the interior design universe defined as firms with at least one interior designer who selects, specifies, or recommends products for design projects and that specify or purchase $450,000 or more annually of interior design products. Phase II - A separate sample of 500 in-depth interviews were conducted with those firms that qualified in Phase I to determine the types of projects designers work on, the types of products designers specify, the volume of products specify, and professional publication readership. All telephone interviews were conducted by Market Probe International, Inc. Completed interviews were coded, edited, and tabulated by Market Probe International, Inc. 2

6 Part I: Profile of the Interior Design Universe 3

7 Number of Design Firms in the Interior Design Market 25,541 Qualifying Design Firms in the Universe Interior Design Firms (85%) Architectural Firms (14%) Office Furniture Dealers (1%) # of Firms Listed # of Qualifying Firms 1 % Of Qualifying by SIC Code Projected in Universe Firms in Universe Interior Design Firms , , % Architectural Firms , , % Office Furniture Dealers , % Total: , , % 1 Qualifying firms are design firms that have at least 1 designer who specifies products for interior design projects and whose firm specifies at least $450,000 worth of products annually. 4

8 Number of Design Firms in the Interior Design Market 10-Year Comparison of Design Firms in the Universe ,541 design firms Interior Design Firms 85% Architectural Firms 14% Office Furniture Dealer Firms 1% ,149 design firms Interior Design Firms 71% Architectural Firms 25% Office Furniture Dealer Firms 4% ,853 design firms Interior Design Firms 68% Architectural Firms 29% Office Furniture Dealer Firms 3% 5

9 Number of Interior Designers in the Universe 112,965 Interior Designers in the Universe 97,452 Designers (86% from ID Firms) 14,711 Designers (13% from Architectural Firms) 802 Designers (1% from Office Furniture Dealers) Average # # of Qualifying # of Interior % of Interior Designers Firms 1 In The Designers in Designers in Per Site Universe Universe Universe Interior Design Firms , , % Architectural Firms , , % Office Furniture Dealers % Total: , , % 1 Qualifying firms are design firms that have at least 1 designer who specifies products for interior design projects and whose firm specifies at least $450,000 worth of products annually. 6

10 Number of Design Firms in the Interior Design Market 10-Year Comparison of Number of Designers in the Universe ,965 designers Interior Design Firms 86% Architectural Firms 13% Office Furniture Dealer Firms 1% ,644 designers Interior Design Firms 70% Architectural Firms 26% Office Furniture Dealer Firms 4% ,300 designers Interior Design Firms 68% Architectural Firms 28% Office Furniture Dealer Firms 4% 7

11 Total Dollar Volume of Products Specified Design Firms Specify $56.9 Billion Worth of Products Annually $46.3 billion specified by Interior Design Firms (75%) $9.3 billion specified by Architectural Firms (22%) $1.2 billion specified by Office Furniture Dealers (3%) # of Average $ of Total $ % of $ Qualifying Products Specified of Products Specified Annually Firms 1 in Universe Annually Specified Annually in Universe Interior Design Firms , $2,139, $46.3 billion % Architectural Firms , $2,605, $9.3 billion % Office Furniture Dealers $3,998, $1.2 billion % Total: , $56.9 billion % 1 Qualifying firms are design firms that have at least 1 designer who specifies products for interior design projects and whose firm specifies at least $450,000 worth of products annually. 8

12 Number of Design Firms in the Interior Design Market 10-Year Comparison of Total Dollar Amount Specified by Designers $56.9 billion Interior Design Firms 75% Architectural Firms 22% Office Furniture Dealer Firms 3% $54.3 billion Interior Design Firms 66% Architectural Firms 22% Office Furniture Dealer Firms 12% $33.0 billion Interior Design Firms 46% Architectural Firms 40% Office Furniture Dealer Firms 14% 9

13 Profile of the Interior Design Universe The Total U.S. Interior Design Market: Topline Findings There are 25,541 design firms estimated in the United States with at least one interior designer who specifies, selects, or recommends products for interior design projects. Among these design firms, 85% classify themselves as interior design firms, 14% are architectural firms, and 1% are office furniture dealers. The 25,541 design firms in the universe employ a total of 112,965 interior designers. Not surprisingly, interior design firms employ a significant portion of the designers (86%) followed by architectural firms (13%) and office furniture dealerships (1%). Designers in the universe specify close to $57 billion worth of products annually. 75% of the $56.9 billion worth of products specified each year can be attributed to interior design firms.meanwhile, 22% of the total dollar amount of products specified annually are contributed by architectural firms and 3% by office furniture dealerships. Design firms have an average of 4 interior designers on staff. 10

14 Part II: Profile of Interior Design Firms 11

15 Business Activities The average design firm specified more than $2.3 million in products in the last 12 months More than $5 million 13% $1,000,000 to $5,000,000 36% $600,000 to $999,999 20% Less than $600,000 31% 12

16 Business Outlook 4 in 10 firms expect to specify more in the next 12 months MORE 38% STAY THE SAME 56% LESS 6% 13

17 Product Specification Products design firms specify on a regular basis Total *Firms w/ *Firms w/ Firms < $1 mil >$1 mil Fabric % % % Carpet Lighting Wall covering Accessories Office furniture Window covering Hard flooring (wood, tile, stone, laminate, vinyl) Paint Surface materials Casegoods/Desks Ceilings Contract seating Rugs Storage/Filing Bathroom fixtures and fittings Hardware Office systems Outdoor (casual furniture, fabric, and fixtures) Building products (windows, doors, etc.) Residential furniture Kitchen cabinets/systems Kitchen appliances * Broken by firms specifying less than $1 million or more than $1 million 14

18 Number of Projects Annually in the Interior Design Market Firms work on an average of 108 projects annually Average # of projects worked on Residential Office Healthcare Retail Hospitality Education Government Institutional

19 Category Breakdown of Projects 84% of design firms are generalists, working on a wide variety of projects, 16% are specialists who work on only one segment % of firms involved in each project segment Office Residential Hospitality Healthcare Retail Education Government Institutional Other 3% 24% 23% 33% 40% 44% 55% 67% 77% 16

20 Project Diversity 77% of design firms in the universe work on office projects Among those firms, they also work on: Office Residential Healthcare Retail Hospitality Education Government Institutional 27% 30% 45% 44% 41% 52% 65% 100% 17

21 Project Diversity 67% of the design firms in the universe work on residential projects Among those firms, they also work on: Residential Office Hospitality Retail Healthcare Education Institutional Government 18% 18% 27% 39% 38% 56% 75% 100% 18

22 Project Diversity 55% of the design firms in the universe work on hospitality projects Among those firms, they also work on: Hospitality Office Residential Retail Healthcare Education Government Institutional 30% 29% 43% 60% 58% 67% 83% 100% 19

23 Project Diversity 44% of the design firms in the universe work on healthcare projects Among those firms, they also work on: Healthcare Office Hospitality Retail Residential Education Government Institutional 37% 40% 58% 58% 57% 73% 91% 100% 20

24 Project Diversity 40% of the design firms in the universe work on retail projects Among those firms, they also work on: Retail Office Hospitality Residential Healthcare Education Government Institutional 28% 32% 48% 65% 63% 83% 86% 100% 21

25 Project Diversity 33% of the design firms in the in the universe work on educational facilities Among those firms, they also work on: Education Office Healthcare Hospitality Retail Residential Government Institutional 44% 54% 53% 58% 72% 75% 95% 100% 22

26 Project Diversity 24% of the design firms in the universe work on government projects Among those firms, they also work on: Government Office Education Healthcare Hospitality Retail Institutional Residential 50% 50% 53% 67% 73% 72% 96% 100% 23

27 Project Diversity 23% design firms in the universe work on institutional projects Among those firms, they also work on: Institutional Office Healthcare Hospitality Education Residential Government Retail 51% 55% 55% 67% 73% 72% 94% 100% 24

28 Part III: Profile of the Leaders at Interior Design Firms 25

29 Profile of Interior Designers Designers have been specifying and/or recommending product for an average of 18 years Less than 1 year 1-2 years 1% 3% 3-5 years 7% 6-10 years 13% years 25% 20 years or more 50% 26

30 Profile of Interior Designers Designers have been with their firm an average of 12 years Less than 1 year 2% 1-2 years 9% 3-5 years 6-10 years 20% 20% years 27% 20 years or more 21% 27

31 Profile of Interior Designers 90% of designers hold degrees Graduate degree 39% Some graduate school 7% 4-year college graduate 36% 2-year college graduate 8% Some college High school graduate 3% 5% Type of degree held Interior Design 58% Architecture Fine Arts 20% 18% Liberal Arts Business Administration Industrial Design 9% 11% 13% Architectural Engineering 3% Other 10% 28

32 Profile of Interior Designers Approximately half belong to professional organizations Belong to professional organizations (51%) Do not belong (49%) 29

33 Profile of Interior Designers Average age of designers = 46 years Under 35 years (15%) years (55%) 55 years and older (27%) 30

34 Profile of Interior Designers Nearly two-thirds of interior designers are women Male (38%) Female (62%) 31

35 Profile of Interior Designers Interior design firms are concentrated on the coasts Pacific Mid Atlantic S. Atlantic E. N. Central W. S. Central Mountain W. N. Central New England E. S. Central 3% 7% 6% 5% 5% 13% 18% 21% 22% 32

36 Part IV: Information Sources 33

37 Sources of Information Most valued information sources used by designers when shopping for products Total Firms w/ Firms w/ Firms < $1 mil >$1 mil Manufacturer catalogs/sample books...76% % % Professional design magazines Manufacturer sales reps Internet or Web Tradeshows Showrooms Consumer shelter magazines Other

38 Manufacturer Representatives Designers see an average of one manufacturer sales rep in a typical week for meetings initiated by the designer 1-2 reps per week or more % who don t initiate weekly meeting with sales reps 3% 10% 43% 43% 35

39 Manufacturer Representatives Designers see an average of 1.6 manufacturer sales reps in a typical week for meetings initiated by the sales reps 1-2 reps per week 52% % 5 or more % who don t meet with sales reps weekly 6% 30% 36

40 Manufacturer Representatives 1/3 of designers have less time to meet with manufacturer sales reps compared to 2 years ago Total Firms w/ Firms w/ Firms < $1 mil >$1 mil More time %.....7% % About the same amount Less time

41 Manufacturer Representatives Approximately half of design firms participate in Lunch & Learn product presentations Yes (54%) No (46%) 38

42 Manufacturer Representatives Approximately half of designers have less time to attend these Lunch & Learn product presentations as compared to 2 years ago Total Firms w/ Firms w/ Firms < $1 mil >$1 mil More time %.....2% % About the same amount Less time

43 Sources of Information 78% of designers find advertising in professional design magazines to be important for reviewing products Extremely important 15% Very important 38% Important 25% Not very important 17% Not at all important 5% 40

44 Sources of Information Actions taken after seeing an ad in a magazine Total Firms w/ Firms w/ Firms < $1 mil >$1 mil Visit manufacturer s website %....61% % Call manufacturer s toll free number Contact the local manufacturer s sales rep Return the magazine s reader service card Visit a local showroom

45 Sources of Information 90% of designers value advertisements in professional publications over consumer shelter magazines Professional design magazine (90%) Consumer shelter magazine (10%) 42

46 Internet Usage 91% of designers use the Internet to search, research or source products for their projects At least once a week Multiple times a day 2 to 4 times a week Once a day Once a week 2 or 3 times a month Once a month or less Haven t used Internet 6% 3% 4% 9% 15% 14% 48% 84% 43

47 Tradeshow Attendance 47% of designers attended 1 or more tradeshows this year Total Firms w/ Firms w/ Firms < $1 mil >$1 mil % attended tradeshows in ' %....37%....55% NeoCon Kitchen/Bath Industry Show GreenBuild Conference NeoCon East Hospitality Design Expo Milan Furniture Fair NeoCon West International Hotel/Motel Show Other Did not attend any tradeshows %....63% % 45