Wonder

Research Outline

Prepared for Tom B. | Delivered July 24, 2019

Home Industry Trends

Goals

Identify trends/themes that are broadly related to the entire home industry within the U.S., to use as content for a website about the home industry.
Trends should be related to but not limited to marketing, demographic information, industry outlook/predictions, platforms, brands, etc.
Trends should also be focused on the following segments/categories: furniture, bedding, mattresses, kitchen, cookware, cutlery, etc.

Early Findings

Data from Allied Market Research presented the following home industry trends:
Because the cost of raw materials such as leather, wood, etc. are increasing, they are becoming less and less popular for use in home improvement. As an alternative, consumers are looking to laminate tiles, vinyl/rubber, and carpet/rugs.
Multi-purpose or multifunctional furniture is also becoming increasingly popular with buyers that live in urban communities.
Key players in the home furnishings market include but are not limited to Kimball International, Ashley Furniture, and IKEA.

In the Home Decor Market: Global Industry Trends, Size, Growth, Opportunity and Forecast 2019-2014 report that was published by Research & Markets, the following data points and trends were noted:
In 2017, the total market size of the global home decor market amounted to approximately $582 billion, is expected to be around $741 billion by 2023, and will experience a CAGR of 4% during that time period.

According to the Storis' 2019 Home Furnishings Retail Industry Trend report, current and emerging trends in the home furnishings' area include but are not limited to:
In 2018, sales from retail home furnishings amounted to approximately $304,270,000,000, and this value is expected to increase by 4% by the end of 2019. Approximately 27% of this revenue is expected to come from online sales, with Amazon holding the largest share of online home furnishings sales (49%).
When consumers are searching for home furnishings, almost 90% begin their searches online, and 47% of Millennials specifically will either purchase online and have their goods delivered, or will use an in-store pickup option. The other 51% of consumers will visit a store/showroom to see goods in-person.
Gen Z-aged consumers in the market for home furnishings are often less influenced by price, promotion, and ads because they tend to place more value on experience and uniqueness. Millennials on the other hand are more influenced by personalized options.
In terms of social media, Instagram stories are a growing method of providing an immersive visual experience to potential consumers. They allow buyers to experience a product without physically being in-store, and offer a free marketing option for sellers.
Bloomberg research estimates that approximately 55% of online shoppers in the U.S. first resort to checking Amazon for home furnishings when shopping online, and almost 90% will do a price check on Amazon for a product even if they plan to purchase it from another retailer.