Delivered August 5, 2020. Contributor: Dimitris D.
To understand if online shopping for home decor is increasing, how the COVID-19 has impacted the market, as well as the demographics of who is buying home decor online and what would be the average online order spend.
The most updated data on the market size of the global home decor market states that the industry worth $605 billion in 2018. The global home decor market is projected to exceed $770 billion by the end of 2024, exhibiting a CAGR of around 4% during 2019-2024.
The global online home decor market is fragmented due to the presence of a few international vendors and several regional players in the market. Vendors compete on the basis of product portfolio, differentiation, and pricing to gain maximum market traction during the forecast period. According to industry experts, for vendors to survive and succeed in a highly competitive environment, they need to distinguish their product and service offerings through a clear and unique value proposition.
Home decor platforms have undergone a seven percent global traffic increase between January and March 2020. Overall, websites selling both home decor and furniture products online generated 1.7 billion visits in March 2020, up from 1.56 billion global visits in January 2020. This is due to the global Coronavirus pandemic which created a lockdown in several countries. Brands such as IKEA, Home Depot, and Pottery Barn have provided consumers with targeted solutions, either if that were for utilitarian or pleasure purposes.
In the UK, 14% of the 18-25 years old age group buys home decor online. On the other hand, only 6% of the 45-50 years old age group buys online.
In addition, in the UK, the most common spend for Home Decor when moving to a new house is between 1,000 and 3,000 GBP
According to a survey by offers.com, consumers in the U.S. are willing to try new brands when freshening up their space. Almost 40% say they tend to revamp their homes with brands they haven’t tried before, and more than 25% add new brands into their trusted favorites.
Moreover, according to the same survey, money is harder to contend with than aesthetic challenges, our survey found. The majority of consumers (64%) wrestle with either staying under budget or balancing quality and affordability. Clutter and how to avoid it is the next-biggest stumbling block. And smaller amounts of consumers are worried about matching current decor while staying on-trend.
The demographic group driving growth in the Home Decor industry in the U.S. is millennials. A Home Depot study shows that 57% of millennial renters see home-ownership as an important goal, compared to 38% of Gen X and 34% of Boomers.
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