Table of Contents
Scope and Themes
-
- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations
- Terms
Executive Summary
-
- Market Size: Broad home channel market vs. smaller DIY market
- Competitive Context: Housing downturn, green trends and imports
- Segmentation: Flooring shows strong growth, as do electrical and “other” DIY products
- Retail Channels: Home centers dominant, despite slowing sales in 2007
- Home sales are key to current downturn in DIY market
- Home repair and renovation fall in 2007
- Media and the Internet drive and shape DIY market
- Baby Boomers and younger, multi-ethnic DIYers
- Home Depot posts sales decline for first time in 2007
- Branding strategies of the largest DIY retailers
- Innovations in green products, retailing strategies and departments
- Advertising and promotion
- Purchasing of DIY products and retail choice
- DIY activity, attitudes and information for DIY projects
- Gender: Traditional gender roles shape DIY activity, outreach to women is warranted
- Age: Younger DIYers take on more projects and tend to use the Internet for information
- Income: Income drives DIY activity overall
- Ethnicity: Asians and Hispanics are enthusiastic DIYers and key to growth in market
- Barriers to DIY activity: Money, skills and tools
Insights and Opportunities
-
- Green trends and innovations offer key growth opportunities
- Cultivate consumer base by educating and providing information on green products
- Promotion of locally-made and U.S. made products
- Focus on core businesses, smaller projects and niche markets
- Outreach to Asians and Hispanics for future market growth
Fast Forward Trends
-
- Trend: Home of the Senses
- The home is becoming the Empire of the Senses
- Making a house a home
- Color therapy
- Compromise isn’t a four letter word
- Trend: Customization
- Mick Jagger was wrong: you can always get what you want. And the way you want it
- Customization for the masses
Market Size and Forecast
-
- Slower growth predicted in broader home channel through 2012
- After strong growth through 2006, sales slow in 2007 with the slumping housing market
-
- Figure 1: Total U.S. sales and forecast of broader home channel market at current prices, 2002-12
-
- Figure 2: Total U.S. sales and forecast of broader home channel market at inflation-adjusted prices, 2002-12
- Within more limited DIY-only market, uneven growth prevailed in 2002-06
-
- Figure 3: Total U.S. sales and forecast of DIY market at current prices, 2002-12
- Figure 4: Total U.S. sales and forecast of DIY market at inflation adjusted prices, 2002-12
Competitive Context
-
- Key Points
- Downturn in the housing market has dampened DIY sales in 2007
- Gloomy housing prognosis for 2008, although federal legislation could stimulate market
- Suffering losses and facing market saturation, home centers limit expansion and take a more conservative approach
- Green living trends fuel environmentally-friendly products and practices
- Energy conservation and concern with energy costs drive green movement
- Government activity and legislation drives demand for green products
- Changes in building codes and promotion of green homes
- Government promotion of energy efficient practices and products
- VOC regulations
- Imports play major role in DIY market, also pose safety concerns
Segment Performance
-
- Key points
- Paint sales stagnate while innovations in flooring drive sales
- Sales in the “other” category show growth above market average
-
- Figure 5: U.S. sales of DIY products, segmented by type, 2004 and 2006
Segment Performance—Paints, Wallpapering and Supplies
-
-
- Figure 6: U.S. DIY sales and forecast of paints, wallpaper and supplies, 2002-12
-
Segment Performance—Flooring
-
-
- Figure 7: U.S. DIY sales and forecast of materials for hard surface flooring, 2002-12
-
Segment Performance—Electrical Supplies, HVAC
-
-
- Figure 8: U.S. DIY sales and forecast of electrical supplies, heating and cooling equipment, 2002-12
-
Segment Performance—Plumbing
-
-
- Figure 9: U.S. DIY sales and forecast of plumbing supplies and equipment, 2002-12
-
Segment Performance—Tools and Equipment for Painting and Wallpapering
-
-
- Figure 10: U.S. DIY sales and forecast of tools and equipment for painting and wallpapering, 2002-12
-
Segment Performance—Other DIY Products
-
- Building materials
- Windows
- Lumber
- Tools
-
- Figure 11: U.S. sales and forecast of other DIY supplies, 2002-12
Retail Channels
-
- Key points
- Home centers maintain as building material dealers see sales tumble
- Specialty retailers and hardware stores struggle to maintain market share
- Department stores see sales fall while general merchandisers carve out growing share of DIY market
-
- Figure 12: U.S. sales through home improvement channels, by retail channel, 2005 and 2007
Retail Channels—Home Centers
-
-
- Figure 13: U.S. home channel sales through home centers, 2002-07
-
Retail Channels—Other Building Material Dealers
-
-
- Figure 14: U.S. home channel sales through all other building material dealers, 2002-07
-
Retail Channels—Floor Covering Stores
-
-
- Figure 15: U.S. home channel sales through floor covering stores, 2002-07
-
Retail Channels—Hardware Stores
-
-
- Figure 16: U.S. home channel sales through hardware stores, 2002-07
-
Retail Channels—Wallcovering and Paint Stores
-
-
- Figure 17: U.S. home channel sales through wallcovering and paint stores, 2002-07
-
Retail Channels—Nurseries, Garden Centers, Farm Suppliers
-
-
- Figure 18: U.S. home channel sales through nursery, garden centers and farm suppliers, 2002-07
-
Retail Channels—Outdoor Power Equipment Dealers
-
-
- Figure 19: U.S. home channel sales through outdoor power equipment stores, 2002-07
-
Retail Channels—Department Stores, Mass Merchandisers
-
-
- Figure 20: U.S. home channel sales through department stores and mass merchandisers, 2002-07
-
Retail Channels—General Merchandise Stores
-
-
- Figure 21: U.S. home channel sales through all other general merchandise stores, 2002-07
-
Market Drivers
-
- Home ownership is important driver of DIY activity
-
- Figure 22: Undertook home improvement in the past 12 months by home ownership, May 2006-June 2007
- New and existing home sales drop sharply in 2006 and 2007
-
- Figure 23: Sales of new and existing homes, 2002-07
- In longer term, the housing market should recover and drive DIY sales
- Maintenance, repair and improvements expenditures fall in 2007
-
- Figure 24: Expenditures for residential repairs and maintenance, and improvements, 2002-07
- Media influences spur interest in DIY activity
- The Internet takes a growing role in the DIY market
- Demographic drivers: younger homeowners and Baby Boomers
-
- Figure 25: Population by age, 2002-12
- Demographic driver: an increasingly multi-ethnic population
-
- Figure 26: Population by race and Hispanic origin, 2002-12
Leading Companies
-
- Key points
- 2007 is a challenging year for all major retailers, especially Home Depot
- Smaller retailers may be better positioned to attract DIYers in future market
- Mixed results from 2005-07 for the five largest DIY retailers
-
- Figure 27: Sales of leading DIY companies, 2005 and 2007
Brand Qualities
-
- Home Depot—a “back to basics” brand—focused on innovation and service
- Lowe’s—a softer, more female-friendly brand with exclusive, trusted product lines
- Menards—an eclectic, value-oriented “catch all” store, rooted in Midwestern tradition
- Wal-Mart—the “Low Prices—Always” brand gives company leverage with casual DIYers
- Sears—A once highly reputed brand sees prestige and sales decline
- Hardware co-operatives emphasize quality and highlight personal customer service and accessible help
Innovation and Innovators
-
- Key points
- Green products and practices are an important area of innovation
- Innovations in technology and style
- Innovations in retailing: new formats and retail approaches
- Home Depot—New “Designer Center”, “Project Store”, “Store Standard” pilot and smaller format stores
- Menards—Expanded product offerings, “store within a store” and joint retail centers/housing developments
- Hardware Co-operatives: focus on new websites, new store designs and customer service and eco-based initiatives
- Innovative retailing strategies in key segments: paint and tools
- Paint: expanded offerings, design centers, color matching services and new kiosks
- Tools: “Store within Store” format, expanded private label offerings and hands-on stations to try products
Advertising and Promotion
-
- Overview
- Advertising expenditures of the largest retailers
-
- Figure 28: Major home improvement store advertising spend in measured and unmeasured media, 2005 and 2006
- Figure 29: Advertising spending in measured media, by category, 2006
- Advertising profiles for major retailers and hardware cooperatives
- Home Depot
- Lowe’s
- Menards
-
- Figure 30: Television ad – Menards, 2007
- Wal-Mart
- Sears
- True Value
- Ace Hardware
- Do it Best
Usage—Products Purchased
-
- Key points
- Homeowners and upper-income families are key groups to target
-
- Figure 31: Undertook home improvement in the past 12 months by home ownership, May 2006-June 2007
- Figure 32: Undertook home improvement in the past 12 months, by marital status, May 2006-June 2007
-
- Figure 33: Undertook home improvement in the past 12 months, by age, May 2006-June 2007
- Figure 34: Undertook home improvement in the past 12 months, by household income, May 2006-June 2007
- Types of home improvement purchases made in the past 12 months
-
- Figure 35: Types of home improvements products purchased in past 12 months, by household income, May 2006-June 2007
Retailers used for DIY Purchases
-
- Key points
- Home improvement stores shopped in the last three months
-
- Figure 36: Specific home improvement retailers shopped in previous 3 months, by home improvement in the past 12 months and home improvement by self or hh member, May 2006-June 2007
Number and Type of DIY Projects
-
- Key points
- Gender roles endure, though female consumer base may be cultivated
-
- Figure 37: Type of DIY projects undertaken, by gender, January 2008
- Young DIYers undertake the most projects
-
- Figure 38: Number of DIY projects undertaken, by age, January 2008
-
- Figure 39: Type of DIY projects undertaken in past 12 months, by age, January 2008
- Outdoor living key for upper income DIYers
-
- Figure 40: Number of DIY projects undertaken in past 12 months, by household income, January 2008
-
- Figure 41: Type of DIY projects undertaken in past 12 months, by household income, January 2008
Attitudes—Enjoyment of DIY Work and How Work is Shared and Completed
-
- Key Points
- Men enjoy and complete more projects
-
- Figure 42: Enjoyment of all projects and preference for professional help, by gender, January 2008
-
- Figure 43: How work shared/completed, by gender, January 2008
- Younger DIYers more engaged
-
- Figure 44: Enjoyment of all projects and preference for professional help, by age, January 2008
-
- Figure 45: How work shared/completed, by age, January 2008
Attitudes and Motivations—Where DIYers Seek Help and Information
-
- Key Points
- Sources of information on DIY home improvement projects
-
- Figure 46: Source of information for DIY projects, by age, January 2008
-
- Figure 47: Source of information for DIY projects, by household income, January 2008
-
- Figure 48: Source of advice when “stuck” with DIY project, by age, January 2008
- Figure 49: Source of advice when “stuck” with DIY project, by household income, January 2008
Attitudes and Motivations—Those Who Don’t Undertake DIY Projects
-
- Key Points
- Reasons for not undertaking a project
-
- Figure 50: Reasons for not undertaking a project, by gender, January 2008
-
- Figure 51: Reasons for not undertaking a project, by age, January 2008
-
- Figure 52: Reasons for not undertaking a project, by household income, January 2008
-
- Figure 53: Things that would motivate taking on a DIY project, January 2008
Race and Ethnicity
-
- Key points
- Hispanics are key group to target
-
- Figure 54: Undertook home improvement in the past 12 months by race/ethnicity, May 2006-June 2007
- Types of home improvement purchases made in the past 12 months
-
- Figure 55: Types of home improvements products purchased, by race/ethnicity, May 2006-June 2007
- Hispanics show strong DIY Interest
-
- Figure 56: Number of DIY projects undertaken, by race/ethnicity, January 2008
-
- Figure 57: Type of DIY projects undertaken, by race/ethnicity, January 2008
-
- Figure 58: Enjoyment of all projects and preference for professional help, by race/ethnicity, January 2008
-
- Figure 59: How work shared/completed, by race/ethnicity, January 2008
-
- Figure 60: Source of information for DIY projects, by race/ethnicity, January 2008
-
- Figure 61: Source of advice when “stuck” with DIY project, by race/ethnicity, January 2008
-
- Figure 62: Reasons for not undertaking a project, by race/ethnicity, January 2008
Simmons Cohort Analysis
-
-
- Figure 63: Undertook home improvement in the past 12 months by household income, May 2006-June 2007
-
Cluster Analysis—Active DIYers and Female vs. Male Dominated
-
- Key points
- Active DIYer
- Female-dominated DIYer
- Male-dominated DIYer
- Cluster distribution and demographics
-
- Figure 64: DIY consumer clusters, January 2008
- Figure 65: DIY consumer clusters, by gender, January 2008
- Figure 66: DIY consumer clusters, by age, January 2008
-
- Figure 67: DIY consumer clusters, by income, January 2008
- Methodology
Custom Consumer Groups
-
- Males with children most active DIYers
-
- Figure 68: Number of home improvement projects done in past 12 months, by age and presence of children in the household, January 2008
- Younger males active DIYers
-
- Figure 69: Number of home improvement projects done in past 12 months, by gender and age, January 2008
-
- Figure 70: Source of information for DIY projects, by gender and age, January 2008
- Importance of age and income among Hispanics
-
- Figure 71: Number of home improvement projects done in past 12 months, by Hispanic origin, age and household income, January 2008
-
- Figure 72: Source of information for DIY projects, by Hispanic origin and age, January 2008
Appendix: Other Useful Consumer Tables
-
-
- Figure 73: Types of home improvements products purchased, by age, May 2006-June 2007
-
- Figure 74: Types of home improvements products purchased, by who undertook improvement, May 2006-June 2007
-
- Figure 75: Types of home improvements products purchased, by size of household, May 2006-June 2007
-
- Figure 76: Number of DIY projects undertaken, by gender, January 2008
-
- Figure 77: Enjoyment of all projects and preference for professional help, by household income, January 2008
-
- Figure 78: How work shared/completed, by household income, January 2008
-
- Figure 79: Source of information for DIY projects, by gender, January 2008
-
- Figure 80: Source of advice when “stuck” with a DIY project, by gender, January 2008
-
Appendix: Trade Associations
Back to top