Table of Contents
Executive Summary
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- The market
- Expenditure nears £10 billion, but there is uncertainty ahead
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- Figure 1: Consumer spending on Home accessories, 2014-2024
- Growth in trend-driven product categories, as essential products remain stable
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- Figure 2: Consumer spending on accessorising the home, % of total, 2019
- The housing market has ensured continued demand despite uncertainty
- The return of real wage growth
- Companies and brands
- Amazon leads the charge online
- Department stores suffer as pressure grows on the high street
- But the physical sector remains robust
- The rise of ‘Lifestyle brands’
- The consumer
- 74% of consumers involved in the market, with trend-driven product sales up
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- Figure 3: Home accessories purchases, October 2016 and January 2020
- In-store tops online as most popular channel of purchase, but its time looks limited as mobile purchasing surges
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- Figure 4: Channel of purchase, January 2020
- Supermarkets top spending, but Amazon, discounters and clothing retailers make gains
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- Figure 5: Channel of purchase, January 2020
- Cost remains king, but environmental credentials are a growing spotlight
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- Figure 6: Key purchase drivers, January 2020
- Consumers increasingly turn online for inspiration, but in-store displays remain paramount
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- Figure 7: Inspiration for purchase, January 2020
- There are two increasingly distinct markets in home accessories
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- Figure 8: Attitudes towards home accessories, January 2020
- Room for more green initiatives in home accessories
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- Figure 9: Interest in home accessories, January 2020
- What we think
Issues and Insights
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- How might COVID-19 impact the home accessories market?
- The facts
- The implications
- Who could be the winners and losers from the COVID-19 outbreak?
- The facts
- The implications
- The rise of the ‘Lifestyle Brand’
- The facts
- The implications
- What does the new Millennial shopper look like?
- The facts
- The implications
- How should retailers cater to the new Millennial shopper?
- The facts
- The implications
The Market – What You Need to Know
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- Expenditure nears £10 billion, but there is uncertainty ahead
- Growth in trend-driven product categories, as essential products remain stable
- Amazon, clothing and value retailers make gains amid lack of specialists
- The housing market has ensured continued demand despite uncertainty
- The return of real wage growth
Market Size and Forecast
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- Home accessories expenditure nears £10 billion mark
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- Figure 10: Consumer spending on Home accessories, 2014-24
- Figure 11: Consumer spending on Home accessories, 2014-24
- However, there is uncertainty on the horizon, with shopping behaviour set to change amid Coronavirus fears
- Forecast methodology
Market Segmentation
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- A diverse and fluid marketplace
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- Figure 12: Consumer spending on accessorising the home, by segment, 2012, 2016 and 2019 (est)
- Growth in trend-driven product categories
- Essential product categories remain largely stable
- Curtains and blinds lead the market
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- Figure 13: Consumer spending on accessorising the home, % of total, 2019 (est)
Channels to Market
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- Broad choice of retailers, with few specialists
- Amazon, clothing and value retailers make gains
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- Figure 14: Distribution of Home accessories, 2019 (est)
Market Drivers
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- The housing market has stabilised in recent years
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- Figure 15: Quarterly UK residential property transactions, Q1 2015-Q4 2019
- One in five rents privately in England
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- Figure 16: England Housing, by tenure, 2010-18
- Consumer confidence remains robust
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- Figure 17: Consumer financial confidence, January 2017- 2020
- Spending on the home largely holds up, but will fall in coming months
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- Figure 18: Trends in spending on the home, Jan 2018-Jan 2020
- The return of real wage growth
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- Figure 19: Great Britain average weekly earnings annual growth rate, total pay (real), 2015-19
Companies and Brands – What You Need to Know
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- Amazon leads the charge online
- Department stores suffer as pressure grows on the high street
- But the physical sector remains robust
- The rise of ‘Lifestyle brands’
- Total adspend falls in 2019, but daytime TV remains a hotspot
Companies and Brands
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- IKEA boosted by online efforts
- Amazon leads the charge online
- Tesco Direct closes
- The Very Group rebrands
- Department stores suffer a difficult year
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- Figure 20: Leading Department Stores, estimated sales mix, 2018
- John Lewis sees sales drop, but pushes home up on the agenda
- Clothing retailers continue to build ‘lifestyle’ propositions
- Continued upheaval in the DIY sector
Competitive Strategies
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- Ramped up focus online
- Introducing experiential store concepts
- Dunelm benefits from its ambitious physical expansion
Launch Activity and Innovation
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- The rise of ‘lifestyle brands’
- Former Vogue editors launch a boutique curated shopping platform
- River Island launches a homeware pop-up store
- Compadre opens a tech-driven pop-up store
- Zara Home commits to 100% sustainable fabric
- Harth opens the field for home accessories rental
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- Figure 21: Harth range, September 2019
- The blooming market for house plants
Advertising and Marketing Activity
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- Total advertising expenditure fell by 27% in 2019
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- Figure 22: Total above-the-line, online display and direct mail advertising expenditure on home accessories, 2015-19
- Plumbs tops adspend in 2019
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- Figure 23: Total above-the-line, online display and direct mail advertising expenditure on home accessories, by retailer, 2015-19
- Retailers adopt varying strategies for exposure
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- Figure 24: Total above-the-line, online display and direct mail advertising expenditure on home accessories, by retailer, 2019
- Campaign highlights
- Hillary’s blinds sponsors homes on channel 4
- Dunelm to sponsor ITV’s This Morning
- IKEA puts the spotlight on sleep
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- 74% of consumers involved in the market, with trend-driven product sales up
- In-store tops purchases, but its time looks limited as mobile purchasing surges
- Supermarkets top spending, but Amazon, discounters and clothing retailers make gains
- Cost remains king, but environmental credentials are a growing spotlight
- Consumers increasingly turn online for inspiration, but in-store displays remain paramount
- There are two increasingly distinct markets in home accessories
- Room for more green initiatives in home accessories
Home Accessories Purchases
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- Three quarters of consumers involved in the market in 2019
- Bed linens top purchasing, while essential categories maintain
- But trend-driven products grow significantly
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- Figure 25: Home accessories purchases, October 2016 and January 2020
- New movers drive multi-purchasing
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- Figure 26: Repertoire of home accessories purchases, January 2020
Channel of Purchase
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- In-store tops purchases, but its time looks limited
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- Figure 27: Channel of purchase, January 2020
- Mobile purchasing an increasingly active channel
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- Figure 28: Channel of purchase, January 2020
- Retailers must do more to engage with consumers in mobile purchasing
- Social media offers a new way to market home accessories
Retailers Used
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- Amazon is favoured by time-pressured workers and parents
- Discount retailers make gains, but could benefit from regional expansion
- Dunelm should revamp its brand to harness new growth opportunities
- Clothing retailers steal the show for young female consumers
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- Figure 29: Retailers used, January 2020
- Recent movers shop around as they look to furnish their new home
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- Figure 30: Repertoire of Retailers used, January 2020
Key Purchase Drivers
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- Price rules supreme in the choice of retailer
- Environmental credentials a growing spotlight
- But there remains room for improvement for home accessories
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- Figure 31: Key purchase drivers, January 2020
Inspiration for Purchase
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- Consumers turn online for inspiration
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- Figure 32: Inspiration for purchase, January 2020
- But in-store displays remain paramount
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- Figure 33: Inspiration for purchase, January 2020
- The role of social media is unparalleled among younger shoppers
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- Figure 34: Inspiration for purchase, Social Media, by age, January 2020
Attitudes towards Home Accessories
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- Stores should push planning services to re-engage crucial demographics
- There are two increasingly distinct markets in home accessories
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- Figure 35: Attitudes towards home accessories, January 2020
- Private renters look to the market for personalisation
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- Figure 36: Attitudes towards home accessories, private rental, January 2020
Interest in Home Accessories
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- Room for more green initiatives in home accessories
- Home accessories for rent
- The rise of ‘lifestyle brands’ shows no signs of slowing
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- Figure 37: Interest in home accessories, January 2020
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix - Market size and forecast
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- Forecast Methodology
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