Table of Contents
Executive Summary
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- Top takeaways
- Market overview
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- Figure 1: Total US sales and fan chart forecast of furniture and home furnishings, at current prices, 2015-25
- Impact of COVID-19 on home categories online
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- Figure 2: Short-, medium- and long-term impact of COVID-19 on furniture and home décor , April 2021
- Opportunities and challenges
- Streamline the shopping process through social
- Bridge the gap between online and in-store shopping
- Focus on multifunctional items
- Bring the focus on sustainability to the forefront
- Capitalize on the association between living spaces and wellbeing
The Market – Key Takeaways
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- Favorable economic and industry trends support category growth
- There is no going back from ecommerce
Market Size and Forecast
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- Changes to lifestyles and increased time at home will drive category growth
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- Figure 3: Total US sales and fan chart forecast of furniture and home furnishings, at current prices, 2015-25
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- Figure 4: Total US retail and ecommerce sales and forecast of furniture and home furnishings, at current prices, 2015-25
- The pandemic accelerated the adoption of ecommerce
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- Figure 5: Total US ecommerce sales and fan chart forecast of furniture and home furnishings, at current prices, 2015-25
- Impact of COVID-19 on shopping for the home
- Learnings from the Great Recession
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- Figure 6: Historical personal consumption expenditures in furniture and Home décor
Segment Performance
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- Favorable environment, still consumers focus on what is essential
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- Figure 7: Total US retail and ecommerce sales of furniture and home furnishings by segment, at current prices, 2014-20
Market Factors
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- The international trade disruption
- High unemployment and low consumer confidence result in restricted spending
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- Figure 8: Consumer confidence and unemployment, 2000-March 2021
- The movement of the masses
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- Figure 9: Rental and homeowner vacancy rates, March 2021
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- Figure 10: US historical homeownership rates
- The sustainable lifestyle
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- Figure 11: West Elm drives in-store recycling, March 2021
- The digital transformation
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- Figure 12: Shopping behavior – Digital tools use, February 2021
Companies and Brands – Key Takeaways
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- Home retailers are adopting new ways to reach customers online
- Evolve to meet changing lifestyles and shopping behaviors
Competitive Strategies
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- Outer uses customer homes as showrooms
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- Figure 13: Outer virtual showrooms
- Target partners with Levi’s to launch a home décor line
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- Figure 14: Levi’s x Target partnership includes home items
- West Elm creates a shop in shop online
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- Figure 15: Fresh + West Elm, March 2021
- Ikea encourages consumers to extend the life of furniture and live more sustainably
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- Figure 16: Ikea’s sustainable efforts
- Retailers are exploring new catalog formats
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- Figure 17: Crate&Kids Pinterest catalog
- Figure 18: CB2 Spring ‘21 collection
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- Figure 19: Ikea Audio catalog
Market Opportunities
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- Offer value in its different forms to keep the momentum going
- Focus on multifunctional items
- Embrace the sustainable lifestyle
- Capitalize on the association between living spaces and wellbeing
- Drive interest through partnerships and collaborations
The Consumer – Key Takeaways
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- eCommerce adoption accelerates; yet the physical store is no less important
- Consumers seek convenient and seamless online shopping
- Good for the consumer, the community and the planet
- Looking ahead frictionless shopping is key to compete online
- Consumers are active on social platforms; brands need to do the same
Items Purchased
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- Home décor
- Consumers are shopping across all types of home décor items
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- Figure 20: Items purchased – Home décor, February 2021
- Home renters seek in-home décor items more than an aesthetic pleasure
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- Figure 21: Items purchased – Home décor, by housing situation, February 2021
- Young women are investing in their home belongings
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- Figure 22: Items purchased – Home décor, by gender and age, February 2021
- Furniture
- Consumers prioritize certain rooms for furniture purchases
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- Figure 23: Items purchased – Furniture, February 2021
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- Figure 24: West Elm
- Men are into staple items when shopping for the home
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- Figure 25: Items purchased – Furniture, by gender, February 2021
- Gen Z and Millennials drive the furniture demand online
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- Figure 26: Items purchased – Furniture, by generation, February 2021
Retailers Shopped
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- Amazon dominates online shopping for the home
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- Figure 27: Retailers shopped, 2021
- Diversity in assortment is key to appeal to women
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- Figure 28: Retailers shopped, by gender, 2021
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- Figure 29: Etsy – Home décor seller
- Investments in digital marketing initiatives to attract young consumers, represent a customer lifetime value
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- Figure 30: Retailers shopped, by generation, 2021
Approach to Shopping for the Home
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- Consumers are growing accustomed to ecommerce
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- Figure 31: Online home purchases, February 2021.
- Browsing
- Exploration takes place across channels
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- Figure 32: Browsing habits, 2021
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- Figure 33: CB2 retargets with sale notifications
- All generations are browsing online; Gen X leads the way
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- Figure 34: Browsing habits – Generation, by online dominant, 2021
- Purchasing
- Similar to browsing, consumers are buying both online and in-store
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- Figure 35: Purchasing habits, February 2021
- Meet customers everywhere, at any time
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- Figure 36: Purchasing habits – Multichannel shoppers, by generation, February 2021
Sources of Inspiration
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- Social media goes beyond inspiration
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- Figure 37: Source of inspiration, February 2021
- Figure 38: TURF analysis – Source of inspiration, February 2021.
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- Figure 39: Pottery Barn sparks inspiration via Instagram
- Leverage social channels to bond with women
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- Figure 40: Lowe’s x New York Fashion Week
- Figure 41: Source of inspiration, by gender and age, February 2021.
- Connecting with older consumers where they’re looking for inspiration
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- Figure 42: Source of inspiration, by generation, February 2021
Shopping Behavior
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- When shopping for the home online, consumers are very thorough
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- Figure 43: Shopping behavior, February 2021
- Multicultural consumers prioritize frugal shopping
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- Figure 44: Shopping behavior – Shop around for the lowest price, by race/ethnicity, February 2021
- Men need assurance of their home purchases
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- Figure 45: Shopping behavior, by gender and age, February 2021
- There is a lasting appreciation toward living spaces
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- Figure 46: Category approach, February 2021
- Consumers seek longevity in their home goods, but some prioritize affordability
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- Figure 47: Category approach, by generation, February 2021
- Younger consumers experiment to find what better works for them
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- Figure 48: Category approach, by generation, February 2021
Shifts in Shopping Behavior Due to Pandemic
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- More home projects and less in-store visits
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- Figure 49: Shifts in behavior, February 2021
- The adoption of e-commerce accelerates across generations
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- Figure 50: Shifts in behavior, by generation, February 2021
Purchase Motivations and Barriers
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- Motivators
- At this point in time, home improvements drive furniture and home décor purchases
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- Figure 51: Motivators to purchase, February 2021
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- Figure 52: Sherwin-Williams x Pottery Barn Kids partnership
- Mothers bring the traditions at home
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- Figure 53: Motivators to purchase by parental status of children under 18 in household, by gender, February 2021
- Millennials shop for entertaining and events
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- Figure 54: Motivators to purchase, by generation, February 2021
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- Figure 55: Ready, Set, Prep by Crate & Barrel
- Barriers
- Delivery costs turn consumers away
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- Figure 56: Barriers, February 2021
- Frequent online shoppers seek convenience and flexibility
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- Figure 57: Barriers, by online shopping frequency, February 2021
Future Shopping Behavior
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- Streamlined returns are key to moving forward
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- Figure 58: Future drivers, February 2021
- Interest-free installment payments are a simple way to enhance the shopping experience
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- Figure 59: Future drivers, by age and income, February 2021
- Consumers embrace technology; men lead the way
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- Figure 60: Future drivers, by gender and age, February 2021
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- Figure 61: Crate&Barrel highlights digital capabilities
Attitudes toward Shopping for the Home
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- The emotional impact
- Consumers’ living spaces contribute to overall wellbeing
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- Figure 62: Attitudes toward shopping for the home, February 2021
- Sustainability focus
- Circular shopping attracts the young crowd
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- Figure 63: Attitudes toward shopping for the home, by generation, February 2021
- Focus on collaborations
- Men appreciate the expertise when shopping for the home
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- Figure 64: Attitudes toward shopping for the home, February 2021
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Forecast
- Consumer survey data
- Consumer qualitative research
- Marketing creative
- Abbreviations and terms
- Abbreviations
Appendix – The Consumer
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- Online discussion panel
- Home style
- Living situation
- Perception of rooms
- COVID-19 impact on the home
- Impact on mood
- Future projects
- Additional data referenced
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- Figure 65: Population, by generation, 2016-26
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- Figure 66: Spending habits, past 12 months – Home and garden products (eg furniture, domestic appliances), March 2021
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