Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- The market
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- Figure 1: U.S. Fan chart forecast of total expenditures by U.S. consumer units on equipment and supplies for home maintenance, improvements, and repair, at current prices, 2006-16
- DIY segments start to gain post-recession momentum
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- Figure 2: Total expenditures by U.S. consumer units on equipment and supplies for home maintenance, improvements, and repair, segmented by product type, 2009 and 2011
- Market factors
- DIY expenditures grow in spite of lackluster housing market
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- Figure 3: Homeownership rate*, 2007-11
- Home improvement on the rise overall
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- Figure 4: BuildFax Remodeling Index, seasonally adjusted annual rate, 2008-12
- The DIY consumer
- Home Depot and Lowe’s attract the most DIYers
- Hardware stores attract fewer DIYers, tend to focus on smaller projects
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- Figure 5: Hardware/DIY stores shopped, December 2011
- Relatively few consumers participate in loyalty card programs
- MyLowe’s offers fresh take on loyalty
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- Figure 6: Hardware/DIY store loyalty cards held, by gender, December 2011
- Prices, products, and locations most common uses of retailer websites
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- Figure 7: Needs and use for DIY/Hardware store websites, December 2011
- Retailers get generally positive marks on staff product knowledge
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- Figure 8: Rating of staff knowledge in key product areas, by retailer shopped most often, December 2011
- Retail basics well-regarded, but room to improve project advice ratings
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- Figure 9: Rating of staff performance in key service areas at DIY/hardware store shopped most often, December 2011
- Friends and family the most frequently cited source of DIY information
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- Figure 10: Sources of information on DIY projects, December 2011
- What we think
Issues in the Market
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- Can DIY keep growing even if real estate stays stuck in low gear?
- What does it take to increase DIY project frequency?
- How well are retailers doing at offering project advice and education?
- What challenges and opportunities do Millennials hold for DIY retailers?
Insights and Opportunities
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- Project focus
- Opportunity to inspire
- Loyalty games
- The next generation of DIYers
- More digitally savvy…
- …but less invested in homeownership
- Entertainment value important in battle for household budget
Inspire Insights
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- Trend: Influentials
- Trend: Moral Brands
Market Size and Forecast
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- Key points
- DIY market regaining momentum after declines in recession
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- Figure 11: Total expenditures by U.S. consumer units on equipment and supplies for home maintenance, improvements, and repair, at current prices, 2006-16
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- Figure 12: Total expenditures by U.S. consumer units on equipment and supplies for home maintenance, improvements, and repair, at inflation-adjusted prices*, 2006-16
- Fan chart forecast
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- Figure 13: Fan chart forecast of total expenditures by U.S. consumer units on equipment and supplies for home maintenance, improvements, and repair at current prices, 2006-16
Market Drivers
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- Overview
- Income, after dropping sharply since 2007, may have rebounded in 2011
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- Figure 14: Median household income in inflation-adjusted dollars, 2000-10
- Improving employment picture a positive for DIY market
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- Figure 15: Unemployment rate, 2006-12
- After wavering, consumer confidence on the upswing
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- Figure 16: Thompson Reuters/University of Michigan’s index of consumer sentiment (ICS), 2007-12
- Housing market struggles to regain momentum
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- Figure 17: Sales of existing and new single-family homes, 2007-12
- Homeownership trends down
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- Figure 18: Homeownership rate*, 2007-11
- Home remodeling index rises, even as real estate market remains weak
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- Figure 19: BuildFax Remodeling Index, seasonally adjusted annual rate, 2008-12
Segment Performance
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- Key points
- DIY segments start to gain post-recession momentum
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- Figure 20: Total expenditures by U.S. consumer units on equipment and supplies for home maintenance, improvements, and repair, segmented by product type, 2009 and 2011
Segment Performance—Paint and Wallpaper
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- Key points
- Segment poised to gain from economic stabilization and improvement
- Retailers emphasize color and creativity, position paint as DIY destination
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- Figure 21: Lowe’s spring paint weekly circular ad, March 2012
- Figure 22: Total expenditures by U.S. consumer units on paints, wallpaper, and supplies, at current prices, 2006-16
Segment Performance—Flooring
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- Key points
- DIY flooring rebounds after recession, outpaces broader flooring market
- Retailers help drive shift to DIY flooring
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- Figure 23: Home Depot hard surface flooring ad, March 2012
- Figure 24: Total expenditures by U.S. consumer units on flooring, at current prices, 2006-16
Segment Performance—Plumbing
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- Key points
- Basic maintenance and water-efficient plumbing support steady sales
- Help for DIY plumbers
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- Figure 25: Total expenditures by U.S. consumer units on plumbing supplies and equipment, at current prices, 2006-16
Segment Performance—Other DIY Products
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- Key points
- Expenditures on other DIY products follow broader market trend
- Energy efficiency and environmental friendliness
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- Figure 26: Total expenditures by U.S. consumer units on other DIY products*, at current prices, 2006-16
Leading Retailers
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- Key points
- Home centers a dominant force in DIY and home improvement overall
- Hardware co-ops grow by thinking smaller
- Lumber Liquidators continues to expand
- Sherwin-Williams dominates paint specialty market
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- Figure 27: Sales and store counts at select leading DIY home improvement retailers, 2010-2011
Innovations and Innovators
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- E-commerce and online integration at big home centers
- MyLowe’s has the potential to strengthen customer relationships
- Local hardware stores win with local service
Marketing Strategies
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- Key points
- Overview: the war for the weekend
- Big boxes vs. everyone else
- National vs. local
- Generalist vs. specialist
- Big vs. small
- Common marketing elements
- Different DIY mindsets and interpretations of the ideal weekend
- Lowe’s campaign presents DIY as an ongoing process of self-creation
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- Figure 28: Lowe’s “Home Improvement Journey” TV ad, 2012
- Lowe’s Creative Ideas provides project inspiration
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- Figure 29: Lowe’s “Creative Ideas Magazine” TV ad, 2012
- Mobile and social inspiration from Lowe’s
- Home Depot stays on task
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- Figure 30: Home Depot “This Weekend” TV ad, 2012
- Home Depot DIY online how-to community
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- Figure 31: Home Depot “How-To Community” TV ad, 2012
- Hardware co-ops emphasize convenience, expertise for smaller projects
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- Figure 32: Ace Hardware “Clarion Call” TV ad, 2011
- Ace gets personal with paint
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- Figure 33: Ace Hardware “Soul Paint” TV ad, 2012
- Campaign extends to social media
Hardware/DIY Stores Shopped
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- Key points
- Home Depot and Lowe’s attract the most DIY shoppers
- Men shop more DIY stores, especially specialty retailers
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- Figure 34: Hardware/DIY stores shopped, by gender, December 2011
- Older DIYers shop more stores, especially hardware stores
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- Figure 35: Hardware/DIY stores shopped, by age, December 2011
- Higher-income DIYers more likely to shop Home Depot and Lowe’s
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- Figure 36: Hardware/DIY stores shopped, by household income, December 2011
- Home Depot and Lowe’s especially likely to be shopped most often
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- Figure 37: Hardware/DIY stores shopped, shopped most often, December 2011
- Shopped-most-often demographics similar to past-six-month purchasers
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- Figure 38: Hardware/DIY stores shopped most often, by age, December 2011
- Figure 39: Hardware/DIY stores shopped most often, by household income, December 2011
- Among other retailers, mass merchants most likely to capture DIY sales
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- Figure 40: Other sources of DIY/Hardware-type supplies, by gender, December 2011
Loyalty Card Ownership
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- Key points
- Relatively few consumers participate in loyalty card programs
- Home Depot credit cards
- Lowe’s launches card and online DIY recordkeeping program
- Ace Rewards program
- Men a little more likely to hold cards
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- Figure 41: Hardware/DIY store loyalty cards held, by gender, December 2011
- Rewards program appears to play an important role in driving Ace loyalty
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- Figure 42: Hardware/DIY store loyalty cards held, by shop here most often, December 2011
How DIYers Use Hardware/DIY Store Websites
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- Key points
- Prices, products, and locations most common uses of retailer websites
- Few DIYers look to retailer websites for instructional content
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- Figure 43: Needs and use for DIY/Hardware store websites, by gender, December 2011
- DIYers aged 25-44 are a key online target for DIY retailers
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- Figure 44: Needs and use for DIY/Hardware store websites, by age, December 2011
Rating of Staff Knowledge in Key Product Areas
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- Key points
- Retailers get generally positive marks on staff product knowledge
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- Figure 45: Rating of staff knowledge in key product areas, part I, by retailer shopped most often, December 2011
- DIYers more likely to have broad experience at home centers
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- Figure 46: Rating of staff knowledge in key product areas, part II, by retailer shopped most often, December 2011
Rating of Staff Performance in Key Areas of Service
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- Key points
- Basic retail service generally well-regarded
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- Figure 47: Rating of staff performance at DIY/hardware store shopped most often in basic retail functions, by retailer shopped most often, December 2011
- Advice on tools/materials rated positive, but still room for improvement
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- Figure 48: Rating of staff performance at DIY/hardware store shopped most often in advice on supplies, tools, and materials, by retailer shopped most often, December 2011
- Ratings for project advice and instructions leave room for improvement
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- Figure 49: Rating of staff performance at DIY/hardware store shopped most often in providing project advice, by retailer shopped most often, December 2011
- Performance on special services
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- Figure 50: Rating of staff performance at DIY/hardware store shopped most often in providing special services, by retailer shopped most often, December 2011
Type and Number of DIY Projects Done in Past Year
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- Key points
- Incidence highest for painting and decorating
- Paint a traffic builder for DIY retailers
- Other individual projects less frequent
- Avid DIYers tend to be generalists
- Men a little more likely to do most types of project
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- Figure 51: Type and number of DIY projects done in past 12 months, by gender, December 2011
- Middle-aged adults are most active DIYers
- Younger DIYers an opportunity for furniture and storage projects
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- Figure 52: Type and number of DIY projects done in past 12 months, by age, December 2011
- Higher-income DIYers tend to do more projects
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- Figure 53: Type and number of DIY projects done in past 12 months, by household income, December 2011
Sources of Information on DIY projects
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- Key points
- Friends and family the most frequently cited source of DIY information
- TV shows offer DIY education and inspiration
- Retailers offer how-to information in a variety of ways
- Female DIYers more likely to consult friends or family, watch shows, read magazines
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- Figure 54: Sources of information on DIY projects, by gender, December 2011
- Younger DIYers more likely to go online, take retailer classes
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- Figure 55: Sources of information on DIY projects, by age, December 2011
Impact of Race/Hispanic Origin
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- Key points
- Hispanics, blacks, Asians a little less likely to shop big box home centers
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- Figure 56: Hardware/DIY stores shopped, by race/Hispanic origin, December 2011
- Black and Asian DIYers modestly more active on DIY store websites
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- Figure 57: Needs and use for DIY/Hardware store websites, by race/Hispanic origin, December 2011
- Friends/family top information source for all groups
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- Figure 58: Sources of information on DIY projects, by race/Hispanic origin, December 2011
Custom Consumer Groups
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- Enthusiasm drives DIY activity
- Heavy DIYers shop a wider variety of stores, including specialty retailers
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- Figure 59: Hardware/DIY stores shopped, by light, medium, and heavy DIYers, December 2011
- Loyalty program participation relatively low even among frequent DIYers
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- Figure 60: Hardware/DIY store loyalty cards held, by light, medium, and heavy DIYers, December 2011
- Heavy DIYer website use reveals greater interest in learning new skills…
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- Figure 61: Needs and use for DIY/Hardware store websites, by light, medium, and heavy DIYers, December 2011
- …consult a wider array of sources of how-to information
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- Figure 62: Sources of information on DIY projects, by light, medium, and heavy DIYers, December 2011
Appendix: Other Useful Tables
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- Rating of Home Depot Staff
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- Figure 63: Rating of Home Depot staff knowledge in key product areas, by gender, December 2011
- Figure 64: Rating of Home Depot staff knowledge in key product areas, by age, December 2011
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- Figure 65: Rating of Home Depot staff knowledge in key product areas, by household income, December 2011
- Rating of Lowe’s Staff
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- Figure 66: Rating of Lowe’s staff knowledge in key product areas, by gender, December 2011
- Figure 67: Rating of Lowe’s staff knowledge in key product areas, by age, December 2011
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- Figure 68: Rating of Lowe’s staff knowledge in key product areas, by household income, December 2011
Appendix: Trade Associations
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