Table of Contents
Executive Summary
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- The issues
- Outlook positive for home décor market
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- Figure 1: Total US consumer expenditures and fan chart forecast of home décor, at current prices, 2011-21
- Competition for share of wallet is getting intense
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- Figure 2: Retailers shopped for home décor, April 2016
- Growth is coming from online, with Millennials leading the charge
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- Figure 3: Method of purchasing, by generation, April 2016
- The opportunities
- Focus on the enthusiasts
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- Figure 4: Consumer segmentation custom groups, by household income, April 2016
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- Figure 5: Influencers, by Décor Enthusiasts, April 2016
- Understand consumer motivations
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- Figure 6: Reasons for buying home furnishings, April 2016
- Be nimble enough to adjust to changing consumer style preferences
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- Figure 7: Style preferences, by Décor Enthusiasts and Value Conscious consumer segments, April 2016
- What it means
The Market – What You Need to Know
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- Market slated for growth
- Housing market shows signs of improvement
- Refreshed emphasis on craftsmanship
- DIY home improvement on the incline
Market Size and Forecast
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- Home décor expenditures expected to grow through 2021
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- Figure 8: Total US consumer expenditures and fan chart forecast of home décor, at current prices, 2011-21
- Figure 9: Total US consumer expenditures and forecast on home décor, at current prices, 2011-21
Market Factors
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- 2016 off to a slower start, but confidence levels still high
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- Figure 10: Consumer confidence and unemployment, 2007-April 2016*
- Housing market trends can directly impact home décor sales
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- Figure 11: US new privately owned housing stats, seasonally adjusted, in thousands, 2005-15
- Single-person households are worth monitoring
- Interest remains in artisan products and locally produced goods
- DIY trends impact the market
- Minimization among urbanites becomes more common
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- Figure 12: Timing of last purchase, by area, April 2016
Key Players – What You Need to Know
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- Value-centric retailers are sitting pretty
- Department stores are in trouble
- Gray and metallic palettes among favorites
- Personalized choice is now expected
What’s Working?
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- Value-centric brands continue to thrive
- Shades of gray and metallic colors are in vogue
What’s Struggling?
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- Department stores see softness in current retail climate
What’s Next?
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- Paying for loyalty programs?
- Home décor is a personal choice, and consumers want just that – a personal choice
- Seeing is believing: Augmented reality becomes reality
The Consumer – What You Need to Know
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- Younger generations are active buyers
- Nearly one in five consumers buy on impulse
- Growth coming from online
- So many places, so little time
- Style is a personal choice
Timing of Last Purchase
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- Nearly half of consumers made a recent purchase
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- Figure 13: Timing of last purchase, April 2016
- Younger consumers are key targets
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- Figure 14: Timing of last purchase – within the last 12 months, by key demographics, April 2016
- Homeowners and those in larger households more likely to buy
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- Figure 15: Timing of last purchase – Within the last 12 months, by primary residence, April 2016
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- Figure 16: Timing of last purchase – Within the last 12 months, by household size, April 2016
Repertoire analysis and consumer segmentation
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- Repertoire analysis
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- Figure 17: Repertoire of home décor items purchased, April 2016
- Consumer segmentation
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- Figure 18: Consumer segmentation custom groups, by select demographics, April 2016
Home Décor Items Purchased
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- Little extras can make a big difference in the home
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- Figure 19: Home décor items purchased, April 2016
- One third celebrate seasonal changes and holidays by decorating
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- Figure 20: Holiday/seasonal décor purchased, by gender and age, April 2016
- Consumers gift themselves more than others
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- Figure 21: Reasons for buying home furnishings, April 2016
- What’s old is new again?
Reasons for Buying Home Décor
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- Most purchases are planned, but opportunity exists to garner more impulse buys
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- Figure 22: Reasons for buying home furnishings, April 2016
- Who is more likely to splurge on home items?
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- Figure 23: Buying as a treat and on impulse, by generation, April 2016
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- Figure 24: Buying as a treat and on impulse, by race and Hispanic origin, April 2016
Method of Purchasing
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- Highly visual category draws in-store shoppers, but growth is coming from online
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- Figure 25: Method of purchasing, April 2016
- Millennials lead the way in terms of online and mobile shopping
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- Figure 26: Method of purchasing, by generation, April 2016
- Online purchase incidence increases as engagement rises
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- Figure 27: Method of purchasing, by repertoire of home décor items purchased and custom groups, April 2016
- In their words
Retailers Shopped for Home Décor
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- Traditional home furnishings retailers and broad-reaching merchants
- Home furnishings retailers face strong competition from Walmart and Target
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- Figure 28: Retailers shopped for home décor, April 2016
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- Figure 29: Retailers shopped for home décor, by custom groups, April 2016
- Everybody wants a deal
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- Figure 30: Retailers shopped for home décor, by household income, April 2016
- Other retailers/channels shopped
- Home improvement stores top the list
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- Figure 31: Other channels shopped for home décor, April 2016
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- Figure 32: Other retailers shopped for home décor, April 2016
- In their words
Influencers
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- Consumers actively engage with media for inspiration
- In-store displays can invoke imagination
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- Figure 33: Influencers, April 2016
- Millennials seek inspiration online
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- Figure 34: Influencers, by generation, April 2016
- Interior designers appeal to multicultural consumers
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- Figure 35: Influencers, by race and Hispanic origin, April 2016
- Home enthusiasts well-served to be brand ambassadors
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- Figure 36: Influencers, by Décor Enthusiasts, April 2016
Attitudes and Behaviors toward Buying Home Décor
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- Consumers are willing to try a new store
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- Figure 37: Attitudes and behaviors toward buying home décor – Loyalty statements, April 2016
- In their words
- The right item trumps brand
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- Figure 38: Attitudes and behaviors toward buying home décor – Role of brand statements, April 2016
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- Figure 39: Agreement to “brand name is very important to me,” by select demographics, April 2016
- In their words
- Consumers will pay for quality
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- Figure 40: Attitudes and behaviors toward buying home décor – High-end versus low-end products, April 2016
- Important attributes – in their words
Style Preferences
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- Most consumers prefer traditional and classic looks
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- Figure 41: Style preferences, April 2016
- Millennials have the widest range of style preferences
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- Figure 42: Style preferences, by generation, April 2016
- Regional variations signify an opportunity to localize assortments
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- Figure 43: Style preferences, by region, April 2016
- In their words
- Their style
- Favorite rooms and items
- How clothing and fashion styles transcend the home
- Influence of others
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Consumer qualitative research
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – Market
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- Figure 44: Total US consumer expenditures and forecast on home décor, at inflation-adjusted prices, 2011-21
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Appendix – Key Players
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- Figure 45: Target, Email ad for Marimekko, April 2016
- Figure 46: Target, Email ad for Pillowfort and other home goods, March 2016
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Appendix – Consumer
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- Additional qualitative
- Role of brand
- How clothing and fashion styles transcend the home
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