Table of Contents
Overview
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- What you need to know
- Products covered in this Report
- Definitions
Executive Summary
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- The market
- Consumers are planning to carry on spending on their homes in 2019
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- Figure 1: Consumer spending on the home, 2013-23
- Strong housing market has helped growth
- Diverse market with large spread of segments
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- Figure 2: Consumer spending on the home, by segment, 2018
- Furniture spending fuelled by styling and better functionality
- The garden as a ‘room’
- Furniture and homewares specialists capture 41% of spending
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- Figure 3: Channels to market, goods for the home, 2018
- Online shopping for the home will double in the next five years
- Growth in household numbers and strong housing market drive demand
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- Figure 4: Number of households in Great Britain, by tenure, 2013-16
- Robust housing market
- 76% of households have a garden
- Consumers are confident
- Companies and brands
- Stimulating interest with pop-ups
- Apps to visualise products in your own home
- Developing new store formats
- B&Q closes fitting services, while others bolster their offer
- Fashion retailers adding homewares
- Development of low-cost housing
- Amazon adds a click to order handyman service
- Smart home developments
- IKEA has introduced a very low-priced kitchen
- The consumer
- 41% did some decorating last year
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- Figure 5: Consumer spending on the home, November 2018
- Optimistic outlook for spending on the home
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- Figure 6: Intentions to spend on the home, November 2018
- Enjoying the place where they live
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- Figure 7: Reasons for spending on the home, November 2018
- Visiting stores is top for providing inspiration
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- Figure 8: Looking for inspiration for the home, November 2018
- People look for quality and range
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- Figure 9: Factors influencing choice of retailer for the home, November 2018
- Home is a place for leisure
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- Figure 10: Attitudes regarding the home, November 2018
- Four main target groups for spending on the home
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- Figure 11: Customer typologies, the home, November 2018
- What we think
Issues and Insights
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- Is there a boost to spending on the home because of smart connected products?
- The facts
- The implications
- What impact is the rise in private renting having on demand for products for the home?
- The facts
- The implications
- Will there be an ‘improve not move’ trend if economic uncertainty influences consumer confidence?
- The facts
- The implications
The Market – What You Need to Know
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- Consumer spending on the home will continue to grow
- Strong housing market has helped growth
- Diverse market with large spread of segments
- Furniture spending fuelled by styling and better functionality
- The garden as a ‘room’
- Furniture and homewares specialists capture 41% of spending
- Online shopping accounts for an 18.5% market share
- Growth in household numbers and strong housing market drive demand
- Robust housing market
- 76% of households have a garden
- Consumers are confident
Market Size and Forecast
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- Robust market growth continued in 2018
- Interest-free credit will encourage consumers to spend
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- Figure 12: Consumer spending on the home, 2013-23
- Figure 13: Consumer spending on the home, 2013-23
- Forecast methodology
Market Segmentation
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- 46% of spend is on furniture and floorcoverings
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- Figure 14: Consumer spending on the home, by segment, 2018
- Appliances have seen the highest levels of growth
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- Figure 15: Consumer spending on the home, by segment, 2013-18
Channels to Market
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- Furniture and homewares retailers capture 41% of spending
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- Figure 16: Channels to market, goods for the home, 2018
- Online selling is growing fast
Market Drivers
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- 0.9 million more households by 2023
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- Figure 17: UK households, 2013-23
- Gradual decrease in average household size
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- Figure 18: Average household occupancy, UK, 2012-22
- Encouraging first-time buyers
- Patterns of home ownership are changing
- Owner-occupiers account for 63% of households
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- Figure 19: Number of households in Great Britain, by tenure, 2013-16
- 31% of 25-34s are in privately rented property
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- Figure 20: Household tenure, by age, 2018
- 23% of private renters moved in the last year
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- Figure 21: Length of time in current home, by tenure, November 2018
- Owner-occupiers feel better off
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- Figure 22: Household financial situation, by tenure, November 2018
- The housing market has plateaued
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- Figure 23: Property transactions with value £40,000 or above, UK, 2013-18
- Easy to find second-hand items
- Potential for rental market for household goods
- Surplus space at home creates opportunities for a wider range of interiors and usage
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- Figure 24: Usable floor area, by tenure, England, 2015
- 76% of homes have a garden
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- Figure 25: Presence of gardens, balconies and allotments, April 2018
- Consumer confidence fairly steady despite concerns about the economy
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- Figure 26: How consumers describe their financial situation, October 2015-2018
- Credit card debt continues to rise
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- Figure 27: Monthly amounts outstanding of monetary financial institutions' Sterling net credit card lending to individuals, seasonally adjusted, January 2014-September 2018
- Interest in the smart home is growing
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- Figure 28: Ownership of smart/connected devices, April 2018
- Households show enthusiasm for smart home devices
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- Figure 29: Interest in buying smart/connected devices, non-owners, April 2018
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- Figure 30: Functions that consumers interested in voice-controlled speakers are most likely to use, any interest, April 2018
Companies and Brands – What You Need to Know
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- Stimulating interest with pop-ups
- Apps to visualise products in your own home
- Developing new store formats
- B&Q closes fitting services, while others bolster their offer
- Fashion retailers adding homewares
- Development of low-cost housing
- Amazon adds a click to order handyman service
- Smart home developments
- IKEA has introduced a very low-priced kitchen
Competitive Strategies
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- New ways to engage with shoppers for the home
- Visualising a purchase in your own home
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- Figure 31: IKEA Place app, 2018
- Developing new store formats…
- …Argos and Habitat moving into Sainsbury’s…
- …IKEA’s new planning studios…
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- Figure 32: IKEA, Tottenham Court Road planning studio, 2018
- …DFS has a small store trial
- Engaging with real shoppers
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- Figure 33: DFS, example of sofa in a real home, 2018
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- Figure 34: IKEA, products in real homes, 2018
- Promotional strategies
- The endless aisle
- Fashion retailers adding homewares
- The value customer
- End-to-end services
- Looking after the planet
Launch Activity and Innovation
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- Modular housing that can grow
- Low-cost modular housing
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- Figure 35: L&G prefabricated 1-bed flat, Richmond, 2018
- Figure 36: L&G 2-bedroomed modular home, 2018
- Amazon adds a click to order handyman service
- Smart home developments
- IKEA has introduced a very low-priced kitchen
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- Figure 37: IKEA, kitchenette, 2018
The Consumer – What You Need to Know
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- High level of engagement with spending on the home
- Moving house stimulates spending on the home
- Plenty of plans to keep on spending
- Personality and enjoyment shape spending patterns
- Wide variety of sources of inspiration
- People want quality and choice
- A place to feel proud of
Consumer Spending on the Home
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- 41% decorated their home last year
- Targeting social tenants
- Even private renters decorate their homes
- How the time after a move affects spending
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- Figure 38: Consumer spending on the home, November 2018
Intentions to Spend on the Home
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- Slightly more spending expected in 2019
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- Figure 39: Intentions to spend on the home, October 2017 and November 2018
- Optimistic outlook for spending on the home
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- Figure 40: Intentions to spend on the home, November 2018
Reasons for Spending on the Home
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- Different feelings for men and women
- How attitudes of private renters differ from owner-occupiers’
- Making it feel like their own
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- Figure 41: Reasons for spending on the home, November 2018
Looking for Inspiration for the Home
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- Visiting stores is top for providing inspiration
- Retailers’ own websites more used than Pinterest
- Shoppers seek assurance
- Visualising items in your own home
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- Figure 42: Looking for inspiration for the home, November 2018
Factors Influencing Choice of Retailer
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- People look for quality and range
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- Figure 43: Factors influencing choice of retailer for the home, November 2018
Attitudes Regarding the Home
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- Home is a place for leisure
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- Figure 44: Attitudes regarding the home, November 2018
Target Customers for Shopping for the Home
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- Four main types of consumer
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- Figure 45: Customer typologies, the home, November 2018
- Characteristics of each target group
- Social – Young, sociable adults in private rented property
- Private – older, less well off and uninterested in their homes
- Proud – over-35s, love their homes and enjoy TV time together
- Creative – young families, making, growing and decorating
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- Figure 46: Reasons for spending on the home, by target group, November 2018
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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