Table of Contents
Executive Summary
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- The market
- Consumer spending has remained strong
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- Figure 1: Consumer spending on the home and garden, 2014-24
- Style and design take a greater role in choice
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- Figure 2: Consumer expenditure on the home, by category, 2019 (est)
- Diverse market served by a wide range of retailers
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- Figure 3: Channels to market, goods for the home, 2019 (est)
- Companies and Brands
- Retailers create stronger experiences
- Why buy? Potential for renting for the home
- Pop-up shops can inform brands about customer needs
- Visualising a purchase in your own home
- Smaller in-town shops
- Real homes on view
- IKEA sells on third-party websites
- Shortcuts to choosing
- Fashion retailers adding homewares
- The value customer
- Do it for me
- Looking after the planet
- Convenient to buy homewares at the supermarket
- Creating an individual look
- John Lewis expands home services capabilities
- Shared living spaces and micro apartments
- Interest in the smart home is growing
- The consumer
- High level of engagement with spending on the home
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- Figure 4: Consumer spending on the home, November 2019
- Consumers have the best of intentions
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- Figure 5: Intentions to spend on the home, November 2019
- People are getting on with their lives, despite Brexit
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- Figure 6: Influence of Brexit on spending on the home, November 2019
- Millennials want style, storage and to make a good impression
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- Figure 7: Reasons for spending on the home, November 2019
- Wide choice and shops to visit influence choice
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- Figure 8: Factors influencing choice of retailer for spending on the home, November 2019
- Younger householders feel their homes are stylish
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- Figure 9: Descriptions of the home, November 2019
- Homes serve a wide range of functions
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- Figure 10: Home lifestyles, November 2019
- What we think
Issues and Insights
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- How should retailers cater better for Millennials?
- The facts
- The implications
- What impact is private renting having on demand for products for the home?
- The facts
- The implications
- How can retailers make more of omnichannel shopping habits?
- The facts
- The implications
The Market – What You Need to Know
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- Spending remains strong
- Individual style and better storage solutions drive demand
- Growing household numbers boost spending on the home
- More multi-use bedrooms because of young adults failing to launch
- 29% of 25-34s live in privately rented housing
- Help to Buy getting young people into the housing market
- Young adults move most often
- Private renters move frequently
- Slight slowdown in housing transactions
- Living in smaller spaces
- Using the garden as an outdoor room
- Growth of mobile shopping
- The smart home has growth potential
Market Size and Forecast
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- Robust market for spending on the home
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- Figure 11: Consumer spending on the home and garden, 2014-24
- Style and design take centre stage
- Forecast methodology
Market Segmentation
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- Diverse market with many elements
- Storage takes centre stage
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- Figure 12: Consumer expenditure on the home, by category, 2019 (est)
Channels to Market
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- Strong performers among furniture retailers
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- Figure 13: Channels to market, goods for the home, 2019 (est)
- Omnichannel selling is growing rapidly
- Mobiles, faster deliveries and omnichannel developments are driving change
- IKEA and B&Q embracing changing shopping patterns
- Great customer experience will drive growth
Market Drivers
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- Growing household numbers boost spending on the home
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- Figure 14: UK households, 2015 and 2019
- More multi-use bedrooms because of young adults failing to launch
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- Figure 15: Percentage of young adults living with their parents, by age, 2015 and 2018
- 29% of 25-34s live in privately rented housing
- Help to Buy getting young people into the housing market
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- Figure 16: Household tenure, by age, 2019
- Young adults move most often
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- Figure 17: Length of time in current home, by age, November 2019
- Private renters move frequently
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- Figure 18: Length of time in current home, by tenure, November 2019
- Slight slowdown in housing transactions
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- Figure 19: Property transactions with value £40,000 or above, UK, 2015-19
- Living in smaller spaces
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- Figure 20: Average size of housing, by decade built, 1930-present day
- Figure 21: Average size of housing, by decade built, by room, 1930-present day
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- Figure 22: Description of kitchen and dining areas, September 2019
- Using the garden as an outdoor room
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- Figure 23: Presence of gardens, balconies and allotments, April 2019
- People are feeling better off
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- Figure 24: How consumers describe their financial situation, September 2015-19
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- Figure 25: Ownership of smart/connected devices, April 2018
Companies and Brands – What You Need to Know
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- Retailers create stronger experiences
- Why buy? Potential for renting for the home
- Pop-up shops can inform brands about customer needs
- Visualising a purchase in your own home
- Smaller in-town stores extend reach
- Real homes on view
- IKEA sells on third-party websites
- Shortcuts to choosing
- Fashion retailers adding homewares
- The value customer
- Do it for me
- Looking after the planet
- Convenient to buy homewares at the supermarket
- Creating an individual look
- John Lewis expands home services capabilities
- Shared living spaces and micro apartments
Competitive Strategies
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- John Lewis develops an ‘experience playground’
- Why buy? Potential for renting for the home
- Pop-up shops can inform brands about customer needs
- Visualising a purchase in your own home
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- Figure 26: IKEA Place app, 2018
- Developing new store formats
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- Figure 27: Argos, Self-service digital store, 2019
- Figure 28: IKEA, Tottenham Court Road planning studio, 2018
- Engaging with real shoppers
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- Figure 29: DFS, Example of sofa in a real home, 2019
- Figure 30: IKEA, Products in real homes, 2019
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- Figure 31: Wren Kitchens, Danny’s Kitchen, 2019
- Promotional strategies
- The endless aisle
- IKEA sells on third-party websites
- Shortcuts to choosing
- Fashion retailers adding homewares
- The value customer
- Do it for me
- Looking after the planet
- Catering for smaller rooms
- Convenient to buy homewares at the supermarket
Launch Activity and Innovation
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- Creating an individual look
- IKEA boosts sustainability credentials with a new store at Greenwich
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- Figure 32: IKEA Greenwich, 2019
- John Lewis expands home services capabilities
- Shared living spaces and micro apartments
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- Figure 33: The Collective, shared living, 2019
The Consumer – What You Need to Know
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- High level of engagement with spending on the home
- Consumers have the best of intentions
- People are getting on with their lives, despite Brexit
- Millennials want style, storage and to make a good impression
- Wide choice and shops to visit influence choice
- Younger householders feel their homes are stylish
- Homes serve a wide range of functions
Consumer Spending on the Home
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- 39% decorated and 24% bought furniture
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- Figure 34: Consumer spending on the home, November 2019
Intentions to Spend on the Home
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- Figure 35: Intentions to spend on the home, November 2019
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Influence of Brexit on Spending
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- Figure 36: Influence of Brexit on spending on the home, November 2019
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Reasons for Spending on the Home
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- Figure 37: Reasons for spending on the home, November 2019
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Factors Influencing Choice of Retailer
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- Figure 38: Factors influencing choice of retailer for spending on the home, November 2019
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Descriptions of the Home
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- Figure 39: Descriptions of the home, November 2019
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Home Lifestyles
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- Figure 40: Home lifestyles, November 2019
- Time spent at home
- Eating meals as a family
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Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
- Young adults living with their parents, notes on methodology
Appendix – Market Size and Forecast
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- Forecast methodology
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