Home Improvement Industry – At the beginning of this decade, consumers believed that the myth that the home improvement industry would not stand anywhere in the eCommerce speed. Not only consumers, even consumers are reluctant to buy home improvement products online. The reasons are:
There has been a lot of progress in this industry, especially after the COVID-19 lockdown. Consumers have begun to invest in houses and furniture, crops more than before. Also, people are forced to set up home offices, the only option available is online shopping. As a result, the eCommerce sector in this industry is rising brick and mortar.
Home Improvement Industry
As mentioned earlier, consumers should be cautious about buying home products online. Of course, it is not as easy as buying a t-shirt online in a few minutes. However, this problem no longer exists, as technologies such as augmented reality (AR) and Virtual-reality (VR) have emerged. IKEA was the first ice-breaking brand to launch an AR shopping platform. At the same time, Amazon allows you to create a dream house complete with AR functionality. By introducing these technologies through marketing tools, these brands fully understand the pain of consumers who are unsure about the product. When buying home products online, customers are not always sure what they will look like, which is related to its size, shape, color, or style. Or even if they buy, customers have already decided in their minds to replace / return only because they are not confident enough. In such cases, technology like AR is the best option that one can add to help consumers make their buying decisions without fear.
Houzz Study Reveals A Favorable Outlook For Home Improvement Industry
The global e-commerce revenue of the entire DIY market was US$ 413.5 billion in 2019, and it is expected to grow even more. Do-it-yourself (Do it yourself) is the trend these days, with 77% of millennials doing it yourself. This age group of DIY is very popular in social media use such as YouTube, Facebook, Pinterest, etc. The social media channels have an unlimited supply of such DIY creations. Content is available for free. Today’s youth are eager to appreciate these social media channels; Therefore, they are always on the hunt to create something original (like a DIY project), which viewers are also looking for.
It has been noted that home improvement and DIY eCommerce sales have increased significantly, especially since Amazon already has a large base in the market. Leave brands like Walmart, The Home Depot behind, Amazon is still taking away market share. For emerging eCommerce home improvement businesses, marketplaces like Amazon are a huge opportunity. Realizing that today, a significant part of the eCommerce / eCommerce market is young, it is important to be in a peer-to-peer marketplace (or choose to do business) but make sure it will be available in their free time. Let’s say you have an eStore and you’re not on Amazon; it takes a lot to get the right attention, trust, and traffic that you can quickly be served on a plate in these markets.
The post-COVID period cannot be ignored, because people have invested more in home improvement than any other time during this period. The more they stay at home the more they feel the need to improve the essentials. The home improvement industry saw an increase of 14% in 2020 as people started working and even studying from home. Not only indoors, but consumers have also invested in improving the outdoors such as gardening and awareness of healthy living due to epidemics. Changing your business online proves to be the right decision considering the current conditions.
To sum it up, here are some handpicked tips to help home & maintenance customers make the right move of converting to eCommerce now. For an in-depth and personalized analysis on eCommerce and your home business and promotion, no matter how big or small, B2B or B2C, call with industry experts now!
Home Improvement Retail Market 2023: Size, Share, Incredible Gro
To learn more about the HOME & IMPROVEMENT industry and how to succeed in eCommerce, stay tuned for our next article.
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The top 10 benefits of PIM implementation for eCommerce sellers in 2023 Author Category Share SKU proliferation, that is, the number of online products controlled by companies, is increasing rapidly …. By filter air to shower, the home improvement industry is growing. With an industry-leading turnover of more than $400 billion, business sales continue to grow. What drives these trends for home improvement? Many things. But what’s most interesting is how buying home decor is changing. While giants like Home Depot, Lowe’s, continue to dominate the home improvement industry, new competitors are emerging. With more than 6% annual growth, the home improvement market is attracting a lot of attention.
The Most Influential Company In The Home Improvement Industry?
With the housing market crash of 2008, the home improvement industry saw a significant decline. But that has changed. Over the past 5 years, homeowner’s equity has doubled to nearly $6 trillion. This equation has fueled tremendous growth in the sale of home improvement products as a result. Similarly, after tightening their belts during the recession, Americans learned how to get more bang for their buck. A practical focus has also encouraged many DIY home improvement projects among homeowners.
In addition to the natural value and growth of home equity, other incentives for home improvement projects are also available. Mortgage rates have risen over the past 3 years, making home improvement opportunities even more attractive. Similarly, the housing market is currently stable. Therefore, individuals can improve their home themselves instead of buying another home entirely.
The social system also contributes to the continuous operation of the company. For those who have a baby, home improvement is attractive because it allows them to “age-in-place.” With a small investment, home improvement projects can quickly accommodate lifestyle changes. Likewise, home improvement is often more expensive for individuals on a fixed income compared to moving costs.
Young people are not the only generation to embrace home improvement, however. Millennials are also leading the current home improvement trend. Millennials are now the largest generation, and many are entering their 30s. With more than half earning more than $80,000, millennials are buying their own homes and investing in home improvements. Many people also see home improvement as a way to pursue creativity and personal expression.
Home Depot Leads With 59% Market Share In Online Home Improvement Sales
One big boost for many home improvement projects is the demand for smart home technology. These types of projects allow for both convenience and greater energy efficiency, which can easily be done with DIY home improvements. Likewise, the number of home improvement tutorials and guides online supports DIY efforts. With the empowerment of information, many consumers are willing to undertake large-scale home improvement projects.
The most important technology trend in the home improvement industry is online marketing growth. In 2017, online sales of home improvement products rose 34% to a total of $20 billion. Advances in online platforms that offer enhanced customer service are part of the rise in home improvement. At the same time, the fast delivery time for selling home improvement products online has also helped. For companies and home improvement companies, online quality is the most important thing for the future.
As you can imagine, Home Depot continues to lead the home improvement industry with nearly $101 billion in revenue last year. But their status shows the ability to change over time. Home Depot is investing $1.2 billion to improve delivery of home improvement products. Most customers will enjoy same-day or next-day delivery because of this. Home Depot also added 1,000 new employees to their technology team to improve the home improvement front online.
The changes at Home Depot were driven in part by new competitors in the market such as Amazon. Amazon’s massive retail and delivery network poses an obvious threat to leaders in the home improvement business sector. Another potential threat, BuildDirect, offers a new e-commerce platform for quality home improvement products. In addition to predictive analytics and direct home shipping, BuildDirect also recently named several Amazon executives to their leadership team.
Do It Yourself (diy) Home Improvement Retailing Market
Other new entrants to the home improvement industry are also emerging. Treehouse takes a different approach by targeting the “do-it-for-me” segment of the real estate market. Treehouse home consultants help homeowners move from concept to installation while coordinating local projects to complete home improvement projects. Given that this home improvement piece is worth $200 by itself, Treehouse is looking to make big waves in the industry.
The home improvement industry looks to be busy, and its growth is very deep. With new technologies coming down the road, such as 3D printing, continued interest in online services can be. And with millennials and baby boomers dominating society, home improvement products demand will continue to rise. At least for the near future, the current housing development trend seems inevitable.
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