Key Trends Shaping the Home Décor, Furniture and Lifestyle Industry

As technological advancements continue to redefine the way we live, the home décor, furniture and lifestyle sectors are witnessing a surge in digital transformation. As we navigate this dynamic landscape, it becomes imperative for businesses to not only stay abreast of current market trends but to strategically harness them for sustained success in the digital marketplace.

In this blog, we will delve deeper into the prevailing market trends that are shaping the home décor and improvement industry.

From the accelerated adoption of online channels to the evolving expectations of the modern consumer, businesses gain insights into the forces shaping the digital marketplace.

Whether it’s the demand for immersive product experiences, the influence of social media on purchasing decisions, or the need for seamless online transactions, businesses are presented with a comprehensive understanding of the current dynamics.

By grasping these trends, companies can position themselves strategically, ensuring they not only meet but exceed the expectations of their digitally savvy audience.

1. Impact of Digital Transformation

With global eCommerce sales expected to reach around $6.5 trillion by 2023, online eCommerce stores are no longer an afterthought or a complementary channel to a physical store, for businesses across industries. It is one of the keyways to market better and keep the sales figures up.

The projections for the global furniture eCommerce sector are equally impressive – projected to reach approximately $41 billion by 2030, demonstrating a notable growth rate of 41%. This underscores the importance of creating a thriving eCommerce store for home décor, furniture and lifestyle businesses.

A Retail Brew study notes a significant shift, with 39% of consumers preferring online purchases over the traditional in-store experience. Businesses with no online presence need an eCommerce store to build and engage a customer base. For businesses with an existing eCommerce store, that are ahead of the curve, can introduce further innovation like virtual showrooms (enabling viewers to see their chosen products in their own environment with technology like AR and VR), blends the online and offline channels with options like store pickup, and more.

2. Evolving Customer Expectations (read Personalization)

Consumers today have elevated expectations when it comes to their online shopping experiences. They seek more than just products; they crave immersive and personalized journeys. Businesses cannot just focus on creating products or fulfilling orders, while ignoring the customer shopping experience. With increasing competition and commoditization of products, personalization is key to differentiate, attract, and retain customers.

Consider this, research suggests that 73% of shoppers expect brands to understand their unique needs and expectations.

• Personalized Recommendations: Businesses from Home Décor and Furniture industry can boost sales and improve customer relationships by leveraging advanced AI tools to offer personalized deals and product recommendations to customers.
• Product Customizations: Bolia Furniture is a very good example of how to leverage product customizations to drive customer experience in the home décor and furniture industry. While their catalogue offering is limited, they offer a wide range of customizations on every item on their website. This makes for multiple iterations of the same underlying style, both in terms of the colour and the material used. Being able to make these choices and order them gives customers a level of satisfaction like no other.
• Integrated Loyalty Programs: Integrated loyalty programs are also a great place to offer personalized rewards to loyal customers – 55% of consumers say they’d use loyalty programs more often if the rewards were personalized.

3. The Rising Popularity of Multi-channel

In the ever-evolving landscape of home décor and furniture retail, a significant trend is reshaping the way businesses reach their customers. The days of relying solely on retail stores or traditional eCommerce channels are giving way to a more dynamic and interconnected approach – the rise of multi-channel retailing.

Businesses are recognizing the importance of being present where their customers are. However, this goes beyond diversifying sales channels. It’s about meeting customers at every touchpoint of their journey, from exploration to purchase. Businesses that embrace this trend are not only expanding their reach but also enhancing brand visibility and fostering customer loyalty.
 

• Online Marketplaces: One of the driving forces behind the surge in multi-channel adoption is the immense popularity of online marketplaces. Platforms such as Amazon, Wayfair, and Etsy have become veritable giants in the home décor and furniture sector. In fact, a substantial number of customers initiate their purchasing journey on these platforms, seeking variety, competitive pricing, and the convenience of one-stop shopping. This underscores the pivotal role these platforms play in influencing customer preferences and purchase decisions. Hence, increasing number of businesses are taking advantage of this by selling across multiple online marketplaces.
• Social Media: In the realm of multi-channel retailing, social media has emerged as a powerhouse for connecting with consumers. Platforms like Instagram, Pinterest, and Facebook have transcended their roles as mere social networking sites, evolving into influential hubs for home inspiration and product discovery. Several users admit to making direct purchases through links or integrated shopping features on social channels. Businesses are leveraging the visual appeal of these platforms to showcase their products in real-life settings and engage with audiences on a more personal level.
• eCommerce: While we have looked at the rising popularity of eCommerce, we would like to bring your attention to two key trends that are driving the eCommerce adoption in the home improvement industry.
  • Do-It-Yourself (DIY): The rise of home improvement influencers and online video tutorials with step-by-step guidance has empowered many homeowners to take matters into their own hands. The DIY trend is not only about saving costs but also about creating spaces that are uniquely tailored to individual tastes. Companies like IKEA lead the way by offering customizable furniture options, allowing homeowners to express their creativity and personality through their home décor.
  • Rising Popularity of D2C among Manufacturers: Manufacturers in the home improvement and furniture industry have traditionally relied on sellers and distributors to drive sales. However, increasing number of manufacturers are experimenting with D2C, drop shipping, marketplaces, etc. to get directly in front of the customers without necessarily sacrificing the interests of sellers and distributors.

4. Sustainable and Eco-friendly Products

Currently 44% of global consumers are more likely to buy from a brand with a clear commitment to sustainability.

In the past six years, there’s been a 71% increase in online searches globally for “sustainable goods,” especially in high-income countries like the United Kingdom, the United States, and Canada.

This suggests that the buyers are now caring more about the environment and trying to find a “middle path” by shifting towards purchasing products that are more sustainable.

As buyers are shifting preferring more eco-friendly home products, retailers too must adapt to this change. No matter how smart or attractive the furniture may be, it will not be popular if it is not made without keeping sustainability in mind. This is why many designers are paying personal attention to how they can source sustainable materials and fashion them into attractive furniture items.

5. Superior and Seamless Customer Shopping Experience

Customer experience is a key differentiator in the crowded home improvement industry. Everything from providing a superior and consistent shopping experience pre-purchase to providing a seamless after sale support, plays a role in shaping the overall customer shopping experience.

• Enhanced Pre-sales Journey: The focus on the pre-sales experience involves creating an environment where customers can make informed decisions with confidence. Businesses are investing in intuitive online platforms, providing detailed product information, high-quality images, and interactive content. This enables customers to virtually explore and understand products, ensuring a personalized and engaging pre-sales journey.
• Efficient Post-purchase Interactions: The commitment to a seamless customer experience doesn’t end with the purchase. Post-purchase, businesses are focusing on efficient and transparent interactions. This includes optimizing logistics for timely deliveries, providing real-time order tracking, and ensuring hassle-free return processes. Premium services like white glove delivery further enhance the overall post-purchase experience.

Explore the full success story of Surplus Furniture’s eCommerce transformation – contact us for insights and strategies tailored to your business!”

In conclusion, the trend toward a seamless shopping journey, encompassing both pre-sales and post-purchase interactions, is redefining the success parameters for home décor and furniture businesses. By focusing on creating positive and personalized experiences at every stage, businesses are not just selling products; they are building lasting connections with their customers in an increasingly competitive market.

Staying informed about the latest developments allows your business to adapt and respond to changing consumer preferences, technological advancements, and market dynamics. By staying attuned to trends, your business can proactively implement strategies that not only meet but exceed customer expectations, keeping you ahead of the competition and positioned for sustained success in the dynamic world of home furnishings.

i95Dev has vast expertise in leveraging technology to make the most of these trends. We have worked extensively with B2B and B2C businesses from the home improvement/ home décor and furnishing industry and helped them realise their digital transformation vision. Reach out to our experts to schedule a call and explore how we can partner together to drive business growth.