Category Research: Home Decor Trends
A couple of trends in the home decor industry in Canada are the increase of retailers leveraging digital and social media to attract customers, the adoption of eco-friendly products to appeal to their customer base, and an increase of retailers implementing a visual search feature which allows for the consumer to save time and efficiently retrieve the products they are looking for. The consumer group driving the latest trends such as a preference for eco-friendly products, leveraging social media are the millennials , a key consumer base for the home decor industry in Canada.
- There is a growing consumer interest towards home decor in recent years.
- The home furnishings market in Canada had a total revenue of $5 billion as of 2019, witnessing a 1% growth from 2014 to 2019.
- Homeownership rates in Canada stands among one of the highest globally. As of 2016 (the most recent data that's available), the overall homeownership rate in Canada is 67.8%. In comparison, the U.S. has a homeownership rate of 63.4%.
- With the number of homeowners increasing, home decor products have "have gained a high acceptance among homeowners who want to renovate the home interior and exteriors."
Digital And Social Media
- Home furnishing retailers such as Wayfair, West Elm, Room and Board, and Crate & Barrel are leveraging digital and social media to drive sales.
- A study conducted by Deloitte found that consumers who uses social media during their purchasing process are four times more likely to spend more than non-users.
- Consumer behavior such as reading reviews and testimonials, comparison shopping, and being inspired by marketing efforts are leading to more online or in-store purchases.
- IKEA Canada boasts a whopping 362,000 followers in their Instagram account. Their willingness in engaging with consumers and regularly posting content on their social media platforms allows for a unique, integrated experience which creates a personalized user experience for its consumers.
- To secure long-term growth, IKEA Canada has enhanced its digital tools and service offerings. This strategy has been fruitful as IKEA Canada grew its sales by 8% to $2.39 billion according to their 2018 Annual Summary Report.
- Growing consumer preference towards the usage and adoption of eco-friendly products which minimizes the impact on the environment has boosted the growth of the home decor market.
- According to IKEA Canada's 2018 Summary Report, IKEA has made a commitment to "phase out all single-use plastics from its range and food services by 2020."
- IKEA also advanced its renewable energy program. Today, IKEA Canada produces approximately four times "as much power as it consumes through two wind farms in Alberta, solar installations and geothermal energy sources."
- This move towards increasingly adopting eco-friendly products is to appeal to millennial shoppers. Around 75% of millennials are altering their habits with the environment in mind when it comes to purchasing, compared to the 34% of Baby Boomers. Nielsen predicts that the sustainability market is to reach 150 billion by 2021.
- One of the latest breakthroughs marking a mark in e-commerce is visual search, which has the potential to revolutionize how consumers find products.
- In recent years, young, tech-savvy shoppers are looking for a smarter shopping experience that shortens the journey between the discovery of a product to checking out.
- Home decor is a dominant market in terms of visual search. All in all, visual search helps saves time as well as reduces the stress level for the consumer.
- For 74% of customers, the traditional text-based keyword searches are not efficient in getting the right products online. Not only does a visual search help deliver a better customer experience, but it also drives real business results.
- According to a study conducted by ViSenze, 62% of millennials "desire the ability to visually search over any other new technology."
- A prominent example would be the latest update to IKEA's Place app. Using this app, users can point their phone camera at a piece of furniture and the app will automatically find similar items at IKEA for sale.
- The Place app has been hugely successful, boasting a 4.7 rating over 5,500 reviews on the App Store.
In order for us to identify trends in the home decor industry in Canada, we searched for news articles, market research reports, media publications, and press releases on the topic. While the focal point of our research is on Canada specifically, some trends such as visual search are being adopted on a global scale, which we have included in our report.