Trends and Insights - Home Good Retailers: Pricing and Promotions (2)
Trends related to home goods retailers' approach to pricing/promotions include the use of augmented reality and marketing to millennials.
Use of Augmented Reality for Promotions
- Home furniture buyers like being able to picture how products "would look in their own home". Retailers are helping customers to buy the right product by using augmented reality apps to "place fully rendered 3D models of their own furniture in their customers’ home".
- Retailers are using augmented reality to promote their products. According to Houzz, a home decor AR app, "customers using the AR tool were 11 times more likely to purchase".
- The use of Augmented Reality is also a trend because "furniture is the top product people want to shop with AR (60%)".
- By using augmented reality it has become easier for customers to find furniture that is the right fit for their house, engage with their preferred brand, and in the long run buy more products from these retailers.
- According to Think Mobiles, "41% of AR users admitted that they prefer using it due to deals and special promotions".
- IKEA and Wayfair are examples of home goods retailers that are leaning to this trend.
Marketing to Millennials
- Millennials' share of the furniture market is estimated at 24.6% "making them one of the world’s leading markets for furniture purchases".
- The major impact of this trend is that marketing efforts including product promotion in the sector are focused more on Millennials than ever before.
- Retailers are maximizing their search engine optimization, spending more on digital advertising, and email marketing campaigns in order to connect with Millenials.
- Examples of home goods retailers that are leaning to this trend include Texas' Sam’s Furniture and Ohio's Coconis Furniture.
Careful consideration was given to trends surrounding how home goods retailers specifically approach pricing/promotions. Credible sources were consulted to identify the trends. Each source has a history in assessing trends in marketing and isolating top trends to focus on in addition to being respected by marketers globally.