US Online Shopping for the Home Consumer Report 2022

Overview

• What you need to know
• This Report looks at the following areas
• Definition
• Market context

Executive Summary

• Top takeaways
• Market overview
  • Figure 1: Total ecommerce sales and forecast of furniture and home furnishings, at current prices, 2016-26
• • Figure 2: Online shopping for the home outlook, 2022-27
• Opportunities and challenges
• Support consumers and their economical mindset
• Enhance the omnichannel shopping experience
• Leverage social media to streamline the shopping process
• Key consumer insights

Market Size and Forecast

• The market declines from pandemic highs
  • Figure 3: Total US retail and ecommerce sales and forecast of furniture and home furnishings, at current prices, 2016-26
  • Figure 4: Total US retail and ecommerce sales and forecast of furniture and home furnishings, at current prices, 2016-26

Segment Performance

• eCommerce supports consumers’ economical behaviors
  • Figure 5: Total ecommerce sales and forecast of furniture and home furnishings, at current prices, 2016-26

Market Factors

• Rising inflation and interest rates limit what consumers spend
  • Figure 6: Consumer Price Index change from previous year, 2020-22
  • Figure 7: Disposable Personal Income change from previous period, 2007-22
• • Figure 8: Create comforts notifies consumers about its pricing update
• Supply chain challenges continue
• Higher mortgage rates will slow the housing market
• Technology is essential to keep consumers engaged online
• The home can be part of the sustainability solution
  • Figure 9: Comfort Works offers ability to update the look of furniture

Competitive Strategies and Market Opportunities

• Competitive strategies
• Wayfair plans to expand to physical retail
  • Figure 10: Wayfair expands into physical retail
• Pinterest AR feature includes furniture and home décor
  • Figure 11: Pinterest adds AR feature for furniture
• Etsy introduces shoppable virtual house
  • Figure 12: Etsy introduces an augmented reality experience
• Parachute expands its product assortment and plans for greater brick-and-mortar reach
  • Figure 13: Parachute expands into furniture, 2021
• Joybird launches first national TV campaign
  • Figure 14: TV campaign by Joybird
• Market Opportunities
• Ensure efficient order fulfilment to improve the overall online shopping experience
• Place flexibility and convenience at the forefront
• Support parents with the specific needs at home
  • Figure 15: West Elm promotes its transitional furniture to resonate with parents

The Online Home Consumer – Fast Facts

Items Purchased – Home Décor

• An easy and affordable way to change the look of living spaces
  • Figure 16: CB2 uses shoppable post to showcase variety of décor items
• • Figure 17: Items Purchased – Home décor, by generation, 2022
  • Figure 18: La-Z-Boy encourages consumers to clean and refresh their homes
• Tap into cultural trends to better connect with consumers
  • Figure 19: Items Purchased – Home décor, by race and Hispanic origin, 2022
• • Figure 20: West Elm appeals to Asian consumers

Items Purchased – Furniture

• Younger generations are actively shopping for furniture
• • Figure 21: Items Purchased – Furniture, by generation, 2022
  • Figure 22: CB2 offers savings through bundles
• Parents have more needs for furniture than those without kids
  • Figure 23: Havenly designs Rihanna’s nursery
  • Figure 24: Items Purchased – Furniture, by parental status, 2022
• • Figure 25: Casa Kids offers a full resale program

Starting the Shopping Process

• There are varying paths to discover home goods
  • Figure 26: starting the shopping process, by generation, 2022
• A homeowner represents an increased customer lifetime value
  • Figure 27: The starting point, by housing situation, 2022

Channel and Retailers Shopped

• Consumers shop across channels; still, there is a clear preference to shop in stores
• • Figure 28: Channel shopped, 2022
  • Figure 29: Lulu and Georgia Trade Program
• Those that deliver value are the retailers of choice
  • Figure 30: Retailers shopped, by generation, 2022
• • Figure 31: Kaiyo highlights the savings when shopping secondhand
  • Figure 32: Nordstrom’s home department
• Financial means are mirrored on where consumers shop
• • Figure 33: Retailers shopped, by race and Hispanic origin, 2022

Purchase Considerations

• Consumers want convenience when shopping for the home
  • Figure 34: Purchase considerations, by gender, 2022
• • Figure 35: TURF Analysis – Purchase considerations, 2022
• • Figure 36: Wayfair targets consumers with free and fast shipping, 2022
• Offerings of value are key to drive appeal across generations
  • Figure 37: Purchase considerations, by generation, 2022

Shopping Behavior

• Consumers want to make more informed purchasing decisions
• • Figure 38: Shopping behavior, 2022
• • Figure 39: West Elm highlights its commitment to sustainability
• Younger consumers are eager to learn about home categories
  • Figure 40: Shopping behavior, by generation, 2022
• • Figure 41: Ethan Allen engages consumers through designer tips
• Affordability is critical to appeal to Black and Hispanic consumers
  • Figure 42: Shopping behavior, by race and Hispanic origin, 2022
• • Figure 43: HomeGoods highlights its savings

Source of Inspiration

• The return to stores is here, yet online channels are no less important
• • Figure 44: Source of inspiration, by generation, 2022
  • Figure 45: HomeGoods leverages passing trends to inspire consumers
• Asian consumers prefer to be inspired through traditional sources
  • Figure 46: Source of inspiration, by race and Hispanic origin, 2022
• • Figure 47: Target leveraged UGC to showcase home items
  • Figure 48: Hem encourages consumers to sign up to its newsletter

Social Media Behaviors

• Young males are learning about home categories behind the screen
  • Figure 49: Social media behaviors, by gender and age, 2022
• • Figure 50: Crate & Barrel shared styling tips
• Black and Hispanic consumers are taking advantage of social media features
  • Figure 51: Social media behaviors, by race and Hispanic origin, 2022
• • Figure 52: Walmart creates relatability through UGC

Barriers to Purchasing Online

• Expand on fulfilment options to minimize consumers’ barriers to shopping online
  • Figure 53: Barriers to purchasing online, 2022
• Despite improvements there is still a digital divide
  • Figure 54: Barriers to purchasing online, by generation, 2022

Desired Tech Features

• Interest of younger generations will guide future online shopping
  • Figure 55: Desired tech features, by generation, 2022
• • Figure 56: Modsy design services
• Leverage technology to better appeal to multicultural consumers
  • Figure 57: Interest in technology, by race and Hispanic origin, 2022
• • Figure 58: Studio McGee partners with the founder of Clare paint to engage consumers

Improving the Online Shopping Experience

• There is an aspiration to receive home goods in a timely manner
  • Figure 59: CB2 highlights in-stock and ready-to-deliver product assortment
• • Figure 60: Improving the online shopping experiences, by generation, 2022
  • Figure 61: Outer offers neighborhood showrooms
• Parents would benefit from non-traditional offerings
  • Figure 62: Further opportunities, by parental status, 2022
• • Figure 63: Crate & Barrel leans on baby registries

Appendix – Data Sources and Abbreviations

• Data sources
• Sales data
• Forecast
• Consumer survey data
• Consumer qualitative research
• Marketing creative
• Abbreviations and terms
• Abbreviations

Appendix – The Market

• • Figure 64: Total US retail and ecommerce sales and forecast of furniture and home furnishings, at inflation-adjusted prices, 2016-26
  • Figure 65: Total sales and forecast of home furnishings, at inflation-adjusted prices, 2016-26
• • Figure 66: Total sales and forecast of furniture, at inflation-adjusted prices, 2016-26
  • Figure 67: Total ecommerce sales and forecast of furniture and home furnishings, at inflation-adjusted prices, 2016-26

Appendix – The Consumer

• • Figure 68: Median household income, by race and Hispanic origin of householder, 2020
• • Figure 69: Shopping Habits – CHAID – Tree output, 2022