Home décor is slightly more protected from economic change than other home sectors, as consumers cut back on big-ticket items, such as furniture, and purchase home décor items as a cheaper way to decorate. Growth has slowed in 2017 to 1.1% against 2.4% in 2016, as consumers tighten their spending due to an uncertain economy in the short to medium term. Despite slowing growth, the home décor and accessories market will remain relatively robust, with growth dipping to 0.7% in 2018 but recovering to 1.8% by 2021.
Candles & home fragrances category have the highest total penetration out of all home décor categories at 61.5%, making up for 25.2% of the total home décor market. Candles alone, (within the candles and home fragrance category) are particularly popular, with 26.0% of the UK shoppers purchasing a candle in the last year. 16-24 year-olds purchased more than any other age category within clocks, decorative accessories, vases & bowls, candle holders & lanterns, and mirrors. This is due to young shoppers wanting to emulate interior designs they see online.
Over half of the shoppers (55.5%) purchased home décor to replace an item in the past year, closely followed by impulse purchases at 50.9%.
IKEA remains the home décor and accessories market leader with a share of 7.4%, but with fashion retailers and value players such as B&M and The Range gaining share, IKEA must improve its delivery proposition online to avoid losing share. Additionally, investment in trend-led product ranges will be imperative to growing its market share.
Retailers that can provide elements of luxury at a low cost to shoppers will be able to protect and grow their market share as consumers trade down.
The report "Home Décor and Accessories 2017" offers comprehensive insight and analysis of the home décor market which includes; pictures & frames, clocks, decorative accessories, vases & bowls, candle holders & lanterns, candles & home fragrance and mirrors. It provides in-depth analysis of the following: the key issues impacting the market, strategies for success, market sizes and forecasts to 2022, retailer profiles, retailer market shares and consumer shopping habits and spending motivations.
Companies mentioned in this report: Debenhams, John Lewis, Marks & Spencer, Dunelm, IKEA, Poundland, B&M, The Range, Sainsbury's, TK Maxx, Tesco, Amazon, Argos, Next, H&M, Zara, Asda.
- Midmarket retailers will experience further pressure from the discounters as consumers trade down due to a gloomy economic forecast in the short to medium term. They must invest in old stores and promote their superior quality and gifting collections to maintain share in the home décor market.
- Online growth is restricted due to the discretionary and non-essential nature of home décor. This means that a large proportion of sales are driven by consumers who happen to see something they like instore and spontaneously purchase rather than it being a planned decision - this shopper journey is difficult to replicate online without being able to touch and feel products, therefore limiting online growth in home décor.
- Fashion retailers continue to grow their presence in the home décor market, with Zara having opened more standalone home stores, H&M rolling out home concessions, and River Island poised to launch a homewares range. Department stores risk losing sales to customers choosing to purchase more competitively priced home décor items from clothing and fashion retailers.
- Nearly two thirds of UK shoppers bought candles & home fragrances products in 2017. Candles have boomed in popularity as social media influencers discuss expensive candle brands such as Neom Organics, Diptyque and Jo Malone, with candles becoming a symbol of an aspirational lifestyle. This desire has also benefitted high street retailers that are able to provide cheaper alternatives to less affluent shoppers and those trading down due to squeezed budgets.
- Social media is becoming increasingly important as a source of inspiration across many sectors, including homewares. These platforms, particularly Pinterest and Instagram, are very influential, so retailers must ensure they are using these platforms frequently to engage and inspire shoppers.
- Understand how online influencers such as Zoella and Tanya Burr are increasingly impacting the home décor market and how this is driving sales of certain products within home décor. Utilise this information to understand which products to focus on and how to communicate these products to home décor customers through social media.
- Utilise our trend capsule to identify current and future fashion trends in the home décor market and which retailers are best placed to take advantage of the increasing fashionability of homewares and whether you are on trend within home décor.
- Identify the disruption of discounters and value retailers such as B&M and The Range as well as fashion retailers within the home décor market and how midmarket retailers can continue to gain market share in a more competitive retail environment.
- Discover the key motivations behind how consumers shop home décor through our survey of 2,000 shoppers. Use this data to understand which facilities you should provide instore and the importance of store formats and where products are placed to drive sales.