Online Home Decor Market – Covid-19 Impact, Regional Outlook, Competitive Strategies and Forecast by 2030

Work-from-home Policy during COVID-19 Drives Demand for Home Decor Products on e-Commerce Websites

Since most individuals are still abiding by the work-from-home (WFH) policy amidst the COVID-19 (coronavirus) outbreak, companies in the online home decor market have incorporated an elaborated list of WFH furniture on their websites. Many schools and colleges are under scrutiny for resuming their lectures during the pandemic. Hence, manufacturers are focusing on school essentials such as study tables, bean bags, and wall shelves.

Currently, the online home decor market is gradually picking pace in countries still struggling with the pandemic. However, between January 2020 and March 2024, the online furniture business experienced a drastic increase in traffic. The global traffic on furniture websites has witnessed an increase from January through March, since many people have been preferring office set-up at home. Brands, such as Pottery Barn, IKEA, and Home Depot have competed to provide customers with furniture services during the pandemic.

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Vertical Gardens Hold Lucrative Growth Opportunities for Interior Designers

Home decor is an exciting activity for individuals who have recently bought apartments. With the growing digital influx, online home decor is undergoing a transformation to meet the demand of customers. Increasing number of startups are tapping incremental opportunities in the online home decor market. For instance, Green Drops is keen on expanding its business in vertical gardens to help create more oxygen and decorate the ambience of houses.

Every year, several students enter the business of interior designing with Fine Arts degree. This trend for wanting an exciting career in home decor has contributed toward the expansion of the market. The growing business of green walls is contributing to a collective and estimated revenue of ~US$ 128 Mn by 2030 for the online home decor market.

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Handmade Luxury Retail Items Gain Popularity

The concept of luxury home decor is growing popular among individuals. In this regard, Moon River Stop, an online one-stop shop, offers individuals with luxury décor options. Companies in the online home decor market are increasing their production capabilities to manufacture high-end luxury products with impressive designs and craftsmanship to lure customers. They are increasing product uptake for blue pottery, antiques, glass vases, metal bowls, and the likes.

Companies in the online home decor market are increasing efforts to combine traditional artistry with contemporary appeal to increase product uptake. They are catering to festive occasions to meet the needs of buyers. Graduation, house warming, and promotions are emerging categories that manufacturers are focusing on. On the other hand, manufacturers in India are setting the standard for luxury retail that highlights Indian heritage and quality craftsmanship. Handmade items are being highly preferred by customers.

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Data Protection Laws Ensure Safe Purchase of Online Home Decor Products

One of the main disadvantages of online shopping is that the buyer is unable to touch and feel the product, which might lead to return of goods. In several cases, individuals feel that the item that they have ordered is completely different from what they saw online. Hence, companies in the online home decor market are investing in photoshoots for products so that customers do not feel misled during their buying experience. They are increasing efforts to mention detailed description of products to minimize return and exchange of goods.

Manufacturers in the online home decor market are creating awareness among customers to buy goods from trusted websites. Trusting an unknown seller with your personal details also raises the issue of malicious practices. Hence, manufacturers should increase awareness about data protection laws to ensure safe purchase of online home decor products.

Earth Tones and Biophilic Design Trends Create Business Opportunities for Companies

Popular e-Commerce giants such as Pepperfry and World Market are leveraging their digital marketing by writing blogs and articles about home styling. New interior design trends including Earth tones and multifunctional spaces are bolstering the growth of the online home decor market. As such, the market is slated to register a favorable CAGR of ~8% during the assessment period. Other interior design trends such as floral wallpapers and biophilic designs are creating business opportunities for manufacturers.

Manufacturers in the online home decor market are luring customers by offering discounts and offers on new room designing services. Registration and cashback offers are boosting product purchases. e-Commerce giants are collating their list of best-selling products to ensure repeat purchase of products. Candle holders, wall accents, and indoor plants are being highly publicized in the interior designing sector.

Sophisticated and Handcrafted Apparels Personify Interior Designing at Home

The U.S. online education platform MasterClass is growing popular worldwide, which also shares information on home styling and interior designing. An explosion of social media content on YouTube and Instagram has further amplified revenue opportunities for companies in the online home decor market. The trend of home makeovers is another key market driver generating sales for manufacturers. Handcrafted cups, sophisticated wall scones, and innovative coasters are setting the language for great aesthetics in home decor. Apart from furniture, companies in the online home decor market are increasing their production capabilities to manufacture sateen bed sheets, innovative pillow covers, and rugs that suit the design taste of individuals.

Colorful dinner napkins and paintings are being made to personify interior designing. Individualism is being highly preferred by customers, as manufacturers list their bestsellers on websites.

Analysts’ Viewpoint

Work-from-home policies have created a demand for office set-up furniture amidst the ongoing COVID-19 outbreak. New trends such as layered contrasting decor and mixed metals are creating business opportunities for companies in the online home decor market. However, the issue of data theft is existential for individuals who buy products from unknown sellers. Hence, companies should urge individuals to purchase goods from trusted sellers and conform to data protection laws in case of any malicious activities. Companies should tap growth opportunities in vertical gardens and environment-friendly furniture to broaden their revenue streams. Handmade dreamcatchers and wind chimes are being preferred by customers.

Online Home Decor Market: Overview

  • According to the latest market report published by Transparency Market Research on the online home decor market for the period 2024–2030 (wherein 2024 to 2030 is the forecast period and 2019 is the base year), increasing online shopping and need for home furnishing products across the globe is expected to drive the online home decor market
  • Globally, revenue generated by the online home decor market accounted for US$ 151.1 Mn in 2019, which is expected to expand at a CAGR of ~8% in terms of value throughout the forecast period

Growing Demand for Interior Decoration across Globe: Key Driver of Global Market

  • Rise in demand for home decor products and awareness about interior designing, etc., is projected to expand the online sale of home decor products during the forecast timeline. Increase in standard of living and disposable income among users has led to the demand for furniture such as sofas, tables, dining tables, and beds. In addition, increasing preference for online shopping and demand for other products such as home textiles, flooring, wall décor, and lighting has also enhanced the sales of online home decor in recent years.
  • Increase in online sales of interior or home decoration products, even in higher ticket products (furniture, dining tables, etc.), is anticipated to be a major driving factor of the online home decor market in the near future. The past couple of years have seen a rise in online furniture options.

Boom in e-Commerce Industry to Create Better Opportunities for Online Home Decor Market

  • Growth of the e-Commerce industry has created huge opportunities for manufacturers and distributors in the online home decor market. Producers and suppliers of home decor products are focusing on selling their products on various e-Commerce websites across the globe to cater to a comprehensive range of customers across the world. Online shopping has taken precedence over brick and mortar retail in various countries. Online reviews and feedback on home decor products such as furniture, furnishing, wall décor, and lighting also helps customers to choose the best products or accessories available in the market. Moreover, intense competition between online retailers helps consumers to obtain very good deals, when they buy home decor products through online modes of distribution. Many home improvement retailers are entering the online space and offering newly designed home decor products. They are also providing attractive discounts, exchange offers, and installment schemes to customers to direct their attention toward their exclusive range of products.

Increasing Popularity of Home Décor Products: Key Trend of Market

  • Demand for home decor products, especially furniture, bedding, mattresses, rugs & carpets, and a wide variety of wall decor products, etc. is increasing the overall online sale of home decor products. People have moved from choosing traditional wooden furnishing to eclectic home decor designs, keeping in mind the comfort, luxury, spacing, and other needs of modern-day lifestyles. Living room furniture, beddings, carpets, wall hangings, and decorative lights are the preferred choice of customers. Customers are spending decent amount of money on the purchase of home decor through online modes of distribution. Awareness and affordability are the two major factors, which play a vital role in the process of making buying decisions by customers. Youngsters are more trusting when it comes to ordering online. These factors are likely to increase the online sales of home decor products in the near future.
  • The overall production and supply of home decor products were hampered due to the outbreak of COVID-19. However, it has generated immense opportunities for online suppliers or retailers to expand their sales channels and increase the overall profitability of the business. Online retailers are also understanding consumer requirements, their preferences toward design, shape, size, and colors of home decor products, and are trying to provide affordable and innovative products. Online home improvement retailers are also working on their websites and trying to go beyond providing product images. Online retailers are launching with innovative features which provide an opportunity to customers to explore the respective products and offerings more intensely. Numerous opportunities exist for home decor retailers and distributors in emerging or developing countries to cater to untapped markets in terms of online sales of home furnishing and interior decoration products.

Customer Preference for Physical Retail Experience to Hamper Online Home Decor Market Growth

  • Purchasing home decor products through online sales channels is becoming popular and individuals are buying home decor products from e-Commerce websites and various online home improvement retailers. However, majority of customers still prefer physical retail experiences to online experiences. Customers value the in-person evaluation of the size, design, material, and the significant feel of home decor products before making a purchase decision. This experience does not always translate into online stores. Customers are still inclined toward tangible traits such as color, pattern, style, and texture when evaluating products for their home. Hence, the ability to see, touch, and feel products as well as take products home immediately ranks highest among the reasons customers choose to shop in offline stores rather than online. These factors are anticipated to hamper the growth of the online home decor market in the near future.

Online Home Decor Market: Competition Landscape

  • Detailed profiles of suppliers of online home décor products have been provided in the report to evaluate their financials, key product offerings, recent developments, and strategies
  • Key players operating in the online home decor market include
  • Inter IKEA Systems B.V.
  • Home Depot Product Authority
  • LLC
  • Herman Miller, Inc.
  • Ashley Home Stores, Ltd.
  • Home 24 SE
  • Kimball International Inc.

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Online Home Decor Market: Key Developments

  • Prominent service providers in the online home decor market are increasing investment on innovative products to fulfill the needs of end users. Suppliers are also planning to expand their product range and presence in various geographies through mergers & acquisitions and tie-ups with local providers.
  • Some other key developments in the online home decor market are highlighted below:
    • In August 2024, Ashley Furniture announced that it is expanding operations at its facilities in Verona and Saltillo. The expansions will create 130 jobs across both facilities. Ashley will invest US$ 13 Mn in its Verona plant; this includes the construction of a building and purchasing new equipment.
    • In August 2024, The Home Depot announced that it would open three new distribution centers in Georgia over the next 18 months to support the growing demand for flexible delivery and pick-up options for Pro and DIY customers

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