Millennials Spark Competition Among Big Time…

Millennials Spark Competition Among Big Time Furniture Players

According to a recently released Home & Garden industry report, a new generation is entering the home buying market and they have their own way of doing things. Thankfully for the furniture industry, they are snapping up homes (especially fixer-uppers) and getting straight to business on furnishing their new abode.

It should come as no surprise that the tech-savvy Millennials’ comfort with online buying extends to the Home & Garden category, making e-commerce sales a large piece of the pie.

A 2014 Furniture Today survey found that within two short years, Millennials’ share of US furniture spending doubled from $11 billion to $27 billion, which propelled this age group—particularly young women—to the center of many retailers’ strategies.

 

 

Since then, the furniture industry has been transformed by e-commerce brands like Wayfair and Overstock. The FBIC Centre on Global Retailing predicts the furniture market will grow to $111 Billion in 2019, and e-commerce will continue to play a large role in that growth.

 

 

Paid clicks overtook organic for furniture searches, suggesting a more fiercely competitive e-commerce environment within the furniture sector. ­As summer approaches, we see fans rise in popularity. Searches around bedroom products also shot up within the month of May, including smaller products (like bed covers) and big-ticket items (mattresses, beds).

Click and Search

When we look at the websites pulling the largest percentage of clicks from furniture searches, Wayfair and Amazon emerge in the lead. All five top sites have increased their share of search clicks from 2016 to 2017, with Amazon showing the most growth since last year.

 

 

All top five furniture players pulled over half their traffic from paid search this year, up dramatically from 2016. It appears that paid search has become the most pivotal channel for staying competitive.

 

 

Millennials seek greater autonomy in shaping their home environment (redesigning their space, handling home repair, personal gardening), and expect a supportive multi-channel shopping experience to help them achieve that.

As more Millennials purchase property, understanding and serving their personal goals will be crucial for retailers.

To learn more, download the full Home & Garden report for search and audience trends in 2017.

 

Methodology: Demographic data based on furniture searchers, pulled in AudienceView over 4 weeks ending 6/10/2017. Searches measured over 52 weeks in Hitwise Intelligence. Fast-rising searches measured over 4 weeks ending 5/20/2017. YOY search clicks and paid click rate measures over 52 weeks in Hitwise Intelligence.