The Rise of Online Home Decor Stores
Over the past decade, e-commerce has completely transformed the way people shop. This shift toward online shopping hasn't spared the home decor industry. Traditional brick-and-mortar home décor stores are facing stiff competition from their online-only counterparts. According to a report by Industry Experts, online decor sales have grown by over 25% annually in recent years and are expected to account for 30% of total home decor sales by 2025.
There are several factors driving this growth of online decor stores. For one, they offer much wider selections than traditional stores confined by physical retail space limitations. Customers can browse through catalogs containing thousands of items from various designers and brands under one virtual roof. Online stores also allow effortless comparisons of customer reviews, prices, styles, and specifications – something not always possible in physical stores overwhelmed by options.
Convenience is another big attraction. Shoppers can hunt for furniture, fixtures, wall art, and other decorative items from the comfort of their homes anytime, without having to physically visit stores. Online stores provide round-the-clock accessibility. Purchases are delivered right to your doorstep. Online Home Decor ease of shopping without the hassles of traveling or long lines is a huge draw, especially for time-pressed consumers.
Rise of Mobile Shopping and Apps
The boom in mobile commerce has further propelled online shopping for home decor. According to statistics, over 65% of online shopping today happens on mobile devices like smartphones and tablets. Leading online home décor retailers have responded by optimizing their sites for mobile and developing robust apps. Through their apps, shoppers can virtually tour products, check out 360-degree views, customize options, get inspirations and ideas instantly.
Wayfair, one of the largest online home stores, saw mobile commerce contribute to over 50% of its total revenue. Other major players like Houzz, Lulu and Lola, Urban Ladder and Pepperfry too have focussed on developing slick mobile interfaces and apps for an optimized shopping experience "on-the-go". The availability of virtual reality and augmented reality tech in some apps adds to the fun of online browsing and purchasing home items.
Product Visualization Driving Sales
Online decoration stores have upped the bar when it comes to product visualization options for customers. Detailed high-resolution pictures from multiple angles are insufficient nowadays. Today's shoppers expect 360-degree views, videos, VR and AR previews to imagine how items will look in their actual space before committing to the purchase.
Leading retailers ensure items uploaded to their catalogs are photographed professionally with state-of-the-art equipment to provide shoppers photo-realistic visuals. They also enlist interior designers to virtually style products in sample room layouts demonstrating different pairing and placement options. Some stores have taken it a step further to offer virtual design services through which customers get personalized 3D modeled layouts of their existing space with the products of their choice digitally placed in.
This level of visualization helps overcome a basic limitation of online shopping- inability to experience products physically before buying. It brings the store straight into customers' homes through the digital medium. No wonder, product visualization tools have proven highly effective at converting casual window shoppers to actual buyers online. They instill confidence in purchases, especially for big-ticket and non-returnable items like furniture.
Personalization – The New Frontier
Personalization is the latest trend being adopted by innovating online home décor retailers to enhance customer experience.They are using shopper data, past purchase patterns and lifestyle preferences to deliver a highly customized shopping journey. For instance, retailers are recommending products tailored to individual customers' tastes and existing décor styles.
Sites also allow shoppers to save inspirations, create mood boards, follow favorite interior designers/brands and see only suggestions aligned with their interests on the homepage. Online décor chain Urban Ladder pioneered personalized services; it designates a care manager to each customer who aids in selections, provides post-purchase follow-ups etc.
As artificial intelligence advances, personalized recommendations and custom product designs based on customer data are emerging too. A popular Swedish brand Is selected uses AI to design sofas and lighting attuned to customers' design preferences, family sizes and activity requirements. With personalization, online decor shopping is moving from just transactions to truly personalized experiences reminiscent of bespoke interior design studios. This bodes well for boosting customer loyalty and lifetime value in the future.
Growth Prospects of Online Home Decor Industry
Going forward, the online decor industry seems poised for exponential growth riding on the e-commerce wave. Statista predicts the U.S. online home furnishings and housewares market alone will cross $80 billion in sales by 2023 at a CAGR of 9%.
Meanwhile, home decor startups are raising funds aggressively to expand aggressively. Furniture giant Raymour and Flanigan recently announced investing $100 million to develop an in-house e-commerce platform. Established brands too are pumping millions into revamping their digital offerings and supply chain logistics to match the rising demand. Offline stores are being forced to improve their complementary online presence or risk losing ground to virtual-only competitors.
In emerging markets like India, where organized retail penetration is still low, online home decor shopping is projected have a transformative impact. Young affluent users, dual-income households and NRI customers will lead this change.
the widespread consumer shift toward online shopping during Covid-19 has provided additional rocket fuel to the already zooming online home décor rockets. With innovations in VR, AR, AI and hyper-personalization, online stores seem positioned to dominate the future of home decor retailing. The pandemic has only accelerated the digital future of this industry. Traditional players will need to up their game to retain relevancy in this fast-evolving digital era.
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About Author:
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)