Home Décor: market data & analysis

Overall, the COVID-19 pandemic had a generally positive impact on the global Furniture market, and the Home Decor segment was no exception. COVID-19 lockdown restrictions required many people to stay home, giving them ample time to rethink the aesthetics surrounding their living spaces. One of the major drivers behind this growth was the shift in discretionary spending as many people chose to focus more of their income on household spending vs. out-of-home spending. In its 2021 annual report, Wayfair, one of the top retailers in online furniture and home decor, stated that the shift in consumer spending was one of the main reasons for its lower sales in the second half of 2021. Thus, it is possible to conclude that consumer spending is a major driver in furniture and home decor sales. While there was a significant increase in home-decor-related purchases, the segment experienced the smallest revenue percent change when compared to other segments within the Furniture market. One of the reasons behind this is that people placed a higher priority on bigger ticket items which improved overall comfortability, e.g., couches and beds. It is also likely to be why Living Room and Bedroom Furniture segments saw a higher revenue percent change compared to this segment during the beginning of the COVID-19 pandemic. Looking ahead, steady revenue growth can be expected in the Home Decor segment; however, there are still challenges that could put downward pressure on its revenue growth. One of those challenges is the current cost-of-living crisis that has slowed down the growth for most of the Furniture market in 2022. This has the potential to persist well into 2023. However, lowering inflation figures due to increasing interest rates and the easing of COVID-19 lockdown restrictions in China gives us hope that people will be better financially positioned to improve the aesthetics within their homes in 2023.

Overview

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