February 26, 2024

Home Interior Design Trends To Drive Growth In The Online Home Decor Market

Market Overview:
The online home decor market comprises products related to home furnishing such as furniture, textiles, floor coverings and homewares. With rising urbanization and improving living standards, consumers are increasingly opting for aesthetically appealing home decor items to transform their living spaces. The online platforms provide a wide variety of home decor products at competitive prices enabling consumers to conveniently shop from the comfort of their homes. This has boosted the growth of the online home decor market.

The global Online Home Decor Market is estimated to be valued at US$ 97.39 Bn in 2023 and is expected to exhibit a CAGR of 11.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
The online home decor market is witnessing a trend of personalized home decor influenced by social media and virtual reality platforms. Customers can now design their living spaces using 3D imaging tools to visualize products in situ before purchasing. This has raised their expectations for customized design solutions. Furthermore, the lockdowns during the pandemic accelerated e-commerce adoption resulting in increased preference for online platforms among consumers. Sustainable home decor products manufactured using eco-friendly materials are also gaining traction in line with rising environmental awareness. Major online retailers are expanding sustainable product offerings to cater to this growing consumer demand. Overall, the online space has revolutionized the home decor market by offering hyper-personalized solutions and sustainable options to customers.

Porter’s Analysis
Threat of new entrants: The online home decor market has high entry barriers due to the presence of established brands that have strong brand recognition. New entrants need huge capital investment to gain market share.

Bargaining power of buyers: Buyers have high bargaining power due to the availability of numerous domestic and international brands offering similar products at competitive prices. Buyers can easily switch to other brands based on price and product offerings.

Bargaining power of suppliers: Suppliers have moderate to low bargaining power due to the presence of numerous suppliers for raw materials. Switching costs are also low for buyers.

Threat of new substitutes: Substitute threats are low as there are limited substitutes for home decor products. However, customers may shift to renting/leasing home decor items.

Competitive rivalry: The market is highly competitive due to the presence of numerous national and international players. Players compete on the basis of price, product innovation, placement, and promotional campaigns.

Key Takeaways
The global online home decor market is expected to witness high growth, exhibiting CAGR of 11% over the forecast period, due to increasing spending on home interiors and growing urbanization.

Regional analysis: North America dominates the market and is expected to maintain its lead over the forecast period followed by Europe. China is expected to be the fastest growing market in Asia Pacific due to rising disposable incomes and spending on luxury home products.

Key players: Key players operating in the online home decor market are Amazon, Bed Bath & Beyond, Walmart, Wayfair, IKEA, Overstock.com, Target, Home Depot, Williams-Sonoma, Lowe’s, Etsy, eBay, HomeGoods, JCPenney, Kohl’s, Macy’s, Pier 1 Imports, Crate and Barrel, At Home Stores, and Restoration Hardware. Players compete on the basis of wide product assortment, next day delivery, price matching, and personalized recommendations.