Home Improvement Research Institute (HIRI)’s Post

“Homeowners remodeled and redesigned during the pandemic, snapping up new recliners, refrigerators and wide-screen TVs. Now, retailers face a challenging sales environment. Demand for furniture, appliances and home electronics has fallen, according to a Bank of America analysis conducted in 2022. Fewer people buying homes has meant lower demand for big-ticket items like sofas and home stereo systems, said R.J. Hottovy, head of analytical research at the analytics firm Placer.ai. So many people bought home furnishings during the pandemic years that those purchases supplanted those that might otherwise be taking place now, depressing demand further. As of the beginning of September, Placer.ai found, visits to home-goods retailers were down roughly 15 percent from a year earlier, and visits to electronics stores were down 12 percent. Younger adults are a big potential source of demand for these kinds of goods, experts say, given that they would normally be seeking to buy a home to start a family.” https://lnkd.in/e-qZ2hJG

2024 consumer spend is trending closely to 2023. BUT, what stands out to me most is the YoY decline in spend on high-ticket items. This is alarming. This includes the following product categories: - Home Furnishings - Mattresses - Home Supplies - Household Appliances - Consumer electronics This tells me that the credit pinch is rearing its ugly head and it starts at the top with "big" purchases. One could argue that 4 of the 5 above affected categories are due to the housing market slowdown over the past year. If ppl aren't buying homes, they generally won't be buying as much furniture, appliances, etc. I don't buy it though. I expect a trickle down effect to lower AOV discretionary items next... until the Fed pivots to cut interest rates...which now seems likely in JUNE, not March. Consumers are still favoring experiences over products. Humans have adapted lifestyles over the past couple years that they're reluctant to part with. IMO, this is putting pressure on the delinquency rates I shared yesterday. Brands, how can you blur the line between products and experiences? Something to think about! 🤔

The Global Home Appliances Market was valued at USD 644 billion in 2022 and is anticipated to reach USD 1059.04 billion by 2031, indicating a Compound Annual Growth Rate (CAGR) of 5.1% over the forecast period spanning from 2023 to 2031. Contact us for any queries! . . #marketresearch #business #homeappliances #research #survey #industry #growth #iersolutions

Following a period of stellar growth, both Lowe's Companies, Inc. and The Home Depot are now being buffeted by a decline in home improvement spending. As the contraction is mostly among consumers, both brands are leaning more heavily into the professional segment. Home Depot is more established here, so is having relatively more success; whereas Lowe’s traction with professionals has stalled despite its marketing efforts.   One of the further reasons for the relative underperformance of Lowe’s compared to its larger rival, is that it is more exposed to a more casual and occasional DIYer. These consumers have reduced the number of small and medium projects they are undertaking more sharply than average, and so are spending less money on home improvement. Lowe’s greater reliance on home appliances has also been unhelpful as many consumers are postponing new purchases until they are essential, and the lower levels of kitchen remodeling work has also sapped demand. Ultimately, both Home Depot and Lowe’s are very solid retailers. However, Home Depot has the slight edge as it is more visible, more of a destination for home improvement, and plays better with professionals. When it comes to battling on price and managing inflation, Home Depot’s more significant economies of scale is also a benefit. Thanks to Ad Age for including my comments in this Brand Battles piece... https://lnkd.in/ejjk6m-A #retail #retailnews #homeimprovement #DIY

📊 Exciting trends ahead in the home retail market! 🏠 Forecasted to be a $2,476 billion industry in 2023, the home market is set to grow at a CAGR of over 2% until 2028. 📈 Despite a flat 2024 due to low consumer confidence and high inflation, the market is poised for a comeback as consumer sentiment improves and demand for non-essential goods returns. https://lnkd.in/gFcYubFQ #RetailTrends #MarketGrowth #HomeSector #ConsumerConfidence #FutureForecast

Buying stuff can be stressful. Cheap out and you could regret it. Overspend and you'll cut into your budget. Knowing the best time of year to buy appliances and other household items can lessen the anxiety. Here's a list of the best time of year for sales.

Circana’s newest research delves into UK and U.S. shopping habits, spotlighting cross-country variations and trends in consumer electronics and home appliances. With insights from over 5,000 surveyed shoppers, the report unveils dynamic shifts in consumer preferences and the influence of economic factors and living costs on purchasing decisions. 💡 Stay informed with Circana’s latest findings! Access “Shopping Habits and Intent Among UK and US Consumers” on our site today: https://bit.ly/3HjMtOJ #ConsumerInsights #MarketResearch #ShoppingTrends

Experience Excellence For Your Business With Hirsch's ⭐️📈 At Hirsch's, we pride ourselves on our 5 star service and forging lasting partnerships with businesses like yours. With a wide range of offerings including TVs, appliances, beds, and more, coupled with our commitment to service and friendly staff, we're dedicated to helping your business thrive in every aspect. 1. Expertly Curated Selection: Our team of expert buyers Sally Van der Berg (Head Of Retail) Paul Brown (Managing Director) Janice Johnson (Smalls Appliance Buyer) Gringo Naicker (Beds Buyer) Kumaran Moodley (Merchandise Director & Buyer) Darren Ramsamy (Aircons Buyer) & Richard Hirsch (CEO, Smalls Buyer) hand-pick the best appliances from the most reputable brands, ensuring that you have access to top-quality products that meet the highest standards of performance and reliability is ensured. 2. Reliable Service from our #BlueTeam: At Hirsch's, customer satisfaction is our top priority. Our friendly and knowledgeable staff are always ready to assist you every step of the way, whether you're browsing our stores or seeking expert advice on product selection and installation. With Hirsch's, you can trust us and "Our passion is customer service"- Norman Brassell (National Operations and Sales Director) 3. Customised Solutions: We understand that every business is unique, which is why we offer personalised solutions tailored to suit your specific requirements. Whether you're outfitting a hotel with state-of-the-art appliances or upgrading your office with cutting-edge technology, our team will work closely with you to ensure that you receive the perfect products for your needs. 4. Value for Money: With Hirsch's, you get quality products and exceptional service, but also unbeatable value for your money. Our competitive pricing and special offers ensure that you get the best possible deal without compromising on quality. 5. Long-term Partnership: Our goal is to build long-term partnerships based on trust, reliability, and mutual success. Whether you're a small startup or a large corporation, we're committed to being your trusted partner every step of the way, providing ongoing support and assistance whenever you need it. Make your Business feel like a home with Hirsch's ! Experience B2B with the only name trusted since 1979. ✨🙌🏻 #TheBlueTeam #B2B #TrustedSince1979 #Buyers #Appliances #5starservice ⭐️⭐️⭐️⭐️⭐️

Introducing the Home Improvement Award category! 🏠 Best Overall Home Improvement Retailer The best overall home improvement retailer embodies excellence across all aspects of its operations, setting a benchmark for the industry. Renowned for its extensive range of high-quality products, spanning from tools and materials to appliances and decor, this retailer offers customers everything they need to tackle home improvement projects with confidence. Their commitment to exceptional customer service is evident in their knowledgeable staff, who provide expert advice and assistance, as well as in their convenient shopping experiences, which may include user-friendly online platforms and efficient in-store layouts. Transparent pricing, flexible financing options, and reliable delivery and installation services further enhance the customer experience, while their dedication to sustainability and community engagement demonstrates their commitment to making a positive impact beyond the realm of retail. With a reputation for reliability, innovation, and customer satisfaction, this retailer earns recognition and accolades for its outstanding contributions to the home improvement industry 🏆 Best Customer Service Experience This category recognizes retailers that excel in providing exceptional customer service, personalized interactions, ease of shopping, efficient checkout processes, and overall satisfaction throughout the customer journey. 🚀 Most Innovative Retailer This category acknowledges retailers that demonstrate outstanding creativity and innovation in their business practices, including product offerings, marketing strategies, technological advancements, sustainability initiatives, or other forward-thinking approaches that set them apart in the retail landscape. This could encompass anything from pioneering new retail technologies to implementing unique marketing campaigns or creating innovative store designs. @arialogistics_ #LastMileRetail #AriaCares #LastMileRetailAwards #LastMileHeroes #ExcellenceInDelivery #AriaLogistics

Over the last 2 months, I have seen massive price wars waging across the board in the home appliances industry across all markets from North America to Europe, to Middle East to South East Asia to Australia. Simply put, over 40% price discounts in the US, Price levels dropping by over 20% in Australia which in simple terms is driving the market not just to competitive prices but to price levels that are neither sustainable nor profitable on the long term. The Industry itself is suffering from demand reduction and downward fluctuation due to inflation and drop of purchasing power and deferred demand that shifted from 2024-2027 to 2020-2022. Additional the growth from both the Chinese brands as Haier, Hisense, Midea and Turkish brands as BEKO drove entry schemes that allowed for more aggressive penetration strategies from both pricing & product ranges. Yet the question remains as follows: Are companies now seeking more aggressive volume growth or rather growing profits as having both now seems not just challenging but practically impossible? What do you think? Let me know you think in the comments. Note: The Quote is from "The Pricing Advantage" Book