Ecommerce for Home Decor Pushes Past the Tipping Point
The Home Décor and Furnishings industry has been slower to adopt Ecommerce as a whole, but the tide has turned, and brands are embracing the trend. A large part of the shift has been attributed to evolving mindsets of brands and a desire to conform to the customer’s shopping habits. As one customer segment ages out, another comes of age. The customer segment who is shopping, continues to become savvier and more comfortable making larger purchases online.
One of the most influential customer segments is the Millennial generation. According to Niraj Shah, CEO of Boston-based Wayfair, one of the fastest-growing online home furnishings retailers “The Millennial generation of consumers is very comfortable making purchases online and they are just beginning to enter the life stages that drive home-related purchases.” Not only do they drive their own purchases, but heavily influence purchasing decisions of their parents. This will only continue to drive the demand for brands to be represented online.
The demand for brands to go online, isn’t just a passing trend, it’s growing by leaps and bounds. U.S. Home Furnishings Ecommerce Revenue estimated to grow from $30.4BN to $42.7BN from 2016 to 2019 according to eMarketer, Bloomberg. Traditional models of service companies have historically stood in the way of their growth. Organizations like ours can allow a brand to partner with us / allow us to run the entire channel (or part of it) within agreed parameters. Due to the low overhead needed to actuate this kind of model, the profitability they could achieve from selling direct to consumer vs. wholesale only is incredible.