Market Overview:
The online home decor market involves selling of home décor products such as furniture, home textiles, kitchenware, lighting and other accessories through e-commerce platforms. Products in this market include sofas, beds, cushions, curtains, table lamps, couch covers and many more items that enhance interior aesthetics of home. Ease of shopping from home and attractive offers have boosted growth of online home decor sales in recent years.
The 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 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing e-commerce industry and preference for online shopping among consumers are major drivers expected to support growth of the online home decor market over the forecast period. According to statistics, global retail e-commerce sales grew by over 27% year-on-year to reach $4.9 trillion in 2020. Further, young population is increasingly opting for online shopping which offers convenience and compares product in one place. This in turn is boosting sales of home decor products via e-platforms. Additionally, attractive deals, discounts, offers and cashbacks provided by online retailers also entice consumers to purchase home décor products online. However, inability to physically check product quality and delays in delivery can restrain market growth.
SWOT Analysis
Strength: The online home decor market provides buyers with a wide range of products from various brands in one convenient place. Customers can easily compare prices and make purchases from the comfort of their home. Online retailers also offer competitive pricing and frequent sales that attract cost-conscious buyers.
Weakness: Customers cannot physically see or touch products before purchasing them online. This can lead to issues with sizing, colors, or materials not meeting expectations. Returning large or bulky items also presents logistic challenges. Additionally, e-commerce sites lack the experiential element of browsing products in physical stores.
Opportunity: The growing popularity of interior design blogs and home makeover shows on social media and streaming platforms has fueled interest in home decor trends. This expanding audience presents an opportunity for online retailers to engage customers through visually appealing websites and recommend similar products.
Threats: Traditional brick-and-mortar retailers like department stores and furniture chains pose strong competition with their expanded e-commerce presence and BOPIS/BOHO options. Furthermore, the entry of large marketplace platforms like Amazon threatens to capture additional market share through their broad product selection and aggressive pricing strategies.
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 online shopping driven by rising internet and smartphone penetration along with the growth of social commerce. North America currently dominates the market, accounting for over 35% share in 2023 due to high penetration of e-commerce and growing preference for one-stop online shopping among consumers in the US and Canada. The Asia Pacific region is projected to be the fastest growing market, expanding at a CAGR of 13.5% during the forecast period, with China and India emerging as major revenue generators.
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. These players are focusing on enhancing their product catalogs, improving user experience through advanced technologies, and expanding fulfillment networks to capture greater market share.
