May 23, 2024

Online Home Decor Market Is The Largest Segment Driving The Growth Of Online Home Decor Market

Market Overview:
Online home decor refers to sourcing home decorative products through online platforms. It provides convenience to customers to shop anytime from anywhere along with a wide variety of options and competitive pricing.

The global Online Home Decor Market is estimated to be valued at US$ 97.39 Bn or Billion 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:
Rise in e-commerce platforms along with increasing internet and smartphone penetration globally is a key driver of the online home decor market. According to a report by Statista, the global retail e-commerce sales was US$ 4.28 trillion in 2020 and is projected to reach US$ 5.4 trillion by 2023, registering a compound annual growth rate of 18%. Further, social media influencer marketing is gaining popularity in the online home decor space with influencers promoting brands and unique products to their followers, thus influencing purchase decisions. This has boosted visibility and sales for many smaller brands and startups in the online home decor market.

SWOT Analysis
Strength: Online home decor provides high convenience to consumers as they can purchase furniture and home decor items from the comfort of their homes anytime. Wide range of options are available on various online platforms.
Weakness: Limited ability to see and feel the product physically before purchasing. Returns and exchange process for unsatisfactory products can be inconvenient.
Opportunity: Growing trend of online shopping. Increased internet and smartphone penetration globally provides large addressable market. Emerging trends like augmented reality are enhancing online shopping experience.
Threats: Threat from rising logistics and delivery costs. Increased competition from e-commerce giants and dedicated home and furniture retailers.

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 consumer preference for convenience and vast choices offered through online shopping.

Regional analysis: North America dominates the online home decor market currently due to high internet penetration and smartphone usage. Asia Pacific is expected to be the fastest growing market owing to rising middle class population and their increased spending on home furnishings. China, India and other Southeast Asian countries provide huge opportunities.

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. Large players like Amazon and Walmart have established strong product portfolio and loyal customer base in this market. Specialized online home decor retailers like Wayfair and Overstock.com are also capturing decent shares.