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Shopping for Home Decor Online: A Growing Trend

Home decor retailers like Pottery Barn and At Home may need to evolve their business models as consumers become more comfortable buying their home decor online. According to 2 Visions’ 2024 Home Decor E-commerce Market Research Report, more than 82% of respondents are willing to shop online for home decor.

Shopping for home decor is a visual experience best reserved for a visit to a store. In a surprising twist, baby boomers are leading the way in online home decor shopping. The report notes that more than 80% of baby boomers, shoppers born between 1946 and 1964, prefer to shop online, compared to 29% of millennials (1981–1996).

Despite the growing popularity of online home decor shopping, a large portion of the population still prefers to shop in-store. According to a report by 2 Visions, over 55% of respondents admitted to splitting their home decor shopping between brick-and-mortar stores and online stores.

New trends shape marketing

In-store shopping still has some staying power, though trends suggest marketers should adjust their old-school strategies. In the 2 Vision report, Google Results was surveyed as the primary channel for product discovery, but advertising products on social media has piqued the interest of younger audiences.

Nearly 20% of Generation Z respondents (1997–2010) said they found new products through TikTok posts.

Hubspot’s 2024 State of Marketing & Trends Report confirms the growing popularity of social media marketing, noting that 43% of marketers are investing in channels like Facebook, Instagram, TikTok, and YouTube. Unlike Google’s results, which are based on SEO practices, social media marketing relies on algorithms that can distribute ads based primarily on the user.

For example, TikTok ranks ads based on user interaction, so they’re more likely to see home decor products they’re interested in, not just what’s trending. For Twitter (X), user interest is a factor in ad placement, but it’s no more important than virality, geography, and relevance.

Price list: a breakthrough solution for an entire generation

Shoppers are split on what is more important, convenience or price. Respondents who cite price as a deciding factor when shopping online and those who value the convenience of using a mobile device or computer are split with almost exactly 50% on each side. A slim majority, 0.42%, see price as the most important factor in deciding whether to buy online.

Once again, the generational divide paints an interesting future for home improvement retailers. Of those who prioritize price over brand loyalty, nearly 80 percent are baby boomers. Millennials and Gen Z are more concerned about the quality of their shopping experience and whether it’s a local business, according to a report by 2 Visions.

As baby boomers stop shopping altogether, retailers may need to shift their focus from offering the best prices to improving the shopping experience. Based on Gen Z’s values, larger retailers may also face stiff competition from local businesses, even if the local option is more expensive.

Building Trust with Online Shoppers

Online or in-store, the consumer experience is the foundation for creating emotional connections. Exceptional customer service and community engagement are key to retaining customers, especially in a competitive e-commerce environment. Without in-person interaction with associates, retailers must find new ways to develop and nurture this ongoing relationship.

Because prices play a significant role in online shopping, retailers should offer simplified price comparisons with competing retailers. Shopping tools designed to match competitive prices simplify decision-making and add transparency to interactions.

When people feel empowered to make informed decisions, they trust retailers more. Brands maintain customer loyalty through exclusive online discounts, promotions, and loyalty programs that can attract new customers. With more offers, a retailer can build a strong group of loyal customers.

A Hybrid Future for Home Goods Retailers

No matter which way the wind blows, home improvement retailers need to go on the offensive and be ready to adapt at a moment’s notice. Yates Jarvis, director of 2 Visions, weighs in on this idea based on insights from a recent study. He notes that the nearly 50/50 percent split between online and in-store shopping “presents a unique opportunity for brands to refine their omnichannel strategies.”

But there’s a distinction to be made. This isn’t the end of physical retail locations. Even with the growing push for e-commerce, brick-and-mortar stores are key to consumers. They’re not going away anytime soon.

In its 2021 report The Future of Cities: Envisioning Retail, the National League of Cities said retailers will leverage online revenue growth to build more physical locations. The report said that despite the closure of more than 12,000 big-box stores in 2020, future plans call for a 40% increase in new store openings year over year.

Decorating your home becomes easier

As online shopping continues to grow and loyalty to brick-and-mortar stores continues to grow, more brands will adopt hybrid models that split business between digital and physical consumer experiences. Investing in these by building better digital storefronts, promoting in-store shopping, and adapting marketing will encourage shoppers across generations to remain loyal.

At the same time, retailers must remain true to the product they sell. Home décor products are still very visual. Any changes made to consumer-facing apps must be transparent, allowing shoppers to shop with confidence and ensuring that what they buy will work well in their homes.

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