New product trends and innovations, shifting consumer preferences, and — for millennials and upcoming generations — shifting priorities are yielding significant opportunities for growth in home furnishings.
L.E.K. has deep experience in the home furnishings industry, partnering with manufacturers, distributors, retailers and installers in order to help our clients achieve their strategic goals. Our experience in the space covers multiple categories, including indoor and outdoor furniture, home décor, office furniture, and our expertise in the adjacent home improvement space. We are a market leader in growth strategy, and our core capabilities in this sector include working with clients on commercial due diligence, M&A, pricing, channel, brand and corporate strategy. We recommend actionable strategies that drive impactful results for our clients, allowing them to be more efficient and more profitable.
COVID-19 in the US: Consumer Insights for Businesses — Edition 4, Part 1
Consumer sentiment is significantly more positive than in the early stages of the outbreak. Economic sentiment is improving, with ~50% of consumers having a similar or slightly improved view of the U.S. economy (relative to March 18).
COVID-19 in the US: Consumer Insights for Businesses
The coronavirus crisis has thrown us into uncharted economic territory. Still, one thing is certain: Consumer behaviors are changing significantly.
Key questions and challenges
Our experienced professionals have a deep understanding of key business challenges in today’s home furnishings marketplace, and we encourage our clients to consider these key questions:
- How are customer needs and product trends evolving? What are the implications for how we grow our business? How will the continued growth of millennial spending power influence purchasing behaviors and product desires?
- How will shifts in customer demographics and generational change affect our brand or company? Who are our key target customers, and how are their spending habits evolving?
- How do we optimize our pricing and promotional strategies to maximize value and create win-win solutions for brands and retailers?
- As the traditional purchase path changes, how do we optimize our channel portfolio? How do we make our channel partners work harder? How can we develop an omnichannel or digital strategy?
- How do we evolve our business model to be smarter, leaner and more profitable without compromising growth?
- Where do interesting M&A opportunities exist, and what real assets can we acquire?
- Are there adjacent products and categories that represent growth opportunities for our brand or company?
- Should we grow outside of our core markets (domestically or internationally), and if so, how?
Navigating a Digital-First Home Furnishings Market
Home products are not immune to the digital shift with ~20-25% currently shopping online with an estimated ~25-30% shopping online by 2022+.