According to the 2022 home furnishing market report by market research company YipitData, most national home furnishing retailers are in trouble this year due to the impact of inflation and declining consumer demand, and only a small number of pure home furnishing retailers have grown against the trend of inflation . And Amazon’s home furnishing market share has grown significantly.
The survey report pointed out that as of October, Amazon's share of the US home furnishing market this year increased by 2.34% year-on-year to 86.13% , while the market shares of Wal-Mart and Target have declined , while other pure home retailers such as Wayfair and HomeGoods , IKEA and Ashley, etc. are also relatively sluggish in sales this year.
Among the top 10 American home furnishing retailers last year, Wayfair ranked second, and this year it still occupies a favorable position with a market share of 13.72% , while IKEA ranked third, Pottery Barn ranked seventh, RH ranked eighth, La-Z-Boy at No. 9 and West Elm at No. 10 both gained market share (increasing between 0.02% and 1.5%) .
In addition, HomeGoods (No. 2), Big Lots (No. 4), Bed Bath and Beyond (No. 5), and Ashley (No. 6) saw their market share decline . Among them, Bed Bath and Beyond was hit the hardest, with its market share dropping nearly 2 percentage points to less than 6%.
In contrast, the home category on Amazon is still doing very well, with very strong growth.
From January to October this year, the average order value (AOV) of Amazon home buyers ranged from $150 to $166, and the purchase frequency was about 1.5 times per month. Compared to other general retailers ($26-$32, 2-2.2 times per month), Amazon customers shop for home furnishings less frequently, but with a higher average order value.
According to YipitData analysis, the price gap shows that consumers are buying lower-priced home furnishing categories such as decorations and textiles at comprehensive retailers, and buying higher-priced products such as furniture at pure home retailers.
In terms of average order value , from January to October, La-Z-Boy ranked first, with AOV rising from $1,300 to $1,600 ; followed by RH, with AOV rising from $1,000 to $1,300; Ashley’s AOV also had It rose, from $850 to just over $1,000.
Inflation is driving the prices of most categories in the consumer market this year, causing average order values and average sales prices to rise, and household products are no exception.
From January to October, the average selling price (ASP) for homes in the U.S. rose more than 5 percent, and the ASP for bedding also rose more than 10 percent.
However, due to consumption control, Americans' demand for home decorations has declined this year, which has also led to a sharp drop in the average sales price of home decorations , which fell by more than 20% from May to October.
Overall, the headwind of inflation is still there. Although the home furnishing category on Amazon is very popular, sellers of related categories should still pay attention to market trends and select good products.