Más contenido relacionado La actualidad más candente (20) Similar a Navigating a digital-first home furnishings market (20) Más de L.E.K. Consulting (20) Navigating a digital-first home furnishings market 1. Navigating a
digital-first home
furnishings market
Chris Randall
Managing Director,
Retail & Consumer Practice
June 7, 2019
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Disclaimer
This presentation has been prepared by L.E.K. Consulting LLC (“L.E.K.”) in connection with the PiperJaffray Home Furnishings Omni-Channel Symposium (the “Symposium”). The
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L.E.K. Consulting is a registered trademark of L.E.K. Consulting LLC. © 2019 L.E.K. Consulting LLC. All rights reserved.
3. 3L.E.K. Consulting is a registered trademark of L.E.K. Consulting LLC. © 2019 L.E.K. Consulting LLC
U.S. adults spent ~11 hours per day interacting
with online media in 2018, up from ~9.5 hours in 2014
~93% of millennials consider themselves “experts”
or “very comfortable” with mobile / smartphones
Consumers spent ~500B online in the U.S.
in 2018, resenting ~14% of total retail sales
Source: U.S. Department of Commerce, Digital Commerce 360, Vend, L.E.K. 2017 Millennial retail survey,
L.E.K. executive insights, Big Commerce, Invesp
Online sales increased ~14% from 2017 to 2018,
outpacing the ~4% growth in total retail sales
Consumer
digital
engagement
is broad and
growing
95% of Americans shop online at least yearly,
80% of Americans shop online at least monthly,
30% of Americans shop online at least weekly
~83% of U.S. consumers who shop online are
highly satisfied with the online shopping experience
4. 4L.E.K. Consulting is a registered trademark of L.E.K. Consulting LLC. © 2019 L.E.K. Consulting LLC
Home products are not immune to the digital shift
Source: Estimates varies across sources; the above estimates triangulate
Statista, eMarketer, Ironbridge, and DigitalCommerce360
~15-20% online
2016 2022+
~25-30%+ online
Online In-storeLegend
2019
~20-25% online
DIRECTIONAL
5. 5L.E.K. Consulting is a registered trademark of L.E.K. Consulting LLC. © 2019 L.E.K. Consulting LLC
The digital shift goes beyond transactions
BROAD SELECTION &
EASY COMPARISON
INFLUENCER / EXPERT
ENGAGEMENT
MOBILE
EXCELLENCE
VISUALIZATION
APPLICATIONS
Consumers
want digital
product
features
Consumers
browse,
research &
shop digitally
CONNECTED IoT
OUTLETS, DEVICE CHARGING,
TOUCH-ENABLED
PERSONALIZED
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MORE INFO = GREATER CONFIDENCE
Easily compare products / styles / colors
Product reviews
Informed decisions of where to shop
PRICE TRANSPARENCY = BETTER VALUE
Transparency ensures the best possible value
BREADTH OF SELECTION = RIGHT PRODUCT
Not limited by what’s available in stores
CONVENIENCE = CONVENIENCE
Faster, simpler
At your fingertips whenever
Why do
consumers shop
for home
products online?
L.E.K. Consulting is a registered trademark of L.E.K. Consulting LLC. © 2019 L.E.K. Consulting LLC
7. 7L.E.K. Consulting is a registered trademark of L.E.K. Consulting LLC. © 2019 L.E.K. Consulting LLC
KEY LEARNING
Online retailer winners are emerging, with a long tail
30%
12%
5% 4% 3% 3% 2% 2% 2% 1% 1% 1% 1% 1%
Amazon
Wayfair
Overstock
Ikea
Ashleys
Walmart
BB&B
Raymour
&Flanigan
RoomstoGo
HomeGoods
HomeDepot
Lowe’s
eBay
Pier1
What is your favorite website for home
furniture and home décor?
Percent of respondents (unaided)
Source: Piper Jaffray
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KEY LEARNING
Digital is disrupting the traditional purchase path
9. 9L.E.K. Consulting is a registered trademark of L.E.K. Consulting LLC. © 2019 L.E.K. Consulting LLC
But how should they prioritize investments?
Data
&
Technology
Clearly all businesses must engage in this digital world
DATA
+
TECHNOLOGY
10. 10L.E.K. Consulting is a registered trademark of L.E.K. Consulting LLC. © 2019 L.E.K. Consulting LLC
Successful digital investments are focused on
improving the consumer experience
2 3 4 5
Increase
transparency
Educate
consumers
Curate
experiences
Ease
conversion
$
1
Design for
digital
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Smart & Connected Easy to Ship & Assemble
1. Design for digital consumers & channels
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2. Increase transparency
Changing the way people shop for furniture
and the production value chain.
Through a vertical, made-to-
order production approach
and e-commerce focus,
Interior Define crafts
exceptional, customizable
sofas and offers them for
attainable prices. Interior
Define makes customization
easy: sofas can be tailored
by size, fabric, configuration,
leg style, and sit. Free white-
glove delivery included with
every order.
13. 13L.E.K. Consulting is a registered trademark of L.E.K. Consulting LLC. © 2019 L.E.K. Consulting LLC
3. Educate consumers
14. 14L.E.K. Consulting is a registered trademark of L.E.K. Consulting LLC. © 2019 L.E.K. Consulting LLC
4. Curate the experience
Crate and Barrel has announced a
partnership with technology provider
Modsy to power the Crate Design Studio
3D Room Designer. The addition of
Modsy’s proprietary technology will allow
customers of Crate and Barrel Design
Services program to envision how the
brand’s furniture, art and decor will look in
their own homes.
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5. Ease conversion
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Where do we go from here?The future will continue to offer a steady stream of
"shiny objects" - some with value and some not...
AI-powered shop assistants Holographic visualization
On demand
home-based shopping
Virtual shopping
through AR / VR
Beacon technology
17. 17L.E.K. Consulting is a registered trademark of L.E.K. Consulting LLC. © 2019 L.E.K. Consulting LLC
Winning businesses will stay focused on moments that matter
How can I use digital tools to
enhance the fundamental value
equation for the consumer and
build competitive differentiation?
In the never-ending parade
of new innovations,
ask yourself:
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Thank you
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@chrisrandall
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Managing Director
Chris Randall