Is DIY defunct? How hyperconnectivity, Do-It-For-Me and urbanisation are transforming home improvement and gardening

1. The Future of DIY: Global
Consumer Trends
Extract from the report presented at the 6th Global DIY-Summit (June 2018, Barcelona)
Compiled by Erika Sirimanne, Head of Home and Garden Research

2. Global home improvement and gardening retail value sales have
steadily improved following the global financial crisis. Sales climbed by
1.6% in 2017, with home improvement and gardening accounting for
one third of total home and garden sales during the year.
North America, Asia Pacific and Western Europe lead sales, however,
consumer spend in traditionally DIY-markets continues to outperform
Asia Pacific.
While still modest, faster value growth is expected over 2017-2022 as
the economic environment in Western Europe improves and demand
scales up in Asia Pacific.
Home improvement and
gardening sales recover
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© Euromonitor International

3. Smartphone possession and internet access continue to climb across all
markets, both developed and emerging. Retailers and manufacturers
need to start thinking in omnichannel, not multichannel terms.
While store-based sales reign supreme in home improvement and
gardening, online sales represent the fastest-growing channel within
the category.
For The Home Depot, online sales accounted for 6.7% of total sales in
fiscal 2017, but over 45% of the retailer’s online US orders are picked
up in-store. Click & Collect represents an opportunity to boost store
footfall, while offering consumers the convenience of online sales.
Hyperconnectivity
demands an omnichannel
response
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© Euromonitor International

4. Asia Pacific and the Middle East & Africa will drive global urbanisation
growth in the future. In these regions, rapid urbanisation will stimulate
demand for apartment living.
In contrast, developed regions continue to demonstrate a preference
for houses, not apartments. Apartment living is still on the rise, but is
more likely to be sought out by millennials looking for job opportunities
in city centres.
Apartment living means fewer or smaller gardens. Therefore,
urbanisation is expected to drive interest in compact gardening
solutions, such as indoor plants, hydroponics and smart gardening kits.
Urbanisation, apartment
living & indoor gardening
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© Euromonitor International

5. Asia Pacific is the second largest region for home improvement and
gardening sales. Unlike consumers in North America and Western
Europe, Asia Pacific consumers are typically DIY-shy.
International retailers are eyeing up Asia Pacific as a growth
opportunity outside core markets. In 2018, Walmart acquired Flipkart,
an Indian e-commerce company. Flipkart currently competes with
Amazon for share of wallet in India.
Methods that work in DIY markets won’t work in DIFM markets.
Industry players should consider investing in turn-key solutions, e.g.
delivery, design and assembly services, to appeal to local consumers.
The rise of Do-It-For-Me
behaviour
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© Euromonitor International

6. Augmented reality apps are quickly becoming ubiquitous, while
Instagram is increasingly being used as a sales channel.
Akzo Nobel NV’s Dulux Visualizer app uses augmented reality to allow
consumers to see what different paint colours will look like in their own
home, simulate colour combinations and to share photos with friends
and family.
Instagram and augmented reality apps are not a substitute for in-store
sales, rather they should be viewed as marketing tools that promote
digital customer engagement and facilitate online sales.
Digital engagement via
augmented reality
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© Euromonitor International

7. Recently, wireless speakers and voice assistants have paved the way
towards the smart home globally. Amazon has partnered with home
builder, Lennar, in the US to install Amazon Alexa in new homes, as
well as open Amazon Experience Centers within model homes to
facilitate consumer interaction with smart home technology, e.g.
controlling the TV, lights and thermostat using Alexa.
The shift towards smart homes represents a major catalyst for change
in the home improvement and gardening industry. Home improvement
and gardening players that endorse smart home technology now will
reap the rewards in the not too distant future.
Smart home future is fast
approaching
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© Euromonitor International

8. Download the full report
Erika Sirimanne
Head of Home and Garden
Connect with Erika Sirimanne via LinkedIn
Euromonitor International’s Home and Garden Research