Recently we attended the 2024 New Zealand Spring Gift Fair to launch our search for the best Homewares store and the best homewares Window Display in New Zealand. We are on this hunt to find and celebrate these retailers for two reasons:
To take the two NZ winners to Chicago to attend the international GIA awards (sort of like the Oscars for homewares retailing) and,
To bring the homewares retailing community together to network, learn and share insights with each other to raise the bar of capability in our backyard.
Why? The only way to build and develop a vibrant and successful retail sector is by rewarding and recognising those who do the hard yards each and every day. The past 5 years have been the most disruptive and uncertain of times and at RX Group we take our role in unlocking the potential in retail businesses seriously – and want to unleash capability, potential and growth through the power of everyone within the sector. Opportunities to share, learn, explore and celebrate are key to that growth.
The homewares sector emerged as a resilient force, during and following the pandemic. As consumers found themselves spending extended periods within the confines of their homes, a profound shift in priorities occurred. Suddenly, the spaces we inhabited took on a newfound significance, prompting many to reassess and reinvent their living environments.
I certainly looked to develop a personal sanctuary and homewares became my canvas for self-expression and solace. From fashionable furnishings to functional accessories, the demand for products that elevate and personalise our living spaces soared, presenting a wealth of opportunities for retailers to tap into this burgeoning market. But as many Kiwi businesses know, we entered a recessionary bite. We are still experiencing slow YOY sales, but green shoots are emerging as we move into Spring and the crazy festive months.
But how do you create a resilient homewares business to weather all the challenges? How can you keep your finger on the pulse consistently, even when the batteries are low?
The following acts as a guide to remind you of things you know, things you may have not thought of for a while and maybe generate some new sparks of ideas.
The Influence of Social Media on Homewares Spending
In the digital age, social media has emerged as a powerful catalyst, shaping consumer preferences and driving purchasing decisions. This influence is particularly pronounced among younger demographics, with nearly half of consumers aged 16 to 34 turning to platforms like Instagram and Pinterest for design inspiration when planning a room makeover. I was shocked to see the brave new world where parents and their children plan dorm room makeovers in the US. There are websites all geared with ideas and resources like, By Sophia Lee that has packing lists to download.
The highly visual nature of homewares lends itself seamlessly to social media, making them ideal canvases for brands to showcase their offerings and forge emotional connections with their target audiences. Collaborations between homeware retailers and social media influencers have become a potent marketing strategy, leveraging the power of peer and celebrity influence to dictate consumer behaviour.
If we look internationally, homeware retailers are increasingly collaborating with social media influencers to enhance their marketing strategies and reach targeted audiences.
Wayfair x Kelly Clarkson (US)
Wayfair appointed singer Kelly Clarkson as their first-ever brand ambassador. This partnership included social media campaigns where Clarkson showcased her collection, "Kelly Clarkson Home." The collaboration significantly boosted engagement, with her posts achieving over double the typical engagement rates for her content.
IKEA
Informative and inspirational video content has been an effective content strategy for Swedish giant Ikea. YouTube is Ikea’s most successful social media platform generating the highest engagement rates for the brand. The most popular videos featuring Ikea content are “homeware hauls” and “room tour” videos which feature show and tells of different Ikea products as well as showing ways people have combined Ikea furniture to fit their homes.
KMART, TARGET, BIG W
Closer to home this strategy has also been highly effective for Kmart. (I personally fall down Kmart rabbit holes every other evening – especially storage!) These collaborations have resulted in engagement rates significantly above average for their follower categories, highlighting the potential of working with smaller influencers for targeted marketing.
💡 Top Tip
This is out of reach for an individual owner operator, however there is power you can unleash within your own customer base. Individuals can be highly influential within their own group of friends. Think more broadly on how you can get onto the radar of new customers through social media, events and activities.
When someone makes a purchase, have a competition of bounce-back offer, if they tag your business and product in a post.
Ask them personally to attend an event and bring their friends for a special night for our VIPs and their mates. I’ve done this before and it’s a great excuse to get the girls together to explore some shopping and then to head off for a drink and catch-up.
The key message here is how by leveraging influencer marketing you can enhance brand visibility, engage with consumers, and drive sales through authentic content creation.
The Rise of Lifestyle Brands in Homewares
Social media has also fuelled the rise of "lifestyle brands" in the homewares sector. These trend-driven, fashion-forward brands cater to consumers who view their living spaces as an extension of their personal style, blurring the lines between fashion and interior design.
Clothing brands have been at the forefront of this movement, expanding their offerings to encompass homewares and creating comprehensive lifestyle propositions. From H&M and Zara to Country Road and Witchery, these brands are tapping into the desire for cohesive, aesthetically pleasing living environments that reflect their customers' fashion sensibilities.
💡 Top Tip
Many fashion brands have extended into homewares and vice versa. I have Juliette Hogan cushion covers, Zara towels and H&M duvet covers. They key is to keep your finger on the pulse of category extensions and dipping your toe into those, curating and promoting this to capture the brand loyalist back into store for another reason to purchase.
Modular and Adjustable: Catering to Transient Living
Based on the search results, the average age of first-home buyers in New Zealand has increased significantly over the past few decades. The most recent data indicates that the average age of first-home buyers in New Zealand is between 35 and 37 years old. Does this mean my kids are here for longer (?????)
This trend has given rise to a new breed of consumers who find themselves in temporary living arrangements, whether cohabiting with parents, roommates, or renting.
For these individuals, the concept of "home" transcends physical structures, becoming an emotional anchor and a sanctuary amidst transience. On a practical level, they seek homewares that are modular, adjustable, and capable of transforming even the most modest spaces into personal havens.
💡Top Tip
Retailers who cater to this need for flexibility and affordability can tap into a burgeoning market of consumers seeking comfort and stability in their ever-changing living situations. With IKEA entering the NZ market in 2025, they will very likely raise awareness around modularity, so you can ride on their coat tails by curating, highlighting and bringing to life these styles of product and solutions.
Owning It: Embracing Thriftiness and Resourcefulness
The "Owning It" trend encompasses both literal and figurative dimensions. On a practical level, economic conditions have prompted many consumers to embrace thriftiness, opting to repair or repurpose existing household items rather than replace them. This has fuelled demand for products that extend the lifespan of existing possessions, such as sofa covers and storage containers for portioning and freezing food.
On a deeper level, "Owning It" represents a desire for control and self-empowerment, as consumers seek to reclaim agency over aspects of their lives they can influence. Homewares retailers can tap into this sentiment by offering DIY solutions, repair kits, and educational resources that empower customers to take ownership of their living spaces and cultivate a sense of pride in their resourcefulness.
💡 Top Tip
Revology Concept Store in Wanaka is an exemplar in curating reimagined product and resourcefulness. Their pictures are all the inspiration you need!
Dopamine Décor - Estudio Futuro: Vibrant Abundance and Artisanal Design
Looking ahead to 2025, one of the most compelling design narratives is "Estudio Futuro," a celebration of vivid abundance, eco-positivity, and artisanal design. It’s more exuberant and expressive interior design with extensions across into the rise of dopamine décor (just like dopamine dressing!)
This key trend:
- Encourages an abundance of colour, texture, and pattern in home decor
- Marks a move away from minimalist styles towards more bold and eclectic interiors
- Celebrates visual richness and layered designs
It reflects broader shifts in consumer preferences and cultural attitudes:
- A desire for more personalised and unique living spaces
- Rejection of stark minimalism in favour of warmth and character
- Increased interest in self-expression through home decor
- Influence of global design inspirations and multicultural aesthetics
I for one can’t wait for this move towards more playful, bold, and individualistic approaches homewares and interior design which can be overlaid easily on my neutral environment!
A Bright Future for the Homewares Retail Sector
As we navigate the ever-changing landscape of consumer preferences and societal shifts, the homewares retail sector stands poised for continued growth and transformation. By embracing the trends that shape our living environments, cultivating emotional connections with customers, and harnessing the power of innovation, retailers can position themselves as indispensable partners in the creation of personal sanctuaries.
From the influence of social media and the rise of lifestyle brands to the growing demand for sustainability and the celebration of individuality, the homewares industry offers a rich tapestry of opportunities. By staying attuned to the evolving needs and desires of consumers, retailers can unlock new avenues for growth, foster loyalty, and cement their place as integral contributors to the art of living well.
Are you a homewares retailer wanting to enter the GIA Awards or know a store who has what it takes?
Learn more here: https://www.rxgroup.co.nz/gia
It's free to enter and the lucky kiwi winner will have the incredible opportunity to jet off to Chicago to represent New Zealand at the GIA Awards, with flights and accommodation covered.
Comments