Online or in-store? Consumers are becoming more comfortable buying home decor online

Home décor retailers like Pottery Barn and At Home may need to evolve their business models as consumers become more comfortable buying their furnishings online. According to the 2024 Home Decor E-commerce Market Research Report by 2 Visions, more than 82% of respondents are willing to shop online for home décor items.

Shopping for home décor is a visual experience, arguably best reserved for an in-store visit. In what may be a surprising twist, baby boomers lead the charge in online home décor purchases. The report notes that more than 80% of boomers, or shoppers born between 1946 and 1964, prefer to shop online compared to 29% of millennials (1981 to 1996).

Despite the growing popularity of online home décor shopping, a decent portion of the population still prefers the in-store experience. As 2 Visions’ report finds, more than 55% of respondents admitted to splitting their home décor purchases between brick-and-mortar locations and online retailers.

The new trend shapes marketing

There’s still some longevity to in-store shopping, though trends suggest marketers should adjust their old-school strategies. In 2 Vision’s report, Google Results polled as a primary channel for product discovery, but social media product advertising sparked interest in younger audiences.

Nearly 20% of Gen Z (1997 to 2010) respondents state they found new products via TikTok posts.

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Hubspot’s 2024 State of Marketing & Trends Report supports the growing popularity of social media marketing, noting that 43% of marketers invest in channels like Facebook, Instagram, TikTok, and YouTube. Unlike Google Results, which relies on SEO practices, social media marketing depends on algorithms that may distribute ads primarily based on the user.

TikTok, for example, ranks ads starting with user interaction, so they’re more likely to see home décor products they’re interested in and not just what’s trending. For Twitter (X), user interest is a factor in ad placement, but it’s not more important than virality, geography, and relevance.

Pricing: A generational came changer

Shoppers are split on which is most important, convenience or price. Respondents who cite price as the deciding factor for shopping online and those who appreciate the convenience of using their mobile device or computer divide with almost exactly 50% on either side. By a slim .42% majority, price is deemed the most critical element driving their decision to buy online.

Once again, the generational divide paints an interesting future for home décor retailers. Among those who prioritize price in their brand loyalty, nearly 80% are baby boomers. According to the 2 Visions report, millennials and Gen Z are more concerned about the quality of the shopping experience and whether it’s a locally owned business.

As baby boomers age out of shopping altogether, retailers may need to refocus from offering the best price to improving the quality of the shopping experience. Based on Gen Z values, larger retailers may also face strong competition from locally-owned businesses, even if the local option is priced higher.

Building trust with online shoppers

Online or in-store, the consumer experience is the cornerstone for creating emotional connections. Exceptional customer service and community engagement are vital to retaining customers, especially in a competitive e-commerce landscape. Without personal interaction with sales associates, retailers must find new ways to develop and foster this ongoing relationship.

As pricing plays a significant role in online shopping, retailers should offer simplified price comparisons with competitive retailers. Shopping tools designed to adjust for competitors’ prices simplify decision-making and add transparency to the interaction.

When people feel empowered to make informed decisions, they trust sellers more. Brands maintain customer loyalty with exclusive online discounts, promotions, and loyalty programs that can attract new customers. With more deals, a retailer can cultivate a strong following of loyal shoppers.

A hybrid future for home decor retailers

Regardless of which direction the wind blows, home décor retailers need to be on the offensive and ready to adapt in a moment. Yates Jarvis, 2 Visions Principal, reflects on this idea based on the insights from the latest study. He notes the near 50/50 split between preferred online and in-store shopping, “presents a unique opportunity for brands to refine their omnichannel strategies.”

A distinction should be made, though. This isn’t the end of physical retail locations. Even with the emphasis on e-commerce growing, brick-and-mortar stores are crucial to consumers. They won’t be going anywhere anytime soon.

In its 2021 The Future of Cities: Envisioning Retail report, the National League of Cities found that retailers will use the increase in online revenue to build more physical locations. The report states that, despite more than 12,000 major stores closing in 2020, future plans see a 40% increase year-over-year in new store openings.

Decorating the home gets easier

With a growing interest in online shopping and sustained loyalty to brick-and-mortar locations, more brands will adopt hybrid models that split the business between digital and physical consumer experiences. Investing in these by building better digital storefronts, advancing in-store shopping, and tailoring marketing will encourage shoppers across generational gaps to remain loyal.

At the same time, retailers need to remain true to the product they are selling. Home décor products are still very visual. Whatever changes are made to consumer-facing applications must retain clarity, allowing buyers to shop confidently and guarantee that what they’re buying works well in their homes.

This article was produced by Media Decision and syndicated by Wealth of Geeks.