Today, I decided to research Home Furnishings Stores in the US. I chose to research this industry/sector because my long-term goal is to start my own interiors and lifestyle branded boutique and eventually launch my own lifestyle brand to live within the store.

This research is relevant to my career because I want to make the transition from fashion-focused retail into the home sector upon graduation. I am aspiring to work as a brand manager for three-five years for a home furnishings company and then launch my business after that.  It is, therefore, imperative that I have a strong understanding of the current state of this industry.

Through completing this research, I have learned a lot of really great facts and information. More specifically, I have learned that home furnishing products, being largely discretionary, are very sensitive to the home ownership rate, the consumer confidence index, and the demographics for adults aged 20-64. With a forecasted rise in all three categories, there is a HUGE opportunity in this industry over the next five years![i]

I have also learned that the product/service segmentation for this industry is made up of seven segments. Kitchen and cookware products represent the largest segment at 23.7%, followed by window coverings at 21.1%, textiles products at 15.7%, other furnishings at 13.3%, decorative accessories at 13.1%, furniture at 7.4%, and seasonal decorations at 5.7%. Kitchen and cookware will be a key category to focus on given the wear and tear experienced by this group and their constant need for replacement.[ii]

When looking at the major market segment, consumers ages 35-44 make up the largest segment at 23%, followed by 55-64 at 22%, 45-54 at 19%, 25-34 at 15%, 65+ at 12%, and consumers under 25 at 9%. I think given this information, I will focus on targeting the 35-64 age range.[iii]

The biggest challenge, I have determined, in entering this market is the competition from big “one stop shops” like Walmart and Target. Their business is driven heavily on convenience and low prices, however, as disposable incomes rise, it is forecasted that consumers will be seeking higher quality products and great customer service, allowing small players such as myself to gain a competitive advantage. [iv]

A really interesting fact is that Bed Bath and Beyond makes up an astonishing 34.3% of the industry followed by William Sonoma Inc. at 7.5%. Interestingly, William Sonoma is conveniently located in San Francisco, California and could definitely be a great company for me to approach upon graduation. [v]

Finally I have learned that there has been no recent significant innovation in this industry and that their imports are very low.[vi] I feel that upon launching my business, this is where I can see myself adding value to the industry.  Not only will I focus on delivering higher-end, quality products paired with exceptional customer service, but I will also focus heavily on introducing innovation into the market and capitalizing on the imports segment.