 Erika Sirimanne |
CHICAGO—Hyperconnectivity has created a new normal for the housewares and garden sector, said Erika Sirimanne, head of home and garden for Euromonitor International, a global market research firm, and with it has come an era of digital disruption.
The increasing access to broadband and the uptick in mobile phone usage is allowing people in developed and developing countries to make purchases outside of traditional brick-and-mortar formats, she said during a keynote presentation at the 2019 International Home + Housewares Show here.
Among North American consumers, better prices, free shipping and time savings are the key motivators for shopping online, she noted, while physical stores are attractive to those seeking an immediate purchase, a try-before-buy experience and the desire to avoid shipping costs.
Connectivity has reshaped the economy by allowing access to goods and services in a different way, she said. It’s shopping reinvented, said Sirimanne, who went on outline how that reinvention is being realized in the marketplace.
One outcome, she said, is the growth of experiential shopping, which is less transactional and more about engagement. This is evidenced through the use of augmented and virtual reality by retailers such as Wayfair, Ikea and Macy’s to help their customers design rooms and experience home furnishings in a virtual home-like setting. The benefit of such shopping experiences for retailers, she said, could be fewer returns, better inventory management and the need for fewer items in store.
Shopping reinvented is also about instant gratification, which can take place via an online experience rather than having to go into a store. Sirimanne cited the Zwilling website, which was redesigned to build brand awareness in the pre-purchase stage through its emphasis on cooking and lifestyle, not just products.
The use of big data to better understand consumers and the growth of the blended store formats are additional byproducts of digital disruption, according to Sirimanne. Online players like mattress maker Casper are now coming into physical stores, while others are using showroom-style formats to give shoppers an in-person experience with items they then order online.
There will also be more direct to consumer housewares companies, she said, citing brands such as cookware purveyor Great Jones. This feeds into the growing focus on value, whether it’s value as price or value as quality.
Although still a relatively small percentage of the U.S. marketplace, smart home appliances will continue to grow, she said, as long as consumers see it bringing some value to their experience and they are able to get beyond some of the barriers such as privacy and security concerns.
What can fuel growth is when systems become interconnected and appliances aren’t just technological silos. She said some of the bigger appliances brands are currently exploring how to move beyond standalone technology.