Demand for home textiles is currently being shaped by several key factors, including online sales that are driven by household access to the internet. Meanwhile, the “middle class retreat” has boosted demand for private label products, while rising house prices make owning a home more difficult for Millennials turning them into Generation Rent. Single-person households who are more likely to rent their homes have become a key focus for home furnishings retailers and manufacturers.
Online sales emerged as a key driver for home textiles growth in 2016, with global online sales for home textiles reaching USD9.0 billion. Online sales growth for home textiles was faster than overall category growth over the historic period, demonstrating that internet retailing was a major growth driver for home textiles.
The relative importance of e-commerce sales for home textiles varies from market to market and is typically tied to household internet access, as well as smartphone possession. Markets with larger rural populations tend to exhibit lower levels of household internet access, which hampers online sales penetration in home textiles.
Home textiles private label sales tend to be the strongest in developed markets. The US was the leading market for private label sales in 2016, however, South Africa held the highest private label value share in 2016. Consumers perceive private label brands in the home textiles space to be cost effective.
Negative or sluggish real income growth within Western Europe since the global financial crisis has boosted the popularity of private label brands within the region. Major economies, such as France, Italy, the Netherlands and the UK experienced a decline in purchasing power between 2008 and 2016, especially when compared with developing markets, such as China and India.
Generation Rent coupled with the growing prominence of single-person households have resulted in home furnishings manufacturers and retailers targeting single-person households who demand stylish and affordable home textiles.
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