Is DIY Defunct? How Hyperconnectivity, Do-It-For-Me and Urbanisation are Transforming Home Improvement

Strategy Briefing

About This Report

Jul 2018

Hyperconnectivity, Do-It-For-Me behaviour and urbanisation will impact the home improvement and gardening industry in the future. Hyperconnectivity demands an omnichannel response from manufacturers and retailers, while urbanisation will lead to apartment living, meaning fewer and smaller gardens. However, opportunities still abound for home improvement and gardening players via augmented reality, smart home technology and turn-key solutions.

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Is DIY Defunct? How Hyperconnectivity, Do-It-For-Me and Urbanisation are Transforming Home Improvement

Home improvement and gardening sales recover

Home improvement and gardening sales continued to recover in 2017 following the global financial crisis, with value sales rising by 1.6%. Faster growth is expected over 2017-2022 (1.8% CAGR) as the economic environment in Western Europe improves and demand scales up in Asia Pacific.

North America leads sales, but Asia Pacific is close behind

North America continues to be the leading region for home improvement and gardening sales globally. Nonetheless, Asia Pacific overtook Western Europe to become the second-largest region in 2014. Despite this, per household spend in Asia Pacific still lags behind that of North America, Western Europe and Australasia.

Hyperconnectivity demands an omnichannel response

Globally, smartphone possession and internet access continue to increase, and this is driving demand for online sales in the home improvement and gardening industry. Players are responding through augmented reality apps, as well as increasingly using Instagram as a sales channel.

Urbanisation means fewer and smaller gardens

Worldwide urbanisation growth will be driven by Asia Pacific and the Middle East and Africa over 2017-2022, and this will result in an overall shift towards apartment living. Apartment living will mean fewer and smaller gardens, but will also likely create indoor gardening opportunities for gardening players.

Turn-key solutions cater to DIFM consumers

Do-It-For-Me (DIFM) behaviour tends to be more prevalent in Asia Pacific and Latin America. However, even millennials in traditionally DIY markets (e.g. Western Europe and North America) are demonstrating DIFM behaviour. Turn-key solutions (e.g. design, delivery or assembly) emerge as an opportunity to tap into DIFM demand.


Key findings

Size of Prize Analysis

Global home improvement and gardening 2017 snapshot
Home improvement and gardening industry sales recover in 2017
Forecast growth positive, but below home and garden overall
Asia Pacific per household spend lags behind North America
North America leads global sales, Asia Pacific follows close behind
Asia Pacific the fastest historic and forecast growth region
US, China and Germany the top three markets in 2017
Top 10 markets remain largely unchanged over 2012-2017
Future category watch-list: flooring (tiles, wooden) and decorative paint

Markets of the Future

Gardens become an extension of the home in Western Europe
Consumers grow their own food to cut costs in Eastern Europe
Big-box chains dominate the retail scene in North America
Weak economic conditions put pressure on demand in Latin America
Home renovation drives interest in home improvement in Australasia
Asia Pacific’s rising middle class offers growth opportunities
Drought conditions restrict gardening sales in Africa

Industry-Shaping Trends and Drivers

Time-poor consumers look to the sharing economy
Hyperconnected consumers drive online sales and augmented reality
Apartment living gains momentum due to urbanisation
Millennials and baby boomers: Two distinct consumer segments
Rising house prices result in Generation Rent in developed markets
Wireless speakers pave the way towards smart homes

Exploring Growth Opportunities

Identifying opportunities through a growth strategy framework
Omnichannel strategies become central to success
Case study: The Home Depot’s omnichannel engagement
Urban living boosts demand for indoor plants
Case study: Scotts Miracle- Gro’s punt on hydroponics
DIFM consumers in Asia Pacific require localisation strategies
Case study: Walmart acquires Flipkart in India
Augmented reality apps promote brand awareness
Case study: Dulux’s Visualizer app
Turn-key solutions transitioning from nice-to-have to necessity
Case study: Ikea acquires TaskRabbit

Key Takeaways

The Future of DIY: Key takeaways