Report: Manufacturers and Retailers Must Drive Home Improvement Market Growth
Oct 14, 2011
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There is hope for growth in the near future in the home improvement market in the U.S., according to market research firm The NPD Group, but that chance lies in the hands of manufacturers and retailers.
That means meeting consumer expectations of getting coupons or other special deals and having an online presence.
“In order to grow their share in the home improvement environment, manufacturers and retailers need to look toward innovation, and the basics of effective and efficient merchandising to uncover the opportunities, including deploying the promotional deals consumers want,” said Kevin Gilbert, NPD director.
The firm's Consumer Tracking Service's results for August 2011 show that 74% of consumers strongly agree that coupons and special deals are the deciding factors when it comes to purchasing home improvement products. That number has increased in the past year.
E-commerce, he said, is increasingly important part of the marketplace, and manufacturers and retailers need to be a part of it.
Online sales of home improvement products have grown 16% in the 12 months ending August 2011, according to NPD data, and 39% of home improvement sales were researched online beforehand.
The firm said home improvement products continue showing annual sales declines, but there is "subtle growth" in some categories, including:
• lighting and electrical category
• hand tools
• lawn and garden products
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