In the wake of the COVID-19 pandemic, the home, garden, and furniture retail sector witnessed a significant transformation as consumers pivoted towards online shopping channels. However, even as the pace of online growth stabilizes, consumer preferences demand a seamless omnichannel experience, posing challenges for retailers and brands.
Addressing this demand requires a fundamental rethink of commerce strategies, integrating online, mobile, and in-person shopping to create frictionless experiences. Retailers are increasingly adopting technologies such as augmented reality (AR), virtual reality (VR), and AI-powered solutions to meet these evolving consumer expectations.
Adapting to consumer-centric shopping
Traditionally, the product was the focal point of the shopping experience. However, contemporary retail dynamics place the consumer at the heart of the process. Retailers are now tasked with presenting products in ways that deeply resonate with shoppers. This paradigm shift necessitates a flexible and agile approach, particularly for brick-and-mortar home, garden, and furniture retailers unaccustomed to rapid technological adaptations.
BigCommerce’s recent Global E-commerce Report for the Home, Garden, and Furniture sector delves into key insights shaping the industry. Despite facing challenges similar to the broader retail landscape, this sector has demonstrated resilience, buoyed by a surge in home renovation projects during the pandemic.
While growth rates have moderated post-pandemic, there remains a steady upward trajectory. Notably, despite a slight decline in the total number of orders, there has been a substantial increase in the global average order value (AOV), suggesting a shift in consumer behavior towards higher-value purchases.
Technological advancements driving transformation
Technological innovations, including AI, AR, and VR, drive a paradigm shift in the home, garden, and furniture shopping experience. Leveraging AI for omnichannel data strategies enables retailers to enhance ad performance and product sales, which is crucial in a sector characterized by extensive syndication across multiple channels. Moreover, AR and VR technologies offer immersive experiences, allowing consumers to visualize products in their living spaces, reducing the likelihood of returns and enhancing engagement.
Generative AI is also making waves in enhancing personalization for consumers. Companies like Klevu utilize AI to strategically merchandise items, generate personalized recommendations, and improve search capabilities based on individual shopper interactions. As retailers navigate the plethora of emerging technologies, a key consideration is whether the technology places the customer at the forefront of the shopping experience.
Investing in the future
The home, garden, and furniture retail landscape is evolving rapidly, driven by technological advancements and shifting consumer preferences. Retailers must adapt their strategies to embrace omnichannel experiences and leverage emerging technologies to stay competitive. AI, AR, and VR investments offer opportunities to enhance engagement, drive conversions, and deliver personalized shopping experiences tailored to individual preferences.