Market stagnation persists, creating tension between growth targets and economic caution, raising consolidation risks. Supply resilience is critical, vertical integration and supply diversification are reactions to geopolitical challenges. Urban living space dissatisfaction fuels demand for flexible, wellness-driven home products. Marketplaces and second-hand models reshape retail. Chasing pockets of growth, companies face a rising need for differentiation and evolving consumer expectations.
This report comes in PPT.
Growth momentum lies within indoor gardening and decorating, especially in emerging markets. E-commerce leads channel growth, but competition is intense. In mature markets, brands seek under-served sub-segments with a “pockets of growth” mission. With B2C demand softening, DIY retailers pivot to B2B/DIFM, attracting tradespeople and creating pro shopping journeys in stores.
Persistent uncertainty since 2020 has driven up value chain costs and strained supplier-retailer dynamics. Control is replacing trust, with vertical integration rising. Brands pursue DTC; retailers expand premium private label. Tariffs and reshoring accelerate diversification, India+2 rises as China+1 falls. Business models reliant on single partners or geographies face greater scrutiny.
Urbanisation accelerates again, but dissatisfaction with city living is rising - driven by affordability space constraints and emotional wellbeing. Innovation focuses on flexible, space-saving designs. Proposition strategies now emphasise lifestyle storytelling. Man Wah Holdings thrived by aligning product, timing and messaging; differentiation accelerates in both saturated and growth markets.
E-commerce growth continues globally, led by marketplaces; of note is Shein’s expansion into home categories, with retailers such as Leroy Merlin and Tesco scaling SKUs and seller networks. Marketplace-driven models rise rapidly, reshaping global retail and enabling Asian brands to scale rapidly. Competition intensifies, driving investment in trust programmes, merchandising and AI tools.
Second-hand is expanding across categories and regions, driven by cost, conscience and supply pressures. Furniture, homewares and tools have reuse and rental models, with retailers such as IKEA, Kingfisher and Leroy Merlin testing and in cases scaling resale initiatives. Cannibalising stigma fades; second-hand grows no matter what, offering margin, loyalty and sustainability benefits.
This project has a strict focus on sales to consumers only. Trade and professional sales are excluded. Home and garden refers to gardening, home improvement, homewares and home furnishings.
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