European Home Improvement Monitor Q2 2020 - Focus on: Influence of online channels in decision making - USP ...
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European Home Improvement Monitor Q2 2020 Focus on: Influence of online channels in decision making
Preface TEAM Members
REINIER ZUYDGEEST, MSc
Managing Consultant
+31 626936109
@ zuydgeest@usp-mc.nl
MAJA MARKOVIC, MSc
Senior Research Analyst
+31 102066992
@ m.markovic@usp-mc.nl
The topics that are being covered in 2020:
Q1 Focus: Orientation. Theme topic: Smart and energy efficient homes Mr. DIRK HOOGENBOOM
Research consultant
Q2 Focus: Purchase channels. Theme topic: Influence of online channels in decision making
+31 652098924
Q3 Focus: Branding. Theme topic: Name brands vs private labels @ hoogenboom@usp-mc.nl
Q4 Focus: DIY vs DIFM. Theme topic: The rise of DIFM in home improvement
If there are any suggestions or remarks on our reports, please let us know.
We are always looking for ways to improve, so any feedback is welcome.
European Home Improvement Monitor Q2 2020 | Page 2
Index
KEY INSIGHTS
EUROPEAN DEVELOPMENTS
THEME: INFLUENCE OF ONLINE CHANNELS IN DECISION MAKING
EUROPEAN OVERVIEW
COUNTRY OVERVIEW
HOME IMPROVEMENT PER CATEGORY
APPENDIX
Key findings | European spending | European home improvement barometer | Purchase channels Home Improvement is … in Europe as a result of the pandemic The total spending on home improvement in the second quarter of this year was 9.1% higher compared to the same quarter last year. In line with the higher spending, the number of home improvement projects that has been done was higher as well. The average spending per household was higher as well. This is in line with high turnover growth of DIY stores after the lock-down. In some European countries the turnover growth started in May when lockdown was ended. In European countries were DIY stores were not closed, higher turnovers were measured from March and on. Online share is … The online share in home improvement purchases has grown from 8.5% in 2019 to 13.2% in the first half of 2020. In U.K. the online share is the highest (20.2%). Even though DIY stores are growing in turnover this year, they are losing market share to the online channel. Nevertheless, DIY stores are still the main purchase channel for home improvement products. Especially among consumers who know how to do home improvement jobs themselves, the experienced ‘renovators. The more DIY skills a person has, the more likely they are to buy at a DIY store instead of through another channel. European Home Improvement Monitor Q2 2020 | Page 4
Key findings | European spending | European home improvement barometer | Purchase channels Key insights from the theme chapter ‘Influence of online channels in decision making’ Online journey has changed in Q2 In the first half of this year, both Amazon as national e-tailers have received more customers for home improvement products. Preferences for national or international webshops are limited. Consumers rather decide for their online store based on price, convenience and availability. In half of the online home improvement purchases consumers had no offline touchpoint during the orientation phase. These products were orientated and bought purely online. One could argue that this number is higher than usual, due to the COVID-19 situation which forced Europeans to stay at home during parts of Q2. This is true, but it is likely to influence the consumer behaviour on the long term as well. … more often as the starting point in the online journey Online stores as the starting point for a home improvement purchase is a worrying development for DIY stores. In most countries, consumers prefer Amazon as the starting point when buying specific home improvement products. This is worrying because in this case the DIY store might not be a touchpoint in the customer journey at all. This will result in DIY stores losing market share fast which can have negative consequences in the long rum if DIY spending turn back to normal levels. European Home Improvement Monitor Q2 2020 | Page 5
Index
KEY INSIGHTS
EUROPEAN DEVELOPMENTS
THEME: INFLUENCE OF ONLINE CHANNELS IN DECISION MAKING
EUROPEAN OVERVIEW
COUNTRY OVERVIEW
HOME IMPROVEMENT PER CATEGORY
APPENDIX
Key findings | European spending | European home improvement barometer | Purchase channels
European spending on home improvement
Total spending by European households on home improvement increased by XX% in the second quarter compared to the same quarter of last
year.
European spending on labour + material
€ 140
SPENDING (BILLIONS)
€ 120
*
€ 100
*
€ 80
€ 60
€ 40
€ 20
€0
Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20
European Home Improvement Monitor Q2 2020 | Page 7
Key findings | European spending | European home improvement barometer | Purchase channels
Share of households conducting a home improvement job
In Q2-20, the number of households that conducted a home improvement job is higher compared to Q2-19, even though consumer
confidence is at a much lower level.
European home improvement barometer
2020
2019
The dotted part of the line is a forecast, after 6 months the share of households that conducted a home improvement job becomes definite.
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Consumer confidence level
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
European Home Improvement Monitor Q2 2020 | Page 8
Key findings | European spending | European home improvement barometer | Purchase channels
Where did you buy the product?
[TREND]
The rise of online buying has mainly affected DIY and specialty stores who have lost the most market
share during the last two years.
50,0% 50,0% 50,0% 50,0% 50,0% 50,0% DIY shop
40,0% 40,0% 40,0% 40,0% 40,0% 40,0% Online
30,0% 30,0% 30,0% 30,0% 30,0% 30,0%
Specialty shop
20,0% 20,0% 20,0% 20,0% 20,0% 20,0%
Other*
10,0% 10,0% 10,0% 10,0% 10,0% 10,0%
Purchased by
professional
2015 2016 2017 2018 2019 2020 H1
Results in this chapter (EU averages) are weighted in order to account for population size.
Number of observations approximately 57,000 – total level per year (107 products overall combined).
*Category “Other” includes: Furniture shop, Garden centre, Wholesaler and Other shops
European Home Improvement Monitor Q2 2020 | Page 9
Key findings | European spending | European home improvement barometer | Purchase channels
Where did you buy the product?
[TREND]
Purchase channel 2015 2016 2017 2018 2019 2020 H1
DIY shop 50% 50% 50% 50% 50% 50%
Purchased by professional 50% 50% 50% 50% 50% 50%
Specialty shop 50% 50% 50% 50% 50% 50%
Online shop 50% 50% 50% 50% 50% 50%
Other* 50% 50% 50% 50% 50% 50%
Wholesaler for professional 50% 50% 50% 50% 50% 50%
Furniture store 50% 50% 50% 50% 50% 50%
Garden center 50% 50% 50% 50% 50% 50%
Other shops 50% 50% 50% 50% 50% 50%
Results in this chapter (EU averages) are weighted in order to account for population size.
Number of observations approximately 80,200 – total level per year (107 products overall combined).
*Category “Other” includes: Furniture shop, Garden centre, Wholesaler and Other shops
*Lower/Higher than last year
European Home Improvement Monitor Q2 2020 | Page 10Key findings | European spending | European home improvement barometer | Purchase channels
Where did you buy the product?
[TREND PER COUNTRY]
Online buying is increasingly popular in all countries.
100%
% online buying
…while the least in XX. Most online purchases were done in
Germany and the XX…
Despite the expansion of the online
channel, Belgian consumers are still
quite loyal to the traditional shopping
habits.
6,0% 6,0% 6,0% 6,0% 6,0% 6,0% 6,0% 6,0% 6,0% 6,0% 6,0%
0%
15 16 17 18 19 20 15 16 17 18 19 20 15 16 17 18 19 20 15 16 17 18 19 20 15 16 17 18 19 20 15 16 17 18 19 20 15 16 17 18 19 20 15 16 17 18 19 20 15 16 17 18 19 20 15 16 17 18 19 20 15 16 17 18 19 20
AUSTRIA BELGIUM DENMARK FRANCE GERMANY ITALY NETHERLANDS POLAND SPAIN SWEDEN UNITED KINGDOM
Number of observations approximately 7,000 – per country per year between 2015-2019 and 2,200 for the first half of 2020, 107 products overall combined.
European Home Improvement Monitor Q2 2020 | Page 11Key findings | European spending | European home improvement barometer | Purchase channels
Top-5 least/ most purchased home improvement products via
online purchase channels
[2019]
Type of products % online buying
SECURITY CAMERA 50%
OVEN/ MICROWAVE 50%
MOST
ELECTRICAL TOOL 50%
PURCHASED
GARDEN TOOL 50%
AIRCONDITIONING 50%
WOOD AND BOARD MATERIAL 10%
SANDPAPER 10%
LEAST
ROLLER/ BRUSH 10%
PURCHASED
MORTARS 10%
TILE GROUT 10%
European Home Improvement Monitor Q2 2020 | Page 12Key findings | European spending | European home improvement barometer | Purchase channels
Where did you buy the product?
[PAST 6 YEARS COMBINED]
DIY store is … Online purchasing … Specialty store … Consumers … are most likely to
involve professionals in a home
improvement job.
% DIY store % Online % Specialty store % Purchased by professional
18-34 YEARS OLD 50% 50% 50% 50%
35-45 YEARS OLD 50% 50% 50% 50%
55 OR OLDER 50% 50% 50% 50%
NO DIY EXPERIENCE 50% 50% 50% 50%
DECORATOR 50% 50% 50% 50%
"LIGHT" DIY-er 50% 50% 50% 50%
RENOVATOR 50% 50% 50% 50%
Results in this chapter (EU averages) are weighted in order to account for population size.
Number of observations approximately 500,000 – total level (time frame 2014-2020 H1, 107 products overall combined).
European Home Improvement Monitor Q2 2020 | Page 13Index
KEY INSIGHTS
EUROPEAN DEVELOPMENTS
THEME: INFLUENCE OF ONLINE CHANNELS IN DECISION MAKING
EUROPEAN OVERVIEW
COUNTRY OVERVIEW
HOME IMPROVEMENT PER CATEGORY
APPENDIXIntroduction | Online platforms | Purchase process | Attitudes towards online channel | Functions of interest
Theme questions
In this chapter, the European overview regarding online purchase channels will be shown. The respondents were asked the following:
• Popularity of online purchase
• Usage of Amazon vs. national e-tailers*
• Staring point of online purchase
• Online purchase process
• Advantages & disadvantages of ordering home improvement products online
• Interests in the functions of the DIY store website
• Usage of live chat
• Attitude towards online purchase of home improvement products
* When asking the questions related to national e-tailer in each country, by national nr.1 e-tailer
we refer to the following:
COUNTRY NATIONAL NR. 1 E-TAILER
Austria Otto
Belgium Bol.com
Denmark Harald Nyborg
France Cdiscount
Germany Otto
Italy Privalia
Nederland Bol.com
Poland Allegro
Spain El Corte Inglés
Sweden Elgiganten
UK Argos
European Home Improvement Monitor Q2 2020 | Page 15Introduction | Online platforms | Purchase process | Attitudes towards online channel | Functions of interest
The majority are indifferent to national or national webshops
Nevertheless, one-tenth has higher a preference towards national webshops.
National vs. international webshop
When buying a home improvement product online, I prefer to buy a product at national/ international webshop.
National | International | Neutral | No
OVERALL 19% 10% 49% 22%
Poland 30% 30% 36%
Spain 23% 9% 51% 16%
France 22% 6% 49% 23%
Italy 19% 8% 45% 27%
Netherlands 19% 12% 47% 22%
Denmark 18% 26% 41% 15%
Sweden 18% 10% 51% 21%
Germany 17% 8% 48% 27%
Belgium 16% 9% 50% 24%
Austria 15% 13% 45% 27%
UK 14% 56% 27%
Base: n=4,174
European Home Improvement Monitor Q2 2020 | Page 16Introduction | Online platforms | Purchase process | Attitudes towards online channel | Functions of interest
Almost half of the consumers have purchased home improvement products
online
Purchase process
Think about the last home improvement product you have purchased. Which of the following steps best describes your purchase process?
ORIENTATION
(% among each purchase channel)
XX% XX%
ONLINE
XX% XX%
Multi-channel
XX% XX% Pure offline
PURCHASE OFFLINE
PURCHASE
ONLINE OFFLINE
XX% XX%
ONLINE & OFFLINE
Base: n=4,174
European Home Improvement Monitor Q2 2020 | Page 17Index
KEY INSIGHTS
EUROPEAN DEVELOPMENTS
THEME: INFLUENCE OF ONLINE CHANNELS IN DECISION MAKING
EUROPEAN OVERVIEW
COUNTRY OVERVIEW
HOME IMPROVEMENT PER CATEGORY
APPENDIXIntroduction | Home improvement barometer | Key facts – Influence of online channels in decision making
United Kingdom
Number of home improvement jobs
UNITED KINGDOM
EU AVERAGE
52% 54% 55% 56% 57% 53% 50% 54%
48% 46% 50% 48% 51%
39% 40% 42% 41% 41%41% 43% 39% 41%
37% 35% 38% 36%
Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20
Base: n=2,400 per year
Where did you buy the product?
45,4% 44,8% 44,7%
49,5% 41,8%
41,8% DIY shop
Online
19,6% 21,5% 20,6%
18,1% 17,1% 17,4%
15,4% Other*
9,9% 10,1% 11,2%
14,4% 12,2% Purchased by professional
8,4% 10,5%
9,1% 6,7% Specialty shop
2015 2016 2017 2018 2019 2020 H1
*Category “Other” includes: Furniture shop, Garden centre, Wholesaler and Other shops
European Home Improvement Monitor Q2 2020 | Page 19Introduction | Home improvement barometer | Key facts – Influence of online channels in decision making
United Kingdom
On purchasing home improvement products, online purchase is as popular as offline channel in the UK.
Starting point of online HI product search Platforms for purchasing HI products
Which website would be your starting point when buying a HI product online? Have you purchased any HI products online via Amazon/ national nr.1 e-tailer in the past 12 months?
48% 25% 12% 32% 17%
Purchase process of HI products Functions of interest at DIY website
Think about the last home improvement product you have purchased. Which of the following
Which functions on a website from a DIY retailer are interesting to you?
steps best describes your purchase process?
(Very) interested | Neutral | Not interested (at all)
PURCHASE ORIENTATION Stepwise explanation on ‘how-to-do’ 64% 13%
(% among each purchase channel) a certain home improvement job
Inspirational photo’s and videos for 64% 13%
Online | Offline | Online & offline your interior and garden
23% 36% 42% Advice on products to choose for your 56% 15%
Offline 49% home improvement jobs
Live chat function to ask questions to 49% 23%
Online 51% 63% 3% 34% employees
Blog/ articles on home improvement 37% 33%
European Home Improvement Monitor Q2 2020 | Page 20 Base: n=383Index
KEY INSIGHTS
EUROPEAN DEVELOPMENTS
THEME: INFLUENCE OF ONLINE CHANNELS IN DECISION MAKING
EUROPEAN OVERVIEW
COUNTRY OVERVIEW
HOME IMPROVEMENT PER CATEGORY
APPENDIXAVAILABLE PRODUCT CATEGORIES FLOORS PAINT SUPPLIES PAINT WALLPAPER PLASTER BOARD INSULATION POWER TOOLS GARDEN TOOLS DOORS/WINDOWS FILLERS/MORTARS BATHROOM KITCHEN SAFETY & SECURITY TILES & TILE GROUTS ADHESIVE/SEALANT WINDOW DECO ROOF WINDOWS LIGHTING SMART HOME HVAC
SPECIFIC QUESTIONS INCLUDED IN EHIM ON…
PAINT
Q1 Orientation Q3 Branding
• Did you get information about the paint online? • Which of the following brands for Paint have you ever heard of?
• Did you make your brand selection in the shop or had you already made • How would you rate the following paint brands in general?
your brand selection before going to the shop? • Can you tell for the following statements how well it applies to the brand(s)?
• Who determined the choice of type of product? [This brand has the best quality of products / This brand offers the best
• Who determined the choice of type of brand? overall value for money / This is a brand that I trust / The products from this
brand are easy to use]
• [if purchased in the past 6 months] What brand did you buy?
EXAMPLE OF THE QUESTIONS ASKED ABOUT A PRODUCT IN THE MONITOR
These questions are being asked on a monthly base for 100+ different products and reported per
quarter to subscribers of the European Home Improvement Monitor
Q2 Purchase channels Q4 DIY vs. DIFM
• Did you purchase the paint yourself or did a professional purchased it? • Did you apply the paint yourself or did a professional applied it?
• Where did you buy the paint? • How was the paint applied inside / outside the house?
• Did you order any of the products online? • What type of paint was used inside / outside the house?
• What was the name of the online shop where you purchased the paint? • Which percentage of the wall paint / lacquer that you have purchased for the
• How much was spent in total on the paint? inside / outside of the house was white, coloured (with/without tinting
machine)
• What type of paint supplies were used?
European Home Improvement Monitor Q2 2020 | Page 23Index
KEY INSIGHTS
EUROPEAN DEVELOPMENTS
THEME: INFLUENCE OF ONLINE CHANNELS IN DECISION MAKING
EUROPEAN OVERVIEW
COUNTRY OVERVIEW
HOME IMPROVEMENT PER CATEGORY
APPENDIXMethodology
Who is selected for the research?
Sample background
We use a nationally representative sample for our study. This
includes all types of consumers aged 18+; Male and female, house Male Female 18-34 35-54 55+
renters and owners, consumers with & without DIY experience. 51% 49% BELGIUM 30% 35% 35%
This, in order to have a representative sample per country.
48% 52% FRANCE 26% 36% 37%
Questions on household level 48% 52% GERMANY 25% 35% 39%
Respondents are interviewed on ‘household level’ which means it is 48% 52% ITALY 26% 35% 39%
not about the home improvement projects that they have done
45% 55% NL 27% 34% 40%
themselves but the projects that have been done within the
household. This way, we are able to calculate the sum of the 50% 50% POLAND 35% 37% 28%
number of specific jobs that have been done in a country based on 55% 45% SPAIN 30% 38% 32%
the total number of households.
49% 51% U.K. 29% 36% 36%
50% 50% DENMARK 24% 32% 44%
52% 48% AUSTRIA 35% 36% 29%
Sample size
49% 51% SWEDEN 32% 31% 38%
1st chapter – EU results are based on 26,400 interviews per year
[GENDER] [AGE]
2nd chapter – EU level based on 6,282 interviews
3rd chapter – Incidence rate (number of home improvement jobs) is
based on 2,400 per country; theme questions on approx. 400 interviews Weighting factor
per country
4th chapter – sample size depends on the incidence rate of the product All European figures are weighted in order to account for the difference in
category (see beginning of chapter 4 – share of households conducting a population size of the countries.
job)
European Home Improvement Monitor Q2 2020 | 25Methodology
INCLUDED CATEGORIES
General home improvement figures are based on 107 selected products:
1 "BATH" 19 "FREEZER (FREE-STANDING)" 37 "DORMER WINDOW" 55 "RAIN WATERPIPE" 73 "DRYWALL" 91 "PLUMBING MATERIALS"
2 "BATHROOM FURNITURE" 20 "COOKER SURFACE (BUILT-IN)" 38 "ROOF WINDOWS" 56 "GUTTER" 74 "WOOD AND BOARD MATERIAL" 92 "TILE GROUT"
3 "SHOWER ENCLOSURES" 21 "COOKER (FREE-STANDING)" 39 "STAIRS STAIR COVERING" 57 "BOILER" 75 "INSULATION MATERIAL" 93 "FILLERS"
4 "SHOWER SET/ SHOWER HEAD" 22 "FAUCET" 40 "STAIRS BANNISTER" 58 "FUSE BOX/ELECTRICAL PANEL" 76 "STUCCO" 94 "TAPES"
5 "SHOWER TRAY" 23 "(COMBI-) MICROWAVE (BUILT-IN)" 41 "WC WASH BASIN" 59 "VENTILATION" 77 "PAINT" 95 "SANDPAPER"
24 "(COMBI-) MICROWAVE (FREE-
6 "TAPS & MIXERS" 42 "WC TAPS & MIXERS" 60 "AIR CONDITIONING" 78 "LIGHTING" 96 "BRUSH"
STANDING)"
61 "ELECTRICAL VEHICLE CHARGING
7 "TOILET" 25 "OVEN (BUILT-IN)" 43 "WC TOILET" 79 "TILE ADHESIVE" 97 "ROLLER"
POINTS"
8 "WASH BASIN" 26 "OVEN (FREE-STANDING)" 44 "BRICK" 62 "THERMOSTAT" 80 "FLOOR" 98 "PAINT SPRAY MACHINE"
63 "HOME AUTOMATION CONTROL
9 "WHIRLPOOL" 27 "SINK" 45 "CEMENT" 81 "RADIATOR" 99 "PRESSURE WASHER"
PANEL"
10 "SHOWER DRAIN" 28 "STEAM OVEN (BUILT-IN)" 46 "ROOFING TILES" 64 "SMOKE ALARM OR FIRE ALARM" 82 "RADIANT HEATING" 100 "WET & DRY VACUUM CLEANER"
11 "HOOD VENT" 29 "STEAM OVEN (FREE-STANDING)" 47 "DOOR" 65 "ALARM INSTALLATION" 83 "SWITCH MATERIAL" 101 "STEAM CLEANER"
12 "KITCHEN COUNTERTOP" 30 "DISHWASHER (BUILT-IN)" 48 "ETICS" 66 "SECURITY CAMERA" 84 "SEALANTS" 102 "BLOW VAC"
13 "KITCHEN CABINETS" 31 "DISHWASHER (FREE-STANDING)" 49 "GLASS" 67 "HINGES" 85 "MORTARS" 103 "CHAIN SAW"
14 "REFRIGERATOR (BUILT-IN)" 32 "DECORATIVE MATERIALS" 50 "WINDOW CASING" 68 "LOCKS" 86 "WALLPAPER" 104 "ROBOTIC MOWER"
15 "REFRIGERATOR (FREE-
33 "DIVIDER" 51 "SOLAR PANELS" 69 "HAND TOOL" 87 "INTERIOR DOOR" 105 "WINDOW VACUUM CLEANER"
STANDING)"
16 "REFRIGERATOR/FREEZER
34 "GARDEN FURNITURE" 52 "AWNINGS" 70 "ELECTRICAL TOOL" 88 "FURNITURE" 106 "PUMPS"
COMBINATION (BUILT-IN)"
17 "REFRIGERATOR/FREEZER
35 "GARDEN SHED / BARN" 53 "SKY LIGHT" 71 "GARDEN TOOL" 89 "WINDOW DECORATION" 107 "WATERING SYSTEM"
COMBINATION (FREE-STANDING)"
18 "FREEZER (BUILT-IN)" 36 "GARDEN PAVING" 54 "ASPHALT SHINGLE" 72 "GYPSUM BLOCKS" 90 "TILES"
European Home Improvement Monitor Q2 2020 | 26© 15 September 2020, USP Marketing Consultancy B.V.
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