Residential Flooring - US - April 2019

Residential Flooring - US - April 2019

"A healthy economy and strengthening housing and renovation market have helped the $26 billion residential flooring market notch steady gains since 2013. Despite the rise of renters, further improvements in the overall economy, coupled with a willingness to invest in the home, will allow consumers to update and upgrade their current flooring to drive growth. Retailers will play a key role in accelerating growth by improving the shopping experience by merging digital and physical elements."

– Rebecca Cullen, Household Care Analyst

This report examines the following issues:
Technology advancements will help carpet compete against hard surface
Reaching younger shoppers at key lifestages critical for growing market
Replacement underpins purchases, décor and health serve as upgrade opportunity
Tools and services that enhance shopping will reach younger demographics
Practical attributes outweigh all else


OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
The market
Flooring market climbs thanks to hard surface flooring
Figure 1: Total US sales* and fan chart forecast of residential flooring, at current prices, 2013-23
The issues and opportunities
Technology advancements will help carpet compete against hard surface
Figure 2: Market share based on volume of sales in billions of square feet, 2007 and 2017
Reaching younger shoppers at key lifestages critical for growing market
Figure 3: Flooring purchase intent, by age, parental status, January 2019
Replacement underpins purchases, décor and health serve as upgrade opportunity
Figure 4: Reason for flooring purchase, January 2019
Tools and services that enhance shopping will reach younger demographics
Figure 5: Select reasons for retailer selection, select approaches toward shopping, by age, January 2019
Practical attributes outweigh all else
Figure 6: Attitudes toward flooring – Durability vs style, Price vs quality, January 2019
What it means
THE MARKET
What You Need to Know
Flooring market continues to climb
Carpeting losing share to hard surface
Housing market, population shifts impact market
Market Size and Forecast
Steady growth correlates with stable economy, housing market
Figure 7: Total US sales* and fan chart forecast of residential flooring, at current prices, 2013-23
Figure 8: Total US sales* and forecast of residential flooring, at current prices, 2013-23
Market Breakdown
Carpeting dominates market but losing share to hard surfaces
Figure 9: Market share based on volume of sales in billions of square feet, 2007 and 2017
Figure 10: Market share based on volume of sales in billions of square feet, 2007-17
Market Factors
Housing construction, renovation market strong
Figure 11: NAHB Remodeling Market Index (RMI), 2010-18
Homeownership sees slight uptick in 2018
Figure 12: Homeownership rate, 2008-18
Aging population underpins opportunity among Boomers
Figure 13: Population aged 18 or older, by age, 2013-23
KEY PLAYERS
What You Need to Know
Shifts in shopping
Carpet losing share, rugs represent bright spot
Shaking up the shopping experience
What’s Happening?
One-stop shopping benefits mass, online channels
Figure 14: Mass merchandisers and online-only retailers shopped for flooring, February 2018-January 2019
Carpeting losing share to hard surfaces
What’s Next?
Industry players keep pace with current trends
Rugs enjoy resurgence, represent bright spot in carpeting
Figure 15: Target email flyer, February 2019
Flooring will grow with green market
Blending physical and digital, new experiences in retail
Figure 16: Mohawk VIS +Amplify, August 23, 2018
THE CONSUMER
What You Need to Know
Growth in hard surface flooring supports demand for rugs
Home improvement retailers garner most shoppers
Retail services and tools tempt younger shoppers
Adults voice range of motivations for hard surface flooring
Younger shoppers turn to online media for research, inspiration
Durability wins over style…
…yet quality outweighs price
Flooring Purchases and Purchase Intent
One quarter planning future flooring purchases
Décor trends benefit rugs
Figure 17: Floor purchases and purchase intent, January 2019
Lifestage drives purchases
Figure 18: Floor purchases and purchase intent – Net any flooring, by age, January 2019
Figure 19: Floor purchases and purchase intent – Net any flooring, by parental status, January 2019
Purchase Location
Home improvement retailers are top competitors in residential flooring
Figure 20: Wayfair email campaign, January 2019
Figure 21: Retailers shopped for flooring, January 2019
Younger adults shop across channels
Figure 22: Target email campaign, February 2019
Figure 23: Select retailers shopped for flooring, by age, January 2019
Higher-income shoppers buy across retailers
Figure 24: Select retailers shopped for flooring, by income, January 2019
Reasons for Retailer Selection
Beyond price: selection is key for retailers
Figure 25: Reasons for retailer selection, January 2019
Services and tools serve as differentiators for some
Figure 26: Select reasons for retailer selection, by age, January 2019
Reasons for Purchase
Wider range of motivations for hard surface flooring purchases
Convenience and health drive hard surface purchases
Figure 27: Reason for flooring purchase, by flooring type, January 2019
Tap into décor, health to reach younger shoppers
Figure 28: Select reasons for flooring purchase, by age, January 2019
Approach to Shopping
Strategic shoppers research in-store and online
Figure 29: Approach to shopping, January 2019
Online, media play key role for younger buyers
Figure 30: Select approaches to shopping, by age, parental status, January 2019
Attitudes toward Flooring – Durability vs Style
Style takes backseat to durability
Figure 31: Attitudes toward flooring – Durability vs style, January 2019
Style more influential for younger adults, parents
Figure 32: Attitudes toward flooring – Durability vs style, by age, parental status, January 2019
Figure 33: Mohawk flooring targets parents with style and durability, November 2018
Attitudes toward Flooring – Price vs Quality
Quality trumps cost
Figure 34: Attitudes toward flooring – Price vs quality, January 2019
Price weighs more heavily upon parents and younger adults
Figure 35: Attitudes toward flooring – Price vs quality, by age, parental status, January 2019
Attitudes toward Flooring – Maintenance
Hard surfaces winning favor over carpet for practicality
Figure 36: Attitudes toward flooring – Maintenance, January 2019
Attitudes toward flooring vary with age
Figure 37: Attitudes toward flooring – Maintenance, by age, January 2019
APPENDIX
Data Sources and Abbreviations
Data sources
Sales data
Fan chart forecast
Consumer survey data
Abbreviations and terms
Abbreviations
The Market
Figure 38: Total US retail sales and forecast of residential flooring, at inflation-adjusted prices, 2013-23
Figure 39: Homeownership rate, by age of householder, 2017
Figure 40: Volume sales in billions of square feet, 2012, 2016, 2017
The Consumer
Figure 41: TURF analysis – Reasons for retailer selection, February 2019
Methodology
RESEARCH METHODOLOGY
US Research Methodology
Consumer research
Primary Data Analysis
Sampling
Secondary Data Analysis
Qualitative Research
Social Media Research
Trade research
Statistical Forecasting
The Mintel fan chart
Weather analogy

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