2020 has certainly been a year of re-evaluation. With the majority of the globe keeping safe at home, many consumer priorities shifted. Instead of going out for a night on the town, we’ve turned into Zoom experts and garden parties became our new social venues.
Whilst we’ve been spending considerably more time at home, many of us have naturally indulged in a little home improvement or have spruced up the garden and, well, the results speak for themselves...
Quarter one saw a very respectable average growth of 12% compared to the previous year. However, as we entered into Q2, we saw eCommerce growth climb through the roof - shooting to a whopping 93% revenue growth in June, and an incredible 133% increase in transactions in May!
The above graph demonstrates fantastic increases in both revenue and orders through the Visualsoft platform. We can see that throughout April and May, while orders through the platform increased exponentially, the revenue trajectory took a little longer to reach its peak.
Over the last 3 years, we have seen consistent and predictable growth year on year. However, from March 2020, our Home and Garden clients have achieved absolutely staggering results.
Between 2017 and 2018, Visualsoft Home and Garden clients saw 21% growth and between 2018 and 2019, 17% growth was achieved. We are delighted to report that in 2020, our Home and Garden clients have already achieved 12% growth on last year - and we’ve still got a whole quarter remaining!
With the majority of our time being spent at home over the last 6 months, rather than the office, there has been plenty of time for consumers to reevaluate what is important to them, what is working, and what is no longer a priority in the ‘new normal’. Since we are now spending all day at home, we’ve seen many consumers decide that it’s time for a revamp, or have undertaken a ‘lockdown project’. Between 2017, 18 and 19, our Home, Furnishing and DIY clients saw an average of 18.47% annual growth. In 2020 to date, these clients have already surpassed last year’s achievements, with 8.28% growth (that’s a 45% increase when compared to the same time period in 2019!).
Similarly, since the rule of 6 was introduced, the garden has become more of a priority than it has ever been before. With the negativity that this year has brought, consumers have looked to find ways to bring joy to their new way of living by creating a more comfortable outdoor hosting space. Over the last 3 years, our Garden, Plants and Trees clients saw an average annual growth of 26.28%. Amazingly, these clients have already achieved 49.93% growth compared to 2019 (and a whopping 89% increase compared to the same timeframe last year!), with 3 months of growing to go!
Over the last 6 months, we have seen clients within the Home and Garden sector react to shifts in consumer mindset and the consumers’ evolving priorities - shifting marketing messages to cater to new consumer needs with ‘work from home’ inspiration and relevant, thoughtful messaging.
What’s next for the Home and Garden sector?
In September 2020, we have already seen a significant 17% increase in revenue when compared to the previous month, indicating that things are already ‘on-the-up’ ahead of Q4. We expect that we will see sales increase for houseplants and seasonal accessories (and of course, Christmas Trees!) over the coming months.
In a similar fashion, our Home, Furnishing and DIY clients have followed that same trend, with a 6% MOM increase in September this year - well above the average trend of 1.8% growth over the last few years between August and September. We predict that seasonal decorations and accessories will fly off the shelves sooner than expected in 2020, with an increase in more luxury pieces such as decorative cabinets and drinks trolleys. As we await confirmation of whether we will be able to spend the festive season with our loved ones this year, we expect to see many consumers want to ‘treat themselves’ to add a little extra sparkle to the festive season this year.
So, how can retailers prepare for peak season?
Want to find out more about how Visualsoft can help you? Give us a ring on 01642 633604!