Member sites in homewares: not just a flash in the pan
Feb 01, 2013 (Datamonitor via COMTEX) --
The homewares sector can be difficult for a newcomer to break into. Price competition from specialists and non-specialists alike can prove to be a barrier to entry for smaller brands. However, the development of flash sale sites, in tandem with a recovery in consumer spending, will create communities of devoted shoppers, seeking out the best new unique product they can find.
Despite being a highly fragmented market, with few dominant players, the UK homewares sector can be difficult for retailers to break into, given the intense price competition from non-specialist players. With lower levels of consumer spending, many consumers have been drawn towards grocers and value players due to their desire to save money on essential homewares purchases, putting up an intense competitive barrier for new and unknown entrants.
While in some respects this makes it difficult for new entrants to break into homewares in the UK, it does also present an opportunity. With the majority of dominant players focusing on value, those retailers that are able to offer something new, fashionable, unique, and of high quality will be able to benefit once expenditure starts to grow.
The opportunity is there; however, it is not going to be straightforward for smaller, niche designers, manufacturers, and retailers to break into the market. Regardless of how good their product is, the competition is fierce.
This is where online comes in. Flash sale sites such as Achica, Brand Alley, and Secretsales have traditionally been seen as a way for retailers and designers to clear stock quickly and easily while protecting their image. However, increasingly flash sites are becoming more of a platform for new and unknown brands to gain exposure to consumers.
Not only do such sites promote their offerings to a large number of shoppers, these shoppers are members, actively looking for unique products, and part of a community looking for quality design-led products in homewares.
This community will really set the path for future growth in homewares. As these groups continue to grow, and consumer spending power increases, flash sites will evolve from databases of emails and products that fuel email marketing campaigns, into showcases for new and exciting products, launching smaller retailers and brands into the UK homewares market.
For more information about this topic please contact Andrew Stevens at email@example.com.
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