Australia’s love affair with home decor: Online home furnishing industry's $407M boom

Australia’s home furnishing and decor sector has witnessed a boom despite struggles in the retail industry. The online home furnishing industry is tipped to be worth $407.4 million by 2023.

The furniture and online home furnishing sectors are both growing, IBISWorld reports. The hardware sector is experiencing a boom as well.

Deloitte’s August 2017 Retail Forecasts report has found that “household goods are back on top, outpacing all other non-food retail categories in the year to June 2017, with 5.8 per cent real turnover growth." Dr Gary Mortimer from Queensland University of Technology said the popularity of do-it-yourself television shows like “The Block” contributes to the trend, which he dubbed “the Kmart Effect.”

Mortimer said that Kmart and Target jumped quickly on the bandwagon. He added that Kmart was the first to pick up exceptionally well, News.com.au reports.

'Stay home, decorate and renovate'

For Kmart Australia’s living and home business manager Natasha Smith, Australia’s love affair with home decor is not a surprise, given the growing importance placed on family time. She said Kmart appeals to house-proud shoppers because of its comprehensive range of selections and affordable prices.

Kmart’s ranges can be mixed and matched together, something the customers are happy about. Shoppers can choose across their ranges or simply update a room with a key piece like a wall art or a quilt cover set, according to Smith.

Not everything in home decor needs to shout “look at me,” Smith said. The company remains focused on value and quality basics like towels, pillows, sheeting, kettles, toasters and storage for homes and pantries. Smith added that this season is about texture, which calls for keen decorators snapping up matt ceramics, rose golds and velvets.

Meanwhile, Mortimer pointed at Aussie consumers more likely to stay home, decorate and renovate. They are less likely to buy new homes due to a lack of strong wages growth. The country, according to Mortimer, is also experiencing a rise in utility bills and big household costs.

Meanwhile, Australian energy retailer Origin has launched a smart home kit for optimising energy usage. It announced a sales trial of HomeHQ to assists customers in managing their energy usage across various appliances at home. Customers can control connected devices remotely through the HomeHQ mobile app, which allows them to set up rules for when the lights should automatically come on among other things.