One of the categories that is attracting the market’s attention is undoubtedly DIY, where, DIY refers to non-professional manual activities, repairing, creating, improving, and maintaining small items in the home.
The Market
In 2019, sales of the global DIY and home improvement market had reached 618 billion euros, an increase of 4.22 percent from the previous year (593 billion euros).
Covid had a very positive impact on this market: after the uncertain months of March and April, the market exploded in May and the following months, and sales grew by 20 percent in some sectors, such as home and garden maintenance.
According to estimates by Technavio, with its research “Do-it-Yourself Home Improvement Retailing Market in Europe Growth, Size, Trends, Analysis Report by Type, Application, Region and Segment Forecast 2021-2025,” between 2020 and 2025 the DIY market in Europe will experience a growth of $26.42 billion with a CAGR (compound annual growth rate) of 2.85 percent. It will be driven by Germany, which will record the highest growth rate (29 percent), surpassing both the British and Italian markets, thanks to the spread of diy projects involving the commodities outdoor lumber and structures, painting and wallpapering, indoor garden decorations, lighting, and kit furniture.
A major factor in the market’s growth is the interest in DIY projects, which is linked to the increasing rate of urbanization and evolving lifestyles. Also its female role in decision-making regarding home decoration have driven sales of tools, including drills, nail guns, bathroom or gardening tools, etc. Another factor is technological progress: suppliers are continually working on developing innovative products, and the integration of advanced technologies into home automation products offers greater safety and reliability than traditional household products.
The target
The Compass Observatory, highlights these data
- more than 93% of Italians said they have carried out at least one DIY activity in the past 12 months. Saving money, being self-sufficient, reducing waste and feeling useful are the main factors that have always been related to DIY, although with some differences between the different generations. Younger people engage in manual activities mainly out of necessity or to express their creativity, as opposed to the older generations, who are looking for an enjoyable and relaxing pastime.
- in Italy, the average annual expenditure on small housework is around 950 euros (highlighting the driving motive of savings).
- Men are generally prevalent in all “do-it-yourself” activities, however the gender gap is not wide: women seem to be involved in almost all major areas starting with gardening, which is also the activity that is carried out most independently, thus without turning to professionals (in 66 percent of cases). Organization and storage and small hardware work are two other areas where DIY wins. Conversely, plumbing and remodeling activities are the ones where we get more support from experts.
The touch point for buying
The main sales channels for DIY, in Italy, are specialty stores (i.e., plumbing, construction, hardware, carpentry, garden centers) Large Specialized Retailers and online channels (specialized such as ManoMano and “generalist” such as Amazon)
Amazon states that by 2025 the DIY category is expected to exceed $620 billion in the United States alone, registering a 4 percent annual growth rate.
Precisely on the strength of interest in the category and its growth potential, Amazon conducted research with Kantar on the profile of DIY buyers on the platform.
The evidence that emerges is very interesting.
- 60% of Do-It-Yourself category shoppers (on and off channels) surveyed said they engaged with an online touchpoint along the path to purchase
- 34% of the Do-It-Yourself category shoppers surveyed said they searched for products online while in a physical store
- 44% of the Do-It-Yourself category shoppers surveyed said they visited the Amazon store along the path to purchase to research and discover products.
- 59% of the DIY category shoppers surveyed said they used Amazon as an aid to learn about products and then purchased them elsewhere.
- 63% of the DIY category shoppers surveyed said they were willing to discover new brands early in the path to purchase.
Since it is evident that an increasing number of shoppers are using digital sources to search, learn about, and purchase products in the DIY category, it acquires the importance of a careful presence in the Amazon platform, aimed at creating brand loyalty, through articulated marketing strategies; in particular, virtual reality and augmented reality can offer brands new opportunities to help audience segments visualize products before making a purchase.