Table of Contents
- Scope and Themes
- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations
- Terms
- Executive Summary
- Market Size: Broad home channel market vs. smaller DIY market
- Competitive Context: Housing downturn, green trends and imports
- Segmentation: Flooring shows strong growth, as do electrical and "other"
DIY products
- Retail Channels: Home centers dominant, despite slowing sales in 2007
- Home sales are key to current downturn in DIY market
- Home repair and renovation fall in 2007
- Media and the Internet drive and shape DIY market
- Baby Boomers and younger, multi-ethnic DIYers
- Home Depot posts sales decline for first time in 2007
- Branding strategies of the largest DIY retailers
- Innovations in green products, retailing strategies and departments
- Advertising and promotion
- Purchasing of DIY products and retail choice
- DIY activity, attitudes and information for DIY projects
- Gender: Traditional gender roles shape DIY activity, outreach to women is
warranted
- Age: Younger DIYers take on more projects and tend to use the Internet
for information
- Income: Income drives DIY activity overall
- Ethnicity: Asians and Hispanics are enthusiastic DIYers and key to growth
in market
- Barriers to DIY activity: Money, skills and tools
- Market Size and Forecast
- Slower growth predicted in broader home channel through 2012
- After strong growth through 2006, sales slow in 2007 with the slumping
housing market
- Figure 1: Total U.S. sales and forecast of broader home channel market
at current prices, 2002-12
- Figure 2: Total U.S. sales and forecast of broader home channel market
at inflation-adjusted prices, 2002-12
- Within more limited DIY-only market, uneven growth prevailed in 2002-06
- Figure 3: Total U.S. sales and forecast of DIY market at current prices,
2002-12
- Figure 4: Total U.S. sales and forecast of DIY market at inflation
adjusted prices, 2002-12
- Competitive Context
- Key Points
- Downturn in the housing market has dampened DIY sales in 2007
- Gloomy housing prognosis for 2008, although federal legislation could
stimulate market
- Suffering losses and facing market saturation, home centers limit
expansion and take a more conservative approach
- Green living trends fuel environmentally-friendly products and practices
- Energy conservation and concern with energy costs drive green movement
- Government activity and legislation drives demand for green products
- Changes in building codes and promotion of green homes
- Government promotion of energy efficient practices and products
- VOC regulations
- Imports play major role in DIY market, also pose safety concerns
- Segment Performance
- Key points
- Paint sales stagnate while innovations in flooring drive sales
- Sales in the "other" category show growth above market average
- Figure 5: U.S. sales of DIY products, segmented by type, 2004 and 2006
- Segment Performance--Paints, Wallpapering and Supplies
- Figure 6: U.S. DIY sales and forecast of paints, wallpaper and supplies,
2002-12
- Segment Performance--Flooring
- Figure 7: U.S. DIY sales and forecast of materials for hard surface
flooring, 2002-12
- Segment Performance--Electrical Supplies, HVAC
- Figure 8: U.S. DIY sales and forecast of electrical supplies, heating
and cooling equipment, 2002-12
- Segment Performance--Plumbing
- Figure 9: U.S. DIY sales and forecast of plumbing supplies and
equipment, 2002-12
- Segment Performance--Tools and Equipment for Painting and Wallpapering
- Figure 10: U.S. DIY sales and forecast of tools and equipment for
painting and wallpapering, 2002-12
- Segment Performance--Other DIY Products
- Building materials
- Windows
- Lumber
- Tools
- Figure 11: U.S. sales and forecast of other DIY supplies, 2002-12
- Retail Channels
- Key points
- Home centers maintain as building material dealers see sales tumble
- Specialty retailers and hardware stores struggle to maintain market share
- Department stores see sales fall while general merchandisers carve out
growing share of DIY market
- Figure 12: U.S. sales through home improvement channels, by retail
channel, 2005 and 2007
- Retail Channels--Home Centers
- Figure 13: U.S. home channel sales through home centers, 2002-07
- Retail Channels--Other Building Material Dealers
- Figure 14: U.S. home channel sales through all other building material
dealers, 2002-07
- Retail Channels--Floor Covering Stores
- Figure 15: U.S. home channel sales through floor covering stores,
2002-07
- Retail Channels--Hardware Stores
- Figure 16: U.S. home channel sales through hardware stores, 2002-07
- Retail Channels--Wallcovering and Paint Stores
- Figure 17: U.S. home channel sales through wallcovering and paint
stores, 2002-07
- Retail Channels--Nurseries, Garden Centers, Farm Suppliers
- Figure 18: U.S. home channel sales through nursery, garden centers and
farm suppliers, 2002-07
- Retail Channels--Outdoor Power Equipment Dealers
- Figure 19: U.S. home channel sales through outdoor power equipment
stores, 2002-07
- Retail Channels--Department Stores, Mass Merchandisers
- Figure 20: U.S. home channel sales through department stores and mass
merchandisers, 2002-07
- Retail Channels--General Merchandise Stores
- Figure 21: U.S. home channel sales through all other general merchandise
stores, 2002-07
- Market Drivers
- Home ownership is important driver of DIY activity
- Figure 22: Undertook home improvement in the past 12 months by home
ownership, May 2006-June 2007
- New and existing home sales drop sharply in 2006 and 2007
- Figure 23: Sales of new and existing homes, 2002-07
- In longer term, the housing market should recover and drive DIY sales
- Maintenance, repair and improvements expenditures fall in 2007
- Figure 24: Expenditures for residential repairs and maintenance, and
improvements, 2002-07
- Media influences spur interest in DIY activity
- The Internet takes a growing role in the DIY market
- Demographic drivers: younger homeowners and Baby Boomers
- Figure 25: Population by age, 2002-12
- Demographic driver: an increasingly multi-ethnic population
- Figure 26: Population by race and Hispanic origin, 2002-12
- Leading Companies
- Key points
- 2007 is a challenging year for all major retailers, especially Home Depot
- Smaller retailers may be better positioned to attract DIYers in future
market
- Mixed results from 2005-07 for the five largest DIY retailers
- Figure 27: Sales of leading DIY companies, 2005 and 2007
- Brand Qualities
- Home Depot--a "back to basics" brand--focused on innovation and service
- Lowe' s--a softer, more female-friendly brand with exclusive, trusted
product lines
- Menards--an eclectic, value-oriented "catch all" store, rooted in
Midwestern tradition
- Wal-Mart--the "Low Prices--Always" brand gives company leverage with
casual DIYers
- Sears--A once highly reputed brand sees prestige and sales decline
- Hardware co-operatives emphasize quality and highlight personal customer
service and accessible help
- Innovation and Innovators
- Key points
- Green products and practices are an important area of innovation
- Innovations in technology and style
- Innovations in retailing: new formats and retail approaches
- Home Depot--New "Designer Center", "Project Store", "Store Standard"
pilot and smaller format stores
- Menards--Expanded product offerings, "store within a store" and joint
retail centers/housing developments
- Hardware Co-operatives: focus on new websites, new store designs and
customer service and eco-based initiatives
- Innovative retailing strategies in key segments: paint and tools
- Paint: expanded offerings, design centers, color matching services and
new kiosks
- Tools: "Store within Store" format, expanded private label offerings and
hands-on stations to try products
- Advertising and Promotion
- Overview
- Advertising expenditures of the largest retailers
- Figure 28: Major home improvement store advertising spend in measured
and unmeasured media, 2005 and 2006
- Figure 29: Advertising spending in measured media, by category, 2006
- Advertising profiles for major retailers and hardware cooperatives
- Home Depot
- Lowe' s
- Menards
- Figure 30: Television ad -- Menards, 2007
- Wal-Mart
- Sears
- True Value
- Ace Hardware
- Do it Best
- Usage--Products Purchased
- Key points
- Homeowners and upper-income families are key groups to target
- Figure 31: Undertook home improvement in the past 12 months by home
ownership, May 2006-June 2007
- Figure 32: Undertook home improvement in the past 12 months, by marital
status, May 2006-June 2007
- Figure 33: Undertook home improvement in the past 12 months, by age, May
2006-June 2007
- Figure 34: Undertook home improvement in the past 12 months, by
household income, May 2006-June 2007
- Types of home improvement purchases made in the past 12 months
- Figure 35: Types of home improvements products purchased in past 12
months, by household income, May 2006-June 2007
- Retailers used for DIY Purchases
- Key points
- Home improvement stores shopped in the last three months
- Figure 36: Specific home improvement retailers shopped in previous 3
months, by home improvement in the past 12 months and home improvement by
self or hh member, May 2006-June 2007
- Number and Type of DIY Projects
- Key points
- Gender roles endure, though female consumer base may be cultivated
- Figure 37: Type of DIY projects undertaken, by gender, January 2008
- Young DIYers undertake the most projects
- Figure 38: Number of DIY projects undertaken, by age, January 2008
- Figure 39: Type of DIY projects undertaken in past 12 months, by age,
January 2008
- Outdoor living key for upper income DIYers
- Figure 40: Number of DIY projects undertaken in past 12 months, by
household income, January 2008
- Figure 41: Type of DIY projects undertaken in past 12 months, by
household income, January 2008
- Attitudes--Enjoyment of DIY Work and How Work is Shared and Completed
- Key Points
- Men enjoy and complete more projects
- Figure 42: Enjoyment of all projects and preference for professional
help, by gender, January 2008
- Figure 43: How work shared/completed, by gender, January 2008
- Younger DIYers more engaged
- Figure 44: Enjoyment of all projects and preference for professional
help, by age, January 2008
- Figure 45: How work shared/completed, by age, January 2008
- Attitudes and Motivations--Where DIYers Seek Help and Information
- Key Points
- Sources of information on DIY home improvement projects
- Figure 46: Source of information for DIY projects, by age, January 2008
- Figure 47: Source of information for DIY projects, by household income,
January 2008
- Figure 48: Source of advice when "stuck" with DIY project, by age,
January 2008
- Figure 49: Source of advice when "stuck" with DIY project, by household income, January 2008
- Attitudes and Motivations--Those Who Don' t Undertake DIY Projects
- Key Points
- Reasons for not undertaking a project
- Figure 50: Reasons for not undertaking a project, by gender, January
2008
- Figure 51: Reasons for not undertaking a project, by age, January 2008
- Figure 52: Reasons for not undertaking a project, by household income,
January 2008
- Figure 53: Things that would motivate taking on a DIY project, January
2008
- Race and Ethnicity
- Key points
- Hispanics are key group to target
- Figure 54: Undertook home improvement in the past 12 months by
race/ethnicity, May 2006-June 2007
- Types of home improvement purchases made in the past 12 months
- Figure 55: Types of home improvements products purchased, by
race/ethnicity, May 2006-June 2007
- Hispanics show strong DIY Interest
- Figure 56: Number of DIY projects undertaken, by race/ethnicity, January
2008
- Figure 57: Type of DIY projects undertaken, by race/ethnicity, January
2008
- Figure 58: Enjoyment of all projects and preference for professional
help, by race/ethnicity, January 2008
- Figure 59: How work shared/completed, by race/ethnicity, January 2008
- Figure 60: Source of information for DIY projects, by race/ethnicity,
January 2008
- Figure 61: Source of advice when "stuck" with DIY project, by
race/ethnicity, January 2008
- Figure 62: Reasons for not undertaking a project, by race/ethnicity,
January 2008
- Simmons Cohort Analysis
- Figure 63: Undertook home improvement in the past 12 months by household
income, May 2006-June 2007
- Appendix: Other Useful Consumer Tables
- Figure 73: Types of home improvements products purchased, by age, May
2006-June 2007
- Figure 74: Types of home improvements products purchased, by who
undertook improvement, May 2006-June 2007
- Figure 75: Types of home improvements products purchased, by size of
household, May 2006-June 2007
- Figure 76: Number of DIY projects undertaken, by gender, January 2008
- Figure 77: Enjoyment of all projects and preference for professional
help, by household income, January 2008
- Figure 78: How work shared/completed, by household income, January 2008
- Figure 79: Source of information for DIY projects, by gender, January
2008
- Figure 80: Source of advice when "stuck" with a DIY project, by gender,
January 2008
- Appendix: Trade Associations
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