September 17, 2021
‘Nesting’ phenomenon drives consumer demand for electronics, home renovation products
While the term “nesting” once primarily conjured images of expectant parents outfitting their nurseries, it’s taken on a whole new meaning in the wake of the pandemic.
To fully understand this trend, one must first look back to 2018. It’s when the term “homebody economy” was first coined to explain the rise in services like food delivery and courier apps, mattress-in-a-box companies, and streaming services as white-collar Millennials began to embrace their stay-at-home tendencies.
Then came COVID-19 and quarantine orders, which accelerated this trend like no one could have predicted. Between stimulus checks, deferred vacations, and not spending money in restaurants, many consumers were flush with cash. And, since they were now spending all their working and leisure time at home, demand for renovation and home goods soared. Home Depot, for example, posted record-breaking sales in 2020.
With real estate experts forecasting a lack in housing supply for years to come and interest rates creeping up, consumers are going to continue renovating and “nesting” well into the foreseeable future. When Millennials who have postponed homeownership due to the pandemic do eventually decide to purchase homes, demand for home improvement supplies should grow even more.
Here are some of the biggest trends that retailers should consider capitalizing on.
● Work-from-home becomes permanent for many. As more employers make remote work (or, at least, flexible arrangements) a permanent policy, many consumers are ready to finally stop working from the sofa and establish a home office—complete with personalized lighting, comfortable furniture, and the all-important background bookshelf (important for impressing colleagues on Zoom calls).
● Demand for outdoor living amenities increases. Backyard pool sales soared during the pandemic, and as home sales and valuations remain strong, consumers aren’t afraid to invest in all the things that turn their backyard into an escape. Many may continue to prefer their own private space even after the pandemic, as opposed to crowded pools or parks.
● More consumers become at-home cooks. Even as more consumers return to dining in restaurants, many picked up cooking as a hobby during the pandemic and gained a heightened appreciation for a well-outfitted kitchen. That should have retailers seeing dollar signs!
● Bonus rooms take on a new significance. With children spending more time at home due to distance learning and people looking to avoid crowded gyms by working from home, many are rethinking their home gyms and playrooms (or trying to create spaces that are multi-functional).
With each of these home refreshes and renovations comes an opportunity to sell consumers on upgraded home lighting—especially smart lighting like the HALO Home collection, which is DIY-friendly and ready to personalize. With tons of compatible indoor and outdoor fixtures, controls, and accessories and a user-friendly app, it’s the ultimate solution for homeowners to add comfort and convenience whether they’re hunkering down or venturing out on a much-anticipated vacation.