Like most sectors, the Spanish home furnishing industry experienced a significant downturn in 2020 due to the pandemic, but achieved a significant rebound of 20% in the following year, caused by the dynamism in demand for both renovation and new equipment.

At the trade level, Spain recorded an increase in the trade deficit in 2021 compared to the previous year, due to imports exceeding exports by 5 percentage points. Among the exports with more margin of growth with respect to 2020 are France (+34.2%), Germany (+36.2%) and Portugal (+27%).

This article will summarize the particularities of this sector in the country, as well as the new trends, distribution channels and other aspects.

Sectorial data

The number of companies registered in Spain operating in this sector in 2021 was 11,156, most of them with less than 10 employees. However, and despite the fact that companies in this sector are usually small in size, they recorded a market value of 1,630 million euros, which represents an increase of 19% with respect to 2020. The last is a consequence of the new restructuring of households in Spain, since, for example, there has been an increase in the number of one-person households, which leads to higher per capita spending on household goods.

Distribution channels

Traditionally, the specialized stores at street level have been the most used channel by consumers when purchasing household products, with a weight of over 35% in 2018. This figure has decreased during the last few years due to the increase in online commerce. 

In recent years, big retail chains such as Leroy Merlin, Zara, El Corte Inglés (Bricor) have taken the step of introducing new business lines, for example in the home sector, to meet the new needs of their consumers or to further expand their customer portfolio. One of the most outstanding cases is Zara, who has strongly invested in this segment and nowadays has 284 Zara Home stores worldwide. Its offer consists of textile articles (bed linen, bathrobes, towels…) as well as tableware, decoration. 

It is also worth mentioning companies that, through their reputation, quality and innovative designs, have managed to find a niche in the home (eg: Muy Mucho, Textura, Tramas) and gift (eg: Ale Hop, Mr. Wonderful) market. 

On the other hand, the rise of e-commerce has led many consumers to buy household items through technology devices Within this channel, the giant Amazon stands out, being the most visited e-commerce site in 2021 and with its home section being one of the most influential in its sales and the most (65%) purchased by prime subscribers. There are other companies with a strong online presence such as Westwing, who has grown exponentially in the last years taking advantage of the new consuming trends that will be presented below. 

Post-pandemic trends

The pandemic and social media have revolutionized the market, creating new consumer trends. One of them is that before the pandemic, consumers searched for products online and went to the store to finalize the purchase because they weren’t sure of certain aspects such as the quality of materials and the final price. However, statistics in Spain show that 90% of consumers who were previously ROPO buyers  (Research Online- Purchase Offline), nowadays also make the payment process through websites.

Another of the most popular movements that emerged recently  is the DIY (Do It Yourself). This trend has already existed for several years, however the pandemic and companies like IKEA have made it increase exponentially. Being in lockdown for so long made many people finding new ways of entertainment: building their own decorative items, increasing their creativity and sharing their works through social media. This trend has had such a strong impact on society’s way of acting that it has become a permanent way of life.

Opportunities

The companies that are dedicated to this sector of the home and gifts are growing. This is due, among other factors, to the growth of social networks in the last few years and the course of the pandemic. In addition, as mentioned, the number of single-family homes has grown, requiring a higher per capita expenditure to be allocated to decoration and other household items. 

Another factor to note is that today’s society values well-kept and well-decorated spaces much more than it did in the past. The tendency to look for corners to photograph or simply to be in a warm environment has grown exponentially.

For all the above mentioned, it can be said that Spain is a great business opportunity for foreign companies in the sector to settle in our country as this sector is becoming more and more a symbol in the Spanish stores.

Fairs of interest 

The How2Go team works hand in hand with Ifema, a national leader in trade fairs and events. In relation to the home and decoration sector, the Intergift fair has been organized for 40 years, which brings together more than 25,000 national and international visitors each year and more than 800 companies within the sector. Attending this type of fairs enables networking, discovering new trends and business opportunities among other important aspects for companies.

If you want to know more about the opportunities in the home and gifts sector in the Spanish market do not hesitate to contact us through contacto@h2gconsulting.com

Artículo escrito por Andrés Sagüillo