Fashion

More Fashion Brands Are Making the “Easy Transition” to Home Decor

More Fashion Brands Are Making the “Easy Transition” to Home Decor

Category expansion is a common tactic for fashion brands looking to attract new customers, and home decor is increasingly their go-to category.

The reasons why fashion brands are launching products for the home are varied, from overlapping customer bases to the broader appeal of redecorating as more and more people work from home. Although different, in terms of the end product, fashion and home decor share an aesthetic goal that fashion brands can leverage to ease the transition. And yet, in recent times, interior design has become a riskier bet due to increased manufacturing costs.

Quince, an unbranded fashion retailer that sells products direct from the manufacturer to customers, launched an in-house category in late 2020, according to co-founder Sid Gupta. Its home offerings started with bedding, priced similar to or a bit lower than DTC brands like Brooklinen. Quince then expanded into table linens, pillows, bath mats and rugs. The category is taking off quickly.

In the last three months of 2020, the house accounted for just a few percentage points of Quince’s business. By the end of 2021, he had become over 35% of the company’s sales. Quince also sells accessories, leather goods and bags.

Gupta attributed the growth, in part, to Quince customers craving new categories at an equally low price.

“Home-based business has enormous potential,” Gupta said. “Plus, it really resonated with our client and was an easy transition.”

Home decor sales grew 22% in 2020 and are expected to grow by more than 340 billion dollars between 2022 and 2025, according to Technavio. Brands like Target and Macy’s have seen their home categories account for a greater portion of their business throughout the pandemic. Target saw a 30% year-over-year increase in home decor sales last year.

Furniture and decoration can have much higher markups than fashion, up to more than 40%. Fashionable, more than 20% the margin is considered quite high. However, higher shipping costs for larger items like lamps and tables can make up markups.

According to Kristin Dorsey, vice president of marketing at customer experience platform Linc, the shift from fashion to home is natural in the wake of the pandemic.

“The overlap of fashion and style is a big reason why so many fashion brands have capitalized on home decor,” Dorsey said. “Our living spaces are an extension of ourselves, so we turn to the same labels we trust to reflect our moods and identity for furniture, linens and even kitchenware. people are spending more time at home, whether it’s working remotely or ordering dinner, they’re willing to spend more disposable income dressing up their surroundings.

Matchesfashion saw its home sales doubled last year and a plethora of fashion brands like Simon Miller, Bernadette and Aquazzura launched homewares last year. Outside of fashion, companies like Lowe’s have also launched home decoration brands, to meet the growing appetite for the category. Accessories designer Lele Sadoughi said she is currently working on a line for the home.

For many brands getting into home decor, the marketing strategy remains similar to what they do for clothing. For example, Aquazzura launched its home collection at Milan Design Week, the same way it launched its fashion collections at Milan Fashion Week. And brands like Simon Miller have used similar campaigns to market both the home and the clothes.

“When you look at how products are described and presented, fashion and home decor can seem like very different categories,” said Ali Hanyaloglu, senior director of product marketing at Akeneo, a consumer information management company. products. “But fashion brands can take advantage of some common pieces of information that their customers expect from any product. Brand values, sustainability efforts, environmental impact, and diversity and equity initiatives can all be featured in a product’s story, regardless of category.