The do-it-yourself (DIY) and home sector continue to show their dynamism. According to the BPCE Digital & Payments Barometer,1 online purchases in this industry continue to grow at a steady pace.
Key points to discover:
- E-commerce growth figures
- An increase in spending, particularly among women
- International growth strategy of some companies in the industry goes hand in hand with this growth
A booming industry, with an unprecedented breakthrough in e-commerce
E-commerce has become a real game-changer over time. Between 2019 and 2022, spending (in euro amounts) in the DIY and home category has grown by +34.1%.
Unsurprisingly, the average shopping basket is experiencing a similar evolution, as it was €57.21 in 2019, and could reach €65.79 by the end of 2022 (estimate).
The DIY sector is not only growing over time but is also becoming highly digitalized to adapt to changing consumer needs.
In response to the COVID-19 outbreak, many consumers discovered that online shopping was the safest and most convenient way to get the products they needed, especially for repair or paint jobs.
Furthermore, as the pandemic slows down, e-commerce continues to grow with solid numbers.
From 2019 to the present, e-commerce’s share of the DIY and home improvement sector has significantly grown thanks to the high demand for DIY products.
In 2019, e-commerce accounted for 8.9% of total transactions and has grown to 13.7% by 2022. Indeed, the trend of increasing e-commerce shows no signs of slowing down.
Average basket higher online than in-store
Consumers tend to spend more online than in-store—and the gap is widening.
In 2022, the average basket online now reaches €171.79, increasing +11.8% compared to 2021; whereas the average basket in-store (with a payment card and a PIN code) has reached €103.11, showing an increase of +7.6% compared to 2021.
Additionally, the average basket by contactless payment through in-store shopping is remaining approximately the same compared to 2021 (a slight decrease of -1.1) with an amount of €20.38.
A sales boom and international expansion opportunities
With the rise of e-commerce, the DIY and home sector is particularly well-positioned to expand internationally.
For example, this is the strategy of MADE.com. The London-based online furniture and home goods company that started in 2011 has expanded internationally with an innovative business strategy based on collaboration with independent designers and a technology platform.
The brand was an immediate success in the UK and currently operates in eight European countries, generating €500 million in revenue.
For MADE.com, 2021 was a crucial year with its IPO.
“This gave us the impetus to grow even more and become a European leader in our sector,” said Philippe Chainieux, CEO of MADE.com.
Discover the success story of MADE.com and how payments have driven the company’s growth.
While the DIY and home sector continue to stand out with exceptional growth, it’s not the only sector that is doing well in this new digital environment. Check out our other sector-specific analysis:
1BPCE Digital & Payments Barometer, January 2019 to March 2022