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What to Watch: The Home Market, Macro Themes for 2024

Jan 05, 2024 - wwd.com
The article discusses the major factors that impacted the global furnishings, decor, and lighting industries in 2023 and the trends to watch in the New Year. The Suez Canal conflict and the rise of Houthi rebels targeting vessels in the Red Sea have disrupted the shipping sector, affecting the movement of goods and increasing costs. China's slowing real estate market and increasing debt have led to reduced consumer spending, impacting brands that rely heavily on the Chinese market. The European Central Bank's strategy to control inflation through higher interest rates has affected the ability of individuals to finance new homes, impacting the luxury goods market.

In 2023, companies like Design Holding, Italian Design Brands, and Cassina expanded into the U.S., while RH opened galleries in the U.K. and Germany. However, the success of these expansions remains uncertain. The French home and decor market suffered due to reduced consumer spending, with hopes that events like the 2024 Paris Summer Olympics could stimulate spending. The use of artificial intelligence by brands with an online presence is expected to increase, helping customers find complementary products and enhancing their shopping experience.

Key takeaways:

  • The global geopolitical and economic scenario in 2023 has affected the furnishings, decor, and lighting companies, with sales falling from record highs after the COVID-19 pandemic.
  • Issues such as the potential conflict in the Middle East, China's slowing real estate market, and rising interest rates are expected to impact these industries in the New Year.
  • Consumer spending slowdown, particularly in the French home and decor market, is another concern, with companies hoping for events like the 2024 Paris Summer Olympics to boost spending.
  • Artificial intelligence is seen as a key tool for brands with an online presence, helping customers find complementary products and enhancing their shopping experience.
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