April Showers Bring April Flowers: More Good News for Home Improvement

  • Categories:

    COVID-19 Response

  • Date:

    April 16, 2020

April Showers Bring April Flowers: More Good News for Home Improvement



COVID-19 Response

Have you heard the newest COVID-19 projections? Here, in mid-April, Institute for Health Metrics and Evaluation (IHME) COVID-19 models show sustained improvement in terms of hospital capacity, incidences and deaths. In fact, current data has national, state and local governments thinking about allowing retail and industry to return to work in select regions in the near future.

That light at the end of the tunnel? It’s getting brighter every day.

On the home front, more and more consumers are diving into DIY projects. Meanwhile, a few interior designers have told us clients are ready to jump into planning on projects that they put on hold when the pandemic hit our shores in early to mid-March. It seems we’re all eager to kick this unprecedented situation to the rearview mirror.

The moral of this week’s story? If you work in marketing, you’re likely still facing a set of challenges that are fluctuating on an almost daily basis. But while this crisis is far from over, we’re happy to say that the good news is outpacing its less welcome counterpart.

Following is a summary of current trends. You can also read our most recent POV on the marketing impacts of COVID-19, released April 16.

As a reminder, on a weekly basis, Wray Ward will continue to publish timely information, trends and advice related to the coronavirus.* This content can help you examine and manage your marketing activities during the COVID-19 pandemic. If you have questions or want to discuss specific next steps for your brand, please feel free to contact me.

For the home and building category, this week’s mixed bag contains a lot of good news.

The good:

  • DIY indicators are up across interest, online research volume and reported project starts. In the past two weeks, 63% of DIYers surveyed by the Home Improvement Research Institute (HIRI) started a home improvement DIY project. Accordingly, sales of these products have increased by as much as 96% (for bath and linen products) and 87% (for desks). (Content Square)
  • In related news, Home Depot and Lowe’s have seen increased demand for materials used in DIY projects despite both companies’ decreased stock values. (TD Ameritrade)
  • In home furnishings, all categories are up except for office-related e-commerce, which is slowing. According to Attentive, “shoppers may have prioritized creating a better at-home workplace environment first, and are now shifting attention to other areas of the home.”
  • Fans of Chip and Joanna Gaines can look forward to bingeing on the couple’s planned five-hour takeover of the DIY Network on Sunday, April 26, from 5–10 p.m.

The not-so-good:

  • Builder confidence is plunging, hitting historic lows in April. (NAHB)
  • More than 80% of small businesses in the architectural and design services sector and construction sector report negative impacts from the coronavirus pandemic. Project delays are the most commonly cited culprit. (Houzz)
  • Real estate professionals are struggling with the decision deeming them nonessential, though some are finding creative workarounds.
  • The vacation rental market is experiencing a “cancellation apocalypse,” with year-over-year short-term reservations for this summer now down by 75%. (Forbes)

Finally, here’s a quick temperature check for your marketing activities:

  • Advertisers with operational e-commerce functions and dollars to spend can still capitalize on value and opportunity created by the sharp decrease in digital advertising spending.
  • Planned ad spending cuts are projected to be less severe in May and June compared to April. (eMarketer)
  • Search volume trends in most categories are up. Home improvement (+24%) and home and garden (+31%) continue to rise.
  • Advertising still works. On April 10, Ad Age reported that brands increasing their media spend on digital channels and TV as well as those that held steady saw online sales increase by an average of 81% in the last half of March compared to the previous month.

If you have questions or want to discuss specific next steps for your brand, please feel free to contact me.

*All statistics as of April 16, 2020.

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