Delivering worth past the worth tag in Gardening & Dwelling Enchancment


Methods to win consumers, regardless of rising costs, by related and focused product worth.

Model progress methods inside Gardening & Dwelling Enchancment should concentrate on customers’ precedence calls for – excessive on the checklist of that are product comfort and sustainability. Nevertheless, the enchantment of product differentiation equivalent to revolutionary tech or unique design, shouldn’t be neglected, particularly in classes with sturdy worth competitors.

The primary third of 2023 noticed a decline in each quantity and worth gross sales of whole Gardening & Dwelling Enchancment. This slowdown was to be anticipated. In spite of everything, the pandemic years of 2020 and 2021 gave rise to unprecedented ranges of dwelling renovations, ornament, and backyard work as folks had been pressured to focus completely on their dwelling environments.

Complete gross sales in Gardening & Dwelling Enchancment quantity (-12%) fell much more sharply than worth (-4%) from January to April. This was as a result of rises in product costs, as manufacturers and retailers handed on the impression of the elevated value of vitality and uncooked supplies.

After all, not all manufacturers handed on worth rises equally. The extent to which manufacturers can command increased costs for his or her merchandise relies on many components, from high quality, to model positioning and the flexibility to distinguish in extremely saturated and aggressive classes.

Divergence between worth and quantity continues primarily as a result of elevated costs and inflation


The drivers now for households to undertake important dwelling initiatives are polarizing.

Some are pushed by necessity, equivalent to portray the partitions earlier than promoting or transferring out of a property – and, in keeping with our very newest GfK Client Life knowledge, slightly below half (45%) are prone to contemplate worth to be an important issue of their buying determination.

Nevertheless, different customers have a compelling private need to concentrate on their dwelling, regardless of excessive rates of interest, excessive inflation, and the re-emergence of competing calls for his or her discretionary spend, equivalent to holidays and consuming out. In reality, a 3rd (34%*) of individuals globally are spending time as soon as every week or extra on dwelling upkeep this 12 months, up from 29% in 2019 or pre-pandemic.

To encourage extra consumers to buy within the present market circumstances and even improve into extra premium ranges, manufacturers and retailers should current a related and compelling product positioning that faucets instantly into customers’ present precedence needs and desires.

With the summer time shopping for season in full swing, pockets of alternative exist to enchantment to even probably the most discerning and cost-conscious shopper all through the rest of 2023 and into 2024.


Alternative #1 – Innovation and design

Producers have to constantly spend money on new applied sciences. Improvements might be so efficient that customers making that improve are set for years to return – thereby giving them appreciable long-term worth in return for the preliminary spend. After all, this is usually a draw back for the manufacturers behind these merchandise.

Take LED lamps (mild bulbs) for instance. They’ve change into the mainstream each at dwelling and in most workplaces, accounting for 90% of all lamps offered. Nevertheless, LED lamps final round ten instances longer than the previous incandescent bulbs, so the gross sales quantity of LEDs has declined in recent times, because the market saturated and the substitute cycle is so lengthy (no use to interchange damaged bulbs anymore).

The expansion potential is now targeted on good bulbs. While the good lighting market continues to be small, the buyer enchantment of those is extraordinarily sturdy , taking part in to immediately’s very sensible however aspirational drivers of comfort, enjoyment at dwelling and vitality saving (and subsequently cost-saving). The problem is {that a} good LED mild bulb continues to be at the least 5 instances the worth of an everyday LED bulb. Initially, manufacturers struggled to extend penetration to the mainstream and never simply the early adopters. Then a lot of funds good LEDs had been launched to compete alongside the visually-rich advertising and marketing of the premium branded merchandise. In reality, the variety of totally different funds gadgets promoting elevated by 40% in 2022. This has induced a lower within the common worth of good LEDs total as these funds merchandise proceed to achieve market share. The bottom worth tier now accounts for 53% quantity share.


Differentiation can be an efficient model technique in classes with excessive substitutability at product stage. Emulsion paint accounts for 76% of the full quantity of paint gross sales total (and 64% of whole income) and is dominated by longstanding iconic manufacturers. However, a model launched a number of years previous to the pandemic in Jap Europe managed to claw away share from the massive gamers within the increased priced segments with its sturdy premium model positioning and interesting visible social media presence. Equally, a well-liked German model providing designer color choices additionally performs properly within the higher worth phase, regardless of the present inflationary pressures on the class. On this case, increased costs might be justified when the providing is exclusive and aspirational sufficient.

Alternative #2 – Comfort

Virtually half of customers (41%) agree or strongly agree that they’re ready to pay extra for merchandise that make their life simpler*. We’re already seeing merchandise which might be easy-to-use or that automate duties, outperform the remainder of their respective class.


For instance, digital water timers are rising +199% for the interval January to April this 12 months, while water timers as a class are in decline at -8%. Powered chain saws grew +7%, whereas the cordless fashions grew +26%. Even robotic garden mowers – a now established class providing excessive comfort noticed +2% progress fee throughout January to April – and fashions protecting a excessive square-metre space outperformed at +6% progress.

Most often, these higher-convenience merchandise additionally command a worth premium – for instance, robotic garden mowers at 114%.

The patron can successfully do a pay-off equation of how a lot effort and time is saved, for instance the robotic garden mower could save an aged shopper cash by not having to pay a gardener.

With the ability to quantify the comfort benefits as seen from the angle of the buyer is crucial for pricing the product on the ‘candy spot’ – giving it the premium it deserves, whereas nonetheless being acceptable to the buyer.

Handy, straightforward to make use of and merchandise that automate duties outperform the class progress


Alternative #3 – Sustainability

Eco-friendly merchandise provide alternative for premiumization inside Gardening & Dwelling Enchancment. Regardless of the stress on customers’ wallets, 46% of consumers globally nonetheless take environmental safety components under consideration when deciding what to purchase. Moreover, 73% of customers declare to preserve vitality at dwelling (e.g. by utilizing vitality environment friendly merchandise), an angle which is up +3 factors vs 2022.

The necessity for eco-friendly and vitality environment friendly merchandise has copious headroom to develop, and EU rules round these areas will solely steer the market additional within the coming years. 

The primary 4 months of 2023 has seen eco-friendly merchandise equivalent to natural and pure rising media and fertilizers, or financial faucets, growing their share of phase worth, or normalizing at excessive ranges.

Eco-friendly H&L product shares improve or normalize at excessive ranges




Quantity demand throughout Gardening & Dwelling enchancment has had a subdued begin to the 12 months, nevertheless segments equivalent to backyard sprayers, digital water timers, and cordless energy instruments have already confirmed larger potential for the summer time gross sales interval.

In an effort to reenergize gross sales quantity and proceed income progress, manufacturers and retailers should persuade customers to spend their disposable earnings – which is already beneath stress from the rising value of residing – on initiatives at dwelling, as an alternative of on that summer time trip overseas or new garments.

Methods and techniques with the next likelihood of success with customers contain assembly customers’ precedence wants and needs within the present inflationary market. A 3rd of customers recurrently spend time on dwelling upkeep – greater than previous to the pandemic – and are subsequently are nonetheless prepared to spend. Comfort, eco-friendly alternate options and aspirational design can enchantment to customers at totally different funds ranges, as proven by the current examples. Whichever technique is chosen, the worth being delivered should validate the worth tag, which, in as of late, is usually increased, relatively than decrease. 

Do you need to get extra details about the GfK Client Life examine?

Visit our GfK Consumer Life page



*Supply: GfK Client Life, 2019- 2023.



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