HOUSE & GARDEN. Spring Online Industry Trends
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1 HOUSE & GARDEN Spring 2017 Online Industry Trends
2 Overview Spring is in the air and retailers are ready for a seasonal change. The sector has had a challenging start to the year, with Q1 sales declining by 1.4% - the largest quarterly fall in 7 years, according to ONS. But not all retail verticals have felt the same squeeze. House & Garden has come off a successful year, growing by 7.9% in online visits and 20.2% in online sales year-on-year, according to Hitwise and IMRG statistics. Easter, a peak period for House & Garden, has also fallen closer to the summer season this year, which has had a positive impact on online visits, with a rise of 14.8% over the 2 weeks of Easter, compared to last. In this report, we analysed the online performance over Easter, and highlighted which retailers and brands have capitalised the most during this peak period. These insights are split into the following categories of: Garden, DIY Tools, Furniture and White Goods. We hope you enjoy our report. Regards, Hitwise Team
3 Garden
4 Garden: Search Trends 0.07% 0.06% Search Clicks Garden Weekly Search Clicks 30% rise in garden search clicks over the past 8 weeks YoY Selection of High Growth Terms April 2017 artificial grass 0.05% rattan garden furniture 0.04% 0.03% garden storage 0.02% 0.01% 0.00% 05/03 23/04 21/05 18/06 16/07 13/08 10/09 08/10 05/11 03/12 31/12 28/01 04/03 22/ Organic Clicks Paid Clicks 2017 sun loungers gas bbq 22/04/ /04/ /04/ /04/2017 Garden searches have increased rapidly over the past 8 weeks, at 30% higher in total search clicks and 68% higher in paid clicks, compared to the equivalent weeks in Outdoor products, such as rattan garden furniture and sun loungers, have driven this rise in recent weeks. Data Collection: Hitwise Intelligence. Downstream traffic from portfolio of 642 garden product searches, 4 rolling weeks to 22 April 2017.
5 Garden: Top Players Garden Top 5 Downstream Sites Search Clicks Argos & ebay have grown significantly in garden product share Paid Rate Both of which have largely increased PPC on garden terms over Easter 3.3% 5.6% 5.3% 5.5% 5.0% 5.0% 4.3% 4.5% 4.2% 51.7% 52.8% 45.0% 48.9% 55.6% 2.3% 21.5% 12.1% 21.1% 26.4% 16.2% Argos Homebase Amazon UK Wickes ebay UK Search Clicks 2016 Search Clicks 2017 Argos Homebase Amazon UK Wickes ebay UK Paid Rate 2016 Paid Rate 2017 Looking at downstream results from garden product searches, Homebase, Amazon and Wickes have maintained sizeable shares compared to last year. Argos and ebay, on the other hand, have grown 66% and 82% respectively, matched by their increased PPC. Data Collection: Hitwise Intelligence. Downstream traffic from portfolio of 642 garden product searches, covering 4 weeks to Easter 2017 (week ending 22 April 2017) vs. Easter 2016 (week ending 2 April 2016).
6 Garden: Top Risers Garden Top 5 Players Trend in Search Clicks 6.0% 5.6% Argos 173% * 5.0% 4.0% 4.4% 4.2% Homebase Amazon UK 24% 34% 3.0% Wickes 11% 2.0% 2.0% ebay UK 32% 1.0% 04/03/ /03/ /03/ /03/ /04/ /04/ /04/ /04/2017 Argos has focused successfully on their garden range, rising by an incredible 173% in search clicks over the past 8 weeks. Other top players have also ramped up their search optimisation efforts, showing a tighter contest in the garden category as we approach Summer. Data Collection: Hitwise Intelligence. Downstream traffic from portfolio of 642 garden product searches. * Relative difference in search share from week ending 4-Mar to 22-Apr.
7 DIY Tools
8 DIY Tools: Search Trends 0.04% 0.03% Weekly Trend DIY Tools Weekly Search Clicks Steady rise in DIY searches since start-2017 Selection of High Growth Terms April 2017 karcher pressure washers cement mixer 0.02% 0.01% ronseal fence paint 0.00% decking paint decking tiles 22/04/ /04/ /04/ /04/2017 Organic Clicks Paid Clicks Searches for DIY tools have steadily increased week-on-week since the start of the year, growing by 47% from the week ending 7-Jan to the week ending 22-Apr. Hot DIY products have emerged over Easter, including a 945% rise in search clicks of karcher pressure washers over the past 4 weeks. Data Collection: Hitwise Intelligence. Downstream traffic from portfolio of 869 DIY tool searches, 4 rolling weeks to 22 April 2017.
9 DIY Tools: Top Players DIY Tools Top 10 Downstream Sites Search Clicks 10.7% 10.6% 7.0% 6.1% +64% 5.4% 5.3% 4.7% 4.3% 4.6% 4.6% 4.0% 3.9% 3.3% 2.5% +80% +113% 2.9% 2.1% 1.4% 1.5% 1.8% 1.7% Screw Fix Amazon UK Argos B&Q Homebase ebay UK Wickes ToolStation Dulux UK Axminster Power Tool Search Clicks 2016 Search Clicks 2017 The top 10 players accounted for 49% of downstream share in the 4 weeks ending in Easter, with 8 out of 10 players increasing their search share compared to last year. Argos, Wickes and Tool Station saw significant double- and triple-digit growth over this Easter. Data Collection: Hitwise Intelligence. Downstream traffic from portfolio of 869 DIY tool searches, covering 4 weeks to Easter 2017 (week ending 22 April 2017) vs. Easter 2016 (week ending 2 April 2016).
10 DIY Tools: Top Risers DIY Tools Selected Top Risers Trend in Paid Rate 70% 68% ToolStation 27% * 60% 50% 54% 48% 59% 47% Argos Wickes 23% 26% 40% 38% 30% 04/03/ /03/ /03/ /03/ /04/ /04/ /04/ /04/2017 PPC has largely contributed to this growth, with top risers - Argos, Wickes and Tool Station increasing their average paid rates by 20% since the start of March. Out of the three, Wickes was able to generate the highest proportion of organic clicks for the DIY tool category. Data Collection: Hitwise Intelligence. Downstream traffic from portfolio of 869 DIY tool searches. * Relative difference in paid rate from week ending 4-March to week ending 22-April.
11 Furniture
12 Furniture: Search Trends Furniture Weekly Search Clicks Search Clicks Selection of High Growth Terms 0.07% 0.06% 0.05% 0.04% 0.03% 0.02% January Peak sofa bed eve mattress simba mattress 0.01% 0.00% ottoman beds white bedroom furniture 22/04/ /04/ /04/ /04/2017 Organic Clicks Paid Clicks After January s peak, searches for furniture have stabilised heading into Summer. Storage+furniture and specialised mattresses are still in high growth, including a 24% rise in search clicks for sofa bed and 147% rise for ottoman bed, when comparing the start and end of April. Data Collection: Hitwise Intelligence. Downstream traffic from portfolio of 876 furniture searches, 4 rolling weeks to 22 April 2017.
13 Furniture: Top Players Furniture Top 5 Downstream Sites 5.7% 6.9% 2.3% 4.3% Search Clicks 3.4% 3.4% 3.3% 2.1% Top 5 have increased their share, esp. Argos, Wayfair & ebay 2.8% 3.0% 29.9% 45.9% 70.4% 67.4% Paid Rate This is matched by increased PPC for Argos & ebay 50.6% 80.9% 74.6% 12.4% 7.2% 16.6% Argos Wayfair UK IKEA ebay UK Beds.co.uk Search Clicks 2016 Search Clicks 2017 Argos Wayfair UK IKEA ebay UK Beds.co.uk Paid Rate 2016 Paid Rate 2017 Competition is more spread for furniture searches, with the top 50 players accounting for 66% of downstream traffic. Out of the top 5, Argos, Wayfair and ebay have grown considerably compared to last year s Easter (20%, 88% and 58% respectively). Data Collection: Hitwise Intelligence. Downstream traffic from portfolio of 876 furniture searches, covering 4 weeks to Easter 2017 (week ending 22 April 2017) vs. Easter 2016 (week ending 2 April 2016).
14 Furniture: Fast Risers Furniture Top 5 Risers Brands 2.0% 1.8% 1.6% 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% 04/03/ /03/ /03/ /03/ /04/ /04/ /04/ /04/2017 Harveys - The Furniture Store The Simba Sleep Eve Mattress Oakfurnitureland The Cotswold Company 97% * 71% 24% 48% 76% Despite this stabilising period, the past eight weeks has seen incredible growth with select players, including: British born manufacturers (such as Harveys, Cotsworld and Oak Furniture Land) and specialist brands (such as Simba Sleep and Eve Mattress). Data Collection: Hitwise Intelligence. Downstream traffic from portfolio of 876 furniture searches. * Relative difference in search share from week ending 4-Mar to 22-Apr.
15 White Goods
16 White Goods: Search Trends Search Clicks White Goods Search Trends Selection of High Growth Terms 0.03% fridge freezers 0.02% mini fridge 0.01% Christmas Peak integrated washer dryer 0.00% dishwasher sale twin tub washing machine 22/04/ /04/ /04/ /04/2017 Organic Clicks Paid Clicks Although Christmas typically sees the largest rise in white good searches, Easter has triggered an uptake in paid clicks (12% from start to end of April). Preparing for summer, terms around fridges and freezers, along with integrated solutions have had the largest growth week-on-week. Data Collection: Hitwise Intelligence. Downstream traffic from portfolio of 492 white goods searches, 4 rolling weeks to 22 April 2017.
17 White Goods: Top Players White Goods Top 3 Downstream Sites 20.2% 24.6% Search Clicks 17.4% 18.0% The top 3 have grown from 50% to 56% in search share 63.4% Paid Rate 73.2% 76.5% The average paid rate has also increased from 56% to 68% 64.2% 52.1% 12.5% 13.3% 41.4% Currys ao.com Argos Search Clicks 2016 Search Clicks 2017 Currys ao.com Argos Paid Rate 2016 Paid Rate 2017 Compared to other categories, White Goods are dominated by a handful of retailers. The top 3 - Currys, AO and Argos have increased both their downstream share (50% to 56%) and paid rates (56% to 68%) over this Easter period, compared to last. Data Collection: Hitwise Intelligence. Downstream traffic from portfolio of 492 white goods searches, covering 4 weeks to Easter 2017 (week ending 22 April 2017) vs. Easter 2016 (week ending 2 April 2016).
18 White Goods: Fast Risers White Goods Top 5 Risers Retailers & Brands Other players are also growing rapidly in this category, including a range of retailers and direct brands. All of the below fast risers, except for Panasonic and IKEA, have invested heavily in PPC to do so. Data Collection: Hitwise Intelligence. Downstream traffic from portfolio of 492 white goods searches, covering 4 weeks to Easter 2017 (week ending 22 April 2017) vs. Easter 2016 (week ending 2 April 2016).
19 Summary
20 Key Takeaways 1. Keep a close eye on fast moving search terms, particularly in Garden and DIY tool categories, which are looking to grow at a higher rate than last year. 2. Track this year s hot products, such as rattan garden furniture, outdoor loungers and pressure washers, and identify who is getting their downstream traffic (and are they doing so through paid or organic clicks). 3. React swiftly and accordingly by analysing trending products search variations. Identify a list of high organic terms to inform your own PPC strategy. 4. Understand where else your competitors are getting their traffic from and for which products. Compare this with your own channel strategy (are you missing out on any affiliate opportunities). 5. Profile the audiences behind trending search terms (where else do they visit online and what else are they interested in). Use these insights for display or content opportunities, to enhance reach.
21 Contact Us: House & Garden Spring 2017 Online Industry Trends
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