Ecomdigest Home Decor & Furniture Newsletter - 11.14.2024

PLUS: IKEA boosts profits with new factories and a stronger global supply chain

Author

Priscilla Soedarpo
November 14, 2024 • Estimated Reading Time: 7 minutes

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Style Spotlight 🌟

Fantastic Furniture, a prominent player in Australia's value furniture and bedding market, has reaffirmed its media partnership with Initiative, extending their collaboration for another year. This renewed alliance encompasses a comprehensive range of media planning and buying, including national and local broadcast, print, OOH, radio, cinema, and BVOD. Since Initiative's engagement in August 2023, the agency has introduced a strategic audience framework and executed pivotal campaigns such as 'Find Your Fantastic', Black Friday, and the annual Christmas Sale, significantly enhancing Fantastic Furniture's market presence.

Initiative's role has been instrumental in the successful launch of new store locations, notably in Melton and Tweed Heads. Melissa Monneron, Chief Marketing Officer of Fantastic Furniture, expressed enthusiasm about the continued partnership, highlighting Initiative's strategic and creative contributions that have elevated brand metrics. Monneron emphasized the agency's impact in setting sustainable long-term business objectives, fostering growth, and challenging traditional brand perceptions.

The partnership's success is attributed to Initiative's innovative approach and the mutual trust between the teams. The agency's commitment to exploring new channels and strategies has resulted in campaigns that surpass competitors. This collaboration not only meets but exceeds ambitious goals, driving customer engagement and sales, and positioning Fantastic Furniture as a leader in the industry.

Big Furniture Group

Harrison Spinks, a luxury bedmaker, won the 2024 Bed Manufacturer of the Year award for its innovation and sustainability efforts. Celebrating its achievements, the company showcased new mattress models and collaborated with designer Patrick Grant. Their commitment to quality and eco-friendly practices highlights their leadership in the luxury sustainable sleep market.

The Cotswold Company

Next has partnered with The Cotswold Company to offer its homeware online, expanding its omnichannel strategy. This collaboration allows The Cotswold Company to reach more consumers through Next's platform, enhancing its growth as a premium brand. Online orders will be fulfilled by The Cotswold Company.

Inter IKEA Group's FY24 saw improved gross margins and stable profits, driven by cost reductions and price cuts. Investments in manufacturing and marketing, including new factories for BILLY and PAX, aim to enhance growth and sustainability. The acquisition of Baltic operations further strengthens IKEA's global value chain.

Riva Home, a Leeds-based furnishings supplier, announces leadership changes to support growth. Justin Green becomes CEO, with Ed Banfield as MD. Lloyd Evans and Hannah Norbu take key roles, while Paul Fitzpatrick joins as trading director. The team aims to expand product lines and strengthen retail partnerships.

Leading Voices 📣 

With the election now behind us, the whopping 44% of consumers who reported delaying purchases pre-election may finally be ready to open their wallets.

Black Friday and Cyber Monday could be bigger than ever as shoppers prepare to make these ‘revenge purchases.’ This is a prime opportunity for brands to capture pent-up demand.

In this article, Jamie Bolton shares 3 tips to make the most of this opportunity:

📉 Integrate Lower-Competition Channels: Platforms like Snapchat have less competition and lower CPMs, offering low-hanging conversion opportunities.

🎯 Consider TikTok for Efficiency: Last year, TikTok saw the biggest month-over-month jump in ROAS in November, making it a highly efficient tool for BFCM success.

⏳ Strategically Time Ad Spend: 2023 data shows strong results from increasing spend at the start of Black Friday week, but the best approach depends on your budget and goals. (Get a full guide to three timing strategies in Fospha’s BFCM report).

For a closer look at the data behind Jamie’s top tips for BFCM 2024, check out the full article.

Luke Jonas on LinkedIn: Going Global in 2025

Although Black Friday is just around the corner, savvy brands have half their mind on next year.

With economic challenges in the UK, and a growing opportunity in the US/EU, many retailers are asking: how can we mitigate the risk of our home market?

Performance Pulse 📈

Marketers should focus on creating emotionally resonant holiday campaigns that align with consumer behaviors. By prioritizing engagement and building brand loyalty, they can navigate the shortened holiday season effectively. Continuous engagement and innovative strategies, rather than early promotions, are key to long-term success and consumer connection.

BigSummit emphasized the importance of multi-channel strategies for e-commerce success. Brands should engage consumers across various platforms, manage product assortment, and adapt to economic pressures. Social shopping, especially on TikTok, offers new opportunities. Understanding consumer behavior and forming strategic partnerships are crucial for navigating the evolving ecommerce landscape.

Instagram's Adam Mosseri clarifies that the platform does not reduce the reach of posts tagged as sponsored content. This myth is debunked to encourage creators to comply with laws without fear. The perceived reach penalty is likely due to user engagement, not Instagram's algorithmic actions.

Ecomdigest is a Contentive publication in the DTC Ecommerce division