Because of inflation, the rapid pace of growth in DIY home improvement spending slowed down in 2023 for many product categories. This makes it imperative for building materials companies to be intentional and strategic when looking for ways to expand their market share. In other words, you’ll have to compete again.
The best place to start is with custom market sizing research. This will provide you with a clear and accurate understanding of the total revenue of your specific market, your position within it, the channels where dollars are flowing, and avenues for potential growth.
What is the State of the DIY Home Improvement Market?
The DIY segment of the home improvement market has expanded significantly over the years, as home improvement shows, YouTube tutorials, and other resources have both inspired homeowners to take on DIY projects and empowered them with information to do so.
During the height of the COVID-19 pandemic, demand was surging as individuals found themselves with more time on their hands to undertake new home improvement projects and also new reasons to do so, such as creating healthier, wellness-centric homes, or additional work spaces.
By 2023, growth in the industry still existed but it has slowed exponentially, a negative trend that is expected to ease back upwards in 2024. In general, the DIY segment is still expected to experience a positive CAGR through 2027, according to the Home Improvement Research Institute’s ‘U.S. Size of the Home Improvement Products Market Report.’
How is Market Share Gain Calculated?
To work toward growing your home improvement market share in the DIY segment, it’s critical to start with an accurate understanding of your current position, which is able to be calculated through custom market sizing research with The Farnsworth Group. You also can use relative market share calculations to see how you measure up against industry leaders and your direct competitors.
The market share formula involves dividing your business revenue by the total industry revenue and then multiplying the quotient by 100. This gives you a percentage that correlates to your market share.
Your market growth will manifest as an increase of that percentage over time, demonstrating that you are capturing a greater amount of the available revenue in the industry.
However, it’s important to keep in mind that market share is only one factor that pertains to business success, and it can be influenced by factors outside of your control, such as the overall state of the economy. Additionally, you might increase product sales without significantly altering your market share, particularly in a growing market.
Empower Cross-Departmental Use of Custom Research to Increase Market Share
A market sizing project will provide your building materials company with the overall estimated manufacturer and retailer value of sales in the United States for a particular product or product line.
You’ll also gain insight into your current brand share, channel share, and product share. You will be able to know this information by customer segment (DIY vs. Pro), as well. Additionally, targeted research reveals recent shifts in alternative markets and other industry trends.
This data can be used across departments to aid your team members in tasks designed to help increase your share of the DIY home improvement market. In practice:
- Your teams will know which channels hold the greatest potential for expansion and be able to develop a channel strategy that places you is the right place at the right time to win the sale.
- Your marketing team will know which regions to target with specific campaigns according to market demand.
- Your product development team also will gain insight for tailoring product innovation to respond to shifts in alternative markets and how to price products competitively.
This enables your teams to actually generate new demand, rather than simply pulling demand forward.
There are several marketing methods to deploy in your efforts to gain a greater share of the DIY home improvement market. Some of these strategies include:
- Increasing brand awareness
- Incorporating new channels of distribution for various product lines
- Altering specific product prices to be more competitive while ensuring you prioritize value for the customer
- Creating new product lines
- Adding innovative/preferred features that make them more desirable to customers
- Empowering distributors with knowledge about your products so they are easier to promote and sell to customers
Before taking these steps, set yourself up for a more effective and meaningful process by conducting custom market research with an industry focused research team, such as The Farnsworth Group.
Starting a Custom Research Project to Gain Market Share
The data collected through custom market research with our expert market researchers at The Farnsworth Group results in tangible recommendations regarding optimal channels for distribution, most effective product mixes, and areas with new revenue potential.
You also can use product pricing research and brand health and awareness research to augment these insights and identify other ways to improve your company’s position within the DIY home improvement market.
