interior design monitor 2020...3 recommendations and “word of mouth” are the number one client...

U.S. Interior Design Monitor 2020Schumacher & Statista Expert Survey

November 2020

http://www.statista.com/

2

Interior design industry in good shape, designers rate their company’s economic situation positively

According to our survey, which was conducted during the global coronavirus pandemic, 60% of interior design companies rate theireconomic situation as rather positive or very positive, while only 9% see it as rather or very negative. All U.S. regions are overall in a rather good shape, with the Mid West and South rating their economic situation above average. The company size has an effect onits economic wellbeing: 69% of companies with 6 or more employees feel positively about their economic situation, compared to54% of one person companies.

COVID-19 slowed down projects and deliveries, financial trouble and lay-offs have however been rare

The COVID-19 pandemic has slowed down many interior designers: 55% are still operating with some form of restrictions compared to before the pandemic, luckily only 2% are not able to operate at all. Nevertheless, delayed product deliveries and projects have been especially problematic for many companies. Financial trouble and lay-offs however have been rare. Additionally, almost 50% have even experienced increased project inquiries since the pandemic broke out, 26% said that projects .profited from forced slow-downs.

On average, clients invest US$ 406k in an interior design project, with 23% spending US$ 100k-500k

63% of conducted interior design projects are renovations, 24% are new builds. American clients splash out when it comes to embellishing their homes: on average, clients invest US$ 406k on an interior design project. 70% of interior designers state product availability as a typical challenge, followed by client related challenges (62%) such as unrealistic expectations or changes in the agreed scope.

Key Insights: Market situation and interior design projects

Interior design companies in the U.S. are able to resist the effects of the COVID-19 pandemic

Note: The survey was conducted while the global COVID-19/coronavirus pandemic was influencing everyday life in the U.S. Find further information at the end of this report. Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

3

Recommendations and “word of mouth” are the number one client generator for interior designers

63% of interior design companies get first noticed by clients through word of mouth and recommendations. The most frequent multipliers are current or former clients (80%), followed by contractors (46%) and real estate agents (36%). In the Southern U.S. recommendations by real estate agents and contractors are more common compared to the other U.S. regions.

For finding new suppliers, (business) relationships and contacts are most integral channel

When it comes to finding new suppliers, 90% of interior designers rely on (business) contacts and relationships. Design centers, local stores and showrooms come in second with 70%. Sales representatives play an outstanding role in the Mid West of the U.S.. Recommendations for new suppliers are most often given by other designers (65%), followed by contractors (54%).

Criteria which make a good supplier are a mixture of hard and soft factors

Leading the list of important criteria for good suppliers are good customer service (85%) and product quality (82%). “Soft” components like the ease of doing business (79%) as well as positive working experiences in the past (70%) rank higher than pricing (53%) and conditions (52%).

Social media is the most important marketing tool for interior designers

With 70% of interior designers using social media channels and 60% with an own website, internet presence is by far the most used tool for company representation. Within social media, Instagram, Facebook and Pinterest form the "holy triangle" of digital communication. The respective channels are also used for client acquisition: 42% of interior designers state to find new potential clients via Instagram, 25% are able to generate clients through Facebook.

Key Insights: Stakeholders, communication and marketing

Interior design is highly relationship driven, with digital communication and social media adding new layers

Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

4

Interior design magazines are the most important source of inspiration

Most interior designers find inspiration for their projects in interior design magazines (69%). Architecture (63%) and historicalelements (54%) are additional sources of inspiration. 49% of interior design enthusiasts look to designers for inspiration.Architecture is one of the main sources of inspiration for 68% of respondents in the West of the U.S.

Trend towards sustainability within interior design

Asked for the future relevance of certain trends within interior design, there is a clear trend regarding sustainability, which is shownin the high rating of natural elements / biomaterials (67%) and eco-chic / upcycling (56%). Regarding interior design trends in thenext 1 to 2 years, there is a wide consensus amongst stakeholders, with interior designers and enthusiasts giving similar ratings.

Most interior design companies profit from ongoing digitalization

For 71% of interior designers, the ongoing digitalization has impacted their business in a positive way. The biggest improvements liein staying up to date with what is going on in the industry (83%), finding inspiration (82%) and the easier communication with both,clients (80%) and suppliers (79%). The only slight downside can be found in a negative impact on time pressure and price pressure.

General challenges for the interior design industry are client and competition related

Business development (31%) and client management (30%) are the biggest pain points when it comes to business operations withininterior design companies. Additionally, interior designers state the dealing with wrong client expectations regarding budget (58%)and timing (48%) as a challenge. An increasing competition from design online shops (52%) and a growing mass market for interiordesign (39%) as well as pricing pressure (42%) are additional challenges that are facing the industry.

Key Insights: Style & trends and business operations

Trend towards sustainability has reached the interior design industry; most profit from digitalization

Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

ECONOMICSITUATION

5

60% of interior design companies rate their

economic situation as rather positive or very

positive, while only 9% see it as rather or very

negative. The company size has an effect on its

economic wellbeing: 69% of companies with 6 or

more employees feel positively about their

economic situation, compared to 54% of one

person companies.

20%

40%

26%

7%

2%5%

6

Own company’s economic situation

Economic situation (1/3)

Interior design industry in good shape, 60% of design-ers rate their company’s economic situation positively

Note: The survey was conducted while the global COVID-19/coronavirus pandemic was influencing everyday life in the U.S. Find further information at the end of this report."How do you rate the current economic situation of your company overall?"; single-pick; n=284 interior designersSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

Very positive Rather positive Rather negativeDepends Very negative Don’t know / No answer

Top 260%

Bottom 29%

Mid West1

7

Own company’s economic situation by region


All U.S. regions are economically in a rather good shape, Mid West and South above average

1: low base n=35Note: The survey was conducted while the global COVID-19/coronavirus pandemic was influencing everyday life in the U.S. Find further information at the end of this report. "How do you rate the current economic situation of your company overall?"; single-pick; n=284 interior designersSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

5% 5% 7%6%

7% 8%9%

26%

14%

20%38%

32%

40%

57%44%

29%

36%

20% 17%22% 25%

14%

2%3%3%

Total

3%3%

Mid West South

4% 0%

West

1%

North East

Very positive Rather positive Rather negativeDepends Very negative Don’t know / no answer

66%

54% 50%

74%

60%

employees1

8

Own company’s economic situation by company size


The economic situation grows positively with the number of employees

1: low base n=32Note: The survey was conducted while the global COVID-19/coronavirus pandemic was influencing everyday life in the U.S. Find further information at the end of this report. "How do you rate the current economic situation of your company overall?"; single-pick; n=284 interior designersSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

5% 8% 6%6%

7%7% 8%

25%

6%

26%30%

24%

40%

22%

40%

39%41%

25%

44%

20%14% 18%

25%

2%

Total

0%

1 employeeOne person company

2%

4%

3%

2 to 5 employees

0%3%

6 and more employees

Rather negativeVery positive Rather positive Depends Very negative Don’t know / no answer

60%54%

59%65% 69%

COVID-19 IMPACT

9

55% are still operating with some form of

restrictions compared to before the COVID-19

pandemic, luckily only 2% are not able to operate

at all. Nevertheless, delayed product deliveries

and projects have been especially problematic for

many companies. Financial trouble and lay-offs

however have been rare. Additionally, almost 50%

have even experienced increased project inquiries

since the pandemic broke out, 26% said that

projects profited from forced slow-downs.

10

Business after COVID-19 / corona pandemic

COVID-19 impact on operations (1/2)

More than 55% of interior designers are still operating with restrictions compared to before COVID-19

"Compared to before the COVID-19 / corona pandemic, how is your business functioning at the moment?"; single-pick; n=284 interior designersSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

Never made any changes to operations

Operating better than before

No answer

Operating with severe restrictions

Operating as before / back to ’normal’

12%

Operating with some restrictions

Not able to operate at all

6%

23%

48%

7%

2%

1%

29%Operating as before

55%Operating

with restrictions

Mid West1

11

Business after COVID-19 / corona pandemic by region

COVID-19 impact on operations (2/2)

68% of North Eastern interior designers report continuous operation restrictions after COVID-19

1: low base n=35"Compared to before the COVID-19 / corona pandemic, how is your business functioning at the moment?"; single-pick; n=284 interior designersSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

51%

7%

40%

55%68% 52%

9%

50%

29%

20%25%

33%

12% 11% 13% 14%

4%

Total

1% 0%2% 1%

North East West

0%0%

Mid West

2%1%

South

Operating better than before Operating as before Operating with restrictions No answerNot able to operate

12

Company changes since COVID-19 / corona pandemic breakout

Company changes since COVID-19 / corona pandemic

Almost 50% have experienced increased project inquiries since pandemic, product deliveries suffered

"How have the following aspects changed in your company since the COVID-19 / corona pandemic broke out?"; matrix question; n=284 interior designersSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

48%

36%

29%

15%

14%

7%

18%

21%

21%

38%

15%

56%

33%

39%

40%

31%

67%

19%

4%

10%

16%

4%

18%

Product deliveries

1%Number of

project inquiries

Client frequency

Number of employees

Turnover / sales

Liquidity

Strongly/slightly increased Don’t know / no answerRemained the same Strongly/slightly decreased

13

Business consequences of COVID-19 / corona pandemic

Consequences of COVID-19 / corona pandemic (1/2)

COVID-19 slowed down projects and deliveries, financial trouble and lay-offs have however been rare

"Which of the following applies to your business in regard to COVID-19 / corona pandemic?"; multi-pick; n=284 interior designersSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

21%

Projects were delayed

Work was completely stopped (temporarily)

Projects were canceled

6%

26%

Product deliveries were delayed

Business was boosted

Work shifted to remote work (temporarily)

5%

24%

Projects profited from forced slow-down(e.g. additional creativity)

Product orders were canceled

51%

Employees were furloughed

Our business has gotten into financial trouble

3%Employees were terminated

62%

Other

None of the above / no answer

69%

35%

15%

8%

1%

Mid West2

14

Business consequences of COVID-19 / corona pandemic by region (in %)1

Consequences of COVID-19 / corona pandemic (2/2)

39% in the South stated that projects profited from forced slow-down, least delays in the West

1: answers ≥ 10%; 2: low base n=35"Which of the following applies to your business in regard to COVID-19 / corona pandemic?"; multi-pick; n=284 interior designersSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

6865

28

20

2622

7471

66

46

14

31

6

76

66

3539

2522

19

52

4650

36

1413

20

14

Product orders were canceled

Projects profited from forced slow-down

Work was completely stopped

(temporarily)

Work shifted to remote work (temporarily)

Product deliveries were delayed

20

Projects were delayed

Business was boosted

Projects were canceled

53

46

14

Total North East Mid West South West

STYLE & TRENDS

15

Most interior designers find inspiration for their

projects in interior design magazines (69%).

Architecture (63%) and historical elements (54%)

are additional sources of inspiration. Asked for the

future relevance of certain trends within interior

design, there is a clear trend regarding

sustainability, which is shown in the high rating of

natural elements / biomaterials (67%) and eco-

chic / upcycling (56%).

16

Interior design projects styles by stakeholder (in %)1

Interior design projects styles (1/2)

Interior design enthusiast have a softer spot for Eclectic, Bohemian and Preppy in interior design

1: answers ≥ 6%"Which of the following does your style in interior design projects mainly fall into?"; multi-pick; n=427, all respondentsSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

5961

27 26

18

6

49

36

31

36

15

12

17 15

6 7

Mid-century modern

New Traditional

EclecticTransitional Traditional Coastal BohemianContemporary Preppy Minimalist Exuberant

14

8 9

39

30

6

Interior design enthusiastTotal Interior designer

17

Interior design projects styles by stakeholder (in %)1

Interior design projects styles (2/2)

West has higher affinity towards Contemporary style, North East appreciates Coastal style

1: answers ≥ 6%"Which of the following does your style in interior design projects mainly fall into?"; multi-pick; n=427, all respondentsSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

61

36

24

30

1619

13 13

9

57

54

37

11

25

22

1114

11

5754

40

33

23

10

64

39

51

2928

25

40

19

12

1

12

4

Coastal Mid-century modern

8

New Traditional

Transitional Traditional BohemianContemporaryEclectic Preppy Minimalist Exuberant

50

12

35

18

64

Total SouthMid WestNorth East West

18

Sources of inspiration1

Sources of inspiration (1/3)

Interior design magazines are the most important source of inspiration

1: answers ≥ 3%"Where do you get your main inspirations for your style in interior design projects?"; multi-pick; n=427, all respondentsSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

70%

58%

51%

40%

35%

35%

30%

28%

26%

10%

4%

Clients

Historical elements

Interior design magazines

Architecture

Fine art

Other designers

Nature

Trends in society (e.g. sustainability)

Fashion

Influencers

Celebrities / icons

19

Sources of inspiration by stakeholder (in %)1


49% of interior design enthusiasts look to designersfor inspiration


69

63

54

37 37 38

3228

71

50 49

37

29

7

1917

14

Fine artInterior design magazines

Architecture Trends in society (e.g.

sustainability)

NatureHistorical elements

Clients

45

Other designers

Fashion Influencers

39

9

Total Interior designer Interior design enthusiast

20

Sources of inspiration by region (in %)1


Architecture is one of the main sources of inspiration for 68% of respondents in the West


66

5653

3638

29

9

65

48

37

22

2725

14

74

58

52

45

37 37

3128 30

10

69 68

3135

29

11

FashionInterior design magazines

ClientsHistorical elements

Fine art Trends in society (e.g.

sustainability)

Architecture Other designers

Nature Influencers

4748

26

37

32

40

34

29 30

17

Total SouthNorth East Mid West West

Homes1

21

Future relevance of style trends in next 1 to 2 years

Interior design trends (1/3)

Clear trend regarding natural elements and sustain-ability, tiny homes not considered relevant in 2 years

1: no strict room separation due to purpose / function"What do you think will be the big interior design trends in the next 1 to 2 years?"; matrix question; n=427, all respondentsSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

67%

56%

36%

29%

29%

27%

26%

15%

14%

21%

29%

26%

28%

37%

28%

26%

28%

27%

9%

12%

15%

35%

31%

36%

39%

52%

54%

3%

3%

24%

8%

3%

8%

9%

4%

5%

Natural elements / biomaterials

Maximalism / ’more is more’

Eco-chic / sustainable-chic / upcycling

Individualization course

Fast furniture

Minimalism

Hybrid Homes

Shared living / housing cooperation

Tiny homes

(Very) high relevance Very little relevance / no relevanceMedium relevance Don’t know / no answer

Homes1

22

Future relevance of style trends in next 1 to 2 years by stakeholder (Top 2, in %)


Wide consensus regarding interior design trends in the next 1 to 2 years amongst stakeholders


65

34

68

57

36

18

29

20

27

1411

Natural elements /

biomaterials

MinimalismIndividualization course

Eco-chic / sustainable-

chic / upcycling

Fast furniture Shared living / housing

cooperation

Hybrid Homes Maximalism / ’more is more’

Tiny homes

55

37

2725 25

1513

Interior design enthusiastTotal Interior designer

Homes1

23

Future relevance of style trends in next 1 to 2 years by region (Top 2, in %)


Hybrid Homes have higher relevance amongst respondents from the Mid West


6967

33 32

28

78

65

3235

46

32

17

47

36

31

22 21

11

65

43

21

3329

35

4

19

Shared living / housing

cooperation

16

Hybrid HomesNatural elements /

biomaterials

Eco-chic / sustainable-

chic / upcycling

Individualization course

MinimalismFast furniture Maximalism / ’more is more’

Tiny homes

63

49

25 24 25 2422

1211


INTERIOR DESIGN PROJECTS

24

63% of conducted interior design projects are

renovations, 24% are new builds. American clients

splash out when it comes to embellishing their

homes: on average, clients invest US$ 406k in an

interior design project. For renovations US$ 244k

are spent on average, while US$ 836k have to be

invested for a new build.

25

Interior design project shares (mean)

Interior design projects

63% of conducted interior design projects are renovations, 24% are new builds

"Thinking of your regular projects, which share falls into the following categories?"; open question; n=264 interior designers excluding "no answer"Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

63%

24%

5%

6%2%

Renovations New builds eDesigns / remote design Event design Other

26

Average interior design project budget

Interior design project budgets

Interior design project budget by project type (mean)1

On average, clients invest US$ 406k in an interior design project, with 23% spending US$ 100k-500k

1: n=184 interior designers excluding "no answer""What budget do your clients on average invest in a typical interior design project?"; open answer; n=284 interior designersSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

Other

Renovations

New builds

US$ 36k

eDesigns / remote design

US$ 836k

US$ 26k

Event design

US$ 244k

US$ 101k

35%

4%

11%

13%

23%

8%

6%

Less than US$ 10 000

No answer

US$ 100 000 to US$ 499 999

US$ 50 000 to US$ 99 999

US$ 10 000 to US$ 49 999

US$ 500 000 to US$ 999 999

US$ 1 000 000 and more

Ø US$ 406k▼

27

Typical interior design project challenges

Interior design project challenges (1/2)

Product delivery and availability constitute main challenges within interior design projects

"What are typical challenges or stumbling stones within your interior design projects?"; multi-pick; n=284 interior designersSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

55%

54%

43%

40%

39%

39%

10%

7%

2%

2%

7%

Bad communication with parties involved

Problems with shipment and delivery

Products or materials are not available

Unrealistic client expectations

Client changes their mind about agreed scope

Costs exceed the original budget

Unreliable suppliers or contractors (craftsmen etc.)

Miscalculation of project feasibility

Unforeseen changes in staff

Other

Don’t know / no answer

Mid West2

28

Typical challenges within interior design projects by region (in %)1

Interior design project challenges (2/2)

Mid West often confronted with problems regarding product shipments and unrealistic client expectations

1: answers ≥ 10%; 2: low base n=35"What are typical challenges or stumbling stones within your interior design projects?"; multi-pick; n=284 interior designersSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

49

55

49

32

11

66

6057

29

54

20

5855

3940

4541

9

50

45

27

36

5

Costs exceed the original budget

Unreliable suppliers or contractors

(craftsmen etc.)

Unrealistic client expectations

Problems with shipment and

delivery

Products or materials are not available

Client changes their mind about

agreed scope

46

Bad communication with parties involved

4138 38 37


29

CLIENTS63% of interior design companies get first noticed

by clients through word of mouth and

recommendations. The most frequent multipliers

are current or former clients (80%), followed by

contractors (46%) and real estate agents (36%). In

the Southern U.S. recommendations by real

estate agents and contractors are more common

compared to the other U.S. regions.

30

Ways clients take notice of company

Ways clients take notice of company (1/2)

"Word of mouth" is the most important way for clients to first take notice of interior design companies

"Through which of these channels do most clients first take notice of your company?"; multi-pick; n=284 interior designers Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

63%

40%

26%

8%

3%

2%

1%

1%

5%

7%

Social Media

Recommendations

In person / networking

Company websites

Blogs

Paper magazines

Digital magazines

Trade shows

Other


Mid West2

31

Ways clients first take notice of company by region (in %)1

Ways clients take notice of company (2/2)

Recommendations less frequently used by clients to first take notice of companies in the South

1: answers ≥ 2%; 2: low base n=35"Through which of these channels do most clients first take notice of your company?"; multi-pick; n=284 interior designers Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

68

5

69

37

6

55

41

10

4

68

27

7

2

Digital magazinesPaper magazinesRecommendations

30

3

Company websitesSocial Media

45

34

2624

0

North EastTotal SouthMid West West

32

Company noticed through recommendations

Client recommendation (1/2)

Sources that recommend company to potential clients

Current and former clients are the most frequent multipliers for interior design companies

"Through which of these channels do most clients first take notice of your company?"; multi-pick; n=284 interior designers; "Which of the following frequently recommend your company to potential clients?"; multi-pick; n=178, interior designers whose companies first get noticed through recommendationsSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

80%

46%

36%

30%

21%

14%

1%

16%Don’t know / no answer

Other

Architects

Current / former clients

Contractors

Suppliers

Other designers

Real estate agents

63%

Mid West1

33

Client recommendations by region (in %)

Client recommendation (2/2)

Regarding recommendations, real estate agents play more important role in the West

1: low base n=24"Which of the following frequently recommend your company to potential clients?"; multi-pick; n=178, interior designers whose companies first get noticed through recommendationsSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

78

40

32

24

10

83

54

25 25

86

47

38

29

15

45 45

34

18 18

68

Current / former clients Contractors Real estate agents Architects Suppliers Other designers

30 29

20

13

SouthTotal North East Mid West West

34

SUPPLIERSWhen it comes to finding new suppliers, 90% of

interior designers rely on (business) contacts and

relationships. Design centers, local stores and

showrooms come in second with 70%. Sales

representatives play an outstanding role in the

Mid West of the U.S.. Recommendations for new

suppliers are most often given by other designers

(65%), followed by contractors (54%). Leading the

list of important criteria for good suppliers are

good customer service (85%) and product quality

(82%).

35

Ways to find new suppliers

Ways to find new suppliers (1/2)

(Business) contacts and relationships are integral to find new suppliers

"How do you normally find new suppliers?"; multi-pick; n=284 interior designersSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

79%

56%

49%

48%

39%

38%

37%

16%

1%

2%

Trade shows

Showrooms

Sales representatives

Recommendations

Design centers

Websites

Social Media

Local stores

Other


Mid West1

76

5551

35

47

39

80

4043

60

3129

77

55

42

47

34

3941

10

84

59

64

55

43

30

21

Trade shows

29

Showrooms

46

Recommendations Design centers Social Media Local storesWebsites Sales representatives

57

22

17

36

Ways to find new suppliers by region (in %)

Ways to find new suppliers (2/2)

Websites frequently used in the West to find new suppliers, Mid West relies on sales representatives

1: low base n=35"How do you normally find new suppliers?"; multi-pick; n=284 interior designersSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

Total Mid WestNorth East South West

37

New suppliers found through recommendations

Supplier recommendation (1/2)

Sources that recommend new suppliers

Other designer most likely to recommend new sup-pliers, 54% get recommendations from contractors

"How do you normally find new suppliers?"; multi-pick; n=284 interior designers; "Which of the following frequently recommends potential supplier to your company?"; multi-pick; n=223, interior designers who find new suppliers through recommendationsSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

65%

54%

39%

32%

30%

13%

2%

6%Don’t know / no answer

Contractors

Other designers

Real estate agents

Current / former clients

Architects

Other suppliers

Other

79%

Mid West1

38

Supplier recommendations by region (in %)

Supplier recommendation (2/2)

75% in the Mid West receive supplier recommenda-tions trough other designers

1: low base n=28"Which of the following frequently recommends potential supplier to your company?"; multi-pick; in=223 interior designers who find new suppliers through recommendationsSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

64

32

75

64

36

18

55

34

29

10

64

45

13

30

ContractorsOther designers Current / former clients Real estate agentsOther suppliers

54

39

Architects

63

23

3632

14

47

39

32


39

Criteria for a good supplier

Criteria for a good supplier (1/2)

Good customer service and product quality are essential for a good supplier in interior design

"What criteria makes a good supplier for you?"; multi-pick; n=284 interior designersSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

85%

82%

79%

76%

70%

64%

53%

52%

48%

44%

28%

28%

27%

23%

12%

1%

1%

Reliability

Recommendations

Good customer service

Individual style

Positive working experience in the past

Good product quality

Conditions (delivery, liability, discount etc.)

Product availability

Ease of doing business

Price

Interpersonal component / relationship

Industry reputation

Large product range

Local

Currently trending

Other


Mid West2

40

Criteria for a good supplier by region (in %)1

Criteria for a good supplier (2/2)

Supplier conditions, such as liability, more important to interior designers in the South and Mid West

1: answers ≥ 50%; 2: low base n=35"What criteria makes a good supplier for you?"; multi-pick; n=284 interior designersSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

88 86

70

76

4945

86 8683

77

66

57

8479

76

6866

5861

82

77

61

41

Positive working experience in

the past

Good customer service

Conditions (delivery, liability,

discount etc.)

Good product quality

Ease of doing business

PriceReliability Product availability

80 79 79 7774

6459

5051

Total North East Mid West South West

41

Preferred channels for communication with suppliers1

Supplier communication (1/2)

Communication with suppliers is preferred via email, followed by phone and personal contact

1: answers ≥ 2%"Which of the following do you prefer to communicate with your suppliers?"; multi-pick; n=284 interior designersSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

86%

62%59%

38%

12%

7%5% 5%

2%

Video ChatTelephoneEmail Text messageFace-to-face FaxSocial MediaWeb shop Online form

Mid West2

42

Preferred channels for communication with suppliers by region (in %)1

Supplier communication (2/2)

45% of interior designers in the South like to use text messages to communicate with suppliers

1: answers ≥ 2%; 2: low base n=35"Which of the following do you prefer to communicate with your suppliers?"; multi-pick; n=284 interior designersSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

95

58

32

5 4 3

89

69

63

14

63

45

12 116

3

82

61 63

34

115 4

72

14

Telephone Text message Social Media Video ChatWeb shopEmail

58

Face-to-face Online form Fax

82

56

34

11

4 3 3 2 0


COMMUNI-CATION & MARKETING

43

With 70% of interior designers using social media

channels and 60% with an own website, internet

presence is by far the most used tool for company

representation. Within social media, Instagram,

Facebook and Pinterest form the "holy triangle" of

digital communication. The respective channels

are also used for client acquisition: 42% of interior

designers state to find new potential clients via

Instagram, 25% are able to generate clients

through Facebook.

44

Used marketing channels

Marketing channels (1/2)

Social media presence and company websites are by far most important tools to represent companies

"Which of the following channels do you use to represent your company?"; multi-pick; n=284 interior designersSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

70%

60%

19%

18%

12%

12%

10%

6%

2%

1%

5%

10%

Trade shows

Company websites

Digital magazines

Social Media

Paper magazines

In person / networking

Email newsletters

Recommendations

Blogs

Paper newsletters

Other


Mid West2

45

Used marketing channels by region (in%)1

Marketing channels (2/2)

Social media presence is used more frequently in Mid West interior design companies

1: answers ≥ 5%; 2: low base n=35"Which of the following channels do you use to represent your company?"; multi-pick; n=284 interior designersSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

73

66

1614 14

86

69

23

1411

3

71

1917

11 9 10

57 55

11

21

13 13 11

4

Digitalmagazines

Social Media Trade showsCompany websites

BlogsPapermagazines

Emailnewsletters

Recommendations

55

24

17 16

9

4 3

Total North East SouthMid West West

46

Top 10 used Social Media channels

Social Media (1/2)

Instagram, Facebook and Pinterest form the "holy triangle" of digital interior design communication

"Which of the following Social Media channels do you use to represent your company?"; multi-pick; n=200, interior designers who use Social Media to represent their companySource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

90%

68%

48%

42%

8%6% 5% 4% 3% 1%

LinkedIn YouTube TumblrInstagram Facebook Pinterest Twitter Houzz Yelp TikTok

47

Top 10 Social Media channels by company representation and client acquisition

Social Media (2/2)

42% who use Social Media for representation frequently generate clients through Instagram

"Which of the following Social Media channels do you use to represent your company?"; multi-pick; n=200, interior designers who use Social Media to represent their company; "Which of the following Social Media channels frequently generate potential clients for your company?"; multi-pick; n=200, interior designers who use Social Media to represent their companySource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

90%

68%

48%

42%

8%6% 5% 4% 3% 1%

42%

25%

9%

3% 1%4%

1%

HouzzYouTubeInstagram Facebook Pinterest YelpLinkedIn Twitter Tumblr TikTok

0% 0% 0%

Used to represent company Frequently generates potential clients

48

BUSINESS OPERATIONSBusiness development (31%) and client

management (30%) are the biggest pain points

when it comes to business operations within

interior design companies. Additionally, interior

designers state the dealing with wrong client

expectations regarding budget (58%) and timing

(48%) as a challenge. An increasing competition

from design online shops (52%) and a growing

mass market for interior design (39%) as well as

pricing pressure (42%) are additional challenges

that are facing the industry.

49

Biggest business operation pain point

Business operations pain point

Business development and client management are biggest pain points when it comes to operations

"Out of the following, which is your biggest pain point when it comes to your business operations?"; single-pick; n=284 interior designersSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

31%

30%

17%

2%

6%

14%

Business development (finding next customer)

Other

Client management (e.g. pricing & value)


Best and easy product sources

Finding inspiration & stylistic edge

Mid West1

50

Impact of digitalization on business over the last 5 years by region

Impact of digitalization (1/3)

Digitalization has mainly improved interior design companies, especially in the North East

1: low base n=35"Thinking of the last 5 years, how has the ongoing digitalization impacted your business?"; multi-pick; n=284 interior designersSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

5% 4% 4% 7%

5% 5% 6%

7%

17% 14% 17% 19%

14%

32% 36%26%

34% 27%

39% 38%46%

37% 41%

3%3%3%

North EastTotal

3%3%

Mid West

3%

South

4%

West

Worsened a lotImproved a lot Improved slightly Neither improved nor worsened Worsened slightly Don’t know / no answer

71% 71%68%

74%71%

employees1

51

Impact of digitalization on business over the last 5 years by company size


Positive effect of digitalization increases with number of employees

1: low base n=32"Thinking of the last 5 years, how has the ongoing digitalization impacted your business?"; multi-pick; n=284 interior designersSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

5% 7% 5%

16%6%

44%

5%

7%

5%

41%

17%

19%

21%

10%

32%

31%

32%

31%

39%31%

36%

50%

Total 1 employee

3%

One person company

2%

0%1%

2 to 5 employees

0%


0%4%4%

Improved a lot Improved slightly Neither improved nor worsened Worsened a lotWorsened slightly Don’t know / no answer

68%

81% 84%

62%

71%

52

Impact of digitalization on business (net impact)1


Ability to stay up to date with the industry and finding inspiration is improving in the light of digitalization

1: determined by subtracting the percentage of respondents are impacted negatively from the percentage who are impacted positively"How does digitalization impact the following aspects of your business?"; matrix question; n=284 interior designersSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

83%

82%

80%

79%

60%

60%

60%

58%

50%

30%

30%

15%

6%

-8%

-15%

Staying up to date with the industry

Finding inspiration

Communication with suppliers

Communication with clients

Product orders

Project planning and organization

Publicity and reputation

Communication with contractors

Networking

Sales prospecting

Expected availability / response speed

Staff recruitment

Competition landscape

Time pressure

Price pressure

53

Challenges facing the interior design industry in general

Interior design industry challenges

Unrealistic client expectations regarding budgets is main challenge facing interior design industry

"Thinking on a broader scale: What challenges is the interior design industry facing in general?"; multi-pick; n=343 interior design professionalsSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

58%

52%

48%

42%

39%

29%

25%

15%

14%

9%

8%

5%

5%

1%

6%

Clients have wrong expectations regarding the budget

Growing mass market for interior design

Other

Clients have wrong expectations regarding timing

Pricing pressure

Increasing competition from design online shops

Wish for individualization

Low appreciation of individual work

Declining willingness to invest / poor consumer climate

Lack of high quality working material

Lack of qualified personnel

Increasing competition from other interior designers

Digitalization

Political influences


ABOUT THE STUDY

54

Methodology Online survey

Source Schumacher & Statista

Region Unites States

Number of respondents

427

SampleInterior design professional, that have worked in interior design for at least 2 years, and interior design enthusiasts

Survey period September 22nd to October 7th, 2020

55

Schumacher and Statista conducted a joint survey among interior design professionals and interior design enthusiasts. The resulting "U.S. Interior Design Monitor 2020" serves as a mood and trend barometer of the interior design sector in the United States and paints a comprehen-sive picture of the market situation while identifying current develop-ments and trends.

The U.S. Interior Design Monitor 2020

▪ Offers a comprehensive overview of the market situation of interior design in the U.S.

▪ Compares the situation between different regions across the U.S.

▪ Looks at the immediate impact of COVID-19 on the industry

▪ Identifies current and future interior design trends

▪ Gives an overview regarding typical interior design projects as well as clients and supplier relations

▪ Dives into business operations as well as communication and marketing

More data is available on statista.com for customers with premium or corporate accounts

Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020

Survey design

https://fschumacher.com/

https://www.statista.com/search/?q=%22Statista_InteriorDesignMonitor_2020%22&qKat=search


56

Stakeholders


Target group description

"Which of the following groups do you fall into?"; single-pick; n=427, all respondents; "From which U.S. state are you running your business operations?"; single-pick; n=427, all respondentsSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

Region of business operations

27%

15%

41%

18%North East

West

Mid West

South

8%

20%

6%

67%

Interior design vendor

Interior designer

Interior designenthusiast

Other

57

Work experience


Job position


"How long have you been working in interior design"; single-pick; n=343, interior design professionals; "Which position do you have in your company?"; single-pick; n=343, interior design professionalsSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

87%

5%

2%

3%

1%

1%

Principal

Other

Head ofDepartment

Freelancer

Employee

Team leader

9%

12%

79%

2 to less than 5 years

5 to less than 10 years

10 years and more

58

Company size


Client location


"How many employees does your company have worldwide?"; single-pick; n=343, interior design professionals; "Where are your clients mainly based?"; multi-pick; n=343, interior design professionalsSource: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020

34%

21%

28%

15%

1%

One person company

No answer

1 employee

2 to 5 employees


98%

8%

1%

National International No answer

59

This survey was conducted from September 22nd to October 7th, 2020,while the global coronavirus pandemic was influencing everyday life inthe U.S. The Secretary of Health and Human Services (HHS) declared thecoronavirus (COVID-19) outbreak officially a public health emergency onJanuary 31, 2020. The World Health Organization (WHO) had declaredthe coronavirus (COVID-19) outbreak a pandemic on March 11, 2020.Since then, U.S. states took different measures, starting from socialdistancing and the closure of businesses to government-imposedcurfews.


Development

▪ Economic output slumped dramatically: Gross domestic productshrank by 32.9% over the year as a whole, which corresponds to theworst economic slump since 1947

▪ The severe slump is mainly due to significantly lower consumerspending, which accounts for around 70% of the economy

▪ The US has lost nearly 15 million jobs since February, despite stronghiring in May and June

▪ The US census estimates more than half of American adults live inhouseholds that have seen incomes cut since the pandemic

Notes on the coronavirus pandemic in the U.S.

Sources: WHO; whitehouse.gov; CNN; Johns Hopkins University; BBC

Cumulative coronavirus cases in the U.S. (in thousands)

07/2004/20 05/20 06/20 08/20 09/20 10/20 11/20

163

1,035

1,758

2,573

4,456

5,937

7,115

8,952

60

Definitions

Regions

North East

Connecticut, Delaware, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island

Mid West

Illinois, Iowa, Kansas, Michigan, Minnesota, Missouri, Ohio, South Dakota, Wisconsin

South

Alabama, Arkansas, District of Columbia (D.C.), Florida, Georgia, Kentucky, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia

West

Arizona, California, Colorado, Montana, Oregon, Utah, Washington, Wyoming

Interior design professionals

Interior designers, interior design vendors and other professionals with an interior design focus


Appendix

www.statista.com

Authors

Ann-Kathrin KohlSenior Research Manager

[email protected]

Lisa Schreiber Junior Research Manager

[email protected]

Ann-Kathrin studied Sociology at the University of Potsdam, Germany. Asa Senior Research Manager with both agency and client background, shehas extensive experience in international market research projects,including the execution of consumer and expert surveys.

Prior to joining Statista, she was a project manager for quantitativemarket and opinion research at INFO GmbH in Berlin, Germany. AtStatista, she conducts and supervises market research projects and isresponsible for delivering comprehensive international consumer andexpert insights.

Lisa Schreiber studied Psychology & Management (B.A.) at theInternational School of Management in Frankfurt/Main, Germany andConsumer Psychology & Market Research (M.Sc.) at the Harz University,Germany.

Before joining Statista, she worked for Leo Burnett, GfK and Unilever.

At Statista she currently supports the creation of international consumersurveys and expert studies.



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