1. Online Home penetration lags overall online retail penetration

Online home sector has been growing faster than overall online retail market. However, the sector still lags behind overall online retail in terms of penetration. Given the growth in other online retail categories and structural challenges in buying larger items such as furniture online, we expect online home penetration to grow steadily but continue to slightly lag overall retail penetration over the coming years.

2. Horizontals have captured majority of market share

Within online home sector, Etailing horizontals such as Noon, Amazon and AliExpress have captured majority of market share. Omnichannel players such as Ikea and Home Center/ HomeBox have also ramped up their digital footprint.

3. Key categories are Kitchen, Home Décor and Furniture

Online home sector is driven by Kitchen, followed by Home Décor and Furniture. Kitchen category continued to be the largest and amongst the fastest growing categories as players offered large variety and convenience to consumers.