U.S.

Interior Design Monitor 2020

Schumacher & Statista Expert Survey

November 2020
Interior design companies in the U.S. are able to resist
the effects of the COVID-19 pandemic
Key Insights: Market situation and interior design projects

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 their
economic 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 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.

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.

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:
2 Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
Interior design is highly relationship driven, with digital
communication and social media adding new layers
Key Insights: Stakeholders, communication and marketing

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.

3 Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
Trend towards sustainability has reached the interior
design industry; most profit from digitalization
Key Insights: Style & trends and business operations

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 historical
elements (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 shown
in the high rating of natural elements / biomaterials (67%) and eco-chic / upcycling (56%). Regarding interior design trends in the
next 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 lie
in 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 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.

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

5
Interior design industry in good shape, 60% of design-
ers rate their company’s economic situation positively
Economic situation (1/3)

Own company’s economic situation

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

5%
2%
7% 20%

Top 2
60%

26% Bottom 2
9%

40%

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 designers
6 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
All U.S. regions are economically in a rather good
shape, Mid West and South above average
Economic situation (2/3)

Own company’s economic situation by region

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

17% 14%
20% 22% 25%

54% 50%
60% 36%
66%
74%
40% 29%
44%
57%

32%
26% 38%
20%
14%
9%
7% 3% 8%
2% 6% 4% 1%
3% 0%
5% 3% 3% 5% 7%
Total Mid West1 South West North East

1: low base n=35

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 designers
7 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
The economic situation grows positively with the
number of employees
Economic situation (3/3)

Own company’s economic situation by company size

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

14% 18%
20%
25% 25%

54%
60% 59%
39% 65% 69%
40% 41%
40% 44%

30%
26%
24%
25%
22%
7% 8%
7% 2%
2% 3% 6% 6%
5% 8% 6% 4% 0%
0% 3%
Total One person company 1 employee 2 to 5 employees 6 and more employees1

1: low base n=32

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 designers
8 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
COVID-19
IMPACT
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.

9
More than 55% of interior designers are still operating
with restrictions compared to before COVID-19
COVID-19 impact on operations (1/2)

Business after COVID-19 / corona pandemic

Operating better than before 12%

Never made any changes to operations 6%

29%
Operating
as before
Operating as before / back to ’normal’ 23%

Operating with some restrictions 48%

55%
Operating
with restrictions
Operating with severe restrictions 7%

Not able to operate at all 2%

No answer 1%

"Compared to before the COVID-19 / corona pandemic, how is your business functioning at the moment?"; single-pick; n=284 interior designers
10 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
68% of North Eastern interior designers report
continuous operation restrictions after COVID-19
COVID-19 impact on operations (2/2)

Business after COVID-19 / corona pandemic by region

Operating better than before Operating as before Operating with restrictions Not able to operate No answer

12% 11% 13% 9%

14%

20%
29% 25%
40%
33%

68% 52%
55%
51% 50%

7%
1% 2% 1% 0% 4% 2%
0% 0% 1%
Total North East West Mid West1 South

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 designers
11 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
Almost 50% have experienced increased project
inquiries since pandemic, product deliveries suffered
Company changes since COVID-19 / corona pandemic

Company changes since COVID-19 / corona pandemic breakout

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

Number of
48% 18% 33% 1%
project inquiries

Client frequency 36% 21% 39% 4%

Turnover / sales 29% 21% 40% 10%

Liquidity 15% 38% 31% 16%

Product deliveries 14% 15% 67% 4%

Number of
7% 56% 19% 18%
employees

"How have the following aspects changed in your company since the COVID-19 / corona pandemic broke out?"; matrix question; n=284 interior designers
12 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
COVID-19 slowed down projects and deliveries,
financial trouble and lay-offs have however been rare
Consequences of COVID-19 / corona pandemic (1/2)

Business consequences of COVID-19 / corona pandemic

Product deliveries were delayed 69%

Projects were delayed 62%

Work shifted to remote work (temporarily) 51%

Business was boosted 35%

Projects profited from forced slow-down
26%
(e.g. additional creativity)
Work was completely stopped (temporarily) 24%

Projects were canceled 21%

Product orders were canceled 15%

Employees were furloughed 8%

Our business has gotten into financial trouble 6%

Employees were terminated 3%

Other 1%

None of the above / no answer 5%

"Which of the following applies to your business in regard to COVID-19 / corona pandemic?"; multi-pick; n=284 interior designers
13 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
39% in the South stated that projects profited from
forced slow-down, least delays in the West
Consequences of COVID-19 / corona pandemic (2/2)

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

Total North East Mid West2 South West

74 76
71
68
65 66 66

52 53
50
46 46 46

39
35 36
31
28
26 25
20 22 20 22
20 19
14 14 14 14
13

Product deliveries Projects were Work shifted to Business Projects profited Work was Projects were Product orders
were delayed delayed remote work was boosted from forced completely stopped canceled were canceled
(temporarily) slow-down (temporarily)

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 designers
14 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
STYLE &
TRENDS
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%).

15
Interior design enthusiast have a softer spot for
Eclectic, Bohemian and Preppy in interior design
Interior design projects styles (1/2)

Interior design projects styles by stakeholder (in %)1

Total Interior designer Interior design enthusiast
61
59

49

39
36 36
31 30
27 26

18 17
15 14 15
12
8 9
6 6 7
6

New Transitional Traditional Eclectic Coastal Contemporary Mid-century Bohemian Preppy Minimalist Exuberant
Traditional modern

1: answers ≥ 6%
"Which of the following does your style in interior design projects mainly fall into?"; multi-pick; n=427, all respondents
16 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
West has higher affinity towards Contemporary style,
North East appreciates Coastal style
Interior design projects styles (2/2)

Interior design projects styles by stakeholder (in %)1

Total North East Mid West South West
61
57 57
54 54
50 51

40 40
39
36 35 37
33
29 30
28
24 23 25 25
22
18 19 19
16
14
12 13 12 13 12
11 11 10 11
8 9
6 6
4 4 4
1

New Transitional Traditional Eclectic Coastal Contemporary Mid-century Bohemian Preppy Minimalist Exuberant
Traditional modern

1: answers ≥ 6%
"Which of the following does your style in interior design projects mainly fall into?"; multi-pick; n=427, all respondents
17 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
Interior design magazines are the most important
source of inspiration
Sources of inspiration (1/3)

Sources of inspiration1

Interior design magazines 70%

Architecture 58%

Historical elements 51%

Other designers 40%

Fine art 35%

Nature 35%

Clients 30%

Trends in society (e.g. sustainability) 28%

Fashion 26%

Influencers 10%

Celebrities / icons 4%

1: answers ≥ 3%
"Where do you get your main inspirations for your style in interior design projects?"; multi-pick; n=427, all respondents
18 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
49% of interior design enthusiasts look to designers
for inspiration
Sources of inspiration (2/3)

Sources of inspiration by stakeholder (in %)1

Total Interior designer Interior design enthusiast
71
69

63

54
50 49
45
39 38
37 37 37
32
29 28

19
17
14
9
7

Interior design Architecture Historical Other Fine art Nature Clients Trends in Fashion Influencers
magazines elements designers society (e.g.
sustainability)

1: answers ≥ 10%
"Where do you get your main inspirations for your style in interior design projects?"; multi-pick; n=427, all respondents
19 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
Architecture is one of the main sources of inspiration
for 68% of respondents in the West
Sources of inspiration (3/3)

Sources of inspiration by region (in %)1

Total North East Mid West South West
74
65 69 68
66

58
56
53 52
48 48 47
45
40
37 38 37 37 37
36 35
34
32 31 30 31
29 29 27 28 29 30
26 25
22
17
14
10 11
9

Interior design Architecture Historical Other Fine art Nature Clients Trends in Fashion Influencers
magazines elements designers society (e.g.
sustainability)

1: answers ≥ 10%
"Where do you get your main inspirations for your style in interior design projects?"; multi-pick; n=427, all respondents
20 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
Clear trend regarding natural elements and sustain-
ability, tiny homes not considered relevant in 2 years
Interior design trends (1/3)

Future relevance of style trends in next 1 to 2 years

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

Natural elements / biomaterials 67% 21% 9% 3%

Eco-chic / sustainable-chic / upcycling 56% 29% 12% 3%

Individualization course 36% 26% 15% 24%

Fast furniture 29% 28% 35% 8%

Minimalism 29% 37% 31% 3%

Hybrid Homes1 27% 28% 36% 8%

Shared living / housing cooperation 26% 26% 39% 9%

Maximalism / ’more is more’ 15% 28% 52% 4%

Tiny homes 14% 27% 54% 5%

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 respondents
21 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
Wide consensus regarding interior design trends in
the next 1 to 2 years amongst stakeholders
Interior design trends (2/3)

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

Total Interior designer Interior design enthusiast
68
65

57
55

37 36
34

27 29 27
25 25
20
18
15 14 13
11

Natural Eco-chic / Individualization Fast furniture Minimalism Hybrid Homes1 Shared living Maximalism / Tiny homes
elements / sustainable- course / housing ’more is more’
biomaterials chic / upcycling cooperation

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 respondents
22 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
Hybrid Homes have higher relevance amongst
respondents from the Mid West
Interior design trends (3/3)

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

Total North East Mid West South West
78

69
67
65 65
63

49
47 46
43
36 35 33 35
33 32 32 31 32
29
28
25 24 25 24
21 22 22 21
17 19
16
11 12 11

Natural Eco-chic / Individualization Fast furniture Minimalism Hybrid Homes1 Shared living Maximalism / Tiny homes
elements / sustainable- course / housing ’more is more’
biomaterials chic / upcycling cooperation

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 respondents
23 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
INTERIOR
DESIGN
PROJECTS
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.

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

Interior design project shares (mean)

Renovations New builds eDesigns / remote design Event design Other

6%
2%
5%

24%

63%

"Thinking of your regular projects, which share falls into the following categories?"; open question; n=264 interior designers excluding "no answer"
25 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
On average, clients invest US$ 406k in an interior
design project, with 23% spending US$ 100k-500k
Interior design project budgets

Interior design project budget by project type (mean)1 Average interior design project budget
Ø US$ 406k
▼ US$ 1 000 000 and more
6%
New builds US$ 836k 8% US$ 500 000 to US$ 999 999

23% US$ 100 000 to US$ 499 999

Renovations US$ 244k

13% US$ 50 000 to US$ 99 999

Event design US$ 36k
11% US$ 10 000 to US$ 49 999

4% Less than US$ 10 000

eDesigns /
US$ 26k
remote design

35% No answer

Other US$ 101k

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 designers
26 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
Product delivery and availability constitute main
challenges within interior design projects
Interior design project challenges (1/2)

Typical interior design project challenges

Problems with shipment and delivery 55%

Products or materials are not available 54%

Unrealistic client expectations 43%

Client changes their mind about agreed scope 40%

Unreliable suppliers or contractors (craftsmen etc.) 39%

Costs exceed the original budget 39%

Bad communication with parties involved 10%

Miscalculation of project feasibility 7%

Unforeseen changes in staff 2%

Other 2%

Don’t know / no answer 7%

"What are typical challenges or stumbling stones within your interior design projects?"; multi-pick; n=284 interior designers
27 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
Mid West often confronted with problems regarding
product shipments and unrealistic client expectations
Interior design project challenges (2/2)

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

Total North East Mid West2 South West
66
60
58 57
55 55 54
49 50 49
45 46
45
41 40 41
39 38 38 37
36
32
29
27

20

11
9
5

Problems with Products or Unrealistic client Client changes Unreliable suppliers Costs exceed the Bad communication
shipment and materials are expectations their mind about or contractors original budget with parties involved
delivery not available agreed scope (craftsmen etc.)

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

29
"Word of mouth" is the most important way for clients
to first take notice of interior design companies
Ways clients take notice of company (1/2)

Ways clients take notice of company

Recommendations 63%

Social Media 40%

Company websites 26%

Paper magazines 8%

Digital magazines 3%

Trade shows 2%

In person / networking 1%

Blogs 1%

Other 5%

Don’t know / no answer 7%

"Through which of these channels do most clients first take notice of your company?"; multi-pick; n=284 interior designers
30 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
Recommendations less frequently used by clients to
first take notice of companies in the South
Ways clients take notice of company (2/2)

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

Total North East Mid West2 South West
68 69 68

55

45
41
37
34
30
26 27
24

10
6 7
5 4
3 2
0
Recommendations Social Media Company websites Paper magazines Digital magazines

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
31 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
Current and former clients are the most frequent
multipliers for interior design companies
Client recommendation (1/2)

Company noticed through recommendations Sources that recommend company to potential clients

Current / former clients 80%

Contractors 46%

Real estate agents 36%

Architects 30%
63%
Suppliers 21%

Other designers 14%

Other 1%

Don’t know / no answer 16%

"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 recommendations
32 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
Regarding recommendations, real estate agents play
more important role in the West
Client recommendation (2/2)

Client recommendations by region (in %)

Total North East Mid West1 South West
86
83
78

68

54

47
45 45
40
38
34
32
30 29 29
25 24 25
20 18 18
15
13
10

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

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 recommendations
33 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
SUPPLIERS
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%). Leading the
list of important criteria for good suppliers are
good customer service (85%) and product quality
(82%).

34
(Business) contacts and relationships are integral to
find new suppliers
Ways to find new suppliers (1/2)

Ways to find new suppliers

Recommendations 79%

Design centers 56%

Websites 49%

Showrooms 48%

Sales representatives 39%

Social Media 38%

Trade shows 37%

Local stores 16%

Other 1%

Don’t know / no answer 2%

"How do you normally find new suppliers?"; multi-pick; n=284 interior designers
35 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
Websites frequently used in the West to find new
suppliers, Mid West relies on sales representatives
Ways to find new suppliers (2/2)

Ways to find new suppliers by region (in %)

Total North East Mid West1 South West
84
80
76 77

64
59 60
57
55 55 55
51
46 47 47
42 43 43 41
40 39 39
35 34
31 30
29 29
22 21
17

10

Recommendations Design centers Websites Showrooms Sales Social Media Trade shows Local stores
representatives

1: low base n=35

"How do you normally find new suppliers?"; multi-pick; n=284 interior designers
36 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
Other designer most likely to recommend new sup-
pliers, 54% get recommendations from contractors
Supplier recommendation (1/2)

New suppliers found through recommendations Sources that recommend new suppliers

Other designers 65%

Contractors 54%

Current / former clients 39%

Other suppliers 32%

79%
Architects 30%

Real estate agents 13%

Other 2%

Don’t know / no answer 6%

"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 recommendations
37 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
75% in the Mid West receive supplier recommenda-
tions trough other designers
Supplier recommendation (2/2)

Supplier recommendations by region (in %)

Total North East Mid West1 South West
75

64 63 64 64

55
54

47
45
39 39
36 36
32 32 34
32
30 29
23
18
14
13
10

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

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 recommendations
38 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
Good customer service and product quality are
essential for a good supplier in interior design
Criteria for a good supplier (1/2)

Criteria for a good supplier

Good customer service 85%

Good product quality 82%
Ease of doing business 79%
Reliability 76%
Positive working experience in the past 70%
Product availability 64%
Price 53%
Conditions (delivery, liability, discount etc.) 52%
Interpersonal component / relationship 48%
Industry reputation 44%
Recommendations 28%
Individual style 28%
Large product range 27%
Local 23%
Currently trending 12%
Other 1%
Don’t know / no answer 1%

"What criteria makes a good supplier for you?"; multi-pick; n=284 interior designers
39 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
Supplier conditions, such as liability, more important
to interior designers in the South and Mid West
Criteria for a good supplier (2/2)

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

Total North East Mid West2 South West
88 86 86 86
84 82 83
80 79 79 79
77 76 77 76 77
74
70
68
66 66
64
61 59 61
58 57
51 50
49
45
41

Good customer Good product Ease of doing Reliability Positive working Product availability Price Conditions
service quality business experience in (delivery, liability,
the past discount etc.)

1: answers ≥ 50%; 2: low base n=35

"What criteria makes a good supplier for you?"; multi-pick; n=284 interior designers
40 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
Communication with suppliers is preferred via email,
followed by phone and personal contact
Supplier communication (1/2)

Preferred channels for communication with suppliers1

86%

62%
59%

38%

12%
7%
5% 5%
2%

Email Telephone Face-to-face Text message Web shop Online form Social Media Video Chat Fax

1: answers ≥ 2%
"Which of the following do you prefer to communicate with your suppliers?"; multi-pick; n=284 interior designers
41 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
45% of interior designers in the South like to use text
messages to communicate with suppliers
Supplier communication (2/2)

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

Total North East Mid West2 South West
95
89
82 82

69
63 63 63
61
58 58 56

45

32 34 34

14 11 12 14
11 11
5 5 6 7
4 3 3 4 4 3 3
2 0 2

Email Telephone Face-to-face Text message Web shop Online form Social Media Video Chat Fax

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 designers
42 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
COMMUNI-
CATION &
MARKETING
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.

43
Social media presence and company websites are by
far most important tools to represent companies
Marketing channels (1/2)

Used marketing channels

Social Media 70%

Company websites 60%

Paper magazines 19%

Email newsletters 18%

Recommendations 12%

Blogs 12%

Digital magazines 10%

Trade shows 6%

Paper newsletters 2%

In person / networking 1%

Other 5%

Don’t know / no answer 10%

"Which of the following channels do you use to represent your company?"; multi-pick; n=284 interior designers
44 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
Social media presence is used more frequently in Mid
West interior design companies
Marketing channels (2/2)

Used marketing channels by region (in%)1

Total North East Mid West2 South West
86

73
71
69
66

57 55 55

24 23 21
19
17 16 17 16
14 14 14
11 13 11 11 13
9 9 11 10
3 4 3 4

Social Media Company Paper Email Recommendations Blogs Digital Trade shows
websites magazines newsletters magazines

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 designers
45 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
Instagram, Facebook and Pinterest form the "holy
triangle" of digital interior design communication
Social Media (1/2)

Top 10 used Social Media channels

90%

68%

48%
42%

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

Instagram Facebook Pinterest LinkedIn Twitter YouTube Houzz Yelp Tumblr TikTok

"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
46 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
42% who use Social Media for representation
frequently generate clients through Instagram
Social Media (2/2)

Top 10 Social Media channels by company representation and client acquisition

Used to represent company Frequently generates potential clients
90%

68%

48%
42% 42%

25%

9% 8%
6% 5%
3% 4% 4% 3%
1% 0% 1% 0% 1% 0%
Instagram Facebook Pinterest LinkedIn Twitter YouTube Houzz Yelp Tumblr TikTok

"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 company
47 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
BUSINESS
OPERATIONS
Business 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.

48
Business development and client management are
biggest pain points when it comes to operations
Business operations pain point

Biggest business operation pain point

Don’t know / no answer

14%

Business development (finding next customer)

Other 31%
6%

Finding inspiration & stylistic edge 2%

17%
Best and easy product sources

30%
Client management (e.g. pricing & value)

"Out of the following, which is your biggest pain point when it comes to your business operations?"; single-pick; n=284 interior designers
49 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
Digitalization has mainly improved interior design
companies, especially in the North East
Impact of digitalization (1/3)

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

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

39% 38% 37%

41%
46%

68%
71% 74% 71% 71%

32% 36% 34% 27%

26%

14%
17% 14% 17% 19%
7%
5% 5% 6% 3% 4%
3% 3% 3% 3%
5% 4% 3% 4% 7%

Total North East Mid West1 South West

1: low base n=35

"Thinking of the last 5 years, how has the ongoing digitalization impacted your business?"; multi-pick; n=284 interior designers
50 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
Positive effect of digitalization increases with number
of employees
Impact of digitalization (2/3)

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

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

31%
39% 36%
41%
50%
62%
68%
71%
81% 84%
31%
32%
32%
44%
31%
19%

17% 21%
7%
10%
5% 6% 5% 16%
3% 2% 4%
7% 1% 0%
5% 5% 4% 0% 0%
Total One person company 1 employee 2 to 5 employees 6 and more employees1

1: low base n=32

"Thinking of the last 5 years, how has the ongoing digitalization impacted your business?"; multi-pick; n=284 interior designers
51 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
Ability to stay up to date with the industry and finding
inspiration is improving in the light of digitalization
Impact of digitalization (3/3)

Impact of digitalization on business (net impact)1

Staying up to date with the industry 83%

Finding inspiration 82%
Communication with suppliers 80%
Communication with clients 79%
Product orders 60%
Project planning and organization 60%
Publicity and reputation 60%
Communication with contractors 58%
Networking 50%
Sales prospecting 30%
Expected availability / response speed 30%
Staff recruitment 15%
Competition landscape 6%
Time pressure -8%
Price pressure -15%

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 designers
52 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
Unrealistic client expectations regarding budgets is
main challenge facing interior design industry
Interior design industry challenges

Challenges facing the interior design industry in general

Clients have wrong expectations regarding the budget 58%

Increasing competition from design online shops 52%
Clients have wrong expectations regarding timing 48%
Pricing pressure 42%
Growing mass market for interior design 39%
Low appreciation of individual work 29%
Declining willingness to invest / poor consumer climate 25%
Lack of high quality working material 15%
Lack of qualified personnel 14%
Increasing competition from other interior designers 9%
Digitalization 8%
Political influences 5%
Wish for individualization 5%
Other 1%
Don’t know / no answer 6%

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

54
Survey design
Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020

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 Methodology Online survey
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.
Source Schumacher & Statista
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. Region Unites States

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

▪ Identifies current and future interior design trends Number of

427
respondents
▪ Gives an overview regarding typical interior design projects as well as
clients and supplier relations
▪ Dives into business operations as well as communication and Interior design professional, that have
marketing Sample worked in interior design for at least 2 years,
and interior design enthusiasts

Survey period September 22nd to October 7th, 2020

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

55
Target group description
Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020

Stakeholders Region of business operations

West
18%
North East
27%

Interior designer 67%

Interior design vendor 6%

15%
Interior design Mid West
20% 41%
enthusiast
South
Other 8%

"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
respondents
56 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
Target group description
Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020

Work experience Job position

Principal 87%

Head of
5%
Department

10 years and more 79%

Team leader 2%

Employee 3%

Freelancer 1%

5 to less than 10 years 12%

Other 1%
2 to less than 5 years 9%

"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 professionals
57 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
Target group description
Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020

Company size Client location

98%

6 and more employees 15%

2 to 5 employees 28%

1 employee 21%

One person company 34%

8%
1%
No answer
1% National International No answer

"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 professionals
58 Source: Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020; September 22nd to October 7th, 2020
Notes on the coronavirus pandemic in the U.S.
Schumacher & Statista Expert Survey U.S. Interior Design Monitor 2020

This survey was conducted from September 22nd to October 7th, 2020, Cumulative coronavirus cases in the U.S. (in thousands)
while the global coronavirus pandemic was influencing everyday life in
the U.S. The Secretary of Health and Human Services (HHS) declared the 8,952
coronavirus (COVID-19) outbreak officially a public health emergency on
January 31, 2020. The World Health Organization (WHO) had declared
the coronavirus (COVID-19) outbreak a pandemic on March 11, 2020.
Since then, U.S. states took different measures, starting from social
distancing and the closure of businesses to government-imposed 7,115
curfews.
5,937

4,456
Development
▪ Economic output slumped dramatically: Gross domestic product
shrank by 32.9% over the year as a whole, which corresponds to the
worst economic slump since 1947 2,573
▪ The severe slump is mainly due to significantly lower consumer
1,758
spending, which accounts for around 70% of the economy
▪ The US has lost nearly 15 million jobs since February, despite strong 1,035
hiring in May and June
163
▪ The US census estimates more than half of American adults live in
households that have seen incomes cut since the pandemic 04/20 05/20 06/20 07/20 08/20 09/20 10/20 11/20

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

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

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

60
Authors

Ann-Kathrin Kohl Lisa Schreiber

Senior Research Manager Junior Research Manager

ann-kathrin.kohl@statista.com lisa.schreiber@statista.com

Ann-Kathrin studied Sociology at the University of Potsdam, Germany. As Lisa Schreiber studied Psychology & Management (B.A.) at the
a Senior Research Manager with both agency and client background, she International School of Management in Frankfurt/Main, Germany and
has extensive experience in international market research projects, Consumer Psychology & Market Research (M.Sc.) at the Harz University,
including the execution of consumer and expert surveys. Germany.

Prior to joining Statista, she was a project manager for quantitative Before joining Statista, she worked for Leo Burnett, GfK and Unilever.
market and opinion research at INFO GmbH in Berlin, Germany. At
Statista, she conducts and supervises market research projects and is At Statista she currently supports the creation of international consumer
responsible for delivering comprehensive international consumer and surveys and expert studies.
expert insights.

www.statista.com