Situation:
The Home Depot catered to home buyers. But to Millennials, the largest cohort in history – one that is having a huge and lasting impact on our economy – are not buying homes like previous generations and are not embracing the dream of home ownership. Factors such as skyrocketing student debt and the economic downturn have contributed to a deep societal shift: Renting has risen in the culture to become the new buying. The Millennial world view embraces the Sharing Economy; signals include the rise of AirBnB, Lyft, Uber and coworking spaces. Real estate is no longer being viewed as the primary path for families to build wealth. A new set of values stressing mobility and experience is coming into focus.
Challenge:
To engage with Millennial renters, you need to make them feel as important as owners. To win their business, you must own new territory in the marketplace of today and tomorrow.
Solution:
You don’t have to buy a house to own a home. Instead of selling tools & materials that renters don’t want to own, The Home Depot should become the tool that transforms rental dwellings into homes. Executional ideas included creating removable flooring and wall paper; providing Rental Install/Store/Reinstall Renovation Services; helping them negotiate a lease.
Results:
Our foresight and Innovation Framework drove $5bn in revenue and created a powerful new segment for our client.
