Marketing Minute: 2025 could be your breakout year – February 2025
By Paul Friederichsen
Most everyone in the flooring industry agrees that 2024 was tough or, at the very least, disappointing. Hopes are high for a breakout 2025 by Q3 and Q4. “We are expecting a return to more normalized residential remodeling activity in the second half of 2025,” said Mohawk CEO Jeff Lorberbaum at the company’s aligned dealer meeting in December. “We know there is huge pent-up demand because, for the past two years, homeowners have been deferring purchases due to economic uncertainty.”
Still, business is never without challenges, especially the flooring business. And there will likely be new challenges-due in part to a change in Washington-while many of the old ones remain. To succeed, flooring marketers must remain steadfast with continued investment in their brands to meet these challenges in 2025. A big chunk of that investment should be in advertising.
GETTING THE MOST FROM ADVERTISING
Advertising-media selection depends on a number of factors: target audience, marketing goals, etc. As a refresher, here is a menu of the top ten considerations:
1. Print advertising-It is still a mainstay of B2B and B2C on a community level.
2. Digital advertising-Social media, which falls under this category along with search engine and video (such as YouTube), is expected to account for nearly 25% of global ad spend, with expenditures reaching approximately $252.7 billion, according to Marketing Charts.
3. TikTok-I’ve separated this controversial platform from the social media discussion above because of its unique power and dominance over Gen Z. Should it separate itself from the Chinese ownership and be purchased by a U.S. entity, it should be a consideration in 2025.
4. Connected TV-This platform is forecasted to experience an increase of 18.4%, driven by the shift toward ad-supported streaming platforms, according to Digital Guider.
5. Content marketing-This consists of blogs, YouTube and podcasts.
6. Email and SMS marketing-These provide tailored, geotargeted reach.
7. Experiential and immersive media-This relies on AI to create AR- and VR-immersive ads.
8. Out-of-home advertising This is also known as outdoor advertising, like billboards.
9. Voice and audio advertising
10. Influencer marketing-The growth of nano- and micro-influencers allows for cost-effective campaigns with the emphasis on authentic, unscripted content.
To support your brand this year, be aware of your media options, based on your budget. Some of these selections are ideal for floorcovering product brands and are already being employed, likewise for floorcovering retailers. But as the flooring market is anticipated to show improvement, don’t find yourself attempting to reach your target audience in 2025 using media strategy from 2000. The world has changed, and media consumption has changed with it.
PREPARING FOR WHAT’S AHEAD
As has been said many times, strong brands, no matter how big or small, are foundational for your floorcovering business. Supporting your brand through thoughtfully crafted marketing and advertising is essential in good times and bad. What is also essential is awareness of what lies ahead. Here’s what’s in store:
Tariffs-Most agree these are a likelihood in 2025 and will affect the flooring industry with increased costs, which will likely delay some renovation projects. If your brand is impacted, you may need to consider promotional strategies that will mitigate the effect of higher prices.
Mergers and acquisitions (M&A)-As examined in our December 2024 “Marketing Minute,” we predict this activity will continue to ramp up for the rest of the year. Consolidation across manufacturing and retail will shift the competitive landscape from the status quo. Marketing management involved in an M&A scenario will have their own set of challenges regarding brand transition within the ranks and with the customer base. Competitive marketers will need to adjust to the new threat accordingly.
Resilient growth-Marketers for resilient brands are witnessing increasing competition, particularly in luxury vinyl and rigid core products. This will continue in 2025 as the popularity of this flooring continues to soar. Established brands are less affected than mid-levels, but the result is the same: a slide toward commoditization for the entire category. Marketers must resist the temptation to coast. They must continue to invest in their brands to support and differentiate themselves from others to protect their pricing and positioning.
Health awareness-“Is this flooring ‘healthy’ for my home?” will continue to be a concern, particularly as Gen Z ushers in Gen Beta. As the new administration champions MAHA (Make America Healthy Again), the national discussion will likely embrace things like indoor air quality as well as healthy diets. This will increase expectations by consumers as well as A&D for validations and certifications on the products they purchase and specify. Flooring marketers who are tone-deaf to this risk will drop out of consideration for their implicit lack of empathy.
Installer shortages-Flooring has grappled with this for years, with many acknowledging there is still much more work to do. As the economy begins to improve and flooring sales increase in 2025, this labor shortage will become more acute than it is now. Aside from R&D continuing to make flooring easier to install, thus relying less on the skill level of a shrinking installer workforce, marketers must also address this. Manufacturers ought to promote the use of certified installers for their products as a means of extending warranty coverage. Retailers should promote the training and certification of their installer crews by partnering with trainers.
Use of AI-2025 could be the pivotal year in the adoption of artificial intelligence in the flooring industry. Flooring marketers who fail to take advantage of this will find themselves to be at a disadvantage. According to HTC Commercial Flooring, AI can help marketers in a number of ways, such as enhanced design and visualization, improved product selection, personalized flooring solutions and content creation. AI can also enhance personalized customer experiences by analyzing customer behavior and preferences and thereby improving engagement and satisfaction.
Alternatives to brick-and-mortar-Several major retailers outside of flooring announced store closures in 2024, and more are expected in 2025. The impact of online shopping continues to be felt. Much of the floor product experience comes from touch. And some items, like carpet, are impractical to ship to homeowners because it requires professional installation. So, there will always be a place for flooring retailers. Due to Covid, in-home consultations and shop-at-home programs by many dealers have taken root. As competitive pressure continues to build, this could be the year many dealers market a shop-at-home offering.
EVALUATING THE SHOP-AT-HOME MODEL
Shop-at-home is nothing new. Empire Today was founded in 1959 by entrepreneur Seymour Cohen in Chicago, Illinois, initially operating as Empire Plastic Covers. The brand used television to reach homeowners with its easier shopping alternative to renovate existing floors: Empire will bring the showroom to you, allowing you to properly evaluate the selection where it is to be installed-the next day.
The shop-at-home strategy is the ultimate brand-building demonstration of customer service a dealer can provide. Other major players include LL Flooring and Floor & Décor.
Here are several advantages:
• Convenience-Busy lifestyles and preferences for seamless shopping experiences make in-home consultations appealing. Consumers can avoid the hassle of visiting showrooms and make decisions comfortably at home.
• Visualization-Seeing flooring samples in their actual environment, alongside lighting, décor, etc., helps customers make more confident decisions. It increases customer satisfaction and reduces returns.
• Trust and connection-Personalized service at home allows for one-on-one attention, fostering trust. This creates a premium experience that differentiates the retailer from competitors.
• Differentiation-Big-box stores and online retailers often lack personalized, in-home services, which position the retailer as customer-focused and service-oriented.
• Higher conversion rates-Customers are more likely to commit when products are presented in their own space with professional guidance. It improves sales conversion rates compared to in-store visits.
However, shop-at-home may not be for everybody. Flooring retailers must set up, market and execute a shop-at-home strategy for their current retail business, or manufacturers can offer the capability to their dealers. A streamlined process that leverages technology and offers value-added service, with staff trained for in-home customer engagement, can work as long as it is effectively marketed.
Copyright 2025 Floor Focus
Related Topics:Lumber Liquidators, Mohawk Industries