We can all agree that recent lifestyle habits have significantly influenced the buying habits of furniture. This is why the global market for furniture is said to shoot to $700 billion in 2020. The research is, according to Marketresearch.com.
However, we can all agree that the retail furniture market is an integral part of the economy.
Home Office Furniture
Judging from the rate at which people are opting to work from home, the demand for home office furniture has drastically increased. And, its demand continues to grow day after day. There was a growth of about 6% in the demand for home furniture in between 2014 and today.
Moreover, the growth of small households has seen to it that small and portable furniture is on high demand. For instance, back in 1981, at least a fifth of the population in the UK comprised of single occupants, which is an estimate of 20 million people. This figure had risen to 27 million in 2018.
The Effects of Increased Renting
Did you know that in the past five years, there was a 28% increase in the UK private rented sector? As a result, this change in housing tenure has seen to it that private renter prefer small and portable furniture since they move often. Whereas, the ordinary homeowner will invest in quality furniture since they do not anticipate moving.
Furniture Retail Sales Statistics in 2018
Anthony Crosby, the owner and founder of www.cheapupholsteredbeds.com did give the stats below regarding furniture sales back in 2016.
• A 7% decrease in the purchase of dining and living room furniture.
• A 4% decrease in the purchase of bedroom furniture
• And a 3% decrease in the purchase of upholstered furniture
Some sectors also enjoyed growth. For instance, outdoor living furniture and home office furniture sales increased by 17% and 4% respectively.
According to Crosby, he also noted an increase in sales volume, which was caused by a 44% increase in the sale of corner sofas and a 32% increase in three seater sofas.
The Furniture Retail Sales in 2019
In the onset of 2019, there was a 6.6% decrease in volume and a 6.2% decrease in value. Nonetheless, the sale of garden benches and tables rose up to 53% and 21%.
The Luxury Furniture Market
The increase in the net worth of lots of individuals seems to benefit the luxury furniture market highly. Currently, Europe is the leading market for luxury furniture. This sector is expected to grow by 4% from 2015 to 2019.
Online Furniture Retail is Growing
Thanks to the introduction of several online platforms, today, it is the main driver of retail growth in both N. America and Europe. Online furniture retail has exceptionally flourished in Germany and the UK. In 2018, the online retail growth was 13.8%, and in 2017 was 14.2%.
How Changing The Channel Mix Reflects the Buying Journey
As popular as online furniture shopping is, the consumer purchasing decision process is quite complex. Clients have shown a habit of researching both online and visiting actual shops before buying furniture.
Pragma Consulting gave the following stats;
• 48% of customers did their research by visiting actual stores, whereas another 45% researched online.
• 49% of the purchases were done in-store compared to 24% of the furniture that was bought online.
This is a clear indication that people still prefer buying furniture in stores compared to online.
Do Prices and Reviews Play A Role in The Buying Journey
These two factors play a big role. 81% of furniture customers did agree that they always compare prices before buying. Another 71% agreed to always look for lower prices online once they have seen the actual price.
Aside from price, the number of reviews also plays a big role. For instance, 68% of clients agree to purchase if they see and read numerous positive reviews online. Moreover, furniture with 5-star ratings attracts more clients.
For retailers combining the use of both channels can increase your sales. If you look at the current trend, giant companies such as Oak Furniture, ScS and DFS are all opting to incorporate both actual stores and online shops.
Online Stores are Also Opening Up Showrooms
As much as physical furniture store owners are moving online, the purely online retailers are also opening up showrooms. Home Living Direct is an excellent example. Recently, they converted one of their warehouses into a showroom.
From the above retail furniture statistics, combining both of these things greatly ensures that you tap into all customers.
The Surprise Early Election in Brexit
Over the years, we have seen how politics can find its way into the economy. The early elections in June and Brexit negotiations are likely to affect the price of goods made outside the UK, and there will be some struggles between the pound towards both the dollar and euro.
But, Furniture Still Remains to Be The Heart of Every Home
Every home must have a particular set of furniture. Whether it’s a bed, a seat or a table, we can conclude that furniture is the heart of every home. People love their homes, and it’s why market trends change day after day. Shows such as The Great Interior Design Challenge attracts over 1.9 million viewers.
From these statistics and retail market trends of furniture, we can say that embracing both online and in store will give you a multi-channel sales system. And mixing them won’t only increase brand awareness, but you can reach out to many clients.