Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Home furnishings; Housewares
Executive summary
A Market Sustained Demand for Furniture
Furniture remains the largest home furnishings and housewares sector,
consistently outperforming the market for the last 3 years. Several factors
have contributed to this sustained demand. On the demand side, steady
increases in the construction and renovation market are boosting demand for
kitchen and bathroom furniture. On the supply side, retailers and
manufacturers are successfully increasing their sales volumes by encouraging
and meeting shoppers' demandswith a multiplicity of new collections, new
styles and new decorative items.
Demand Driven by New Purchasing Patterns, Product Diversity and Price
Home furnishings and housewares markets have been very active and dynamic over
the last decade and have changed significantly in terms of supply and demand.
Shoppers, particularly newly settled young people, are looking for affordable
products that will allow them to either upgrade or redesign in the future.
Styles have changed dramatically, but several styles coexist in the market to
cater to the range of consumers' demands. New collections are regularly
introduced to the market in order to sustain demand. Retailers no longer
hesitate to change part of their regular offering and by doing so to draw
shoppers in for new items.
Consumers are replacing their home furnishings and housewares more regularly
than ever before and since they increasingly need to with other consumer
goods, price has become strategic. Average prices decreased over the review
period with retailers and manufacturers turning to imported goods in order to
be able to offer products at competitive prices.
Furniture and Furnishings Stores Dominate Distribution
The distribution of home furnishings and housewares is fragmented and
diversified. Solid market performance is encouraging many companies to enter
the market or to launch new retail concepts, as a means of capturing a portion
of the market. The past few years saw Lafayette Maison and BHV Déco launched
onto the market by French retailers traditionally associated with the fashion
and DIY industries, respectively. Domus, the first commercial centre dedicated
to home decoration, was established and Zara, the Spanish clothing retailer,
developed its Zara Home concept. Additionally, many small stores located in
city or commercial centres, are increasingly carrying decorative objects to
complement their existing products and increase revenues. Competition is
becoming fierce and the market crowded and increasingly difficult for
consumers to comprehend.
IKEA Becomes Market Leader
IKEA has based its success on the clarity and simplicity of its offer. IKEA
customers know exactly what they are going to find: simple, modern styles that
cater to a young demographic looking for economy and design. Conforama has
failed to respond to developments in the home furnishings market and has lost
its market leadership. Shoppers are increasingly looking for product
specialists while Conforama has tried to maintain its reputation for offering
a wide range of styles and items.
Increase in Sales Predicted
The trend is set towards a steady increase in demand for different styles of
home furnishings and housewares. Fashion and impulse purchases will become
increasingly important in a market that traditionally catered to planned
purchases and very slow trends. Market diversity and the capacity to
anticipate new consumer trends are expected to sustain demand for home
furnishings and housewares.
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