Abstract
The living room furniture market has grown steadily over the last decade borne up by the healthy economy, rising house prices, strong activity in house sales, and the willingness of consumers to spend on credit. The opportunities offered by this market induced furniture retailers to expand and has also attracted the attention of non-specialists. This has resulted in a highly competitive market characterised by over supply, heavily discounted prices, and low profit margins. Two years, 2004-2005, of reduced growth in demand has resulted in a considerable shake out in the market with a number of the less viable operators going out of business. More recently however, the turnaround in the housing market and the pick up in consumer confidence is helping to revive the sector and sales are expected to improve in 2006.
The main driver in this market remains the consumer obsession with home ownership and the home environment, driven by the buoyant housing market and a plethora of television programmes about housing matters. If moving home is a trigger for furniture purchase then younger, more geographically, mobile consumers will want furniture to suit their apartments and studio flats. Living room furniture items in demand will need to be smaller, versatile, multi functional and preferably low priced. Furniture for a combined living and dining area will be needed.
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