Mixed-Use Development Driving Demand for Furniture Market
The blend of horizontal or vertical mix construction which comprises residential, commercial, institutional, industrial, and cultural units respectively is defined as the mixed-use development. The concept was first adopted by the Canadian government in 1986 which allowed residential and commercial units together. Since the development consists of all the functional business units and residential units; it attracts more population, thereby, boosting the local demand for basic furnishing necessities such as home furniture, commercial furniture, and many more.
Mixed-use development is becoming widely popular, as the concept is widely been adopted by the developers to promote a holistic approach of a mixed economy. In addition, consumer behavior over the past few years suggest that new working millennial prefer reduced working distance, retail, hospitals, and other amenities in one single package. This has prompted increasing adoption of mixed-use development. The project has seen greater demand in countries like India, China, and the U.S. For instance, six of the key upcoming mixed-use developments in the U.S. have a combined value of nearly USD 23 billion. Thus, the increasing prominence of mixed-use development is likely to drive the demand for the furniture market.
Rental Furniture Increasing Prominence among Millennials
The rising prominence of rental furniture has observed greater demand among Millenials over the past few years. The behavior of millennials over the past few years resulted in the formation of various rental furniture companies. The concept observed the highest penetration in developing countries like India, Thailand, and others. For instance, in India, the emergence of companies like Furlenco, RentoMojo, Cityfurnish, and others suggest the rising popularity of rental furniture. Since these companies observed flourishing sales revenues in the country; it clearly suggested the increasing influx of millennials in the country’s working population.
Furlenco which was launched in 2012 observed steady growth as it continues to penetrate the urban centers of India. The increasing popularity of the company among consumer masses indicates the rising popularity of rental furniture. This is anticipated to positively influence the furniture industry.
Product Type Outlook
On the basis of product type, the market is bifurcated into chairs, tables, racks, others. Among the aforementioned product mix, the racks segment is likely to observe steady growth over the coming years. In emerging countries such as India, Sri Lanka, and others are likely to grow in a number of marriages. New marriages lead to the requirement of furniture especially for the purpose of storage. Thereby, driving the demand for rack product segment over the coming years.Similarly, demand for modular tables and chairs are also expected to observe significant growth owing to rising demand for innovative office furniture solution. The rising price of office units and office renal space is pushing greater adoption of modular solutions enabling efficient use of office space. Therefore, new trends such as mentioned above are likely to drive the demand for modular tables and chairs solution.
Material Type Outlook
On the basis of material type, the market is segmented into wood, glass, metal, plastic, and others. Wood furniture is likely to continue its dominance over its counterparts owing to its aesthetically pleasing appearance and long-lasting life. Wood furniture offers greater strength and durability coupled with an enhanced aesthetic appearance which is resulting in its dominance in the material type segment.
Another key segment that is likely to observe prominent growth is plastic furniture. Plastic furniture is low cost, lightweight, and easy to maintain which is resulting in its penetration in educational units. The educational units are increasing tremendously around the world. Thereby, driving the demand for plastic furniture segment.
Distribution Channel Outlook
On the basis of the distribution channels, the market is segmented into retail stores, direct to consumer, e-commerce stores, manufacturer stores, rental stores, discount stores, and others. An E-commerce distribution channel is likely to observe astonishing growth over the forecasted period. The heightened adoption of smartphones around the globe flourished the demand for furniture from e-commerce distribution channels over the last few years. For instance, smartphone users in India are likely to increase by 80% over the next five years, thereby, creating a huge opportunity for the e-commerce sales channel.
Rental stores' higher penetration among millennials is likely to play a key role resulting in the promising growth of the segment. Similarly, discount stores owing to its exclusive cheaper prices are likely to continue steady growth over the predicted timeline. The price-conscious consumer around the globe is likely to be the key factor in driving the segment’s growth.
The key vendors of the industry include Ashley Furniture Industries, Flexsteel Industries Inc., HNI Corporation, Okamura Corp., Itoki Corp., Nitori Co Ltd, Inter Ikea Systems B.V., Herman Miller Inc., Kimball International Inc., and Fursys Inc.
The vendors of the industry are investing in product innovation catering to the evolving demand of millennial and Gen Z population. At the same time, vendors are creating strategic collaboration with end-use customers through long term agreement. For instance, in 2018, Itoki Corp. signed a basic contractual agreement with a Dutch-based consulting firm of work-style.
The essential required for the purpose of sitting, sleeping, eating, and resting in various places such as home, hotels, office, and others is defined as the furniture. Smart and modular furniture solutions have observed rising prominence in the overall furniture industry owing to its enhanced functionality.
Furniture Market Segmentation
By Product Type:
- Storage Unit
By Distribution Channel:
- Supermarkets & Hypermarkets
- Specialty Stores
- North America (U.S. & Canada)
- Europe (Germany, United Kingdom, France, Italy, Spain, Russia and Rest of Europe)
- Asia Pacific (China, India, Japan, South Korea, Indonesia, Taiwan, Australia, New Zealand and Rest of Asia Pacific)
- Latin America (Brazil, Mexico, Argentina and Rest of Latin America)
- Middle East & Africa (GCC, North Africa, South Africa and Rest of Middle East & Africa)
The report profiles various major market players such as
• Ashley Furniture Industries
• Flexsteel Industries Inc.
• HNI Corporation
• Okamura Corp.
• Itoki Corp.
• Nitori Co Ltd
• Inter Ikea Systems B.V.
• Herman Miller Inc.
• Kimball International Inc.
• Fursys Inc
• Other Major & Niche Players
Competitive landscape analysis provides detailed strategic analysis of the company’s business and performance such as financial information, revenue breakup by segment and by geography, SWOT Analysis, key facts, company overview, business strategy, key product offerings, marketing and distribution strategies, new product development, recent news (acquisition, expansion, technology development, research & development and other market activities).
The study also provides a company’s positioning and market share in the furniture market.