Growth of the furniture industry through e-commerce
With the strength of the global pandemic, the furniture industry has been affected due to strict government policies and lockdown protocols, where individuals were required to stay at home in order to avoid exposure to the virus.
The demand for furniture fell in 2020 as offices and public places were closed for a long time due to the massive spread of COVID-19, which lowered the demand for furniture. However, it also sped up furniture e-commerce as customers were skeptical about shopping at retail in order to maintain social distancing guidelines, and they found an easier method to purchase their desired products from the comfort and convenience of their own. security of their home.
People are getting used to working from home, they are trying to find a new work-life balance. In the new era of remote working, a wider audience is turning to smart furniture. This type of furniture serves many purposes, as we realize that we need furniture that is flexible and transformative, multifunctional and agile. Professionals who work from home for long periods of time choose to choose furniture that would effectively be workstations and that is compatible for other family purposes in order to improve their ability to work long hours.
Several new market trends have emerged as a result of Covid, allowing manufacturers to explore new business opportunities. Interestingly, children’s furniture has also seen increasing demand due to the foreclosure situation. After the easing of lockdown restrictions, the demand for home office furniture like study tables, office chairs, laptop tables and other items nearly tripled and this is expected to continue at least until at least. ‘at the end of 2021.
According to startup talky, “India’s Work From Home furniture market is expected to grow from $ 2.22 billion in 2021 to $ 3.49 billion by 2026, mainly thanks to a growing number of companies offering the opportunity to work from home to their employees by adopting cloud-based solutions.
Consumer preference for higher quality products, increasing urban population and increasing disposable income are some other factors which positively influence the furniture market. It will change the lifestyle of consumers especially due to foreclosure are some of the major factors in Work From Home Furniture Industry in India. “
According to spacewood, “The Indian e-commerce market was valued at $ 25.7 billion in FY20, growing at a CAGR of over 35%, and is expected to reach $ 99 billion by 2024. , with a CAGR of 27% over a period of 2019-2024.
While factors such as increasing broadband connectivity, smartphones and the rise of the digital economy provide a strong supporting infrastructure, innovations from online retailers, using emerging technologies such as artificial intelligence and augmented reality, have helped push new categories on the e-commerce platform, thus contributing to the growth. “
Here are some key factors on how e-commerce is expected to play a role in the growth of the furniture industry:
1. Omnichannel sales
Several furniture stores have started their online journey by focusing on their online presence and trying to grow it in a rigorous way. grow the business even in the midst of a calamity.
A huge benefit of the D2C ecommerce strategy is that manufacturers have complete control over everything from packaging to marketing. Unlike traditional marketing, many brands have opted for different channels to connect with their consumers.
2. Social media boom
Customers can use any kind of medium, such as social media: facebook, instagram, whatsapp where you can find different furniture brands pages and directly contact the manufacturer for any questions regarding the product or the company.
Brands receive frequent feedback that helps them improve their services, alongside many other social media, which also makes it easy for them to sell their craft and work. D2C today has websites where they can easily connect with consumers.
3. Ingenious e-commerce
Today’s technology is so advanced that it makes everything much easier in these difficult times.
Customers can now see what a new sofa would look like in their apartment, in real time and without the risk of paying for something they don’t want. The ability to “try before you buy” is very important, especially for expensive items. This way, customers can try out the furniture they want, without worrying about bad decisions, which takes a huge burden off them before making the big purchase.
4. Virtual consultation services
Customers can get advice and guidance on choosing the right furniture by using the online chat or by contacting the furniture company’s customer service by phone, online chat, video call, etc., which allows them to save time and energy while relaxing at home.
In the future, it is obvious that the furniture e-commerce is going to get big. Moreover, a contactless world (which has become a norm) has given further impetus to the industry space and this is how the online furniture market makes the industry more organized.
The author of this article is Mudit Pareek, CTO, Saraf Furniture
The views and opinions expressed do not belong to IIFL Securities, indiainfoline.com