Ready-to-assemble furniture has been gracing dorm rooms and testing the resilience of relationships since Ikea first introduced couches, tables and bookshelves with names like Arkelstorp, Boksel, and Klingsbo.
As the name suggests, ‘ready-to-assemble’ or RTA furniture leaves the work to the cosumer, and comes flat packed and unassembled, ready to test to emotional fortitude and strenth of wit of whichever unlucky soul is chosen to build it.
But despite the fact that assembling the stuff can make the 12 labours of Hercules look like a walk in the park, RTA furniture is seeing a resurgence in popularity in the US. A recovering housing market and a boom in home offices are two factors behind a 4.75% CAGR from 2014-2019 in the overall RTA furniture segment in the US.
Technavio analysts have narrowed down a few more key factors expected to boost the popularity of ready-to-assemble in the near future.
Recovery in Real Estate
The real estate market in the US is recovering, buoyed by more jobs, changing demographics, increased wages, higher corporate profits, and renewed consumer confidence.
Many young adults who were forced to move back with their parents during the financial crisis are now looking to move to new hourseholds, with many more aiming to move from rental properties to home ownership. On top of this, lower energy prices, low-interest rates on mortgages, and easier credit access are further stimulating the growth of the housing market. As the real estate market surges, so will related sectors (like furniture) as customers look to furnish their new homes and offices.
Affordable Alternative
As anyone who has ever opted for Ikea over higher-end vendors knows, RTA furniture has a considerable cost advantage over fully assembled furniture. Assembled furniture is expensive, bulkier and tends to involve high shipping charges, which are passed on to the customer.
Conversely, RTA furniture eliminates these excessive costs, making it economical for the customer. It’s also largely manufactured with standard designs, making it cost-effective for the producer as well.
Increased Demand from Young Consumers
The dominant demography in the US is shifting from baby boomers to people between the ages of 22 and 24. This demographic is just starting their adult lives, and moving out from mom and dad’s place—which tends to come with a need for furniture (unless milk crates and old boxes are your thing).
This demographic is also still a bit transient and unsettled, and tend to move around a lot, which has created a preference for leaner, more modern designs of RTA furniture as opposed to more expensive and heavier pre-assembled furniture.
Opportunity for Customization
The low price of RTA furniture has made it a popular option for consumers that wish to experiment with their interiors. This comes from the fact that flat pack furniture is extremely flexible and allows instant customization.
While key vendors are making efforts to constantly mass customize their furniture through regular consumer interaction, smaller vendors take individual orders and create custom RTA furniture for clients. For instance, IKEA has come up with a new idea for customers to add a personal touch to their fittings through customization. Other top market vendors are capitalizing on this by basing their marketing communication on the customization potential, which is expected to further spur growth in sales through the projected period.
