Home furnishing in Europe: Key market research findings
- Demand for RTA and multifunctional furniture
- Germany is the major revenue contributor
- Key vendors – IKEA, JYSK, Steinhoff, and Walmart
Technavio’s market research analysts expect the home furnishings market in Europe to grow at a CAGR of around 4% between 2016 and 2020. The growth in this market is driven by demand for ready-to-assemble (RTA) and multifunctional furniture. The demand for RTA furniture is soaring owing to the convenience of transportation, especially for consumers who live in rented housing facilities. These products are easy to dismantle and set up, allowing customers to pack them into compressed flat packages and move them around. These are also popular with do-it-yourself (DIY) consumers. Furthermore, consumers look for home furnishings that are compact and easily movable to allow for efficient use of the limited space. During 2015, Germany dominated the home furnishings market in Europe. The market in this region is driven by the high penetration of large MNCs that manufacture and retail different home furnishing products. In the German market, IKEA stands as the prominent player and is one of the fastest growing markets for IKEA.
The new market research report from Technavio presents a breakdown and analysis of the home furnishing segments based on the product.
“The growing preference for online retail amongst consumers in the latest trend in the home furnishings market in Europe, augmented by the penetration of Internet and smartphone. Furniture manufacturers and retailers are now selling furniture, floor coverings, and other home decor products online. They are venturing into the e-commerce space with user-friendly websites, and attractive product offers in an attempt for increased sales. For instance, IKEA, Wayfair, and Ashley Furniture are some of the key companies that have entered the e-commerce market and are selling their products online,” says Brijesh Kumar Choubey, Lead Analyst, Consumer & Retail, Technavio Research.
The home furnishings segment accounted for more than 53% of the market share to dominate the home furnishings market in Europe in 2015. This segment of the market is thriving due to the increase in the number of smaller living space and the resulting increase in the demand for multifunctional furniture. The living room and bedroom furniture segments generate the majority of the sales, followed by the kitchen segment. The projected increase in the demand for luxury home furniture and the growing trend of rustic and pastel furniture is likely to contribute to the growth of the market during the forecast period.
The key vendors in the market are IKEA, JYSK, Steinhoff, and Walmart. The market is highly competitive with the presence of many large international vendors and private players. To sustain themselves in the market, vendors are coming up with innovative multifunctional products to meet the changing requirements of customers. Several new players are also expected to enter this market in the coming years because of low switching costs for buyers and low brand loyalty.
A more detailed analysis is available in the Technavio report, Home Furnishings Market in Europe 2016-2020.
We can customize reports by other regions and specific segments upon request.
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