Furniture Industry - How to Overcome Challenges in 2023
Updated: Aug 12
The global furniture industry has faced many challenges in the last couple of years — the COVID-19 pandemic, different policy priorities, and growing international competition are just some of them. In spite of that the global market value of furniture was estimated to be 557 billion U.S. dollars in 2022 - statista.
GlobalData forecasts a 2.8% dip in the furniture market—with inflation masking the fall in volumes. Higher mortgage costs, tougher affordability and a decline in housing prices will reduce transactions and impact a key driver of the furniture sector.
Is there a possibility to get out of this revenue dip and bring a business back to a profitable margin? The answer is yes. I'll write today about how WebAR can cast a significant impact to improve the overall industry.
What is happenning in 2022-23 in Furniture Industry
Despite ongoing economic uncertainty for many businesses and consumer markets, the furniture market is expected to grow 5.2% between 2023-2028. While key drivers include changing customer preferences, fluctuating e-Commerce and economic volatility, there are some interesting trends that will continue to be top of mind for furniture retailers and manufacturers
Understanding potential challenges for the furniture industry empowers companies to strategize for the future, addressing weaknesses and building upon strengths to take hold of market share. Read on to learn the most pressing challenges facing furniture companies in 2023 and how brands can take advantage of unique market opportunities to secure success this year.
Furniture Ecommerce is on the rise
According to Comscore Digital Commerce Measurement, in 2021, the furniture and appliances category was one of the top three growing categories in digital commerce in the U.S., with an 81% year-over-year increase in consumer spending.
The most interesting part is that online shopping is no longer only for digitally native customers. Research from Furniture Today shows that 58% of millennials, 49% of Gen X consumers, and 37% of baby boomers are likely to make their next furniture purchase on the internet.
1. Understand consumers’ needs and act accordingly
A primary challenge for furniture companies in 2023 is winning sales from their competition. On average, customers shopping for furniture will visit 5.5 stores before making a purchasing decision. If you can hold them longer, catering their needs and provide an online shopping experience people prefer, furniture brands can win half of the battle already.
2. Redefine e-commerce using the power of technology
The rapid digitization of commerce has completely transformed customers’ expectations. To cater to their needs, retailers are improving the e-commerce experience to meet customers where they are.
3. Prepare for the era of 3D commerce
Furniture retailers have finally realized that there’s no room for legacy website experiences and platforms never designed with our digital age in mind. Retailers will need to move beyond the current 2D focus of e-commerce to prepare for a more social and immersive future of shopping.
4. Invest in experiential retail
The unprecedented boom in furniture e-commerce sales forced many to believe that this would be the end of physical retail. Instead, some of the leading retailers are expanding their physical footprint. The reason? E-commerce has transformed the role of brick and mortar.
Moving forward, physical stores will still play a critical role in pushing business objectives and commercial targets forward — but this time, with a spin — the store will become the hallmark of experiential retail.
Furniture businesses are ramping up their investments in digital technologies to meet customers’ expectations. 3D product visualization will be crucial for business growth during the next decade. This means that the success of furniture retailers will inevitably be tied to their approach toward visual commerce. Are you ready to reinvent your furniture e-commerce merchandising with 3D ecommerce - WebAR and 3D product visualization?