Home Furnishings in Asia Pacific

Strategy Briefing

About This Report

Nov 2018

Asia Pacific grew the fastest for home furnishings globally but still lags behind in terms of per capita spending. There is huge potential for growth due to urbanisation and rising income levels, specifically in emerging markets, that spur household growth and stimulate demand for home furnishings such as indoor furniture. The challenge lies in the high fragmentation due to Asia Pacific’s dynamism in its demographic, consumer preferences and income levels.

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Home Furnishings in Asia Pacific

Key Findings

Asia Pacific has the highest growth prospects compared to other regions

The Asia Pacific market for home furnishings grew the fastest over the review period, with a CAGR of 4%. This is due to the strong performance of emerging economies such as China and Indonesia, household growth in developing markets, and rising income levels across all countries.

Indoor living is the strongest performing category of  home furnishings in Asia Pacific

Shrinking households and the rising commonality of high-rise apartment living mean that demand for outdoor living has dramatically shrunk, while multifunctional and space-saving indoor furniture such as sofa beds and bedroom furniture with storage are highly sought-after.

Development of retail channel distribution is boosting growth in home furnishings

The evolving retail channel distribution is most prominent in emerging markets, where deeper consumer segmentation, characterised by rising income levels, have allowed retailers to diversify their channel distribution and expand their market shares.

Market remains highly fragmented

Shares of home furnishings continue to be highly fragmented due to the sheer size of large markets such as China and India, where regional companies dominate certain states and provinces. IKEA is the only exception, with its entry into the region culminating in the brand dominating home furnishings in the countries in which it is present.

Emerging economies drive volume growth while developed economies drive premiumisation

Rising incomes in developed markets such as Singapore mean that consumers are willing and able to pay for higher-priced home furnishings with value-added benefits, while the rural-urban shift in markets such as India and Indonesia will drive demand for affordable and durable home furnishings.

Introduction

Scope
Key findings

Regional Overview

Strong growth prospects in Asia Pacific due to household growth
Home furnishings is set on a healthy growth trajectory
China records remarkable growth
Indoor living dominates the home furnishings market in Asia Pacific
Lighting industry continues to light path to growth for home furnishings
Indoor living propels growth of Asia Pacific
Indoor living propels growth of Asia Pacific
Homewares and home furnishing stores continue to dominate
Widening product availability fuels channel growth

Leading Companies and Brands

High degree of fragmentation in home furnishings
Nitori and IKEA continue aggressive expansion across Asia
Only two companies are present in nearly all the markets in Asia
Brand rankings of top three players remain unchanged over 2012-2017

Forecast Projections

Indonesia is forecast to record double-digit growth in coming years
Accelerated growth expected in developing markets for home furnishings

Country Snapshots

China: market context
China: competitive and retail landscape
Japan: market context
Japan: competitive and retail landscape
India: market context
India: competitive and retail landscape
Indonesia: market context
Indonesia: competitive and retail landscape
South Korea: market context
South Korea: competitive and retail landscape
The Philippines: market context
The Philippines: competitive and retail landscape
Thailand: market context
Thailand: competitive and retail landscape
Taiwan: market context
Taiwan: competitive and retail landscape
Malaysia: market context
Malaysia: competitive and retail landscape
Hong Kong, China: market context
Hong Kong, China: competitive and retail landscape
Singapore: market context
Singapore: competitive and retail landscape

Appendix: Competitor Analytics

Competitor Analytics tool
Overview
Competitors
Market Overlap
Treemap
Overlap Matrices

Appendix: Industry Forecast Model

About Euromonitor International’s Industry Forecast Model
Soft drivers and the Industry Forecast Model
Growth decomposition explained
Significance and applications for growth decomposition
Key applications for Industry Forecast Models