Home Furnishings in South Africa

PROSPECTS

The economic environment puts a strain on sales, however many consumers turn to DIY solutions for cheaper alternatives

The furniture retailing industry continued to be impacted by the challenging economic environment in 2019, accompanied by rising unemployment, low disposable incomes and rising debt. With consumer confidence being low and unemployment being high, households looked to restrict non-essential spending, by replacing furniture products with cheaper options.

Younger people are renting more apartments, boosting demand for modern and urban-inspired home furnishings

In 2019, South Africa saw increased migration across provinces. Most of those migrating were younger people, who found residence in apartments.

LED bulbs and LED lamps gain popularity as consumers appreciate the cost efficiency of these items

Convincing consumers to move over to LED bulbs might have proved difficult before the start of the review period, but consumers in 2019 have come to realise that these formats benefit not only their budgets but also the environment over the long run. This led to LED lamps recording the highest growth in 2019.

COMPETITIVE LANDSCAPE

Mr Price continues to lead with its competitive prices, as Lewis Group remains a key competitor, despite losing share over the review period

Mr Price Group Ltd continued to lead the landscape in 2019, as its product offerings enjoyed mass appeal, with the player actively introducing product offerings based on seasonal trends and consumer preferences. The company also introduces these offerings at such competitive prices, that consumers often buy a higher volume of goods than they had planned to.

Warehouse clubs and non-traditional furniture players become big competition, having low price-points for their modern offerings

Increasing price sensitivity is leading to the penetration and entry of affordable and cheaper retailers. As a result, traditional furniture retailers are experiencing increasing competition from non-traditional furniture players that are offering contemporary and modern furniture.

Barbeques remain a popular activity in South Africa, and as such, smaller players continue to evolve the competitive landscape

Barbequing remained a popular activity throughout 2019 for many South Africans. The area of barbequing continued to evolve as smaller players broaden their products’ availability.

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