Following a mixed performance across categories and markets in 2020, homewares and home furnishings is forecast to return to strong growth as consumers place new value on investing in their homes. Notably, developing markets are to return as the driving force behind the expansion of global sales. This growth will take place in a dynamic competitive environment characterised by the growing influence of new service-driven business models, augmented reality and increasingly fierce competition.
Alongside the number of employees working remotely, the growth of home office furniture will fall away from the peak reached in 2020. However, wider sustained adoption of hybrid working will underpin category expansion of USD2,836 million at a 2% CAGR between 2020 and 2025.
Driven by changing lifestyle trends, furniture rental is seeing markedly rising commercial relevance into the forecast period. This precipitates an increase in M&A activity as players acquire the capability to compete with this shared economy service business model. This is additionally spurring innovation in product design as durable circularity begins to directly impact profitability.
A variety of players have sought expansion, seeking to capitalise on renewed interest in the home and expectations of a rapid return to growth. However, more disruption, may hamper reaction speeds for exploiting peaks in consumer demand. With a wide range of players seeking to expand, industry competition is likely to intensify across markets.
Augmented reality technology is to become increasingly integrated into the consumer journey for home furnishings as players respond to the shock of the 2020 pandemic with an increase in investment in visualisation technology to bridge the gap between digital and physical retail.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page