Online furniture platforms are on the rise and have managed to avoid the pandemic’s worst effects. According to a survey by RedSeer Management Consulting, the online furniture business expanded to $ 400 million from $ 275 million in the previous year.
While furniture has generally been a disorderly category, the industry received a boost four years ago from horizontal companies like Flipkart and Amazon. Furthermore, during the next five years, the online furniture market is predicted to rise by 40%. According to Wazir Advisors, years have passed. Due to low demand, the online furniture sector saw a comeback in general furniture sales and home furniture sales after closure last year. This year is projected to follow a similar pattern. Brands are currently working to improve their online presence to provide a real-time purchasing experience.
Before Covid, says Lokendra Ranawat, co-founder and CEO of WoodenStreet, his company accounted for 80% of sales. To improve the consumer experience, the company launched virtual reality solutions that allow customers to buy at home and feel as if they are in a store. Hydraulic constructions, wall-mounted workbenches, and folding couch beds were also introduced.
“Consumers desire a high level of comfort and chose comfortable furniture to provide maximum cushioning throughout lengthy working days,” said Nishant Gupta, senior director of BGMH and Flipkart Furniture. We have witnessed a big increase in demand for work from home equipment such as desks, chairs, and laptop desks since last year.
The epidemic has aided the growth of internet furniture businesses. The market used to be dominated by vertical drilling rigs such as teak and sandalwood furniture which are much expensive, but today it favours horizontal drilling rigs according to Chachan of RedSeer. However, horizontal suppliers offer a wide range of products at affordable prices, including high-quality teak furniture and textured wood furniture.
“However, when local furniture businesses go online independently of Amazon or Flipkart, we will see fewer furniture stores offering nationwide shipping services,” said Harminder Sahni, founder and managing director of Wazir Advisors.
Horizontal businesses such as Flipkart and Amazon currently hold 60% of the market share, vertical players such as Pepper fry and WoodenStreet possess 20-30% of the market share, and direct-selling brands such as Ikea and Godrej Interio hold 10% of the market share. Supply Chain Management, Tier II market access, and consumer spending in other categories are all crucial to the industry’s growth. To this end, Amazon and Flipkart have established a supply chain focused on the Tier II market.