In 2022, the furniture industry is bound to be fascinating. Since consumer preferences have changed dramatically, brands will have to adapt to the desires and demands of customers.
Brands must embrace new trends and let go of fading fads and use the latest technology.
In order to make matters more interesting, e-commerce businesses will likely improve their digital and technical skills this year. The plan is to spend in 2022 to assist them in capitalizing on internet sales while also driving demand and efficiency.
Numerous major furniture delivery business statistics and trends for 2022 have emerged. So, without any further delay, let us expound upon these.
Table of Contents
- Industry Stats and Growth Projection
- Top Trends of Funiture Delivery Business in 2022
- Challenges Associated with Furniture Delivery Business
- Advantages of Furniture Delivery Business
Industry Stats and Growth Projection
Below are the key industry stats and growth projection data:
- The revenue in the furniture market stands at US$715,609 m in 2022. The market will grow annually by 4.79% (CAGR 2022-2026).
- The market’s largest segment is living room furniture with a market volume of US$248,368 m in 2022.
- In global comparison, most revenue is generated in the United States (US$239,373 m in 2022).
- In relation to total population figures, per person revenues of US$94.00 are generated in 2022.
- Consumers are upgrading their furniture at a higher rate than in the past. This is due to rising living standards and consistent growth in disposable money across the board.
- Online shopping and e-commerce are changing the furniture purchase landscape and promoting sales. By looking at the graph below, we can see that the share of online revenue is increasing every year.
Top Trends of Furniture Delivery Business in 2022
1. Increase in furniture demand via e-commerce
Retail e-commerce income from furniture and homeware sales was estimated to be 132.7 billion dollars in 2021, rising to approximately 208.2 billion dollars in 2025.
Furniture and home furnishings sales accounted for 11.78 percent of total retail e-commerce sales in the United States.
Approximately two-thirds (62.3%) of overall searches for the furniture industry are transactional searches. To put it differently, most of the clients looking for furniture online are ready to purchase.
2. Technology has empowered the industry
Many furniture firms have launched e-commerce websites in the last decade, but the bulk of them are geared to lure you to visit a physical showroom rather than making a straight purchase online.
However, as manufacturers explore new methods to exhibit their furniture goods in inventive and aesthetically attractive settings employing modern technology, an increasing number of customers are opting to shop for furniture online.
3. Fast and free shipping options
Free shipping cannot be used as a promotional offer for clients who spend a particular amount of money or as a holiday savings deal. Customers who often purchase online now anticipate free delivery as standard, and they also want their orders to arrive quickly.
More large stores already provide this service on a daily basis, but the furniture sector is catching up, with many companies following suit. We can expect more furniture companies to adopt this approach in 2022 in order to stay competitive.
4. Diverse financing options
Almost anything, from auto repairs to dental expenses to beds and even modest items from big e-tailers, can now be financed.
The furniture business has been giving financing options for decades, but today’s consumers’ demand is not restricted to financing alternatives but also to be approved within minutes. This is to help them make their purchase in less time and start enjoying their furniture right away.
Customers may go someplace else if they aren’t happy with the payment and financing choices you give; if they aren’t satisfied, they may go somewhere else that better meets their demands.
5. More cash and carry options
Customers no longer want to wait for weeks for a piece of furniture. Millennials are especially eager to buy and take home their furniture the same day or have it delivered the same day.
Millennials, who make up the largest segment of the furniture market today, don’t want to find out that assembling a piece would take time.
As a result, several businesses are catering to the masses by selling pre-assembled furniture in a range of colors and fabric options for easy pickup or rapid delivery.
6. Customization and personalization for an enhanced experience
Regardless of industry, providing an excellent customer experience is crucial. In the furniture sector, customer experience may make the difference between developing your client base and losing consumers to competition.
Furniture companies will take measures to get to know their target market and offer personalized advice and recommendations to assist customers in finding the ideal item.
Brand e-commerce managers and marketers may use technology, social media marketing, or a mix of the two to reach out to customers on social media and promote items with high-quality 3D photos of their furnishings and WebAR experiences.
Additionally, the omnichannel experience will encourage personalization and turn social platforms into extensions of furniture web shops. This will allow audiences to find and compare companies and the items they provide collectively.
7. Higher sustainability
In order to cater to the sustainability concerns of the year 2021, the furniture industry transformed to meet environmental concerns.
Many brands are focusing heavily on developing sustainable furniture products from start to finish, from sourcing materials to environmental impact to worker treatment to the final stages of production. It all happens to satisfy the wants and needs of a customer demographic that is growing exponentially.
It’s also worth noting that customers are prepared to pay extra for items provided by companies who share their worries about the environment. Promoting an eco-friendly corporate attitude also increases the likelihood of greater participation on social media channels.
Challenges Associated With Furniture Delivery Business
The furniture delivery business is not free of challenges. Let us take a quick look at the key challenges:
1 Uncertainty related to shipping costs
Typically, the customer is not sure about the exact cost that goes into shipping a piece of furniture. Due to this, they may find a particular shipping cost quote too high and opt-out of buying particular pieces of furniture.
In order to prevent this, the best plan is to enable a real-time shipping charge calculator that can help customers estimate the cost of shipping. This will also make them aware of the place from where the item is shipped, and they can see if the money charged is fair.
2 Inability to meet quality standards
Customers may feel that the ordered furniture does not meet their expectations and wish to return it after delivery. Quality is more than a set of abstract criteria in the furniture industry. It should be ingrained in all levels of the supply chain to reduce the need for returns or exchanges.
3 Issues with return policy
In order to meet challenges and maximize supply chain performance, proactive management of product quality concerns is critical.
From in-transit furniture quality control through final shipping, you may provide furniture inspection services at any point in the supply chain. Some of the areas of quality control inspection are as follows:
- Visual examination
- Tests conducted on-site (load test, strength test, etc.)
- Inspection of the packaging
4. Reverse supply chain logistics issue
Furniture manufacturers who effectively implement reverse logistics has a more efficient and controllable supply chain. You can extract the highest value out of your products if you run them through the reverse supply chain.
5. The last mile problem
The most difficult component of the furniture industry’s supply chain is home delivery. Multiple pauses are frequently required in the last leg of delivery, resulting in inefficiency. The following are the primary variables that contribute to inefficiency:
- Unconsolidated deliveries
- High delivery failure rate
- Low utilization of logistic resources
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Advantages of Furniture Delivery Business
The furniture delivery business is booming. So, it is just about time that you got on board the wagon to reap profits and returns. But other than that, there are various benefits that furniture delivery businesses offer. These are
- With e-commerce furniture delivery onboard, there is a wide variety from which customers can choose. With an internet store, furniture businesses can provide clients with more options, diversity, and alternatives. The space available in a physical store is limited. An internet store, on the other hand, provides users with virtually infinite room and alternatives. Users may also choose from a variety of colors, textures, and dynamic combinations while selecting furniture.
- Customers may take advantage of logistics support, easy returns, and quick refunds. They may get things done quickly and easily with an online furniture company. Furniture retailers also provide convenient recurring payment alternatives for major purchases in order to boost sales.
By viewing the items properly and vividly on your website, customers will feel more secure in making an online purchase if you offer a layer of interaction on top of high-quality pictures. Many big companies are harnessing the power of 3D commerce to increase interaction with customers.
As the term suggests, visual search refers to the use of artificial intelligence (AI) to allow customers to submit a picture to a furniture company’s website and find visually related goods.
Furniture is a highly visual business. Customers make purchases based on the design, style, color, and fabrics available. It’s no surprise that furniture is the second most popular category for visual search (just after clothes). According to statistics, 85 percent of clients utilize visual search to locate furniture that they like. Even augmented reality is gaining traction in the furniture industry.
Find out why the industry’s top players are doing well and try to replicate that. The finest checkouts have a clear flow and are meant to be as simple and seamless as possible for the user.
Buy Now, Pay Later (BNPL) is a short-term financing method that allows customers to make purchases now and pay for them later, usually without incurring interest.
Customers like the BNPL idea since it allows them to stretch out the expense of their purchases. In 2022, more than one in every two American customers will be interested in employing a pay-over-time service. However, here’s where things get interesting: If a store does not offer a pay-over-time option at checkout, over half the customers will abandon their transaction.
Furniture delivery business is bound to see many good days in 2022. And if you want to get into the action, you are on the right track.
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