LONDON--(BUSINESS WIRE)--According to their latest report, Technavio analysts expect the global bedroom furniture market to exceed USD 125 billion by 2020, growing at a CAGR of over 3% during the forecast period.
According to Brijesh Kumar Choubey, a lead research analyst at Technavio for retail goods and services research, “The profit margins in this segment are high primarily because most homes have more than one bedroom. One key area for potential growth is the children's bedroom furniture sector, which is currently growing at a steady rate.”
Technavio’s lead consumer and retail market research analysts have identified the following four factors that will drive global bedroom furniture market:
- Evolving home and living concept
- Innovation in design
- Omni-channel retailing
- Advertising and brand associations
Evolving home and living concept
Home style, lifestyle, and fashion magazines and blogs have a strong influence on customers. These customers are changing their buying patterns in accordance with evolving home and living concepts and trends. They are investing in remodeling bedrooms in the latest interior design styles, substantially reducing the effect of the long product replacement cycles in the market.
Vendors being cognizant of this change in buying behavior, are implementing new strategies to gain a better understanding of customer requirements. IKEA’s Home Tour Squad, for instance, is a real-time engagement program with consumers to discuss their home furnishing challenges to provide ideas, tips, solutions, and home makeovers.
Innovation in design
Competing vendors anticipate and quickly respond to changing consumer demands and preferences. Innovation in design and construction, use of recyclable materials, and provision of efficient space-saving storage solutions are some of the features that consumers look for in modern furniture, and have been the key to market growth.
IKEA’s Democratic Design Center in Älmhult Sweden, allows people from different countries to create and share ideas throughout the development process of a product. IKEA also has plans for greater involvement of suppliers and customers in this process. The company now launches nearly 10 unique and limited collections every year. It also collaborates with renowned designers like Ilse Crawford and companies like ACNE R&D to co-create designs.
“Furniture that uses regional and cultural influences from different parts of the world is becoming increasingly popular due to growing tourism. Artists and designers are incorporating international designs in bedroom furniture including European, African, and Asian designs. These patterns are commonly used in upholstered and wooden bedroom furniture,” says Brijesh.
Omni-channel retailing
Omni-channel retailing uses a mix of distribution channels for enhanced customer shopping experience, and includes retail stores, online stores, mobile stores, mobile app stores, telephone sales, and any other method of transacting with a customer. Retailers are focusing on integrating independent channels of sales for a consistent and supportive customer experience.
For example, Sears Hometown and Outlet Stores use Google local inventory ads with targeted messages to attract nearby customers into stores through their mobile devices. Macy’s has also successfully integrated online and in-store marketing to develop a holistic understanding of customer needs and decision paths.
Advertising and brand associations
Retailers leverage both traditional and social media platforms for advertising. Media, both print and digital, plays a vital role in spreading awareness about brands among consumers. As companies create campaigns and communication to promote their brands and products, they reach out to their target audience via TV commercials and social media campaigns.
IKEA, for instance, uses separate pages for different countries on Facebook to cater to the varying requirements of its customers. The company also makes its catalog available digitally for desktop and mobile users. Ashley Furniture HomeStore worked with iCrossing, a digital marketing agency, to further its social media interactions with customers. Besides its Facebook page, Ashley Furniture has a presence on Twitter, YouTube, and Flickr.
Browse Related Reports:
- Global Luxury Furniture Market 2015-2019
- Global Home Furnishings Market 2016-2020
- Global Office Furniture Market 2016-2020
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Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
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