Author: slavko

Market Overview

Europe plays a key role in the global furniture industry not only in terms of production but also in terms of market and international trade values. Europe remains the second largest furniture manufacturing region in the world and it is the headquarters of some of the biggest and most important global players. Germany, Italy, and Poland are the main exporting countries at a global level. Europe has a long history of furniture manufacturing. the industry can combine new technologies and innovation with cultural heritage, tradition, and style, providing jobs for skilled workers and is also a world leader in the high-end segment of the furniture market. Increase in rising consumption is one of the key factors impelling the growth of the Europe furniture market. The Europe furniture market growth in future will arrive by growing demand for eco–friendly furniture, modern & luxury furniture, hotels & restaurants, raw materials from suppliers, reduction of high-cost transportation to manufacturers.

The Furniture market is divided into seven segments: Living Room and Dining Room Furniture, Bedroom Furniture, Kitchen Furniture, Plastic and Other Furniture, Office Furniture, Lamps and Lighting, and Floor Covering. Due to rising living standards and a higher income, consumers are replacing their furniture more frequently. The EU furniture market value was estimated to be worth around 96 EUR billion in 2020, with the market share of around 20% of the total market value of furniture industry in the world.

The Furniture market is mostly driven by consumer spending

The Furniture market is mostly driven by consumer spending in general. Consumer spending takes various factors into account; such as per-capita income, household debt levels, and consumer expectations. The steady increase in disposable income and the consequent rise in living standards are responsible for the continuous growth of the market, as is the constant demand for furniture. The growing number of internet and smartphone users has not only changed consumer behavior, but has also fundamentally changed the sales channels and retail landscape. The adoption of online shopping by consumers has made furniture one of the fastest growing markets in that regard.

Why the EU furniture industry is important

• Employment – the sector employs around 1 million workers in 130 thousand companies generating an annual turnover of around EUR 96 billion;
• Trend setting – EU furniture manufacturers set global trends. About 12% of designs registered in the European Union Intellectual Property Office relate to this sector;
• High-end segment – the EU is a world leader in the high-end segment of the furniture market. Nearly two out of every three high-end furniture products sold in the world are produced in the EU.

Opportunities for the furniture sector

• The EU furniture sector has undergone significant changes to make it more export-oriented and to focus on upgrading quality, design, and innovation. These changes include restructuring, technological advances, and business model innovations. The main opportunities ahead lie in:
• Investment – continuing investment in skills, design, creativity, research, innovation, and new technologies can result in new products which are in line with the changing population structure, lifestyles and trends, as well as with new business models and supplier-consumer relationships.
• Research – research in advanced manufacturing technologies can result in the creation of high technology and knowledge intensive jobs, which would give the sector the attractiveness it needs to attract employees from younger generations. This could help rejuvenate the sector while keeping it highly competitive on the world stage.
• Access to new markets – EU furniture manufacturers are recognised worldwide for their quality and design. This creates opportunities for the sector to further seize other markets, in particular in high-end segments and emerging economies.
• Synergies – with construction and tourism could also be exploited, building on the sector’s excellent track record in sustainability. Specifically, the reliance on raw materials from sustainable sources used in the furniture production could have a positive impact on sales among environmentally concerned end-users.

Raising Furniture Online Sales in the Market

Ecommerce is increasing in Europe as customers prefer to shop online instead of physical stores. The changing trends in the home and living concepts are transforming the buying patterns of customers. The emergence of new opportunities for customers to shop through online is one of the key factors boosting the online purchase of furniture such as chairs, storage files, tables, and desks. The trend for online shopping of furniture will continue to evolve due to the availability of 24/7 customer support, online shipment tracking, cheaper costs, and a wide range of merchandise. Thus, with the growing demand for online distribution channel, the Europe furniture market is expected to showcase a positive outlook during the forecast period. Customers prefer online buying due to the convenience and comfort of logistics and shipping of furniture items to their doorstep.

The largest furniture segments

The Furniture market’s largest segment is the Living Room and Dining Room Furniture segment. It includes furniture found in living rooms, parlors, lounges, lobbies and dining rooms. The segment is especially propelled by consumer’s need for comfort in their homes. Second largest segment is the bedroom furniture that includes everyday bedroom items such as beds, mattresses as well as closets, nightstands and dressers. In the rather conservative bedroom furniture market, innovation comes from retailers focusing on offering comfort and convenience directly to consumers. The third largest segment is kitchen furniture which growth is is driven by improvements in materials and designs which are used to provide consumers a wider range of products.

New trends in the furniture industry

The following trends currently shape the market: augmented reality apps, generative designs, eco-friendly materials, and integrated technology. From 3D-printed furniture to smart lightening, the Furniture market is experiencing innovations in design, production, and material.

Information sources: European Commission, Mordor Intelligence,  ResearchAndMarkets.com, statista.com

Virtual furniture trade fairs have been heavily boosted by the current situation of a global pandemic. Now, it’s recommended that we avoid big gatherings, practice social distancing and avoid closed spaces.

Both of these modes of presenting furniture have their advantages and drawbacks. In this article, we will be looking at some of their differences and list features of each of these trade fair types.

Organizing

When we say organizing, we are talking about all those pre-activities necessary to successfully present furniture. If we are talking about a traditional furniture trade fair, we need to find a space that’s large enough to host furniture pieces or lease and existing trade fair space.

Space rental costs on classic furniture trade fairs can be extremely high. They are charged per square meter, and you certainly need more space when you’re presenting various larger samples of furniture.

Then, you need to pick the best of the best when it comes to your furniture pieces, because you are limited by space. You need to perfectly pack and transport those pieces of furniture to the venue. The transport of furniture pieces is a costly aspect, regardless of whether you’re transporting it yourself or renting it. Also, organizing your presence at classic furniture trade shows take up a lot of time, from installing and decorating your booth to uninstalling it when you’re done and repacking for the transport back to your storage spaces.

Izvor slike: GetShipment

Also, you need to hire a number of staff members who will personally present those pieces of furniture to all interested visitors. This severely increases the cost of organizing a presence at a trade show because of the costs of travel, accommodation, food and per diem payments for your staff members. Also, classic furniture trade fairs imply a production of a large quantity of promo materials. You hand these out to visitors, but you do not have measureable feedback about their ROI.

On the other hand, organization and transport is much easier and budget-friendly at virtual furniture trade fair shows. You just need to find media or web space where you can present your furniture. Of course, you won’t need to do any packing or transport, nor hire staff to present the samples.

What we need in a virtual setting is a well-developed virtual presentation space which transfers the experience of a classic fair. Also, it’s recommended to use interactive communication and engage with visitors in order to get the feeling of live participation (fair tickets, suggestion and comment surveys, mini-quizzed, thank you notes…)

Also, every traditional trade fair has its working hours, while a virtual furniture trade show is available 24/7. In a classic furniture trade fair, visitors usually make one round, while as for the virtual variant, it’s possible to visit it an unlimited number of times. Most virtual furniture fairs are mobile-responsive, which means you can access it from any device.

Offer variety

In the first section, we already touched upon the fact that there is a space limit for furniture presentation in traditional trade fair shows. If you want to present furniture for several different rooms on a classic furniture fair, you have to somehow divide that offer and make it more attractive. This, in turn, will demand more space and increase your costs.

Next to that, you should also think about presenting various materials, colors and combinations. For a classic furniture trade show, this is a complex activity that has to take into account different consumer interests and trends.

In this regard too, a virtual furniture trade fair can simplify a lot of things. You just need a good web designer who can encapsulate your ideas in a visual form. The virtual visitors will then browse around rooms and collections on their own, choose their own color and material combinations. To improve their experience, you should include as many types of video content, 3D animations, virtual walkthroughs, organize live webinars, virtual conferences, live chat options…

Izvor slike: Hospitality Interiors

Consumer behavior

This is, perhaps, the only aspect in which you can find direct advantages of a traditional furniture trade fair compared to a virtual one. Furniture is something that consumer rarely change. Many have trouble visualizing isolated pieces in their own space. Ultimately, they want real physical contact with the material it’s made of.

Bigger furniture retailers solve the visualization issue by offering apps that can “insert” furniture into your existing space before you actually buy it for the first time. At classic furniture fairs, it seems visitors enjoy walking around and talking to staff members. However, in our fast-paced day and age, there are few of us who have enough time for these strolls.

Regardless of a big expense, for many people, picking out new furniture is an enjoyable and fun activity. That is why you should describe your products extra well when you’re presenting on a virtual furniture fair, offer as many different combinations and emphasize all the advantages of your furniture.

Izvor slike: Impact Talks

Measuring Results

Virtual furniture trade fairs are the future of presenting and marketing furniture because of the opportunity to efficiently measure results. With online contact forms and entries to the virtual fair, conference or webinar, it will be easy to fill up and store our database of potential customers. By organizing virtual conferences, we can cooperate with stakeholders from all over the world.

In a virtual furniture trade fair, it’s very easy to measure the number of visits to the website. Also, these numbers are always singificantly higher than in any other classic furniture show.

Conclusion

Finally, we can safely say that furniture is a type of product that certainly demands a lot of effort from sellers. That is why furniture trade fair shows play a big role in the marketing and sales process.

General trends in furniture sales definitely skew towards virtual trade fair shows. This enables easier organization and caters to busy customers. Of course, traditional fairs can still achieve great sales results if approached in a smart way. However, virtual furniture trade fairs will have a higher engagement rate, boost lead generation, while sales results will be more easily measured.