All in one: The description fittingly describes our homes and somewhat confined lives now. Be it office, school, college or just dwelling, home is where all the action is. Naturally then, in such a significant shift of lifestyle patterns, home is also where our spotlight is. Decor, furnishing, ergonomics and a heightened level of comfort all seem like necessities now.
The irony of it all is that even the hunt for such items does not involve stepping out of the comfort of one’s home, anymore. With life becoming more and more digitized, an online presence of the home furnishings and renovation industry seems rather logical.
The global impact of Covid-19 has shifted people's perceptions of home improvement and home solutions expenditure. Because our homes have become the centre of our lives, it is necessary to improve and enhance them. People also grasped the need of maximising resource utilisation with Covid-19. In this report, The Strategy Boutique studies how the furniture industry in India and the UAE is looking now and what trends can be observed.
Indian consumers more concerned with aesthetics now
The online furniture industry is booming, with more and more people turning to the internet for big-ticket purchases like furniture. According to the findings, verticals with superior omni-channel presence, customer experience, product innovation, specialised supply chain, and technical skills are well positioned to scale.
Online furniture and home sales in India are predicted to rise at a steady 39 percent CAGR over the next five years. Home decor, furnishings, bedding, and lights are all included in the online home category. This domain will experience a 3X increase in shoppers and a 1.8x increase in yearly spending per shopper. Additionally, the online furniture sector's GMV (gross merchandise value) will increase by 5 times.
Consumers are becoming more conscious of the aesthetics of their home decor. Work-from-home, video conferencing, and quarantines have all contributed to an increase in fashion awareness toward household goods. To meet these expectations, the number and variety of home textile solutions has increased dramatically. The sector today includes everything from high-end labels to low-cost quick fashion.
The industrial sector has the second-highest decarbonization potential. Given the continued drive toward net-zero emissions following COP26, we can expect environmentally conscious innovations in the sector in India.
Consumer attitudes of home delivery have been re-coded as a result of the pandemic. It was once merely an option, but it is increasingly becoming a necessary means of payment. In a recent poll of consumers in Tier I to IV cities, more than half indicated home delivery was vital to their purchases, with home furnishings topping the list of things they expected to need and order soon.
Homebuyers in Dubai want enhanced kitchen experiences
In the United Arab Emirates, people are increasing their spending on renovating homes (furniture, kitchens, bathrooms, and flooring), and are investing in higher-quality products. In Abu Dhabi and Dubai, there are a large number of expats (more than 170 nationalities), therefore, the region is developing as a potential market for all types of furniture.
The demand for high-end luxury furniture has risen over time, according to studies. The residents of the country preferred furniture with thick fabrics and leather. As a result of the increased demand, a slew of new players have emerged to appeal to the same demographic. Manufacturers and merchants in the region compete nearly exclusively on the basis of product quality and manufacturing materials. IKEA, Home Centre, PAN Emirates Home Furnishings, and Danube Home are some of the major players in the industry.
Kitchen renovations can cost anywhere between AED 170,000 and AED 420,000. Because of their high-end appeal and sumptuous finishes, German and Italian style kitchens are gaining popularity in the industry. Homebuyers in Dubai are looking for the best-looking kitchens to improve their cooking experience at home and emulate restaurant dishes.
In order to appeal to the growing client base, sales of bedroom furniture surged in the country. Mattress sales accounted for a significant portion of this segment's total market revenue. Because of the stability in oil prices, the country is anticipated to see an increase in the expat population as the number of nuclear families grows and demand for residential units rises.
Because people's attitudes are changing, there has been a shift in desire toward high-quality products that can be used for a long time. They consider it a wise investment. Brands that adapt to the changing trends and serve the changing needs of the customers will continue to boom while others have to revamp their business models.