The Outlook for the Furniture and Home Decor Industry in 2019
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2018 was a year of dynamic changes and various companies have ridden this tide with varying degrees of innovative thinking and creativity. Companies, especially the ones operating in the furniture and home decor segment, have seen the market shift significantly with more players entering the Indian plane and consumptions patterns paving way for digital spending.
Within the furniture space, Indian households have been undergoing a transformation over the last couple of years. People have moved from choosing traditional wooden furnishing to selecting eclectic home decor designs keeping in mind the comfort, luxury trends, spacing and other needs of the modern-day lifestyles. While the past couple of years have seen a rise in online furniture options, 2018 heralded a wave of customers placing products and design at the forefront and channels of purchase as a secondary step in the buying process.
The pace of acceleration in the furniture market, which is growing at a CAGR of about 35 per cent, will continue to pose new and interesting challenges for furniture and home decor brands. The most intuitive and empathetic brands, that assimilate deep knowledge about their target consumers and provide a distinct value proposition, are the ones that are most likely to succeed as we open our doors, homes and hearts to the year 2019. The outlook for 2019 looks promising for furniture and home decor brands, if and only if, they keep a few considerations in mind.
Multifunctionality is the New Consumer Buzzword
According to a UN report, 34per cent of India now resides in urban areas. Owing to increasing urbanization, 2019 will see an increased demand for multifunctional products. Furniture and home decor will be no different. Products like storage beds, sofa-cum-beds, collapsible shelves, and storage seaters have already seen great demand in 2018 and will continue to be key growth drivers in 2019.
If it’s Not Personalized, it Won't Create Ripples:
With the boom in the real estate sector and increasing disposable incomes, demand for the home decor and furniture industry will see a rise in 2019 but at the same time, customers will look for customized offerings to suit their lifestyle. People have started to believe that their homes and workspaces are a reflection of their personalities and are well aware of home fashion trends globally. 2019 will see more customers look at brands to help them create spaces that reflect their identities and will gravitate towards the ones that offer personalized services.
'Tis The Season to be Omnipresent
2019 will see an increased blurring of lines between the online and offline markets. A trend that has already started picking up, consumers will become more focused on the design, quality and convenience of the product. Especially in a high investment sector like furniture, the cohesive experience across offline, e-commerce and social media channels will need to be measured to understand consumer purchase patterns.
Sustainability Will Now be a Must-Have Rather than a Good-to-Have
The furniture and home decor industry will also see a lot of products that will follow the trend of sustainability. There is no sector that can completely overlook the environment anymore and with large sections of customers making sustainability a key consideration while buying furniture, furniture and home decor with organic fabrics and materials will be seen trending in 2019.
Customer Data Will Have to be Forward-Looking
Data scientists working with consumer brands, especially in the furniture sector, will need to employ deep analytics and intelligent forecasting techniques to yield effective results to secure customer loyalty. 2019 will see new avenues created for businesses to track customer journeys through robust data and brands that will use it effectively have the potential to capture significant mindshare amongst target audiences.
With expected market externalities in the coming year, 2019 promises to be a dizzying roller coaster ride. Companies that stay true to their brand ethos and deliver strong value to customers in the face of these changing times will stand tall and conquer the year to come.