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The need for home offices increased during the financial crisis in 2008-2009 and the European debt crisis in 2011-2012, driving increased demand for computers, desks, office chairs, and filing cabinets. Consumers quickly found that their home offices had multiple uses, and they often preferred to buy versatile furniture that could cover up office equipment when not in use. As a whole, the market for global home office furniture is forecast to grow at a compound annual growth rate (CAGR) of 5.58 percent between 2014-2019.
The number of single- and two-person households has been increasing, resulting in the demand for small and portable furniture. Consumers have also been looking for furniture that is multi-purpose, foldable, and technology-driven, especially when it comes to living in smaller spaces.
The U.S. home furnishings store industry includes about 15,000 stores with combined annual revenue of about $27 billion. The industry is extremely concentrated, with 50 of the largest U.S. stores accounting for 75 percent of the industry revenue. But, the competition is rising. Online stores are becoming the fastest-growing channel at a CAGR of 16.6 percent. Many companies are putting more efforts towards their online retail stores, by adding benefits for consumers who shop online such as free delivery and installation and even same-day pick up.
As the economy has grown, more consumers are willing to buy luxury items for their living and work environments. The global luxury furniture market is expected to grow at a CAGR of over 4 percent between 2015-2019. In terms of location, Europe has the largest market for luxury furniture, but developing countries such as China and India are not far behind.
With luxury comes the expanding trend to go green. Many vendors are developing eco-friendly furniture. This trend is driven by environmental concerns, such as the problem of deforestation. Although eco-friendly furniture is more expensive, the demand is on the rise, making it worthwhile for manufacturers and companies to offer these products. To protect your furniture manufacturing business, you should consider buying business insurance.
Buyers looking for furniture want items that are in tune with the earth. They’re looking for pieces that are made from sustainable woods and other types of material that can be harvested again and again. Under these circumstances, it is no wonder that designers are paying close attention to what they want and why they’re looking for certain items. One area likely to see even more growth is that of the outdoor furniture market. People want to find items they can bring outdoors with them as they relax and greet their guests. They also want to have items that can stand up to changing weather conditions from rain and snow to heat and humidity. This demand for quality items that are made with an eye to the future are part of the reason why the American market for outdoor furnishings is expected to surpass twenty-three billion in the coming years.
More and more people are working from home. Some people can telecommute, enabling them to relax at home and avoid the need to slog into the office every single day. They’re also choosing to open up a home office in order to greet their own private clients in a safe and protected space. Workers not only need a comfortable place to relax as they work. They also need to have items where they can make any client feel at home once in their office. These are some of the reasons that home office growth should see a six percent increase in the coming year. More people want quality items that provide enough seating and plenty of room if they decide to hire someone to work with them.
The next generation is just coming into their own. They’re moving out of the house and the dorm. As they do so, they’ve come to realise they want a well furnished home. Studies indicate that this group has increased their share of this market to 24.6%, making them one of the world’s leading markets for furniture purchases. Furniture marketing efforts are focusing more on this sector of the economy than ever before. Marketers understand this group has money to spend and wants to aim for quality items that will make their home shine and keep value at the same time. Directing funds at this market is likely to pay off as the public learns to distinguish between varied kinds of furniture brands. Creating an image in this sector of the market can pay off with long-term, highly loyal and happy customers.
Modern homes vary greatly in the amount of space they offer. People are looking for items that can do different duty in the same piece. The market for items that can be used in varied ways should continue to take off and continue to be an important part of the overall furnishing markets. Those who want to find a sofa that can be converted into a bed or one that has bookshelf for extra storage underneath are helping to push this market to new heights. Over the next few years, growth in this area is expected to exceed 7.5%, making it one of the liveliest parts of the furnishing markets and one that will probably see even more growth.
Wood has long been a mainstay of furniture construction. People love wood. It’s full of texture and pleasing to the eye. They like how durable it is as well as how much character it adds to any home. It’s understandable that designers are using it in all forms of their furniture today. People love different types of wood such as pine and oak. They like how each item is subtly different from the next. At the same time, they also want to have wood that isn’t as heavy and doesn’t necessarily require a lot of money to buy. One type of wood that remains ideal for varied types of furniture is a type made from many kinds of woods. This is known as particle board. Consumers can expect to see a lot more particle board when they are searching for furnishings to purchase.