Are you aware that the worldwide furniture market, estimated to be worth $5,56,367.80 million in 2020 and expected to reach $8,77,438.20 million by 2023 with a 3.8% CAGR from 2022 to 2031? Though, it makes little difference where you reside in the world, yet furniture can be found anywhere. Workplaces, apartments, salons, restaurants, parks, and retail outlets all benefit from furniture. Though, the bulk of home accessories are made from various materials and available in a variety of styles.
In additon, the furniture market is extremely fragmented as a result of many sellers from both international and regional firms. As well as in the current circumstances, the thriving real estate industry definitely pushes the global furniture market.
We intend to address the future of the supply chain market and give ideas for overcoming supply chain difficulties. So let’s dive into it!
Future & market growth of the furniture industry
The term “furniture market” refers to the total amount of reported global sales of furniture items. The studies include market size and forecasts for furniture in value (USD) for all of the segments. However, the research covers a thorough analysis of the market for furniture. . it includes a review of the national accounts, economy, and developing market trends by segments and the key changes in the market dynamics, and a market overview.
According to the World Furniture Confederation, the worldwide furniture manufacturing business generates about $400 billion in sales each year. Over 20,000 companies in the United States manufacture furniture, with yearly earnings of roughly $60 billion. the market is divided into four sections: application household furniture, office furniture, hospitality furniture, and other furniture. hey utilize the distribution channels such as home centres, flagship stores, specialty stores, online, and other distribution channels and sell all over the world such as North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. Moreover, the research provides furniture market size and projections in value (USD billion) for each of the aforementioned segments.
What are the challenges for furniture retailers?
Consumer behaviour has altered dramatically in the aftermath of the pandemic. Though the furniture manufacturing business is facing a number of problematic disruptions.
- The furniture sector has suffered as a result of the COVID-19 pandemic’s increased unemployment and reduced discretionary spending. Despite the fact that it poses the most significant obstacles for furniture sellers.
- Yes, China’s infrastructure is unparalleled, but rising manufacturing centres such as Vietnam and Indonesia are less expensive. GBSL has there own office in Indonesia and Vietnam and is fully supporting their clients to move sourcing from China to other countries. Brands will have to select what is least threatening to their bottom line as these economies eventually expand.
- The rising number of flats and small dwellings rental spaces, which are frequently equipped and inexpensive. However, it has had a detrimental influence on the expansion of the furniture sector, Millennials are often good comparison shoppers because of their use of the internet and social media. But before making a purchase, they will shop about for a few weeks. As a result, furniture makers will need to customise their items to these online platforms and give facts – as well as alternatives – for their younger prospective buyers.
Strategies to overcome the supply chain disruptions
The furniture manufacturers and sellers face a number of issues that will make business harder in the next years. The furniture sellers may overcome supply chain interruptions with strategic methods. Following are the one of these excellent tactics.
Thorough understanding of supply chain
According to a Business Continuity Institute survey, 72% of suppliers that have experienced a breakdown in their supply chains lacked the complete insight required to find a quick and easy solution. Don’t make the same error. Understanding every piece of your supply chain, as well as the contingency plans put in place by your suppliers, can help you prepare ahead and respond appropriately when a disruption happens. To maximize operational efficiency and realize healthy margins that enable greater profit and investment in expansion, GBSL constantly runs analytical reports and examines procurement indicators and KPIs. It also engages with international suppliers.
Adhere to the contingency plan
You should have an emergency plan in place. Nevertheless planning other routes, other suppliers, and various shipping and inventory choices can assist alleviate the stress that comes with being in the midst of an unforeseen crisis. GBSL enables product manufacturing in a well-developed infrastructure in various factories for one product, allowing for larger numbers of multiplying production capacity in a short period.
Establish open communication channels
In the middle of a crisis, various actions must be taken. One of them is keeping everyone on the same page. Inform your staff if you need to temporarily reprioritize your internal processes. If you need to find a new supplier because you are at capacity, do it right away. Do you need to redirect your distribution team? From the production floor to your inventory, everyone is involved. At GBSL, it authorized a variety of business processes, enabling firms to develop a more robust supply chain management strategy for enhanced business advantages, success, and continuity. Open and direct communication is a crucial component of an organization’s long-term success and growth.
Consider customer satisfaction first
Customers must be aware whether the economic downturn has damaged your supply chain. You must fully address customer concerns and acknowledge them. When providing any type of service to your consumers, transparency is critical. While it is not ideal, you should ensure that the consumer does not get the impression that you are withholding any information. Consider providing monetary compensation to assist ease the shock.
Audit of supply chain vulnerability
Errors do occur andnot every circumstance is avoidable. A vulnerability audit can be necessary
Though it may require some time away from your normal activities, it is the first step in planning for future shocks. Although, consider whether there is a more effective alternative or whether your approach was worthwhile.
We are aware of how sensitive the market is and how many obstacles there are, but there are also countless opportunities . you must be on the lookout for these issues as a retailer and sellers and assess the best available remedies.
Global Base Sourcing Limited, with years of industry expertise and networks across continents, can move rapidly. Lastly 2022 may be a year of deliberate transition rather than turbulence.