LONDON–(BUSINESS WIRE)–SpendEdge has been monitoring the global furniture and furnishings market and the market is poised to experience spend growth of more than USD 90 billion between 2018-2023 at a CAGR of over 4% during the forecast period. Request Free Sample Pages.
Read the 103-page research report with TOC and LOE on “The Global Furniture and Furnishings Market – Procurement Intelligence Report, Pricing Outlook in Geographies that include APAC, North America, South America, and MEA, and insights into best practices to optimize procurement spend.”
Improvement in the employment generation and recruitment of professionals in the e-commerce, FMCG, and BFSI sectors are triggering the procurement of furniture and furnishings. The focus of employers on the mental and physical well-being of their employees is resulting in the demand growth of furniture that is ergonomically designed to prevent postural injuries that occur after seating for long hours. This is contributing to spend growth in the furniture and furnishings market to a significant extent.
Accounting for almost 36% of the spend, APAC is leading the global furniture and furnishings market. The exponential demand for furniture from the residential real-estate sector is one of the critical spend accelerators in the market in APAC. The commercial leasing industry in the US is has posted an impressive growth registering a revenue of USD 221 billion last year. This is increasing the space-occupying rate and is creating a subsequent demand for furniture and furnishings in the region.
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Insights into the market pricing trends
- Possibilities of an increase in the cost of input materials such as adhesives, wood, and steel will drive supplier’s OPEX. To compensate for the same, the suppliers are expected to increase the market price of furniture and furnishings.
- To tackle an increase in labor expenses, furniture and furnishings suppliers are adopting robotics and automation to reduce manual intervention. While such a strategy will minimize their labor expenses, it will increase their technology expenses. This will have a subsequent inflationary impact on buyer’s procurement spend in the furniture and furnishings market.
What are the strategies to adopt to optimize procurement spend in this market?
The furniture and furnishings price trends imply a substantial increase in suppliers’ OPEX which will result in a gradual decline in their profit margin. To compensate for this, suppliers are expected to increase the market price. In view of this, this procurement intelligence report has listed the top furniture and furnishings suppliers, SLA agreement insights, and the selection and negotiation strategies that buyers must undertake to achieve optimal procurement in this market.
Engage with suppliers that have strong product innovation capabilities
Buyers are advised to assess suppliers’ innovation capabilities in designing customized furniture for their establishments. Engagements with such suppliers will enable buyers to reduce their procurement cost due to the former’s innovative capabilities in developing products that cost less and use high-quality raw materials.
Engage with suppliers who offer value-added services
In this market, it is advised that buyers partner with suppliers who offer value-added services such as interior designing, relocation, refurbishment, and maintenance services for furniture. This will enable buyers to consolidate their supply base, leading to cost-saving opportunities.
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Some of the key topics covered in this report are:
- Furniture and furnishings market spend segmentation by region
- Total cost of ownership analysis in the furniture and furnishings market
- Regional spend opportunity for furniture and furnishings suppliers
- Furniture and furnishings suppliers cost structures
- Furniture and furnishings pricing models analysis
- Furniture and furnishings procurement best practices
- Category management objectives
- Cost saving opportunities in the furniture and furnishings market
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