New Consumer Goods research report from Euromonitor International is now available from Fast Market Research
Boston, MA -- (SBWIRE) -- 07/01/2014 -- Internet retailing was the key trend in 2013 when several major companies decided to introduce online shops. Towards the end of the year the third biggest company in home furnishings, Mio, launched its internet retailing portal. The case has some peculiar features since every physical outlet is owned and managed by the store owner himself. The online sales will, however, be allocated to the outlet that is geographically closest to the customer doing the purchase. With this strategy the physical outlets can attract customer inflow as a service and delivery point. Besides Mio, Soffadirekt was one interesting example, being positioned as ?the Ryanair of home furnishings? according to the founder. The idea is to limit the amount of unnecessary distribution steps and thereby offer sitting furniture at a lower unit price. Everything is ordered online although the company offers minimalistic showrooms to provide the customers with a better visual experience.
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IKEA led sales in 2013 with a 38% value share in home furnishings. Founded in 1943 in southern Sweden, the company reached a prominent market position due to its innovative business model. Swedish consumers appreciate the combination of efficiently designed outlets, broad product ranges and affordable unit prices. Many times IKEA is the first stop when searching for home furnishings products, which contributes to strong brand recognition from its consumers.
The trend in the forecast period is expected to centre on the companies? degree of innovation and ability to incorporate internet retailing into their established business model. In 2018, internet retailing is projected to account for 14% of total sales in home furnishings. Hence, the development will provide a significant business opportunity to complement the sales through physical outlets. In order to be successful, companies must rethink the internet retailing concept and lower customer thresholds concerning shipping and product returns. In addition, it will be increasingly important to visualise the products in an appealing way. Previously, customers felt a strong need to see and touch the products in real life. The same feeling must be transferred to internet retailing to minimise uncertainty at the time of purchase.