The big boom – E-commerce!!
E-commerce is one of the most booming industries currently. The growth can be seen in many sectors and as a result, many industries feel the need of using the online platforms to see profits.
Many industries are choosing the online way! And many have reaped the benefits. Other than the clothing/footwear industry, the furniture and home furnishings industry has seen a massive growth as well. In fact, it comes second to the clothing industry today.
Let’s talk numbers
As per the 2015 statistics, the internet sales of the furniture industry alone were estimated at 14 billion. Even though the recession in 2009 had a major impact on in the sales figures, the total furniture industry bounced back with a growth of almost 24.1 percent. Online shopping obviously played a huge role to see such significant growth. As per the figures, the brick and mortar sales also saw a rise of up to 13.8 percent.
The brick and mortar store sale figures were also significant in 2004 as it accounted for 93.4 percent of the total furniture industry. Other home furnishing products such as floor coverings, window treatments, and home accessories, have also demonstrated growth in profits at a fast rate.
The furniture and home furnishing products are sold via three avenues at the retail level -
· Brick and mortar stores – where consumers can visit the stores physically or their website and make purchases. This allows for personal touch and face to face interactions.
· Internet shopping (e-commerce) - Some retailers offer extensive products online which might not be available at the store level. Shopping online has been found to be successful for retailers but has not always shown big gains in the furniture industry.
· Mail order and other miscellaneous non-store retailing is another alternative.
It should be noted that the e-commerce sales easily bypass the sales figures of furniture and furnishing sales and brick and mortar stores. The e-commerce or non-store retailers are in strong competition. The clothing line is definitely a winner, followed by the furniture sector online. There has been a significant rise in the last 10 years.
So, it is safe to say some products are flourishing with the online business whereas some are still facing challenging times. The online furniture sale shops are giving the brick and mortar shops a run for their money. This is a big dilemma for the manufacturers