Furniture and home market will hit $ 40 billion from GMV by 2026: Redseer

India’s furniture and home market is expected to reach $ 40 billion GMV (gross merchandise value) by 2026, according to consultancy and consultancy RedSeer.

The report adds that the total number of unique buyers for the online furniture and home market is also expected to be around 40 million by fiscal year 2026. The growth of the industry is being fueled by the fact that Online shopping in India has become common and spending per buyer has also doubled over the past five years and adds around 20 million new product buyers each year.

In addition, the online furniture category is expected to grow 3-fold in five years with a jump of about 1.8 times annual spend per buyer. This in turn should allow growth of more than 5 times the GMV for the category in fiscal years 21-26.

Read also: Fintechs in a happy space

Likewise, the online home category which includes interior design, furnishings, mattresses, lighting and more is expected to grow approximately 2.5 times in the number of buyers over the next five years. , with a 1.3-fold jump in annual spend per buyer to indicate about 4 times. GMV growth.

RedSeer analysts highlighted two challenges for the online and furniture and home categories. First, both categories are design-driven and require a navigation interface first, which increases the need for 3D merchandising. Thus, the use of innovative technologies in this category will be key for industry players.

Actors like Pepperfry have already started working on integrating augmented reality and virtual reality capabilities into their platform. Flipkart also launched Flipkart Camera to enable augmented reality-based commerce in all categories, including furniture and home products.

In addition, the existing supply chain must also be optimized to meet standard sizes and formats of furniture and furnishings. Large, non-standard shipments present challenges from packaging to installation.

Also read: “Discussion of the draft e-commerce rules with stakeholders”

The category is currently served by vertical (like Pepperfry, Livspace) and horizontal (Flipkart, Amazon) players where vertical players are marketplaces or private brands that serve in the category while horizontal players are large e-commerce companies that sell everything under the sun.

The report observes that the average listing price on verticals is about twice as high as on horizontals, indicating the difference in target customers. Verticals with a superior omnichannel presence, customer experience, product innovation, specialized supply chain and technological capabilities are well positioned to evolve, the report adds.

Source link