India’s furniture and home market to reach $ 40 billion by 2026: report


Driven by pent-up and delayed demand, India’s online furniture and home market is expected to reach $ 40 billion over the next five years, according to a new report released on Monday.

Over the next five years, online furniture and home sales are expected to increase at a strong CAGR of 39%. The online home category includes interior design, furnishings, mattresses and lighting.

The online furniture category predicts a 3-fold increase in the number of buyers over the next five years with a 1.8-fold increase in annual spend per buyer.

This will allow 5 times the GMV (gross merchandise value) growth for the category in fiscal years 21-26, according to data provided by Bengaluru-based market research firm ResSeer.

The online furniture category is experiencing strong growth, with more and more buyers trusting high-priced online furniture shopping.

Likewise, the online home category is expected to grow 2.5 times the number of buyers over the next 5 years with an increase of 1.3 in annual spend per buyer to indicate a growth of 4 times the number of buyers. GMV “, predicts the report.

In the furniture category, vertical sectors have created a niche.

Verticals dominate the high-end “solid wood” market, while horizontals dominate the “plastic / metal and engineered wood” market.

“The average selling price (ASP) on verticals is 10 times higher for furniture and twice as high for decoration than horizontal ones, indicating the difference in target customers,” the report said.

He added that the verticals focus on a set of customers who care about their experience, who seek choice and product quality rather than price, and who are willing to pay and use online channels.

“Verticals with a superior omnichannel presence, customer experience, product innovation, specialized supply chain and technological capabilities are well positioned to evolve,” the results showed.

–IANS

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(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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