The design furniture market in Europe’s Top 6 regions (Austria, France, Germany, Italy, Spain and UK) slowly awakes from it’s nightmare. After a market drop of 12,4% in terms of value in 2009, the market recovers overall by 2,0% in 2010. While Germany, Austria and UK achieve moderate growth rates of up to 5,9% (GER), Italy and Spain still have to tighten their belts, according to a recent study of Interconnection Consulting.
North-South downgrade regarding market development
The total markets of Europe’s Top 6 regions in design furniture see an annual growth of 2.7% between ’09-’13. The driving force behind this positive trend is above all Germany. As the second largest market among the six examined countries (21,2% market share) it grows by 5,9% in 2010, not least because of the currently appointing cyclical upturn. Similar high growth is recorded in the UK market, Austria and the slightly exhausted French market too with growth rates between 2,8% and 5,5%. For Italy, the home of several established manufacturers of design furniture, a recovery of the market is not expected before 2012. Albeit, the upcoming market declines in Italy are with values between -0,6% far above the dramatic market drops of previous years. For the Spanish, design furniture remains a distant dream over the next few years. One market decline follows the other. Not until 2013 will Spanish homes begin to see a little more luxury.
Feisty Latins purchase particularly lots of beds
The majority of revenue within the design furniture market is generated by upholstered seating. Sofas make hold a large share of 38% in terms of value, followed by lounge chairs with 19,0%. A look in the dining rooms shows, that with every dining table sold in the luxury market on average about three appropriate dining chairs have been sold, being as generally there are three or more chairs set around a table, this segment seems capable of improvement. Beds are particularly popular in Italy and Spain with shares of 17,0% respectively 17,7%.
Let’s go whole hog!
Luxury has it’s price and that is allowed to rise once in while, this is how the recent development between middle- and premium price product segments can be described. In countries such as Germany and Austria, the demand for design furniture shifts continuously to the premium price segment. While in Germany 40,3% of the distributed furniture can be located in the premium price bracket in 2009, by 2013 furniture in the higher price ranges will hold a 44.7% share of the market. This development can be described with the increasing awareness of customers for higher quality, quality materials and individual designs. The manufacturers will be glad anyway.
Flagship-Stores as a Must-Have
At present about two thirds of the market are still covered by design retailers but the direct distribution channels are beginning to gain relevance. The latest trends are Flagship-Stores. Big Players like Natuzzi and Poltrona led the way with established flagships in the metropolises of Europe. The advantages are obvious. Beside enhanced market presence and advertising effects of the branches, Flagship-Stores enable the mono-brand appearance of the manufacturer.
The IC Market Tracking® reports are regularly conducted for various industry sectors in which relevant information for national, European and international markets is collected and analyzed.
The IC Market Tracking® Design Furniture in Europe Top 6 2010 is available from Interconnection Consulting for € 7.500,-. The regions available are: Austria, France, Germany Italy, Spain, Sweden and UK.
Interconnection Consulting is one of the leading marketing research institutions in the furniture sector. It focuses on complex, sector-oriented market research. Aside from office furniture, studies are regularly conducted in over 30 different sectors, including competitor and distribution analyses, in all European countries. Furthermore, ad-hoc studies are constantly conducted for brand value, pricing, product testing, and satisfaction, as well as market and distribution analyses. The company, which was founded in 1998, currently employs 20 analysts in office in Vienna.
SOURCE: Interconnection Consulting
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