Transparency Market Research believes that the players in the global luxury furniture market are likely to invest in rock-solid marketing strategies to make an indelible impression on end users. Several players in the market are likely to look at setting up manufacturing units in developing countries due to lower cost of investment and reduced cost of operations. Furthermore, high degree of product differentiation through careful curation of materials is also expected to be one of the key winning strategies of the players operating in the global market. The research report identifies Muebles Pico, Nella Vetrina, Laura Ashley Folding PLC, Scavolini S.p.A., Henredon Furniture Industries Inc., Giovanni Visentin srl, Iola Furniture Ltd, Turri S.r.l, and Heritage Home Group LLC are the prominent players in the global luxury furniture market.
According to the research report, the global luxury furniture market is likely to be worth US$29,496.7 mn by the end of 2022. As of 2017, the market is estimated to seek an opportunity worth US$22,937.6 mn. During the forecast period of 2017 and 2022, the global luxury furniture market is poised to exhibit a CAGR of 5.2%. Analysts anticipate that wood will be one of the extensively used materials for making luxury furniture in the near future. This material segment is slated to rise at a CAGR of 5.8% during the forecast period. From a geographic point of view, the global market will be dominated by Europe. The report states that the Europe luxury furniture market is likely to be worth US$ 8,779.6 mn by 2022, a figure that is higher than other regional markets.
Effective Branding Strategies Spur Growth of Luxury Furniture Market
The growth of the global luxury furniture market is mainly attributable to the powerful branding and marketing campaigns run by the players operating in the global market. The growing awareness about the luxury brands, their increasing valuation over the years, and the rising disposable incomes have collectively supported the growth of the global market in the recent years. The market study clearly states that there is a shift in the preference for luxury furniture items as they come with certain status and add value to spaces where they are installed. Their exclusivity, rarity, and absolute uniqueness in their crafting, makes each item of the luxury furniture similar to owning an art piece.
Emergence of various distribution channels, that are have played a pivotal role in determining the brand presence, have also augmented the sale of luxury furniture pieces in recent years. The growing visibility through malls and the convenience of online shopping have both rendered tremendous amount of impetus to the global luxury furniture market. The continuous addition of new products to the existing line of products, increasing penetration of internet, and the safety of paying high bills through mobile phones with EMI options have also widened the scope of the global market.
Influx of Dupes Challenge Market Growth
On the flip side, the global luxury furniture market is likely to suffer as growing number of people are realizing the unethical impact of using wood furniture. Since wood makes up for a major revenue earning segment, the growing awareness in the market is likely to impact the global market. Furthermore, increasing number of people spending on vacations and other amenities instead of luxury furniture are also likely to hamper market growth. The influx of dupes, priced at much lower rates also pose as a serious threat to the overall market. However, the booming real estate industry and rise in the number of high net worth individuals are anticipated to offer several lucrative opportunities to the global luxury furniture market.
This review is based on Transparency Market Research’s report, titled “Luxury Furniture Market - (Material - Glass, Metal, Plastic, Leather, and Wood; Distribution Channel - Departmental Stores, Online Sales, Independent Furniture Retailers, and Factory Outlets; End User - Commercial and Domestic) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2017 - 2022.”
The global luxury furniture market is segmented on the basis of:
- Departmental Stores
- Online Sales
- Independent Furniture Retailers
- Factory Outlets
- North America
- Latin America
- Middle East and Africa