global furniture and homewares e-commerce - deborah · pdf filein this report, we explore...

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DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.

Keypoints:

1) Global online furniture and homewares revenues areprojected to increase by a five-year compound annualgrowth rate (CAGR) of 15% to US$220 billion in 2020,accordingtoStatista.

2) TheUSandtheUKareexpectedtosee7.6%and13.7%CAGRs in online furniture and homewares salesbetween 2015 and 2020. In 2015, the UK had thehighest percentage of furniture and homewarespurchases made online in Europe at approximately12.1%.

3) More customization options are available online andallowforalevelofdifferentiationnotavailablein-store.

4) Inthelastfewyears,numerouspure-playfurnitureandhomefurnishingsretailersestablishedacrosstheworld,including Made.com and Loaf.com, have broughtinnovationtothemarket.

DEEP Dive: Global

Furniture and Homewares

E-Commerce

D E B O R A H W E I N S W I G M a n a g i n g D i r e c t o r ,

F u n g G l o b a l R e t a i l & T e c h n o l o g y d e b o r a h w e i n s w i g @ f u n g 1 9 3 7 . c o m

U S : 6 4 6 . 8 3 9 . 7 0 1 7 H K : 8 5 2 . 6 1 1 9 . 1 7 7 9

C N : 8 6 . 1 8 6 . 1 4 2 0 . 3 0 1 6

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TABLEOFCONTENTSEXECUTIVESUMMARY.......................................................................................................................................3

INTRODUCTION.................................................................................................................................................3

GLOBALONLINEHOMEWARESANDFURNITUREE-COMMERCEMARKET............................................................3

SETTODOUBLEINSIZE......................................................................................................................................................3

WHATISTHEAPPEALOFBUYINGFURNITUREONLINE?..............................................................................................................6

USONLINEHOMEWARESANDFURNITUREMARKET...........................................................................................8

MARKETGROWINGAT7.6%PERYEAR.................................................................................................................................8

SELECTEDTOPRETAILERS....................................................................................................................................................8

UKONLINEHOMEWARESANDFURNITUREMARKET.........................................................................................11

MARKETGROWINGAT13.7%PERYEAR.............................................................................................................................11

SELECTEDTOPRETAILERS..................................................................................................................................................12

EUROPEANONLINEHOMEWARESANDFURNITUREMARKET.............................................................................13

MARKETGROWINGAT11%PERYEAR................................................................................................................................13

SELECTEDTOPRETAILERS..................................................................................................................................................15

INNOVATIVEONLINESTARTUPS........................................................................................................................15

KEYTAKEAWAYS...............................................................................................................................................17

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EXECUTIVESUMMARYThe online furniture and homewares market is highly competitive andgrowingatavery rapidpace.According toStatista,globalonline furnitureandhomewares revenuesareexpectedto increasebya five-yearCAGRof15%toUS$220billionin2020.

Among major Western markets, the UK has the highest penetration ofonline furniture and homewares sales and is expected to experience thefastestonlinegrowthinthecategorygoingforward.

Although traditional brick-and-mortar home furnishings retailers stillgeneratethelargestchunkofindustryrevenue,thesestoresaretendingtolose market share to rival channels such as specialty chains, off-priceretailersanddedicatedInternet-onlyretailers.

In the last few years, numerous innovative pure-play furniture and homefurnishings retailers were established across the world, but few havereached critical mass. US-based Wayfair is the only online pure-playfurnitureandhomewarescompanyofsignificantsize.

Theonlinechannelmakes iteasyandconvenient to researchhundredsofvaryingdesignsandproducts,andmakesitunnecessarytovisitanendlessroundofstores.

INTRODUCTIONInthisreport,weexploreglobalonlinefurnitureandhomewaresretailing,lookingatthesizeofthemarket,forecastgrowthrates,andtheproportionof furniture and homewares sales generated online compared to totalsectorsales.

Wewillcloselyexamineonlinefurnitureandhomewaresretailinginleadinge-commercemarketsincludingtheUS,theUKandContinentalEurope.

We will also profile retail formats and focus on leading furniture andhomewaresretailersthathavebuiltlargee-commercebusinesses,aswellaspure-playandinnovativestartuponlineretailers

The online furniture and homewares market will continue to experiencerobust growth globally because the Internet is a very suitable channel forresearch and purchasing given the hundreds of customization optionsavailableonlineversusin-store.

GLOBALONLINEHOMEWARESANDFURNITUREE-COMMERCEMARKETSettoDoubleinSize

Theonline homewares and furnituremarket is fragmented, highlycompetitiveandgrowingataveryrapidpace.AccordingtoStatista,globalonline furniture and homewares revenues totaled approximately US$110billion in 2015. China generates almost half of the total global marketrevenues.

Globalfurnitureandhomewaresmarketrevenueisexpectedtoincreasebyafive-yearCAGRof15%toUS$220billionin2020.

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Globalfurnitureandhomewaresmarketrevenueisexpectedtoincreasebyafive-yearCAGRof15%toUS$220billionin2020.Thepercentageofonlinefurnitureandhomewaresretailingisincreasingworldwide;theUK,theUS,FranceandGermanyallreportsolidyear-over-yeargrowth.

Figure1.GlobalE-CommerceFurnitureandHomewaresRevenues(USDBil.)

Source:DigitalMarketOutlook,Statista

Figure2.ShareofGlobalFurnitureandHomewaresE-CommerceRevenuebyCountry(%)


Thereareseveralfactorsdrivingtherobuste-commercegrowthinfurnitureandhomewarescomparedtotraditionalbrick-and-mortarstores.

Many traditional furniture and homewares retailers such as Williams-Sonoma and Restoration Hardware have invested heavily in building out

91110

131153

176197

220

2014 2015 2016E 2017E 2018E 2019E 2020E

CAGR15%

50%

18%

4%

4%

3%

21%

China US UK Japan Germany RestofWorld

WayfairistheonlyUSpublicly-tradedonlinepure-playfurnitureandhomewarescompanyofsignificantsize.

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Internet businesses and now derive a large portion of total revenuesthrough their online channel. Although traditional brick-and-mortar homefurnishings retailers still generate the largest chunk of industry revenue,these stores are tending to lose market share to rival channels such asspecialtychains,off-priceretailersanddedicatedInternet-onlyretailersthatoffer wide ranges and low prices. Various retailers have launchedhomeware product collections and expanded their offerings both in-storeandonline.

Numerous innovative pure-play furniture and homewares retailers havelaunched, but few have reached critical mass or even reported a profit.Wayfair is the only US publicly-traded online pure-play furniture andhomewares company of significant size. Although the retailer has grownrevenuesrapidly,thecompanyisstillunprofitable,whichgivestestamenttothe fact that the online channel can be a difficult one, regardless of theproductcategory.

Source:Wayfair

The furniture and homewares retailers presented in the charts below arethose major stores that disclose the amount of online sales or the year-over-yeargrowthrateoftheironlinerevenues.

Figure3.SelectedGlobalFurnitureandHomewaresRetailersFY15Year-over-YearOnlineRevenueGrowth(%)

Source:Companyreports

71%

32%

17% 16%10% 9% 6%

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Among the biggest brick-and-mortar retailers, Williams-Sonoma andRestoration Hardware lead in online contribution to revenues, both witharoundhalfoftotalsalesfrome-commercein2015.

Figure4.SelectedGlobalFurnitureandHomewaresRetailersFY15OnlineRevenueasa%ofTotalRevenue

Source:Companyreports

WhatIsTheAppealofBuyingFurnitureOnline?

Theprocessofpurchasingfurnitureorhomewaresdiffersfromshoppingformanyotherproductcategories.Consumerstendtoseekuniqueandoriginalmerchandise and often have a hard time articulating precisely the exactproduct and design they are looking for. Additionally,many furniture andhomewarepurchases are items thatwill beusedover the long-term. Thisleads customers to conduct more research and comparisons, processeswhicharefarsimplerandquickeronline.Customerreviewsfoundonsomesitesalsoprovideanotherinformativeserviceforconsumers.

The online channel is very suitable for researching hundreds of varyingdesignsandproducts,withouttheneedtovisitanendlessroundofstores.More customization options are available online and allow for a level ofdifferentiation not available in-store. Tools such as Pinterest and designblogs provide inspiration and curation. Several new resale sites havecropped up and provide consumers with new design and product ideas.Multiplecompanieshavelaunchedtechnologyplatformsthathelpfacilitateroom visualization and provide 3D tools so consumers can see whatparticularproductsordesignswouldlooklikeintheirhomes.

Manye-commercecompaniesofferdiscounts, freeshippingandevenfreeitemswithordersoveracertainvalue.Thesespecialoffers lurecustomersto the online channel because promotions like these are less common inbrick-and-mortarshops.

Theglobalonlinehomegoodsmarketwilllikelygrowfurtherastech-savvymillennials age and start families, and baby boomers become more

100.0%

50.7% 49.0%

17.9% 17.2%

Williams-SonomaandRestorationHardwareleadinonlinecontributiontorevenues,ataroundhalfofallsales.

Consumerstendtospendonhomewaresduringahealthyhousingmarket.

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comfortable purchasing online. As the online channelmatures, customersarealsobecomingmorefamiliarwithmakinglargepurchasesonline.

Nevertheless, for now, the online channel is disproportionately aboutresearch:asthetwographsbelowshow,theInternetratesmorehighlyforresearchingpurchasesthanforactuallybuyingfurnitureandhomewares.

Figure 5. Global: Preferred Method of Researching Furniture and HomewaresPurchases

Source:PWC,“TheySayTheyWantaRevolution,”TotalRetail2016

Figure6.Global:PreferredMethodofPurchasingFurnitureandHomewares(%)

Source:PWC,“TheySayTheyWantaRevolution,”TotalRetail2016

42%

27%

10%7%

5% 6%

2% 1%

Store PC Donotbuy

Tablet Mobile Catalog TV Watch

62%

17%

7% 5% 4% 3% 2% 1%

Store PC Donotbuy

Tablet Mobile Catalog TV Watch

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USONLINEHOMEWARESANDFURNITUREMARKETMarketGrowingat7.6%PerYear

According to Statista, furniture and homewares e-commerce revenues intheUS totaledUS$21billion in2015.Revenuesareexpected togrowatafive-year CAGR of 7.6% to US$31 billion in 2020. However, furniture andhomewaresonline saleswill grow slower than totalUSonline retail sales,whichwillgrowatafive-yearCAGRof10%,accordingtoForresterresearch.

US online home goods sales made up 8.6% of total home goods sales in2015,accordingtoEuromonitorandWayfair.

Figure7.USE-commerceFurnitureandHomewaresRevenues(USDBil.)


SelectedTopRetailers

In theUS,homewaresand furnitureare sold in a varietyof retail formatsincluding: furniture stores, big-box retailers, department stores, specialtyandonlineretailers.AccordingtoDigitalMarketingMagazine,thetop-fivehomewares retailers in theUS are:Walmart, Costco, Target, Bed, Bath&BeyondandSam’sClub.

Thevastmajorityof retailersmentioned in Figure8belowhaveextensiveonlineplatformsthatincludefurnitureandhomewaresproductlines.

Figure8.USFurnitureandHomewaresRetailFormats

FurnitureandHomewaresStores

Williams-Sonoma, Pottery Barn, West Elm,Restoration Hardware, Ethan Allen, Crate andBarrel, Ashley Furniture, Bob's Discount Furniture,Havertys,Raymour&Flanigan,RoomsToGo,Pier1Imports,IKEA

19 21 23 25 27 29 31

2014 2015 2016E 2017E 2018E 2019E 2020E

CAGR7.6%

USfurnitureandhomewarese-commercerevenuesareexpectedtogrowatafive-yearCAGRof7.6%.

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Big-BoxRetailers Bed Bath & Beyond, Home Depot, Lowe's, Target,Walmart,Costco,BigLots

DepartmentStores JCPenney,Kohl’s,Macy's,Nordstrom,Sears

Off-priceretailers BurlingtonStores,RossStores,TJX(HomeSense)

SpecialtyStores Anthropologie,UrbanOutfitters,ZaraHome,H&M

OnlineRetailers Wayfair,Amazon,eBay,Linens-N-Things

Startups Furnishr

Source:FungGlobalRetail&Technology

Wayfair

US-basedWayfairistheworld'slargestpure-playonlinehomewaresretailerand distributes more than 7 million products from more than 7,000suppliers across five distinct brands. Product categories include furniture,décor, decorative accents, housewares, seasonal décor and other homegoods.Manysuppliersaresmall,family-runbusinesseswithoutwell-knownbrands andwithout established distribution channels to a large customerbase.

The company is focused primarily on the mass-market price segment.Women represented 75% of Wayfair home goods customers in 2015.Accordingtothecompany,thetypicalWayfaircustomerisa35-to65-year-oldwomanwithanannualhouseholdincomeof$50,000to$250,000.

Source:Wayfair

The retailer has been growing very rapidly in the past few years; netrevenuesincreased71%yearoveryearinFY15toUS$2.2billion.Wayfair’saverage customerorder value in FY15wasUS$222. In FY15, the companyhadanactivecustomerbaseof5.4millionanddelivered9.2millionorders.Activecustomersaredefinedasthosewhohavepurchasedatleastonceinthepast12months.Purchasegrowthfromrepeatcustomerscontinuestooutpace that of new customers. However, Wayfair is not profitable yet.Outside of the US, Wayfair delivers products to customers in the UK,CanadaandGermany.

Williams-Sonoma

Since launching itsonlineoffering in2000,Williams-Sonomahasgrown itsInternetsalestoalmostUS$2.5billion,representingafifteen-yearCAGRof27%.Onlinesalescontributed51%oftotalrevenues,andslightlysurpassedretailstorerevenues,in2015.

US-basedonlinepure-playretailerWayfairdistributesmorethan7,000productsfrommorethan7,000suppliers

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Source:Williams-Sonoma

Linens-N-Things

The brick-and-mortar Linens-N-Things chain went bankrupt in 2008, andafterownershipchanges,thebrandwasre-launchedasanonlinebusiness.

Source:Linens-N-Things

BedBath&Beyond

Bed Bath & Beyond recently acquired the flash-sales website, One KingsLane,whichspecializesinhomefurnishings.BedBath&Beyondreportedlypickedupthepureplayforlessthan$30million,afarcryfromavaluationofaround$900millionplacedonOneKingsLanein2014.

Source:BedBath&Beyond

UKfurnitureandhomewarese-commercerevenuesareexpectedtogrowatafive-yearCAGRof13.7%

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UKONLINEHOMEWARESANDFURNITUREMARKETMarketGrowingat13.7%PerYear

The UK is one of themost developed online retail markets in the world.Online sales comprised 13.4% of total retail sales in the UK in 2015,according to Euromonitor. Our analysis of these data suggests the onlineshareofnonfoodcategorieswasmuchhigher,ataround21.9%lastyear.

According to Statista,UK e-commerce furniture and homewares revenuestotaledUS$5billionin2015.Revenuesareexpectedtogrowatafive-yearCAGRof13.7%toUS$9.6billionin2020.OnlineistakingagreatershareoffurnitureandfloorcoveringsrevenuesintheUKandaccountedfor12.1%ofsectorexpendituresin2015,accordingtoVerdictRetail.

Conluminoforecaststhenumberofonline-purchasedhomewaresdeliveriesintheUKisexpectedtogrowbyaCAGRof2.5%between2013and2018,from 27.5 million to 31.1 million. According to Webloyalty, the share ofmobileretailspendingofthetotalretailspendingonhomewaresintheUKin2014wasestimatedat2.2%anditisexpectedtogrowto8.5%by2019.

AccordingtoMintelhowever,socialchangesarelikelytonegativelyimpacttheUKfurnituremarket:theproportionofrentersversushomeownershasbeen increasing, particularly among millennials in the UK, and thisencourages shorter term and lower price furniture and homewarespurchases.

Figure9.UKE-CommerceFurnitureandHomewaresRevenues(USDMil.)


4,2065,039

5,8856,725

7,7018,595

9,563

2014 2015 2016E 2017E 2018E 2019E 2020E

CAGR13.7%Thetop-fiveUKhomewaresretailersareIKEA,Amazon,B&Q,TescoandDunelm.

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Figure10.UKOnlineDeliveriesbyProductType(Bil.)

Source:Conlumino


TheUK homewaresmarket is very fragmented and, apart fromdedicatedhomewaresandfurnitureretailers,housewarescanalsobepurchasedatavariety of retail store formats including big-box retailers and departmentstores.

According to 2015 data fromConlumino, Ikea is theUK’s top homewaresandfurnitureretailer,with6%marketshare;JohnLewisisinsecondplace,with 5.8% of the market, and in 2015 itsManaging Director Andy Streetannouncedanintentiontogainfirstpositionwithinfouryears.

Numerous apparel specialist retailers havebranchedout intohomewares:Next was one of the earliest, and it has been followed by Zara, H&M,Primark and Anthropologie. E-commerce platforms such as Amazon andnumerous innovative online pure-play furniture and home furnishingsretailershavealsobeenestablishedinthepastfewyears.

In the UK, 12 out of 20 prominent homewares retailers offer click-and-collect, but 71%of surveyed shoppers rarely use the option, according toDigitalMarketingMagazine.

WenotesomeofthemajorUKretailersinthetablebelow.

Figure11.UKFurnitureandHomewaresRetailStoreFormats

FurnitureandHomewaresStores

IKEA, Habitat, Dunelm, DFS Furniture, Laura Ashley,TheRange

Big-BoxRetailers Tesco,B&Q,Homebase,Sainsbury’s,Morrisons,Asda

DepartmentStores Marks & Spencer, Debenhams, Selfridges, Harrods,HouseofFraser

28 31

0

50

100

150

200

250

300

2013 2018E

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Off-priceretailers TJX(TKMaxx)

SpecialtyStores Anthropologie, Urban Outfitters, Zara Home, H&M,Primark,Oliver Bonas,Matalan, TheWhite Company,Tiger,Muji

MixedGoodsRetailer Argos

OnlineRetailers Amazon,Wayfair,Worldstores

Startups Made.com,Loaf.com,Westwing,Home24,Houseology

Source:FungGlobalRetail&Technology

Wayfair

IntheUK,Wayfair’sdirectretail revenues increasedmorethan200%yearoveryearinFY15.

DFSFurniture

The DFS Furniture website continues to attract more than 40% of all UKupholstery web traffic and generates double-digit percentage growth inonline sales, according to company management. More than 70% of thecompany’scustomersbegintheirfurnitureandhomewaresresearchonline.InFY15,DFSgrewonlinesales17%yearoveryear.

LauraAshley

Total e-commerce and mail order sales accounted for 17.9% of total UKretail sales in 2015, and increased 8.6% year over year. The number ofregisteredLauraAshleye-commercecustomersgrew14%yearoveryearto2.4millionforthefinancialyearendedJanuary31,2015.

Habitat

Inthepastyear,Habitathasseena35%jumpinonlinecustomertraffic.Theretailer plans to launch a click-and-collect service. More than half of theretailer’s e-commerce sales are completed through mobile or tabletdevices.

Worldstores

Founded in 2000, the online retailer sells both branded and unbrandedproducts. The company posted sales growth of approximately 12% yearoveryearinFY14,butisnotyetprofitable.

EUROPEANONLINEHOMEWARESANDFURNITUREMARKETMarketGrowingat11%PerYear

ElsewhereinEurope,e-commerceisarapidlygrowingchannelforfurnitureAccordingtoMaisonsduMonde,onlinedecorationandfurniturerevenuesinEurope,includingtheUK,areforecasttogrowatafive-yearCAGRof11%to €9.8 billion (US$10.9 billion) in 2019. Strong growth is forecast for thesame period in France (10% CAGR), Italy (17% CAGR), Spain (16% CAGR),Switzerland(11%CAGR)andGermany(11%CAGR).

InFrance,onlinepenetrationoffurnitureanddecorwasjust2%in2014,andisexpectedtodoubleby2019.

IntheUK,12outof20prominenthomewaresretailersofferclick-and-collect.

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Onlinepenetration for furnitureandhomedecor is still significantly lowerthanformanyothernonfoodproductcategories.AccordingtoMaisonsduMonde, in France, online penetration of furniture and decorwas just 2%,whichwasoffsetby18%forelectronicsandappliances,and14%forapparelandfootwearin2014.

Theonlineshareof total furnitureanddécorsales inFrance is forecast todoublefromthecurrentlevelto4%by2019.Frenchcustomerswhomakepurchases both online and in stores tend to spend more and buy morefrequently.

In Germany, online furniture and homewares sales made up a smallerpercentagethanoverallGermannonfoodonlineretailrevenuesof15.3%in2014,accordingtomarket-researchfirmGfK.

Figure12.EuropeIncludingTheUK:OnlineSalesas%ofTotalFurnitureandHomewaresSales

Source:MaisonsduMonde

Figure13.EuropeIncludingTheUK:FurnitureandHomewaresOnlineRevenues(EURBil.)

UKfiguresdifferfromthosecitedearlierduetodifferentsourcesSource:MaisonsduMonde

13%

5% 5%

2% 2% 1%

17%

8% 8%

4% 4%2%

UK TotalEurope Germany France Spain Italy2014 2019E

5.9

2.92.0

0.3 0.2 0.1

9.8

4.7 4.4

0.7 0.3 0.2

TotalEurope UK Germany France Spain Italy

2014 2019E

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FrenchfurnitureandhomewaresretailerMaisonsduMondecompletedanInitial PublicOffering in2016. In France,MaisonsduMonde isoneof thetop-three online decoration and furniture retailers in terms of revenues.Thefirmlaunchede-commercesalesin2006andfeaturesthemajorityofitsproductrangeonline,anddisplaysanaverageofapproximately8,700stockkeepingunitsatanygiventime.Furnitureaccountedfor78%ofMaisonsduMondeonlinecustomersales,anddecorationaccountedfor22%,in2015.

The company has an online presence in France, the UK, Austria, theNetherlands and Portugal and hosts 11 e-commerce websites.Approximately40%ofMaisonsduMondetotalonlinecustomersalesweregeneratedoutsideofFrancein2015.

InFY15,MaisonsduMonde’sonlinesalesincreased32%yearoveryearto€121 million (US$135 million), and online revenues represented 17% oftotalsales.Thecompanyaimstoincreaseonlinesalestomorethan25%oftotalsalesby2017–20.

INNOVATIVEONLINESTARTUPSIn the last few years, numerous innovative pure-play furniture and homefurnishingsretailershavebeenestablishedacrosstheworld.

European pure-play online retailers focused on decoration and furnitureincludeMade.com,Westwing and Home24, which are all accessible frommultipleEuropeanjurisdictions.

Houseology

Theluxuryhomewaree-tailer,Houseology,wasfoundedin2010andoffersmore than 200 designer furniture and homeware brands through itswebsite.Thecompanyraisedmorethan£1million inequitycrowdfundingin December 2015 and had a turnover of £3.7million in FY14, andmorethan30,000customersin100countries,accordingtoCrowdfundInsider.

Source:Houseology

MaisonsduMondeonlinesalesincreased32%yearoveryearandrepresented17%oftotalsales.

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Made.com

Made.com is an online startup that cuts out themiddleman and enablesbespokepurchases of designer furniture directly frommanufacturers. Thecustomerisdirectlyconnectedwithdesignersandcanreceivesavingsupto70%.Made.comgrewitssalesby63%to£42.8millionin2014,accordingtoVerdict Retail. Made.com participated in three rounds of funding andinitiallyraised£2.5million,anadditional£6million in2012and£38millioninthelastround,in2015.

Source:Made.com

Loaf.com

Loaf.com, another UK privately owned online startup, offers a similarservice. Loaf had sales of £27million, including value added tax (VAT) inFY15 and plans to grow sales to £100 million over the next five yearsaccordingtoRetailGazette.Loaf.complanstoopen10stores inthesoutheastby2018,accordingtoVerdictRetail.

Source:Loaf.com

Furnishr

Furnishr is a Toronto-based startup that offers a full-service turn-keysolutionformovingandfurnishing.Thestartupispartinteriordesigner,partfurniturestore.

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Source:Loaf.com

ZaozuoZaohuaZworks

Chinese online furniture startup Zaozuo Zaohua Zworks opened its firstoutlet in an upscale mall. Zaozuo lets customers vote on the design andstyleoffurnitureitemsattheprototypestagebeforemassproduction.Thisstrategy reduces inventoryandcosts.Online furniture companies inChinacurrentlyholdasmallsliceofthemarket,butaregrowingrapidly.Privately-heldZaozuosaidsalesareincreasing40%annually,althoughthecompanyisstillunprofitable.MZGFFurnitureStudio,anotherChineseonline furnitureretailer,statedsalesgrewabout200%yearoveryear insomemonths lastyear.

Source:Zaozuo

KEYTAKEAWAYSWhat follows are the key takeaways from our assessment of the highlycompetitive and rapidly growing furniture and homewares e-commercemarket:

• Thereareseveralfactorsdrivingtherobuste-commercegrowthinfurniture and homewares compared to stores, includingdemographics and the endless customization options availableonline.

• Global furniture and homewares market revenue is expected toincreasebyafive-yearCAGRof15%.TheUSandUKisexpectedtoexperience 7.6% and 13.7% growth for the same time period,respectively.

• The UK had the highest percentage of furniture and homewarespurchasesmadeonlineinEuropeatapproximately12.1%inFY15,evenhigherthanthe8.6%intheUS.

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• Inthelastfewyears,numerousinnovativepure-playfurnitureandhomefurnishingsretailershavebeenestablishedacrosstheworld,includingMade.comandLoaf.comintheUKmarket.

DeborahWeinswig,CPAManagingDirectorFungGlobalRetail&TechnologyNewYork:917.655.6790HongKong:852.6119.1779China:86.186.1420.3016deborahweinswig@fung1937.comEvaK.SeniorResearchAssociate

HONGKONG:8thFloor,LiFungTower888CheungShaWanRoad,KowloonHongKongTel:85223004406LONDON:242-246MaryleboneRoadLondon,NW16JQUnitedKingdomTel:44(0)2076168988NEWYORK:1359Broadway,9thFloorNewYork,NY10018Tel:6468397017

FungGlobalRetailTech.com

global furniture and homewares e-commerce - deborah · pdf filein this report, we explore...

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