How e-commerce is changing
the furniture industry
Maxim Romain, GM Wayfair EU
5x
20%
4%
2
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•
WHY DO
CUSTOMERS BUY
FURNITURE ONLINE?
44
Why do customers buy furniture on-line?
1/ Access to large choice: every
style & price
5
Why do customers buy furniture on-line?
2/ Ease of purchase
From home, office, cab, …
Home delivery, short lead-times
Any time
6
Why do customers buy furniture on-line?
3/ Transparent market = best
deals
<
7
WHAT IMPACT
FOR THE
INDUSTRY?
88
What impacts on furniture industry?
Quick deliveries required:
9
What impacts on furniture industry?
Quick deliveries required:
1. Bulky Freight Carriers: moving to next-day
deliveries, new entrants coming in
10
What impacts on furniture industry?
Quick deliveries required:
1. Bulky Freight Carriers: moving to next-day
deliveries, new entrants coming in
2. Importers/Stockists: upgrading their IT systems &
warehouse pick&pack operations to ship < 24h
11
What impacts on furniture industry?
Quick deliveries required:
1. Bulky Freight Carriers: moving to next-day
deliveries, new entrants coming in
2. Importers/Stockists: upgrading their IT systems &
warehouse pick&pack operations to ship < 24h
3. Manufacturers: EU manufacturing getting more
competitive, offering 1-2 weeks lead-times (ex:
upholstery)
12
What impacts on furniture industry?
Products designed for home deliveries:
1. Packaging: New packaging required to sustain home
deliveries and reduce damages
2. Products designed specifically to be shipped on
small parcel couriers to be more price competitive
13
What impacts on furniture industry?
New marketing required for product
brands:
1. Photos & product descriptions are now paramount
2. Participation to promotions with on-line retailers =
tools to build brand awareness and push sales
14
What impacts on furniture industry?
Management of returns:
1. Carriers: upgrading their IT to cope with growing
return collections & better integration with retailers
2. Clearance: businesses providing “clearance” &
“return management” solutions thriving
3. Repair: companies specializing in furniture repair at
home, with full integration with retailers (Servico)
15
E-COMMERCE
=
WIN FOR THE
FURNITURE
INDUSTRY?
16
16
So: ecommerce = win for furniture industry?
NO
More transparency = more competition = less margins
 Consolidation of industry to be expected (today:
very fragmented)
YES
Opportunity for furniture market to expand
 More choice + better deals + ease of purchase +
more inspiration could lead to more demand
 Through better market exposure, consumers could
finally start to focus a lot more on their home interior
17
Questions
18
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