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As the e-commerce industry surged with the onset of the pandemic, key players in the furniture market started to invest in physical locations to make consumers more adaptable to online orders. Consequently, this is driving the residential and commercial constructions globally. Though the pandemic delayed the construction and expansion of new stores, companies are prioritizing creating a more immersive experience to support the increased home deliveries in 2022. For instance,
Ikea will expand in around 32 markets, including the United States, France, Finland, Canada, Germany and Spain. However, the company will allocate around 1.2 billion euros to its London market, including to its Oxford Street store, a new services and a new distribution center in Dartford, which will enable the company to make faster home deliveries within a day.
Moreover, these stores play a dual role, giving the customers the best of both physical and online retailing. Therefore, the investment will support not only the in-store Ikea experience but also faster and more affordable shipping of online orders directly from the stores. After expanding in India with two large-format stores, the furniture giant launched another 90,000 sq ft in size, these ‘city’ stores in Mumbai, Worli. Additionally, Godrej Interio, UrbanLadder and Pepperfry are among the big players in the Indian furniture market with a significant online presence.
Apart from the pandemic, the onset of urbanization and the increasing disposable income in emerging economies such as India also facilitated the furniture market growth. Therefore,
Godrej Interio and Pepperfry also plan to tap the offline space. The former aims to add around 50 exclusive stores each year, while Pepperfry aims to achieve the 200 Studios in 2022. In September 2021, Pepperfry also forayed into the customized furniture segment with the Pepperfry Modular offering, with modular kitchens, wardrobes and entertainment units. In conclusion, the strong furniture market of India has attracted the key players of the market to expand their physical stores, which further provided momentum to the growth of residential and commercial constructions in India.
Consequently, the key players in the furniture business are expanding their base in the Indian market to gain market share. This is projected to boost the growth of the construction industry in India over the medium to long-term perspective.
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