New Delhi: Driven by pent-up and delayed demand, India’s online furniture and home market is expected to reach $ 40 billion over the next five years, according to a new report released on Monday.
Over the next five years, online furniture and home sales are expected to increase at a strong CAGR of 39%. The online home category includes interior design, furnishings, mattresses and lighting.
The online furniture category predicts a 3-fold increase in the number of buyers over the next five years with a jump of 1.8 times annual spend per buyer.
This will allow 5 times the GMV (gross merchandise value) growth for the category in fiscal years 21-26, according to data provided by Bengaluru-based market research firm ResSeer.
The online furniture category is experiencing strong growth, with more and more buyers trusting high-priced online furniture shopping.
Likewise, the online home category is expected to grow 2.5 times the number of buyers over the next 5 years with an increase of 1.3 in annual spend per buyer to indicate a growth of 4 times the number of buyers. GMV, âsays the report.
In the furniture category, vertical sectors have created a niche.
Verticals dominate the high-end “solid wood” market, while horizontals dominate the “plastic / metal and engineered wood” market.
âThe average selling price (ASP) on verticals is 10 times higher for furniture and twice as high for decoration than horizontal ones, indicating the difference in target customers,â the report said.
He added that the verticals focus on a set of experience-conscious customers, who seek product choice and quality rather than price, and the willingness to pay and for online channels is high.
âVerticals with a superior omnichannel presence, customer experience, product innovation, specialized supply chain and technological capabilities are well positioned to evolve,â the results showed.