The Nordic furniture industry is poised for recovery in 2025, following a challenging period of declining revenues. A recent analysis by consulting firm Simon-Kucher highlights the industry's current state and the potential for growth, driven by anticipated improvements in the construction sector.
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The report reveals a widespread drop in revenues across major Nordic furniture companies from 2022 to 2023, with many businesses grappling with a 6.4 percent average decline. This downturn follows the pandemic years, which had boosted sales to unprecedented levels. Inflation has also played a significant role, with furniture prices rising sharply by 16.5 percent from 2020 to 2023. These price increases have deterred many consumers, who now perceive furniture as expensive compared to pre-inflation years.
The inflationary environment has reduced disposable incomes, prompting consumers to prioritise essential goods and services such as energy, food, and household items over discretionary purchases like furniture. Sustainability has also emerged as a key factor influencing buying decisions. Consumers increasingly value durable, affordable products that align with their environmental values, seeing longevity as a marker of sustainability.
Despite these challenges, the report offers reasons for optimism. Improvements in consumer confidence and growth in the construction and civil engineering sectors are expected to benefit the furniture industry. Historically, increased construction activity has driven demand for furniture, and this pattern is likely to continue. However, Simon-Kucher cautions against expecting a return to the exceptional results seen during the pandemic years.
Instead, the firm advises furniture companies to adapt to changing consumer behaviours. Firms should cater to diverse segments by offering affordable options for price-sensitive buyers and premium products for those seeking higher quality. Sustainability also presents a promising opportunity. Providing environmentally friendly solutions at competitive prices could attract a loyal customer base and position businesses as leaders in the industry's shift toward eco-conscious practices.
While the future holds potential, the report underscores the importance of flexibility and innovation for long-term success. Furniture companies must navigate a competitive market where consumer preferences and economic conditions continue to evolve.
Source: www.wood-supply.dk