Furniture Industry Consultant Puts E-Comm Growth Rate at 15%
High Point, NC, April 15, 2019-Analyst Stump issued this report following its attendance of the spring 2019 High Point Market, which focuses on the furniture industry’s 15% e-commerce growth rate.
“Indisputably the [number one] topic, E-commerce is the fastest growing segment of the furniture industry at an annual growth rate of at least 15%, compared to the overall industries growth rate of 2% to 3% over the last five years," says Stump. "Whether choosing B2B or B2C, effective participation in this sector is becoming more and more critical to companies’ success. We see tremendous opportunity here but also risks:”
“Selling products (branded or unbranded) through e-comm portals such as Wayfair, Amazon, Houzz, and Perigold is an effective way to quickly boost top line sales, but as e-commerce behemoths gain concentration in companies’ businesses and take over their logistics with programs like Castlegate, it makes margin erosion and disintermediation harder to combat.
“Selling products directly to customers through a stand-alone branded website can be extremely costly in terms of customer acquisition and marketing; but it may be the path to survival for some.”