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Ready to Assemble Furniture Market Outlook: Ken Research

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Title: Ready to Assemble Furniture Market Outlook: Ken Research


1
Ready to Assemble Furniture Market Outlook Ken
Research
2
Introduction Ready to assemble (RTA)furniture is
a concept introduced roughly around the 1850s
which allowed for two primary benefits- the
reduced cost of labor as assembly was expected to
be done by the customer, and a reduction in the
requirement for space as the furniture was
shipped as parts and not as the finished product.
This reduction in labor and space became a
favorable trend for manufacturers which was
expected to be continued in simplistic component
based furniture. Another major benefit in using
ready to assemble furniture was that there was a
shortage in manufacturing time as well. The
reduction in time requirement and the cost saving
from reduced requirement for space and labor led
to manufacturers attempting to maximize the sale
of ready to assemble furniture, primarily for low
margin products which would boost profitability.
High value furniture which earned a premium for
manufacturers would not usually be ready to
assemble as the price of the furniture was quite
high and did not justify the need for reduction
in cost of delivering and manufacturing. Although
the RTA concept did not work with premium
customers, the reduced cost of furniture due to
the need for customer assembly was highly
accepted by low and middle income customers who
could now manage to afford better quality of
furniture just by assembling it themselves. This
began the trend of assembling furniture for cost
savings for consumers and manufacturers.
3
Market Overview The ready to assemble furniture
market is growing steadily. The market, which was
valued at over USD 10.5 Billion in 2014, has
grown to USD 11.8 Billion in 2017 and is
forecasted to grow to over USD 16 Billion by the
year 2025 as per the most recent Furniture Market
Research Reports. The growth of ready to
assemble furniture is primarily attributed to the
growing needs for functional and effective
furniture at a lower price for low and middle
income households. Another key driver is the
increasing trend of Do It Yourself market
participants towards assembling their own
furniture. Given the growing need for functional
and economic furniture which can be fit into
smaller households and still is a low cost for
consumers, there is a major need for furniture
that is sturdier and is capable of usage for
longer periods of time. Ready to assemble
furniture is primarily purchased on the basis of
utility. The sales channels usually is through
direct manufacturer sales as a majority of
categories of RTA furniture are sold directly.
RTA furniture covers almost all sub categories of
furniture ranging from tables and chairs to more
sophisticated furniture like book shelves, work
desks and sofas. The increasing popularity from
the industrial side is owing to the level of cost
savings that is availed by major manufacturers on
manufacturing and transportation. This is vitally
important for furniture which is sold to low and
middle income households where the profit margin
for the furniture is considerably low.
4
Opportunity There is growing need for viable
providers of ready to assemble furniture which is
at lower cost. The market is currently dominated
by players like Sauder Woodworking, Dorel
Industries, Bush Industries, Inter, IKEA Systems,
Tvilum, South Shore, Whalen Furniture and
Homestar. The major player being IKEA leading
through its reputation for consistently lowering
furniture costs year on year. There is an
opportunity for furniture providers capable of
delivering superior design and better
functionality at a competitive price. Considering
the major value offering is functionality and
cost, there is not significant differentiation in
the RTA market, providing an opportunity for new
manufacturers with innovative and cost effective
designs for ready to assemble furniture to
benefit from
5
For more information, click on the link
below https//www.kenresearch.com/tag/consumer-pr
oducts-and-retail/furniture/25.html Contact
Us Ken Research Ankur Gupta, Head Marketing
Communications sales_at_kenresearch.com 0124-4230204
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