Online furniture market is growing at a rapid rate of about 80-85% CAGR, and by 2022, the sales via online medium are expected to reach $700 million.
Homegrown e-commerce platform Flipkart sells most of the furniture bought from online platforms and dominates the market in India with a whopping 41% share. With this, Flipkart has left behind major players such as Amazon, Pepperfry, Urban Ladder and Godrej Interio, a recent report said. While the sale of furniture by the online medium is gaining momentum, Flipkart has performed better than the competition as it is the “first retailer to offer durability certification and warranty commitment for online customers,” consultancy firm RedSeer said in the latest report. Further, factors like customer support, better product inventory, low prices and efficient supply chain have also led to Flipkart’s growth in the segment, the report added. While Flipkart had a little less than one-third share of the total online sales in Q2 last year, the company now has 41% of the market.
Online furniture market is growing at a rapid rate of about 80-85% CAGR, and by 2022, the sales via online medium are expected to reach $700 million, according to RedSeer analysis. With the increasing penetration of the internet and smartphones, sales of furniture on online platforms are widely increasing and “experience stores and different models offered at an affordable price with good quality” are also adding to online sales growth, the report said. Also, there are many pain points for consumers that have accelerated offline to online transition. While half of the respondents surveyed by RedSeer said that comparing different products on physical stores is a major pain point, one third also said that travelling to physical stores in also cumbersome in Tier 1 and Tier 2 cities.
Further, the online furniture market is divided between horizontal (Flipkart, Amazon) and vertical players (Pepperfry, Urban Ladder) and horizontal players are slowly replacing the dominance of vertical players by offering better awareness and confidence in private labels. The majority sales for horizontal players come from metro cities and Tier 1 cities and now players like Amazon and Flipkart have a market share of 55%.