The general “trend” forecast in the sale of finished (serial) furniture in Ukraine for the period 2018-2023

The general “trend” forecast in the sale of finished (serial) furniture in Ukraine for the period 2018-2023

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Mon. 02.04.18
Автор текста Сухицкий Валерий.

Market Trends

Sales growth in the channel e-commerce both own and partner.

Selling more complex products and services through e-commerce channels by providing augmented reality services and furniture placement programs.

Separation of e-commerce sellers by target audience and product categories for more precise targeting and getting into the target traffic/sales funnel.

Amazon’s possible arrival in Ukraine by purchasing e-commerce from the Rosetka operator. Or comparable in scale to a market player.

The product is delivered to the consumer by a third-party transport company and, as a consequence, increased requirements for packaging quality.

Product delivery by “drones” is the prospect of the next 3-5 years, but it is necessary to prepare now, the weight and size of the package with the product together is important here.

Competition for the physical buyer offline among major DIY players in the finished furniture segment: Epicenter & K VS Leroy Merlin. Price and marketing wars will be waged through additional discounts and promotions, the formation of large inventories for this, respectively, the entire load of costs will be transferred to suppliers/manufacturers of goods.

Reducing customer traffic in freestanding furniture stores and increasing traffic in similar stores, but located in large shopping centers.

The consumer has so little time for relaxation and entertainment that he wants to shop for clothes and household goods in one place. Examples include Homster and Kylik.

Active “collaboration” of serial manufacturers and designers to give the product a “face / personal recognition/status” as the main competitive advantage.

Closer cooperation at the level of developer, developer/manufacturer of serial furniture for better closing the “pain of the client” – a finished apartment with repairs and furniture for affordable money. Right here and now. As a result, the offer of an integrated purchase of standard solutions from the showroom of the builder.

Production Trends

Universal automation of production and transition to Smart Factory 4.0

Products from Chinese manufacturers are becoming more expensive, and B2B customers are turning more to local production.

The openness of production as a way of selling and competitive advantage, production sells a manufacturing culture, a quality control system, and respect for nature and personnel.

The buyer at the factory is the norm and a sign of a progressive modern company.

Particular attention is paid to the quality control department, since due to the openness of e-commerce channels and social networks in which the products are present, a reputation and sales flow are formed, depending on customer feedback on the purchased products.

Reducing production costs is an ongoing systemic process, but in Ukraine it is especially relevant in the field of workshop production logistics and ERP systems.

Basically, furniture factories purchase only the main unit of equipment, and they don’t buy means of automation and transportation of parts, software, due to cost savings.

Workers are becoming more expensive due to the migration of skilled labor to Europe and the United States.

All this must be taken into account when building modern production facilities and technological processes.

More CNC machines and automated processes. The salary level of specialists in the furniture industry will grow by 30-40% per year.

Consumer Expectations in B2C Channel | B2B and e-commerce.

The consumer needs a simple, high-quality and useful product in his life (for B2B business use).

A finished product that can be used immediately after unpacking or by spending a maximum of 1.5 hours on an independent and not very difficult assembly.

Multi functionality / multi zoning of individual products.

“Usability” ease of operation, cleaning, care throughout the entire product life cycle.

The design of products is “timeless” or you can still describe it so that the product dissolves in the space of the consumer’s interior.

The consumer is ready to wait for delivery of a simple product for 1-3 days if it is a product consisting of several modules of the kitchen/wall type, then 3-5 days.

The possibility of self-assembly is not complicated assembly and installation of the product. A well-thought-out and tested assembly scheme, video instruction, a minimal set of assembly tools coming in the same package with the product, simple reliable adjustment of accessories and mechanisms.

The service of the supplier company must comply with the European level of service.

The culture of the staff and the quality of all work are decisive factors for B2B and B2C, e-commerce sales channels.

Автор текста Сухицкий Валерий.