From the sale of large furniture and decorations to the sale of domestic appliances such as refrigerators or microwaves.
Formerly, these kind of products were mainly purchased in brick-and-mortar stores such as big box retail stores, department stores or specialized furniture stores. Nowadays consumer and retail stores discover the benefits of online shopping, such as an incomparable pre-shopping experience and almost no limitation with regards to exhibition space, in form of online shops. For getting an understanding with regards to the size of this segment, we are focusing on the status quo first.
Source: Statista Digital Market Outlook 2017
US$225.5 billion of the global eCommerce market is generated by the Furniture & Appliances segment. This equals a share of about 15%. U.S., China and Europe, the top three countries with regards to revenue, contributing 82% to the global revenue in the mentioned segment. For China we are facing a revenue of US$80.87 billion, for the United States a revenue of US$60.69 billion and for Europe a revenue of US$43.55 billion.
Although overall online sales of furniture are still relatively low compared to the offline market, the growth rates are currently among the highest in the eCommerce market. What does this mean for the future?
As shown previously the global average growth rate for the Furniture & Appliances segment is expected to be 11.9% from 2017 to 2022. Mentionable with a CAGR of 13.7%, out of the three major world regions discussed previously, is China, expected to reach a total market volume of US$153.77bn in 2022. The second largest market is expected to be the United States with a total volume of US$104.82bn in 2022, growing by 11.5%. On third place we are facing Europe with a CAGR of 10.3% and an expected total market volume of US$70.96bn in 2022. A potential that will – hopefully – lead to an interesting competition in the online segment.
(CAGR: Compound Annual Growth Rate / average growth rate per year)
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