Welcome to my first blog which shares my perspective on Indian e-Commerce specially on near past where all leading e-commerce portals started focussing on Home Furnishing and related categories instead of electronics category. Home furnishing was an ignored category in the yesteryear of eCommerce. But as per the e-Commerce home furnishing market 2016 report, in 2015 world eCommerce home hard and soft furnishings market, combined, were worth $39.9 Billion, with overall world furnishings market forecast to grow at a CAGR of 8.87% in the next 5 years. With cellphones (especially Smartphones) and increasing Internet penetration, end user can make the purchase on the go. This has led to a surge in the sellers and buyers on e-commerce platform. Sellers on the e-Commerce home furnishing portals now provide free deliveries, Cash on Delivery, easy exchange and replacement warranties.
A number of exciting figures and facts are available if you go in detail of complete report on e-Commerce home furnishing market available at Sandlerresearch The reports tell us that analysts forecast world’s e-Commerce home furnishing market to grow at a CAGR of 19.45% during the period 2016-2020. The report clearly indicates that Europe led the world e-Commerce home furnishing market and had a market share of more than 44% during 2015. The Luxury range with sale of premium-priced and customised home furnishing products in the west Europe especially UK, France, Italy, and Germany and the presence of leading vendors like Bol.com, IKEA with other premium stores in the region will contribute to the growth of this market in Europe in the years to come.
A few international brands / Sellers and many local vendors are making the world e-Commerce home furnishing market fragmented. Product portfolio, differentiation, and pricing plays pivotal role in the complete forecasting scenario. To create an impact in highly competitive environment, brands/stores need to distinguish their product and service offerings through a clear and unique positioning. There are few names which has done this successfully are amazon, Ikea, costco etc. Presence of these stores in US also plays an important role to become the leader.
The thing which enables these brands to provide better products with sufficient margin to operate is sourcing. Ideally, China would have been the obvious choice but to surprise, manufacturers like Trident Group and Welspun are one of the two big exporters apart from Alok Industries and others. The superior quality coupled with competitive pricing making India a better choice. In Indian perspective, despite of slump in foreign investment, the e-commerce is surviving and credit goes to focus on home furnishing category. Some consolidation and wallah ! ; we would enter into Indian E-commerce 2.0 where focus will shift from discounts to service quality. It will definitely going to take time and could be painful for some of the high aspiring startups (they will either die the slow death or bought by bigger players). Despite of all this chaos “it will take two to tango”, Home Furnishing and Indian E-commerce Industry in coming times.