Embracing new growth channels

Whatever challenges stand in the way, new markets, whether overseas or online, represent growth opportunities for ambitious furniture professionals, writes

Jonathan Staker, CEO of Vanquish Commerce Group …

In recent years, the British furniture industry has faced numerous challenges, including shifting consumer trends, rising production costs, and increased competition from both domestic and foreign brands. The uncertainty brought on by the pandemic has only intensified these challenges, with brands in many instances losing market share and reducing profitability.

Whilst recovery long term is a certainty for those willing and able to ‘batten down the hatches’, I believe there are exciting opportunities for manufacturers and importers to grow exponentially despite the current climate by looking to new markets.

Go global

Expanding globally, for example, is a powerful way to access new markets and customer segments. The US and Europe are particularly attractive markets due to their large size and high consumer demand. According to a report by Statista, the furniture and home furnishings market in the US is projected to reach $357b in 2022, while the European furniture market is expected to grow to €128.5b by 2023. By tapping into these markets, British furniture manufacturers and importers can significantly increase their revenue and profitability.

There is a perceived high level of quality, history, tradition and luxury toward British brands in the hearts of the American consumer, which often allows for higher margins and greater demand across the pond. And in reference to our closer neighbours, whilst it may seem a logistical nightmare to sell in Europe post Brexit, we’ve now lived with it for three years, which is time enough to have got to grips with the associated challenges. Organisations with the determination to succeed and maintain sales in Europe have a distinct advantage and dramatically reduced competition. However, expanding globally requires careful planning and execution. Companies need to understand the local market dynamics, customer preferences and regulatory requirements in order to succeed. This may involve adapting products and marketing strategies to suit local tastes, establishing partnerships with local distributors or retailers, and investing in logistics and supply chain infrastructure. But for those that can successfully navigate these challenges, the rewards can be substantial.

Embrace online

Another way for British furniture and homeware companies to grow is by pivoting to sell online. The category is still very old fashioned compared to many others, and there is a stalwart community who believe entirely in maintaining the traditional supply chain hierarchy. Whilst this is honourable, and I do champion the supporting of bricks-and-mortar retailers, I believe that the omission of a direct-to-consumer (D2C) strategy today is incredibly risky. Most major brands across all industries now incorporate this dynamic, and the furniture industry should be no exception. Carefully considered pricing and marketing positioning can allow for an all-inclusive strategy for the most forwardthinking brands.

Covid-19 has accelerated the shift towards ecommerce, with more consumers shopping online than ever before. According to a report by eMarketer, UK ecommerce sales are expected to reach £141.33b in 2022, up from £105.26b in 2020, whilst the US and EU combined will reach almost £2t this year! By embracing ecommerce, furniture companies can reach a wider audience, reduce their reliance on physical retail channels, and create new revenue streams.

Of course, pivoting to sell online is not without its challenges. Companies may need to invest in new technologies and processes, such as ecommerce platforms and logistics systems, and may need to train employees to adapt to new ways of working. But for those bold enough to embrace change, the revenue and margin rewards can be immeasurable.

Calculated risk

While the British furniture and homeware industries are facing challenging market conditions, the outlook is far from bleak, and there are many ways for companies to grow and thrive. By expanding globally, or indeed pivoting to sell online, companies can access new markets and customer segments, reduce their reliance on physical retail channels or traditional wholesale routes, and create new revenue streams.

Whilst these strategies require careful planning and execution, the key is calculated risk, and finding the right partner will help you to navigate new markets, and should offer a 360° view of the entire market, sales and supply chain process to define the correct placement strategy to optimise your brand’s success. www.vanquishcommerce.com

Siren Furniture Limited Harrington Mill, Leopold Street, Long Eaton, Nottingham NG10 4QE

Sales Agents Required

Commission only

Siren Furniture is a designer and manufacturer of upholstery for UK independents and major store groups. We are currently seeking resultsdriven and highly motivated Sales Agents to join our growing company.

You will have a proven track record of sales success, ideally within the furniture industry, and be able to support and grow the business and become an integral member of the team. The role requires you to work directly with independent furniture retailers to expand sales through excellent customer service, negotiation and experience.

A professional, conscientious and proactive approach is central to advancing the Company’s reputation and brand.

Locations: London / Midlands / North West

Excellent uncapped commission.

The opportunity comes at an exciting time for the business, and this position presents excellent opportunities for the right candidate to grow and develop the business across the respective regions.

Please contact Joanna Frost at joanna.frost@sirenfurniture.com for further details.

The results of this submission may be viewed at: https://www.furniturenews.net/node/856/submission/43288