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MARKETING OF FURNITURE BRANDS AND FURNITURE STORES

FEATURES OF THE INDUSTRY

The furniture market is an extremely dynamic and creative business area that demonstrates constant innovation, new technologies and designs, responding to the needs and tastes of consumers. The furniture market is characterized by a large number of features that distinguish it from other consumer goods markets and are crucial for building effective marketing of furniture brands and stores. Here are the main features in question:

• Market fragmentation. In general, the furniture market is characterized by severe market fragmentation into almost incompatible segments. Office furniture is almost never used for personal housing. Luxury custom-made furniture is hardly a competitor to the mass segment that can be found in furniture malls and stores. Kitchen furniture does not compete with living room or bedroom furniture at all. Various styles and designs hardly overlap with each other, given the preferences of specific customers, etc. Such fragmentation creates a huge variety of offers, responding to the different needs and preferences of different customers, and also contributes to the development of both large furniture companies with a wide range of products and small niche firms.

• Competition. Despite significant fragmentation, the furniture market is extremely competitive. Moreover, for many countires we can confidently say that a significant part of domestic demand is focused on imported furniture, the sales of which are comparable to those of national producers. This level of competition requires manufacturers and furniture stores to be extremely attentive to the marketing promotion of their products, prioritizing high quality, innovation and efficient service, as well as the active use of both digital and traditional marketing tools to attract and retain customers.

• Consumer perception. The arrangement of a living space at home or at work occupies a special place in the minds of most consumers. The importance of choosing furniture wisely is due to the duration of use, the impact on everyday comfort and convenience, self-perception and social status, etc. Furniture reflects the individuality and style of a person, creates an atmosphere of coziness and comfort in the room, which emphasizes its key role in shaping personal space and lifestyle. For many people, buying furniture is even more significant than buying a car, which leads to a corresponding attitude to the decision-making process of purchasing items that will serve the owner for a very long time.

• Individualization of demand. The unique layout of apartments in almost every new building and general social trends in recent decades have significantly changed consumer expectations and requirements in the furniture market. With the growing interest in personalized solutions and exclusive design, consumers are increasingly looking for custom and unique furniture that reflects their personality and lifestyle. This challenges manufacturers and retailers to adapt to these changes by offering personalized solutions, unique designs, and opportunities for furniture customization. Moreover, this trend creates an increased need for marketing mixes, including those aimed at creating a unique and innovative furniture brand that meets consumer demands for an individual approach and non-standard furniture.

• The IKEA phenomenon. The case of IKEA is almost unrivaled in the furniture market, and it is now being used by other well-known furniture companies. The IKEA phenomenon is a perfect combination of relatively inexpensive mass-produced furniture with consumer needs for personalized solutions and unique designs. In other words, the company has managed to move away from previous mass production business practices and switch to a completely different business paradigm - "Individual needs - Limited production - Strong brand and marketing - Direct sales". Of course, this scheme is somewhat simplified, but it perfectly conveys the difference with the classical approach and emphasizes the importance of understanding customer needs and an effective marketing mix.

• Technologies and materials. The furniture market is witnessing an increase in consumer expectations and needs for the use of the latest technologies and innovative materials. Consumers are increasingly looking for furniture that combines appearence, functionality and sustainability, is made of environmentally friendly materials and features modern technological solutions. Products that meet these requirements are usually in high demand in the market, which encourages manufacturers and furniture stores to improve production technologies and expand their product range, offering innovative solutions that meet the needs of the modern consumer. Technological innovations include the use of computer modeling for the development and production of furniture, the introduction of new methods of processing wood, metal and other materials, the introduction of smart technologies, etc.

• Style, fashion and design. The influence of fashion and style on the furniture market is extremely high, as consumers often prefer furniture that reflects modern preferences and tendencies. Trends in design and fashion are constantly changing, forcing furniture manufacturers to quickly adapt to new market demands by offering products that meet current needs. The influence of fashion and style on the furniture market is seen in many aspects, including changes in the use of colors, shapes, textures and materials, etc. Trends and consumer requirements force furniture manufacturers and designers to constantly update their assortment and introduce innovative solutions, as well as to ensure high quality and appearance of products that meet modern fashion and design standards.

• Import and export. Individualization of demand and consumers' conscious or unconscious desire for foreign goods, especially in the category of durable goods, leads to extremely large volumes of imports and exports in the furniture market. On the one hand, this increases competition in the domestic market and requires domestic producers to strengthen quality, technology, innovation, and service to meet best international practices, and on the other hand, it opens up profit opportunities not only within the country but also abroad. Both facts require market players to implement powerful marketing mixes focused on both domestic and foreign markets.

The list of features of the furniture industry can be continued if we take a closer look at the main segments. Indeed, marketing of kitchen furniture is different from marketing of office furniture, marketing of furniture for children's rooms will have its own peculiarities compared to marketing of furniture for living rooms, etc. However, the general trends that influence the marketing strategies and marketing mixes remain the same. So, how to compete in such conditions and how to build an effective marketing mix in the furniture business? How to avoid annoying marketing mistakes that even large companies with full-time marketers make? How to prevent the company's development and success in the market from being hampered by wrong marketing decisions and choices?


SOME GENERAL STRATEGIES AND APPROACHESS

In general, furniture manufacturers and furniture stores use quite powerful and multidirectional marketing mixes, depending on the company's budget and strategy. It is quite difficult to consider all existing approaches and their effectiveness in one article. However, we will try to highlight the main marketing strategies, approaches and elements that are successfully used in the industry. Here are the main ones:

• Wide range or niche specialization. A crucial marketing decision for a furniture manufacturer or a furniture store is to determine the market that the company is mainly focused on. Most consumers are not looking for abstract furniture in a broad sense, but rather for specific elements (sofa, chairs, table, wardrobe, sideboard, etc.) or a set of elements to replace furniture in a particular room (living room, bedroom, kitchen, etc.). The choise of a particular specialization determine the entire subsequent marketing strategy and marketing mix of the company. On the other hand, broad specialization also takes place in the market, especially for large companies, but it requires more complex marketing structures and tools.

• Branding and positioning. A chooise of a wide range or niche specialization also has a significant impact on the branding and market positioning of the furniture business, starting with the basic brand elements (logo, name, domain, slogan, value proposition, etc.) and ending with a brand platform with an appropriate set of points of parity and points of differentiation that separate the furniture of a particular manufacturer from competitors. Creating powerful associations of the company and its products with a specific segment of the furniture market provides a competitive advantage, helps to attract more customers and increases the level of loyalty to the furniture company or store.

• Digital marketing ecosystem. In the furniture business, when furniture malls and stores are scattered around the city and the exhibition space is limited by the footage of the premises, the consumer journey of a potential buyer mostly begins with the Internet, where the initial acquaintance with both furniture options and their price, as well as with retail outlets and showrooms that the buyer will later plan to visit to see the furniture with their own eyes and evaluate comfort, convenience and quality. Then the digital marketing ecosystem of manufacturers and retail outlets becomes critical to create consumer awareness, demonstrate furniture and develop initial interest, communicate the benefits of their products to the consumer and invite them to visit the manufacturer's showroom or dealer outlet to make a purchase decision. The digital marketing ecosystem in the furniture business usually includes the manufacturer's website, online store, mobile app, social media pages, email newsletter, messenger channels, etc.

• Online advertising. Given the level of competition in the furniture industry, no market participant can succeed without powerful online advertising campaigns. This means using a variety of channels, such as Google Ads search advertising, social media such as Facebook, Instagram, YouTube, TikTok, banner ads on specialized websites, and other advertising formats. Native advertising deserves special attention, as it unobtrusively draws attention to the furniture brand and its products in materials on relevant topics that are of interest to potential buyers, such as review articles and videos on the design and interior of homes and other premises, etc. Effective online advertising allows companies in the furniture sector not only to attract the attention of potential customers, but also to increase brand awareness, increase sales, and have an effective marketing impact on the target audience.

• Search engine optimization (SEO). SEO in the furniture market plays a critical role in increasing the presence of companies in search engines, providing them with an advantage over competitors. Conducting internal optimization of own resource, creating interesting and useful content using relevant keywords, creating a powerful mass of external links to the website helps to rise to the top positions in search results, ensuring greater website traffic and increased furniture sales. Tweaking the technical aspects of the website, such as loading speed, mobile compatibility, and content indexing, is also an important part of the SEO strategy to ensure optimal interaction with search engines and meet user needs.

• Content marketing. Neither online advertising nor SEO measures will bring the desired result without creating interesting and useful content for website, as well as for accounts on Facebook, Instagram, YouTube, TikTok, etc. In today's realities, balancing text materials with video and photo content is of particular importance. The video format is extremely important as the main tool of demonstrating the company's products and benefits. Video is a much more powerful tool of engaging the audience, providing a deeper understanding of the product and creating an emotional connection with the brand, which is a key factor in making a purchase decision. Understanding the needs and interests of the target audience allows to create content that not only attracts attention but also builds long-term relationships with customers, increasing loyalty and ensuring sustainable business growth.

• Influencer marketing. Influencer marketing is playing an increasingly important role in the furniture market, using influencers in the field of interior design to promote furniture and home products. Collaboration with well-known bloggers, designers, stylists, and architects allows furniture brands to gain access to their audience, attract new customers, and raise their status in this area of business. Influencers help to create an emotional connection with furniture, demonstrate it in real-life situations, and provide valuable advice on interior design, which makes their influence particularly effective in the decision-making process.

• Interior design of retail outlets. The interior design of retail outlets, such as showrooms, plays a significant role in the marketing of both furniture items and the company as a whole. Modern and attractive interior design helps to increase customer interest, creates a positive first impression and encourages customers to buy. Targeted use of interior design elements such as colors, materials, and space organization creates an atmosphere that meets customer expectations and preferences, ensuring a positive shopping experience. This approach to interior design is a key element of furniture companies' point-of-sale marketing strategy, contributing not only to attracting customers and strengthening the brand's position in the market, but also being the most important final stage in the overall sales funnel.

• Furniture malls. A separate point of furniture marketing is the presence of brands in modern furniture malls. Despite the very competitive environment of furniture malls, where most powerful market players compete for customers with the best offers in terms of design and functionality, brands cannot neglect their presence in such malls. From the point of view of the company's image, such presence ensures the formation of appropriate associations in the minds of consumers, such as industry leadership, product quality, strong marketing support, etc.

• After-sales service. In the furniture industry, after-sales service plays an important role in strengthening the company's image in line with customer expectations, contributing to increased satisfaction and ensuring long-term relationships with customers. After-sales service includes a wide range of services, such as delivery, installation, usage guidance and prompt response to warranty claims, which allows customers to feel supported and confident in their choice. The use of after-sales service in marketing is an important part of the marketing mix, which, together with loyalty programs, ensures repeat purchases and recommendations to other potential customers.

• Loyalty programs. Despite the fact that furniture is purchased quite infrequently compared to most consumer goods, loyalty programs are nevertheless quite relevant for the furniture business. Given the significant investment that customers make in furniture as part of the overall family budget, loyalty programs are an effective tool for increasing the sense of value that a customer brings to a brand, strengthening the relationship between the company and the customer, and increasing the company's overall competitiveness in the market.

It should be noted that within one article, we cannot show all the pitfalls or demonstrate all the marketing methods and tools specific to the furniture industry. In other words, these are just a few examples of quite general marketing approaches that can be applied to furniture business. From a practical point of view, everything is much more complicated - the choice of a specific marketing strategy and tools depends on the target audience, competitive environment, and unique advantages of the company, etc. At the same time, it is desirable to understand that furniture marketing may encounter a number of specific problems that are unique to each individual case and require an individual approach to their solution.

Achieving the commercial objectives of a company through effective marketing requires a deep understanding of the market situation, consumer needs, the ability to analyze and explore alternatives, and a creative approach to problem-solving. Our company has extensive experience in defining optimal marketing strategies for our clients' businesses, creating a strong brand and market positioning, as well as developing a marketing mix and implementing the chosen strategy. You can familiarize yourself with the services and solutions our company offers on the "Services" and "Solutions" pages, respectively.