Housing market & changing demographics influence Furniture industry

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The housing market in Britain has changed rapidly in the last 10-15 years, the living room on new build properties are nearly a third smaller than equivalent homes built in the 1970s. Dining rooms and separate kitchens are disappearing or being merged with living rooms, in an attempt to maximise the living space. 

On the other hand, the rental market has seen properties  being converted into multiple occupancy to combat the shortage in housing and pave way for affordable accommodation. The worst affected are the metro cities like London, Manchester and Birmingham. With stagnant incomes, London's professionals in their 30s and 40s are still living in single rooms, forking out two-thirds of their income on rental. In short, space is scarce and with shrinking disposable incomes, consumers are looking for affordable and smart (space saving) furniture. 

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Our client had product lines that were decades old. The management was reluctant to innovate as they had an established customer base. Unfortunately, it was a market that was disappearing fast, an ageing customer base regardless of their loyalty is a losing battle for Revenue. The young professionals demanded minimalist and contemporary styles, which new entrants had begun to offer. Therefore, a segment of the market simply shopped elsewhere. 

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We injected new life into the company, bringing in fresh talent to lift spirit and provide cutting edge innovation. 

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In the next phase, we are looking at new models of product ownership, offering Furniture as a Service (FaaS). This will be a subscription service allowing customers to update their furniture at regular intervals whilst keeping ownership cost low, with the added option of purchasing at the end of the subscription period. The furniture will be re-used multiple times, which extends the life of a product and material recycled, bringing environmental benefits. 

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