Digitalization furniture industry

Why the Furniture Industry must Embrace Technology

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The furniture industry is known for its traditional methods, focusing on craftsmanship and quality. However, in a digital age, it’s been slow to adopt new technologies, especially in the sales and marketing of cabinetry. This reluctance poses challenges but also offers opportunities for growth if the industry can overcome its resistance.

Why change is necessary

The global online furniture market, valued at $45.7 billion in 2020, is projected to reach $84.26 billion by 2027, growing at a 9.5% CAGR. Despite only 17% of furniture sales occurring online in 2021 (compared to 39% for apparel), e-commerce is becoming increasingly important. The industry’s reliance on physical interaction and brick-and-mortar stores is outdated, and failing to adapt means risking market share loss to more tech-savvy competitors.

Technologies like virtual reality (VR) and augmented reality (AR) can enhance the shopping experience by allowing customers to visualize how furniture fits into their homes. According to a survey by Retail Perceptions, 61% of consumers prefer stores that offer AR experiences. These tools bridge the gap between online and offline shopping, leading to increased customer satisfaction.

Formify: leading the charge

Formify is transforming how customers interact with furniture through its SaaS platform. It allows consumers to design custom wardrobes and kitchens, choosing flooring, wall colors, and more, in real time. Formify’s AR capabilities let customers superimpose digital furniture into their actual spaces, providing a realistic preview and boosting confidence in their purchases. Formify also offers data analytics and backend solutions to analyze customer behavior and buying trends.

By embracing technologies like CPQ, VR and AR, furniture companies can enhance the customer experience, increase sales, and stay competitive. Personalization, supported by data analytics, can lead to a 10-15% revenue increase, according to McKinsey. The furniture industry must move beyond its traditional roots to succeed in an increasingly digital world.