III. Industry Analysis
[Company Name]directly or indirectly competes with all furniture providers nearby our store that offer upscale, quality furniture. Competition will come from department stores, specialty furniture stores, and furniture chain stores. Direct competition will come from companies offering locally manufactured home furnishings and décor similar to [Company Name].
Industry Statistics & Trends
The following industry size facts and statistics bode well for [Company Name].
According to Research and Markets’ Household Furniture Consumption report, the U.S. retail furniture market is estimated at $78.5 billion. This translates to roughly $260 annual furniture spend per capita for Americans. At manufacturer’s prices the market is estimated at $30.7 billion. The report says that “over the last two decades household furniture purchases increased significantly from $29.3 billion to $78.5 billion, or 168%. In other words, sales increased at an average annual pace of approximately 5.5% over the period.”
The current contraction in home sales is causing furniture sales to decrease temporarily.
However, home sales are expected by most analysts to be on the rise again by the time [Company Name] is launched.
The following statistics are from Research and Markets’ report and other sources.
- “38.0% is wooden case-goods (mainly bedroom furniture), 33.9% is upholstered furniture (mainly chesterfields and matching chairs), 17.1% is mattresses and foundations, and the remaining 11.0% is metal furniture (mainly outdoor furniture).”
- “The number of households in the United States will grow by about 12.5% over the next decade (that is about 1.2% per year). This pace is a bit faster than the 8.0% pace for the total population.”
- Buying local products reduces pollution, bolsters the local economy, and contributes to the attainment of higher living standards for one’s community.