Snapshot of
UAE Online Furniture Market
The sale of furniture products online is a
relatively new concept in the UAE region owing to its small scale operations
where the customers prefer to buy products by visiting the stores and
facilitating transactions. Despite having an internet penetration of ~% in the
region with an approximate of 8,515,420 internet users, online sales of
furniture contributed to mere ~% of the market revenues which were evaluated at
AED ~ million for the year of 2017. Online players have been facing stiff
competition from brick and mortar stores all across the country, which offer a
wide variety of products at competitive prices.
Snapshot of
UAE Home Furnishings Market
Furnishings products are more or less
complimentary goods that are demanded along with furniture. Lately furnishings
market has been growing along with the furniture market. The UAE
Furnishings Market
recorded a growth at a CAGR of ~% from 2012 to 2017. The demand for barbeques
and garden sheds saw an increase due to the rise in barbeque restaurants and
the ability of charcoal barbeques to produce flavorful and better results than
gas barbeques. IKEA has been the most popular brand amongst the expatriate for
the procurement of furnishing items while the local population on the other
hand preferred traditional style of furnishings.
How is the Competition
Scenario in UAE Home Furniture Market?
The furniture market of UAE was observed to be
mildly fragmented due to presence of large number of domestic and global
players with similar product offerings. Single proprietorships and family-owned
corporations are common in the industry. Some of the major furniture brands are
owned by the expat population, along with foreign investors. Furniture products of various price segments,
inclusive of cheap, mid-segment and luxurious/premium products are designed by
several manufacturers to cater to the needs of the ever expanding customer base
of all classes. Over the years the competition between the domestic and
international players has intensified owing to the increase in demand for
furniture and furnishing products in the UAE region. It has been observed that
manufacturers and retailers are trying to differentiate themselves by targeting
a particular customer segment based on purchasing power of customers.
The unorganized sector has been posing stiff
competition to the existing and new organized players entering the space owing
to the ease in availability of raw materials and cheap skilled labor in the
region. However, organized players have been successful in marketing modern furniture
products largely to the emirates of Abu Dhabi and Dubai.
What is the
Future Outlook for Furniture Industry in UAE?
The furniture industry of UAE is expected to
grow from AED ~ million in 2017 to AED ~ million by 2020E with a CAGR of ~% for
the same time period. The reason for the increase in revenues from the
furniture industry of UAE can be attributed to the fact that increasing nuclear
families being welcomed in the region, as more people adapt to nuclear
families, the requirement of residential spaces would also increase which would
lead to an increase in the demand for furniture products in the region. The
furniture demand in the region will rise also because of new fashion trends in
furniture. This will also lead to higher replacement of furniture products
thereby increasing the demand for furniture and furnishing products. The
development of key projects like Caesars Palace, Fairmont and others will lead
to the development of the tourism industry; this in turn will foster the growth
of furniture industry.
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