The Furniture
Industry in the Middle East during the forecast period is functioning
at a maturity stage and is increasing at a positive double digit CAGR. In the
recent past years, the industry was unpleasantly hit owing to the recession in
the real estate sector and the decrease in oil prices in the recent past across
the Saudi Arabia. The predilection towards the multi-utilitarian furniture has
also been growing owing to the advantages of low space demand and multi-usage
determinations suggested. The ease of the self-assemblage creates added
advantage to the consumer.
Additionally, the organized segment register
the market revenues as the retailers functioning under this sector deal in
great quality and designer products produced from the MDF or solid wood during
the recent past years. The unorganized players be sure of majorly on the price
of the material whereby they incline to compromise with the quality of the
product. The unorganized sector in the Middle East Furniture market attained
the remaining market share in the terms of market revenue during the recent
past years. Not only has this, the unorganized players ensure effectively the
raw material and the labor locally. However, the organized players in the
Middle East Furniture market often get furniture imported.
The revenues accrued from the sale of the
residential furniture registered the Saudi Arabia furniture market revenues in
the recent years. The Bedroom furniture created the maximum revenue during in
the recent past years and is projected to grow with the effective CAGR during
the forecast period. Mattresses and the beds will present a great growth over
the review duration.
Furthermore, the Saudi Arabia furniture market
effectively witnessed to be extremely fragmented with the existence of the
domestic as well as worldwide players. Furniture in the several cost sectors,
involving economy, mass, premium and luxury are designed by the numerous
retailers to attain the requirement of enlarging the consumer base of all the
classes. Over the years, in the Middle East furniture market the competition
among the domestic and international players has exaggerated due to the growth
in the requirement for the furniture products.
The corporates among the local and
international players has positively augmented due to the growth in the
requirement for the furniture products in the Middle East region. In the Saudi
Arabia the corporates with the disruptive model such as IKEA have acted as a
proficient threat to the unorganized segment. The Organized companies have been
efficacious owing to their great budget marketing campaigns and promotions
which greatly involve the cost deduction on MRP and great quality being offered
at the lower price.
Few of the foremost competition parameters
involve the number of stores, pricing and variety of material utilized in the
furniture, product SKUs, online existence or the distribution channel and
several others.
In future, the Middle East Furniture market is
projected to increase at an active double digit CAGR during the review period.
Therefore, in the coming years, it is anticipated that the market of furniture
in the Middle East will increase more positively.
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Ken Research
Ankur Gupta, Head Marketing &
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