– Countries which have been producing and exporting furniture through traditional methods still account for 70% of the global furniture market. Probably because they have well market reputation, production capacity and decades of managing experience.
– Developing economies around the world for instance; China, Brazil, Mexico, South Korea have been successful in capturing around 30% of the global market. Furniture manufacturing is a booming industry in these countries and there is immense potential for growth.
– The EU furniture industry has the largest share of the global furniture market. It is responsible for more than half of the global furniture production. In Europe, furniture production is a multi-billion dollar sector which has been instrumental in providing employment to over a million people.
– In North America, Canada is among the largest exporters of furniture.
– In Southeast Asia, many developing economies for instance; India, Taiwan, Philippines etc. have been competing exceedingly well with existing international manufacturers and have been successful in making inroads into the European and North American market owing to their competitive prices.
– For the next 5-10 years the furniture industry is expected to grow at 20% per annum and India, Brazil and Russia are tipped to emerge as major players.
Forces of Change:
Each industry’s condition is determined by certain factors or in other words forces of change. The furniture industry over the years has seen drastic changes
– Countries with large production capacities are fast becoming the major players in the furniture market. This can be seen with the uprising of China and India whose furniture products have made their presence felt worldwide.
– Extensive use of newer technologies for designing purposes has also been instrumental in giving competitive edge.
– New furniture manufacturers particularly from South America and Asia have been successful in making an impression in the ongoing recession largely due to competitive pricing.
Competitors Environment Analysis:
Some of the major competitors of IKEA around the globe are Wal-Mart, Habitat among many others.
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