Furniture market in Germany - statistics & facts
Furniture and lamps have become noticeably more expensive in Germany, with the consumer price index for 2023 indicating an almost 21 percent price increase compared to 2020. Did consumers fall off their chairs? Based on sales figures, they did not, with numbers for home furniture sales totaling almost 24 billion euros in 2022, which was an increase compared to previous years. However, consumers may also well have looked for cheaper shopping options. After all, German furniture retail is represented not only by the ubiquitous IKEA and other traditional stores, but various second-hand sources, an expanding e-commerce market and smaller businesses dealing in designer pieces and custom-made items.
The expansion of e-commerce across markets and industries has transformed German furniture retail, opening up additional ways to reach customers. As is the case for most businesses, including longstanding ones, setting up shop online is a necessity to stay profitable amid changing consumption trends and behavior. In fact, one could argue that consumers expect an online retail option to be available. While sometimes it might still be practical to check out a piece of furniture in a physical store, with time the convenience of online shopping has translated itself to the experience, with online stores of furniture companies offering by now commonplace solutions to get as clear a picture as possible of the item before purchase. These include not only picture galleries, but video content, FAQs, user reviews etc. Consumers may also turn to their own online sources, e.g. YouTube, social media. Furniture e-commerce revenue is predicted to grow steadily in Germany in the next years, with around 16.4 billion U.S. dollars expected in 2024.
The German furniture market, as many others, may be affected by ongoing issues such as skilled labor shortage in corresponding fields, difficulties in obtaining and transporting materials for production, domestic manufacturing costs and the challenges of outsourcing, inflation, fluctuations in purchasing power. While the number of insolvency proceedings in home furniture retail almost doubled in 2023 compared to the year before, figures were by far not as high as 15 years earlier.
Not just IKEA
Perhaps contrary to expectations, despite its familiarity, IKEA did not have the most stores in Germany, compared to other successful furniture retailers. JYSK, originally from Denmark, topped the ranking with 954 stores operating, followed by XXXLutz and Tessner Group. It is interesting to see how some of today's mass retailers started out. XXXLutz traces its roots back to Austria and started out with farmhouse furniture, dollhouses and shaving (or chip) boxes. The Tessner Group is a family enterprise, with furniture retail being just one part of a diversified portfolio.The expansion of e-commerce across markets and industries has transformed German furniture retail, opening up additional ways to reach customers. As is the case for most businesses, including longstanding ones, setting up shop online is a necessity to stay profitable amid changing consumption trends and behavior. In fact, one could argue that consumers expect an online retail option to be available. While sometimes it might still be practical to check out a piece of furniture in a physical store, with time the convenience of online shopping has translated itself to the experience, with online stores of furniture companies offering by now commonplace solutions to get as clear a picture as possible of the item before purchase. These include not only picture galleries, but video content, FAQs, user reviews etc. Consumers may also turn to their own online sources, e.g. YouTube, social media. Furniture e-commerce revenue is predicted to grow steadily in Germany in the next years, with around 16.4 billion U.S. dollars expected in 2024.
Flying off the shelves?
Consumer spending on furniture and household appliances in Germany has increased somewhat recently compared to earlier years, though it has also remained mostly the same for several years in a row during the 2000s. Furniture purchases, whether for home, work or commercial use remain a regular necessity, with around 38.2 million German consumers being ready to pay for it in 2023. This was a decrease compared to previous years, which is understandable given the noticeable increase in prices mentioned earlier, but is also not so drastic as to consider the furniture market in crisis. In terms of customer service, the most highly rated furniture stores in Germany were Höffner, Segmüller and Möbel Kraft.The German furniture market, as many others, may be affected by ongoing issues such as skilled labor shortage in corresponding fields, difficulties in obtaining and transporting materials for production, domestic manufacturing costs and the challenges of outsourcing, inflation, fluctuations in purchasing power. While the number of insolvency proceedings in home furniture retail almost doubled in 2023 compared to the year before, figures were by far not as high as 15 years earlier.
