Sales in home furnishings in South Korea are projected to increase over the next five years, providing huge business opportunities to manufacturers.
“Consistent growth in home furnishings is leading to changes in traditional business territories,” said the Euromonitor Digest released by the Department of Trade and Industry-Export Marketing Bureau.
The report cited furniture maker Ikea started to offer a home interiors consulting service from 2018; while Hanssem, a leading company in home furnishings in value terms last year, began to provide a home interiors consulting service from 2016. Some also made acquisitions last year.
Bathroom companies, which concentrate mainly on home improvement, also extended their business into home furnishings.
“Therefore, home furnishings companies and home improvement companies are expected to move across territories to expand their shares over the forecast period,” it said.
The Euromonitor Digest also underscored a slow shift from offline to online purchases during the forecast period until 2023, encouraging major companies keep developing their online channels.
The report said traditional consumers are willing to purchase home furnishings at offline shops as they want to see the furniture to check its size and color and match it with the style of their home interior.
However, the increasing number of single-person households and convenient delivery are changing this pattern, it said.
“The majority of consumers still visit offline shops, but some now purchase furniture online after finding the cheapest price. If consumers spend a certain amount online then they receive free shipping, which is an attractive offer,” the report added.