Prepared to Assemble Furniture Market Outlook: Ken Research

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Introduction: Prepared to assemble (RTA)furniture is a concept introduced roughly round the 1850?s which allowed for two primary benefits- the lower cost of labor as assembly was likely to be done by the customer, and a reduction in the necessity for space because the furniture was shipped as parts rather than as the finished product.

This decrease in labor and space became a favorable trend for manufacturers which was expected to be continued in simplistic component based furniture. klebefolie auf textil in using prepared to assemble furniture was that there was a shortage in manufacturing time as well. The reduction in time requirement and the cost saving from reduced requirement of space and labor led to manufacturers wanting to maximize the sale of ready to assemble furniture, primarily for low margin products which would boost profitability.

Quality value furniture which earned a premium for manufacturers would not usually be ready to put together as the price of the furniture was quite high and didn't justify the need for reduction in cost of delivering and manufacturing. Even though RTA concept didn't use premium customers, the lower cost of furniture due to the need for customer assembly was highly accepted by low and middle class customers who could now manage to afford better quality of furniture simply by assembling it themselves.

This began the trend of assembling furniture for cost savings for consumers and manufacturers. Market Overview: The prepared to assemble furniture market is growing steadily. The market, which was valued at over USD 10.5 Billion in 2014, has grown to USD 11.8 Billion in 2017 and is forecasted to cultivate to over USD 16 Billion by the entire year 2025 as per the most recent Furniture GENERAL MARKET TRENDS Reports.

The growth of prepared to assemble furniture is primarily attributed to the growing needs for functional and effective furniture at a lesser price for low and middle class households. Another key driver is the increasing trend of Do It Yourself market participants towards assembling their own furniture. Given the growing need for functional and economic furniture which may be fit into smaller households and still is a low priced for consumers, there is a major dependence on furniture that is sturdier and is capable of usage for longer intervals.

Prepared to assemble furniture is primarily purchased on the basis of utility. The sales channels usually is through direct manufacturer sales as most categories of RTA furniture can be purchased directly. RTA furniture covers almost all sub types of furniture which range from tables and chairs to more sophisticated furniture like book shelves, work desks and sofas. The increasing popularity from the industrial side is owing to the level of cost savings that is availed by major manufacturers on manufacturing and transportation.

This is quite crucial for furniture that is sold to low and middle class households where the profit margin for the furniture is considerably low. Opportunity: There is growing need for viable providers of prepared to assemble furniture that is at lower cost. The market is currently dominated by players like Sauder Woodworking, Dorel Industries, Bush Industries, Inter, IKEA Systems, Tvilum, South Shore, Whalen Furniture and Homestar. The major player being IKEA leading through its reputation for consistently lowering furniture costs year on year. There is an opportunity for furniture providers capable of delivering superior design and better functionality at a competitive price.
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