"The online home category is expected to see a growth of 2.5x"
India’s home and furniture market is expected to reach £29 billion by 2026.
According to a new report, over the next five years, categories such as home decor, furnishings, mattresses and lighting are expected to grow by 39%.
Bengaluru research firm RedSeer revealed that the online furniture category is estimated to grow at three times the current rate.
This is the result of a 1.8 jump in annual spending per shopper, allowing for five times more gross merchandise value (GMV).
The study read: “The online home category is expected to see a growth of 2.5x in shoppers in the next 5 years with a 1.3 jump in the annual spending per shopper to indicate 4x GMV growth.”
It comes as the Indian public begin putting more trust into high-ticket purchases online.
This could perhaps be a result of coronavirus lockdowns in the country making it difficult for the public to buy items.
Verticals appear to have crafted a niche for themselves within the furniture category, dominating the solid wood market.
Meanwhile, horizontals have been dominating the budget plastic, metal and engineered wood market.
The report added: “The average selling price (ASP) on verticals is 10x higher for furniture and 2x higher for decor than horizontals, indicating the difference in target customer base.”
It noted that verticals are focused on a set of customers who are experience conscious and look for various choices as well as the quality of the product, which they are willing to pay for.
“Verticals with superior omnichannel presence, customer experience, product innovation, specialised supply chain, and technology capabilities are well-positioned to scale.”
It comes as the property market across eight major cities in India jumped by 57%.
They are Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai Metropolitan Region (MMR), National Capital Region (NCR) and Pune.
This is according to a report by Liases Foras Real Estate Rating and Research, which showed that the eight major property markets sold 66,548 units in the September quarter, a 17% increase to the previous one with 57,903 homes sold.
The rise has been largely credited to discounts, builders schemes and the lowest home loan interest rates for the past ten years.
Managing Director of Liases Foras, Pankaj Kapoor said:
“It is a buyer’s market.”
Again, Covid-19 lockdowns are likely to be a big driver of this as people have realised they need more space at home for work, education and quarantining if necessary.