The furniture market’s resilience throughout the pandemic brought increased revenues for retailers. According to research firm
Statista, this is expected to grow by 4.18% annually in the next five years.
However, this unexpected demand for furniture from consumers worldwide is also negatively impacting retailers who are affected by pandemic-related restrictions.
In this article, we’ll discuss the issues furniture retailers are facing right now, what’s causing these challenges and how to address them. This could help you work towards optimizing your processes that will support your expansion plans and further increase your sales potential.
Broken Supply ChainAcross all industries, supply chains were disrupted due to import and export restrictions implemented during the height of the pandemic. The furniture industry was gravely impacted by these interferences which caused a backlog of orders and delays in deliveries from suppliers and manufacturers around the globe.
In fact, a study conducted by Procurious shows that
97% of supply chain professionals confirmed that they had to deal with broken supply chains because of COVID-19.
Although the demand for furniture surged, home brands found themselves in tight situations especially when it came to procuring and shipping in new products. Retailers are faced with sourcing uncertainties, communication challenges, and concerns on production speed. The unpredictability has made it even more difficult for manufacturers and home brands to execute seamless transactions in the last year and a half.
While it is important to reinforce work relationships with manufacturers that you trust and have successfully transacted with in the past, there is nothing wrong with exploring partnerships with new suppliers. Look for manufacturers that have a proven track record of developing new products, a solid number of factories, and a
good roster of clients. Do your research and rely on your own experience to distinguish the promising from the bad.