1.1 Definition and Presentation
The home decor market is comprised of several accessories and items used to furnish and decor one’s house.
According to FederLegnoArredo, the Italian home decor market includes:
- Large furniture items (such as beds, benches, sofas), registered with the Ateco code 31
- Lighting equipment and accessories, registered with the Ateco code 27.4
- Ceramic tiles for floors and walls, registered with the Ateco code 23.31
- Bricks, tiles and other terracotta building products, registered with the Ateco code 23.31
- Ceramic products for domestic and ornamental use, registered with the Ateco code 23.41
- Home decorative objects and textiles (such as curtains, cushions, tablecloths, mirrors)
- Small furniture items (such as lamps, coffee tables, nightstands)
Furthermore, the market is also populated by distributors, which include:
- Intermediaries in the furniture, home decor and hardware trade, registered with the Ateco code 46.15
- Sale of furniture, lighting and other home decor articles in specialised shops, registered with the Ateco code 47.59
According to Federmobili, the global market for interior design has grown by around 4% in 2018. However, from the widespread signs of a slowdown in the global economy, even without taking into account the Covid-19 pandemic, it was expected that furniture consumption would slow down until 2021. China is currently the first furniture manufacturing country, with an annual production of approximately $180 billion, followed by the United States.
Italy holds a leading position in the global market, and it represents the fourth largest furniture manufacturer globally. Furthermore, Italy has a long-lasting tradition in interior design, and the “Made in Italy” furniture and home decor is considered a symbol of high quality abroad.
Furthermore, in Italy, home decoration has become a lifestyle shaping both the culture and the economy of the country. Each year an increasingly relevant number of companies attend the so-called ‘Salone del Mobile’, the largest furniture fair in the world, to display their own work or see the latest trends in the industry.
The Italian market is highly fragmented, and it is populated by tens of thousands of players. The large majority of players - more than 80% - are artisans and small enterprises of less than 10 people.
Finally, the Covid-19 crisis hit during an already uncertain situation in 2020. The production of furniture was reduced drastically in March 2020, but it went back to pre-Covid-19 levels in July 2020. The demand in the contract and large projects segment has decreased, but the one in the residential contract segment has remained stable.
1.2 A steadily growing global market
According to Federmobili, the global market for interior design is worth approximately $*** billion, and has grown by around *% in ****. However, from the widespread signs of a slowdown in the global economy, even without taking into account the Covid-** pandemic, it was expected that furniture consumption would slow down until ****.
China is ...
1.3 The Italian market grew slowly in 2019
The Italian Interior design market has been growing since ****, reaching a value of **.* billion euros in ****. The market growth in **** was slow, especially compared to the growth rate of previous years. This slow growth is mainly due to a generalized global crisis in the sector, which has also hit the main ...
1.4 The leading position of Italy in the international trade panorama
Italy is a net exporter of furniture and home decor pieces. Furthermore, Italy is one of the world's largest exporters of furniture. Until ****, Italy was at the top of the list of furniture exporters in the world. Then, also thanks to China's entry into the WTO, the situation changed, and the ...
1.5 2020: a year of uncertainty
The **** forecasts on the furniture and home decor market in **** were slightly optimistic. The domestic market was expected to remain stable, with no substantial increases in imports and a *% increase in exports, supported by a more dynamic foreign demand. [***]
However, the forecasting scenario of the global and Italian situation was extremely ...
2.1 Summary of demand drivers
The demand for interior design is tightly linked to some macro trends in other markets and Italian demographics. The Italian real estate market is an important factor that must be analysed to assess the demand for interior design, as the construction of new residential and non-residential units represents a potential new ...
2.2 Macro trends influencing demand
Compared to an unfavourable ****, **** was a virtuous year for the Italian real estate market, with transactions totalling over €** billion. This figure can be explained by several factors:
Ideal real estate investment conditions, created by a favourable monetary policies decided by the main central banks between the end of **** and the beginning ...
2.3 Italians' preferred home decor styles
The current trend towards more personalisation of various areas is strongly reflected in the way people decorate their living environment. This leads to an increasing demand for customized furniture for interior decoration, both for personal spaces as well as in business environments.
Given this trend of customization, it is important to ...
2.4 Italians' online shopping habits
According to Economyup, **% of customers choose and buy only in physical stores; about **% look for the product online but then buy it in a physical store; less than **% buy online; the few that remain choose in store and then buy online. A strong majority, about **%, who still buy in store, but ...
3.1 Market structure overview
The value chain of the interior design market comprises several steps and players. The value chain starts with the different providers raw materials, which can vary greatly depending on the furniture or home decor piece desired. After the manufacturers of furniture and home decor receive the raw materials, they transform them ...
3.2 An highly cyclical production located mainly in Northern Italy
Since the beginning of ****, the Italian production of furniture hasn't experienced any drastic changes, and it has kept following recurring trends. On average, the production reaches its maximum points in July and in October. These high points are not accidental, but they are scheduled to compensate the significant drop in production ...
3.3 A fragmented national market
According to Il Sole ** Ore, the Italian furniture and home decor market is populated by ** thousand players. Hence, the market is highly fragmented, with many small players that operate mainly on a local level.
More specifically, we can look at the players operating in the furniture market, which represents the majority ...
3.4 Focus on the distribution channel
A research carried out by Federmobili analysed the average characteristics of the shops selling furniture and home decor.
The average surface area of the shops is about *,*** square metres, with *.* employees. The shops offer is quite varied: **% of the shops have a range of products that includes medium-economical lines plus high-end ...
4.1 A large and varied offer
The interior design market includes a large variety of products, which are summarized below:
Beds and mattresses Sofas and upholstered armchairs Tables, desks, and bed-side tables Chairs Bathroom furniture Kitchen furniture Storage space: libraries, wardrobes, cupboards Lighting: lamps and chandeliers Home decor accessories: pillows, carpets, mirrors, paintings, vases, etc.
The most ...
4.2 The prevalence of premium prices
The industrial producer price index indicates the trend in production prices, which are expressed in terms of a chosen base year. The production prices of furniture have increased steadily since ****, without any evident spikes or drops in any given year.
Price index of the home decor production Italy, ****-****, base ****=*** Source: ...
4.3 Focus on the Milan Furniture Fair
In the furniture market, Italy continues to be a leading nation in the world. According to FederlegnoArredo figures, the Belpaese is on the podium of the best furniture manufacturers, with the furniture industry's big names growing above average. The leadership in the sector is consolidated in a long tradition that combines ...
4.4 Offer trends: mass customisation, AI and domotics
In recent years, there have been a series of trends that many market players have followed, such as:
During the **'s, the furniture industry witnessed the birth of a new way to conceive production and the relationship with the customers, called mass customisation. Mass customisation is a term used ...
5.1 Existing regulations
There are regulations that regulate the characteristics of furniture products: precise European standards targeted at a specific type of product set the healthiness standards of the various materials that make up home furnishings. Some examples are:
An updated version of the technical standards UNI EN ***** and UNI EN ***** defines, on the ...
- Iris Mobili (Mondo Convenienza)
- IKEA Italia
- B&B Italia
- Maison du Monde
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