Market Trends of Italy Furniture Retail Industry
This section covers the major market trends shaping the Italy Furniture Retail Market according to our research experts:
Growing E-commerce Penetration is Driving the Market.
The most notable trend in 2020 is the rise of e-commerce in the furniture retailing industry. Surveys expect furniture and other home furnishings to be one of the fastest-growing segments of e-commerce sales, which is a result of digital transformation from changing consumer behaviors and technology advancement. The role of the internet became more important, giving the consumer the opportunity to buy at lower prices and have a wider range of options to choose from. Furniture is slowly becoming a leading sector of Italian e-commerce. During the COVID-19 pandemic, consumers shopped heavily online and the retail e-commerce. The pandemic has accelerated e-commerce growth in the Italy this year, with online sales reaching a level not previously expected until 2022. Strong e-commerce led to losses in brick-and-mortar stores and e-commerce is expected to retain the increased market share even in the forecast period, and this may lead to more consumers buying furniture through online channel.
Growing Italian Housing Market is Fueling the Italy Furniture Retail Market.
The number of transactions involving residential properties in Italy exceeded 600 thousand in 2019, increasing by more than 4% compared to 2018 Southern Italy is experiencing an increase in demand, mainly due to the rise of 'smart working' and work-from-home setup. Even before pandemic, the introduction of tax privileges to pensioners who decide to retire in Southern Italy, as well as the continued increase in the number of Italian towns (mostly in Sicily) selling homes, have buoyed housing demand in the South. The average interest rate for new housing loans in Italy is very appealing, falling to a record low of 1.67% in January 2020. Thus, the Italian people are showing interest buying new homes. Additionally, there is rapid increase in home ownership due to living standards have risen, new housing supply is almost exclusively destined for homeownership and tax breaks for ownership, mortgage relief, and low value assessments when calculating imputed income tax and capital gains taxes. The Italian housing market is positive since last few years, creating huge demand for furniture.
