Segmentation furniture market carried out according to the following main criteria:
By groups;
By price range/product class;
Stylistic segmentation. Segmentation by functional purpose
Based on functionality, the market is divided into three segments:
furniture for home, office and specialized.
Despite the fact that the MEKRAN company concentrated on the production of furniture for the home, the technologies used make it possible to effectively produce furniture for hotels and wide range office furniture. The hotel furniture segment is potentially a powerful driver of production expansion in connection with the inevitable modernization of the Russian tourism industry, which will be driven by large-scale infrastructure projects in connection with the 2014 Sochi Olympics, the 2018 FIFA World Cup, and the 2018 APEC summit. Far East in 2012 and the development of the tourism cluster of the North Caucasus. Preparation for these events involves an increase in hotel rooms and large investments in hotel projects. According to the results of an internal study by MEKRAN specialists and based on data from open sources, it is planned to introduce 11,814 hotel rooms in Russia, of which 9,306 rooms will be introduced at the expense of 4-5* hotels for the period 2011-2014. The target segment in hotel furniture for the MEKRAN company is 4-5* hotels due to the demand for solid wood furniture and the corresponding budgets for furniture. The office furniture segment today is characterized by accelerated wear and tear of interiors and frequent changes of furniture. IN last years the growth of this segment proceeded at a high pace due to the development of enterprises in various sectors of the economy, mass commissioning office buildings. Although the impact of the crisis was primarily felt by manufacturers of office furniture, with the economic recovery this segment is developing very quickly and consolidation in it will allow the Company to significantly increase sales volume and improve business sustainability.
Production technology and most modern equipment, which will be used at the DOZ-2 plant under construction will be largely focused on the production of furniture for corporate clients. New technologies based on the principles of custom production will allow you to approach each order with flexibility due to the fact that reconfiguring equipment for specific furniture parameters will be carried out very quickly. short time. All this will allow us to quickly implement any orders, regardless of the complexity of the project and furniture parameters, which, together with high-quality warranty service in Russia, will give an undeniable advantage over competitors in the projects of leading hotel operators.
Segmentation by price range
There is no generally accepted classification or uniform criteria on the market according to which furniture is divided into certain classes based on price.
MECRAN has determined price ranges based on expert opinion and marketing research GFK-Rus. (Source: “Research of the Russian market of furniture and doors of “business” and “premium” classes”, “GFK-Rus” April 2009, slide 19, with price indexation taking into account inflation).
This division reflects not only the features and quality level products, but also correlates well with changes consumer behavior and purchasing decision factors.
To indicate price ranges in specific values, the cost of a set of bedroom furniture is considered - the main product group of the MEKRAN company and a standard set of furniture for most market players.
To adequately compare the price level, a standard set of bedroom furniture is accepted as a basic set - a bed, two bedside tables, storage chest and wardrobe(4 doors).
Financial indicator, used in the Project - volume finished products, measured in m3. The volume of the selected furniture set is about 1 m3. (a table with the calculation of m3 is given in the appendix):
This indicator traditionally used by the Company for several reasons:
1) m3 is convenient for calculation, because is an aggregate indicator that easily measures the entire output of a company’s operating activities, namely:
In any of these types of MEKRAN products, approximately the same amount of labor costs, raw materials, energy resources,
2) the MEKRAN company has implemented a transverse technological process: 50 operations, at each processing stage the material is rejected, and from stage to stage it is necessary to measure the useful output to control the production efficiency at each processing stage,
3) in addition, it is the custom production process that determines the use of m3 as a unit of measurement for the quantity of products due to the fact that in the custom process more than 25% of the order economy is formed at the last stage of production and the use of m3 allows you to correctly take into account costs at all stages.
Furniture classes and their price ranges for the basic set:
Economy class (up to 100,000 rubles);
Business class (from 100,000 to 400,000 rubles);
Premium class (from 400,000-1,000,000 rubles);
Luxury class (from 1,000,000 rubles).
These price segments are indicated as of the beginning of 2011. The boundaries of the ranges are constantly changing in accordance with inflation and deflation.
Economy class. The determining factor here is price. As a rule, the cheapest types of materials and components are used. The functionality is designed mainly for use in small spaces. Complex fittings that expand consumer capabilities are, as a rule, not used. The design is as simple as possible and is determined by mass production technologies.
Business Class. In it, the design factor plays a more significant role than in the “economy” segment. Sometimes it matches or repeats the design of products in the premium and even luxury segments. Functionality also significantly higher. The materials used often create the illusion of matching the finish of more expensive furniture. However really high quality materials do not occur often.
In the category of materials used, the MEKRAN company has significant advantage- the use of exclusively 100% solid wood and the introduction of DOZ-2 veneering technology.
According to the GFK-Rus study, the most attractive for purchase is furniture made from solid wood (preference is given by 66% of respondents) (Source: “Research of the Russian market of furniture and doors of “business” and “premium” classes”, “GFK-Rus”, April 2009 .)
Technologies for the production of business-class furniture are also focused on continuous production, which causes limitations in design. Thus, elements that are made mainly by hand can rarely be found in such products.
We can give the following description of this segment - it is designed for those who would like to have furniture that looks little different from more expensive classes, but within a limited budget.
Premium and luxury products are technologically very similar. They use high-quality materials, the most advanced fittings, and production is focused mainly on performance individual orders clients, and not to work in a “conveyor” way. At the design level, differences are often also difficult to find. However, the luxury segment is the “high fashion” of the furniture industry. It is much more common to find designer products, exclusive materials and execution according to individual whimsical orders. The prestige of the brand also plays an important role, for which customers are willing to overpay.
Any of the segments can be divided into three more categories for the most accurate “hit” in target audience- low, medium, high.
It is worth noting that furniture of the same quality can be found in different price segments, which is explained, among other things, by markups trading companies, which in the furniture market range from 20% to 300%, and for certain products even higher.
Stylistic market segmentation
Furniture style and design are key characteristics for clients and actually determine his choice. However, it can be difficult to draw a clear line between different styles, since designers, in search of new solutions, are increasingly mixing various stylistic elements to one degree or another. However, we can distinguish the following main blocks of styles in which client preferences are grouped:
Historical styles. Styles of interiors and furniture that were formed and became widespread until the end of the 19th century. They are characterized by clear canons and clear requirements (Baroque, Rococo, Gothic, etc.). These styles are popular among conservative people and adherents of traditional interiors who want to demonstrate their level of wealth.
Modern styles. They include all trends in design that appeared in the second half of the twentieth century. Various movements of minimalism are sometimes associated with modern styles. Modern style suggests laconic design, the presence of straight lines and geometric shapes.
Currently, the “business” segment presents furniture from both Russian and foreign manufacturers from all over the world. However, the proposal in different styles its density is very uneven.
Furniture styles are represented very unevenly on the market. While there is excess supply in some, quality supply in others may be very low or completely absent. This is especially typical for Russian manufacturers. There are several reasons for this - the absence of a Russian school of design, the low level of high-tech production, insufficient attention manufacturing companies to marketing research.
According to research, among the style preferences of buyers choosing furniture today, approximately equal amount Contemporary and historical styles received votes. Also, about 10% - 15% of respondents prefer furniture in country and Russian modern styles.
However, it should be emphasized that market experts note a trend towards increasing buyer interest in modern styles, especially minimalism. (
The home furniture market is segmented primarily by product categories. According to the marketing agency, the largest share in the total sales of home furniture is occupied by cabinet furniture for rooms and hallways (32%), the smallest - for bathrooms (1.8%). Upholstered furniture accounts for 23% of total sales. However, in reality the shares of the cabinet and upholstered furniture sectors may be much larger. Accounting for the volume of their production and sales is difficult, since a significant share of them is concentrated in the shadow sector. In particular, many trade representatives estimate the share of upholstered furniture in the structure of trade turnover at 30-35%. Until 2004, there was no accounting for built-in furniture; it was not taken into account by statistical authorities, which can also lead to incomplete data. In general, the main segments of the home furniture market are cabinet furniture for rooms and hallways, upholstered furniture, kitchen furniture, bedroom furniture, children's furniture, built-in furniture and bathroom furniture (Fig. 2.9).Cabinet furniture is the most capacious segment of the home furniture market. In the future, it is advisable to segment the cabinet furniture market according to various criteria. To segment the cabinet furniture market, you can divide consumers by income and into the following segments: people with high income, people with average INCOME, people with low income. Children's:
Bedrooms 14%
Case for living rooms. and hallways 30%
Rice. 2.9. Structure of consumption of home furniture in Russia in 2004
(according to the Discovery Restarch Group agency)
Kitchen 16%
Soft 23%
Dining areas 5%
Home office 3%
Guided by the logic of consumers when purchasing furniture, the following products are distinguished: consumer characteristics: price, quality, design, reliability, color, convenience, material, accessories.
Products can be divided into two main groups according to quality and cost, respectively: 1)
cabinet furniture from natural wood with decorative turned elements and metal fittings - model 1;
2)
The following conclusions can be drawn about consumers as market segments.
1. People with high incomes more prefer the quality of the product, its design, convenience, material, color and pay less attention to the price of the product. It is very important for this segment trademark , manufacturing plant. Since representatives of this segment are predominantly business people, they tend to make purchases in expensive specialized stores, because this minimizes the time spent on searching necessary furniture
. People with high incomes tend to change furniture more often, so such characteristics as reliability are left behind quality and design. This segment is characterized by leadership, which is expressed, among other things, in the purchased furniture, which has a trendy design, made from expensive. natural materials Great importance has prestige. People with high incomes tend not to standard solutions , strive to acquire unique pieces of furniture. Persons belonging to this group are more likely to have a large number of
living space, and therefore are forced to equip it using a variety of designs.
2.
People with average incomes tend to combine price and quality of a product. Design in this segment is beginning to give way to reliability. Representatives of this segment try to purchase high-quality, convenient products at an affordable price. Prone to standard solutions. They have free time to search for the necessary goods. To a lesser extent they strive to purchase piece furniture; they may well be satisfied with standard factory furniture. The material does not have a primary role in the purchasing decision. Less than dakna is the trademark of the product, as well as the sales agent and distributor. These people are not looking for prestige.
Cabinet furniture made of natural wood with decorative turned elements and metal fittings is more expensive, prestigious and reliable, is made from natural materials, does not contain substances harmful to human health, or the concentration of such substances is reduced to a minimum. Has increased accuracy. The shelf life of these products is comparatively longer. In many cases it is exclusive. Targeted at a narrow circle of consumers with high incomes.
2.
Cabinet furniture made of fiberboard with veneer and plastic fittings is cheaper, less prestigious, and less reliable. Has a high content of unnatural elements. Contains some substances harmful to the human body. The shelf life of products is comparatively lower, furniture is less durable. Produced in mass production. Targeted at mass consumers with middle and low incomes. 2.5.
At the end of 2016, RBC Market Research analysts conducted a large-scale study of the Russian furniture market. The study includes an analysis of key market indicators and trends, the results of surveys of representatives of the main players and a sociological survey of furniture buyers.
Rusbase provides the main points of the report. More details: follow the link.
Other RBC Market Research reports: .
The situation on the furniture market At the end of 2014 - beginning of 2015, some markets (including the furniture market) experienced a record level of sales: buyers were afraid of devaluation and bought durable goods (furniture, household appliances , electronics, etc.). Since then, consumer demand has been falling: in 2015, furniture sales in Russia decreased by 9.9% compared to 2014, amounting to 419.8 billion rubles. In 2016 the volume retail sales
continued its decline – it fell by 5.3% (to 397.6 billion rubles).
At current prices, sales volume demonstrated, although minimal, but still positive dynamics due to a significant increase in prices for furniture products on the Russian market. The same cannot be said about the volume of the furniture market in manufacturer and import prices: until 2014, the dynamics remained positive, but in 2015 there was a noticeable decline (by 7.3%). This happened both due to a serious drop in imports and due to a reduction in domestic production. Trade margin Furniture sales have been steadily growing since 2012, and at the end of 2015 they increased even more significantly – to 85.2%. In other words, some furniture manufacturers continue to pass on part of their costs to customers.
The furniture market is very dependent on exchange rates: most components have to be purchased abroad. This is simultaneously a driver of both inhibition and growth. The crisis situation of the last two years has motivated players to optimize production and adapt best practics Western markets. In addition, if in the premium segment the fittings from leading world-famous manufacturers have nothing to oppose to the domestic market, then in the “average minus” category it provides good competition to the Western market.
Currency fluctuations, the subsequent rise in prices for goods and services, the fall in incomes of Russians and the decline in consumer demand have adjusted the strategies of many players. They had to optimize production processes, update the range, improve branding and loyalty programs - all this had a positive impact on the efficiency of the domestic furniture market.
New solutions
The economic crisis is forcing players to come up with new ways to develop their business. For example, an interesting trend has emerged in the primary real estate market: furniture companies, in partnership with developers, are creating ready-made solutions for new apartments. This format of work is beneficial for furniture manufacturers: furnishing apartments in new buildings allows players to maintain production volumes and not lay off workers.
This option is especially interesting for buyers in the “economy” and “economy plus” segments: it allows them to save time and money when moving into new apartment. Furniture costs 40-50% less than buying furniture yourself mall: the cost of furniture does not include rent for space, the salary of the seller and other elements.
Consumer habits
According to an analysis by RBC Market Research, already 152 out of 305 (that is, about 50%) online players have their own websites, but not all online stores offer the opportunity to fully purchase goods - many are still so-called “display windows with prices.”
Some players bet on . Thus, at the beginning of 2016, one of the largest retailers on the Russian furniture market, Hoff, launched its own online store in St. Petersburg (deliveries were carried out from a Moscow warehouse). At the end of the first half of 2016, the volume of online sales increased by 46.9% to 974 million rubles and amounted to 12.5% of total sales.
According to RBC Market Research, today 21.6% of Russians make furniture purchases on the Internet.
In this article, we will look at the trends in the Russian upholstered furniture market, which is not subject to sanctions, but is actively struggling with new challenges and unrest arising from the unstable economic situation in the country.
Economic indicators
In Russia there are about 60 large factories for the production of upholstered furniture and a large number of medium and small manufacturers. Mainly production Russian sofas is now concentrated in the medium and medium+ segment.
From 2012 to 2014 In Russia, there was a gradual increase in the volume of the upholstered furniture market in monetary terms. In 2013, the market volume increased by an average of 5% compared to 2012 and amounted to $3.68 billion. In 2014, due to the difficult economic situation in the country, market growth slowed down to 2%.
About 80% of the production of upholstered furniture is concentrated in three federal districts: Central, Volga and Northwestern.
Sofas on Russian market supplied from more than 27 countries. The world's main producers of upholstered furniture, which account for 70% of production, are Italy, USA, Germany, Japan, France, Great Britain, Canada, Poland, China.
Poland and China have recently joined this list and are concentrating on production inexpensive furniture. They are the main competition for Russian manufacturers of upholstered furniture. It should be noted that today Polish manufacturers are ahead of Chinese in providing best service And price offer.
Don't forget about our close neighbor - Belarus, which imports quality furniture to Russia for more low prices than domestic producers, however, inferior in design.
Italy and Germany remain leaders in the production of luxury upholstered furniture.
However, the share of imports of upholstered furniture in the Russian Federation is low and in 2014 amounted to 7%, which corresponds to $262.5 million.
Russian manufacturers upholstered furniture is concentrated on the domestic market of Russia, exports occupy a small part.
In the upholstered furniture segment, the leading positions in production are occupied by sofa beds, followed by armchairs and sofas. The production of mini sofas accounts for 2% of the sofa production.
Prices for mini-sofas at the beginning of 2015 increased by an average of 10-15%. If the market situation does not stabilize, then further price increases are possible. The rise in price of domestic furniture is due to the rise in price of foreign components - upholstery materials, aluminum profiles, dyes, hardeners, etc.
Production of mini sofas
In 2015, most manufacturers will have to switch to custom production. The easiest way to do this will be for a small business, when the master can collapse and expand his small production.
Also in addition to production traditional furniture Manufacturers should pay attention to the small market niche of mini-sofas.
Mini sofas are a very convenient element of the interior of a hallway or office. They take up little space, look quite elegant and successfully perform their functions. This best option For small rooms.
And for manufacturers, the key benefit of producing mini sofas is that such sofas are made from leftover materials from traditional furniture, so the costs are negligible.
Prices for such products are quite acceptable for consumers, but at the same time provide high profits for manufacturers due to low costs and the ability to make a markup of 40-50%.
The production of mini-sofas is interesting both for existing manufacturers of upholstered furniture and for beginners who are just thinking about opening own business. Using mini-sofas, existing manufacturers will be able to optimize waste-free production and gain additional profit. Beginners will be able to start a business in the upholstered furniture segment with a small investment, but they must carefully calculate all the risks, because the market situation is unstable and changes for the worse every day.
The impact of the crisis is very noticeable in the furniture industry, and 2015 will be a difficult year in all respects, especially its fourth quarter.
conclusions
Large manufacturers are now diversifying their business in order to form complex offers. For entrepreneurs who make custom furniture, the time has come when they can compete with the big players. Since retail prices for furniture are constantly rising, due to rising prices for materials, small manufacturers can reduce the cost of their work, which will make it possible to align their prices with retail prices from large manufacturers.
Today, the winner will be the one who can ensure the fulfillment of the consumer’s order with high quality and at an affordable price. The time has come when it is necessary to be original and inventive, to fight for every client, in order to ultimately hear the cherished words: “Yes, this is what we need. We are ready to place an order."
The material was prepared by the consulting group SuccessBrandManagement
Used sources:
- Report of the Success Brand Management Group - “Analysis of the Russian upholstered furniture market”
- Federal State Statistics Service
- Federal Customs Service
- Association of Furniture and Woodworking Industry Enterprises of Russia
- Interview with Natalya Chukalina - head of public relations at Mnogo Mebeli LLC
- Interview with Sergei Shiferson - commercial directors City&Malls PFM Management Company
- Interview with Mikhail Kuchment - co-owner of the Hoff furniture chain
- Interview with Maria Tikhonova - representative of IKEA
- Interview with Irina Fadeeva - editor-in-chief of the magazine " Furniture business»
*Calculations use average data for Russia
This market analysis is based on information from independent industry and news sources, as well as official data Federal service state statistics. Interpretation of indicators is also carried out taking into account data available in open sources. The analytics includes representative areas and indicators that provide the most full review the market in question. The analysis is carried out for the Russian Federation as a whole, as well as for federal districts; The Crimean Federal District is not included in some reviews due to a lack of statistical data.
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