The Importance of Digital Transformation in the Furniture Business
Digital transition is an important step in the development of the furniture industry. This is a direct result of evolving expectations of customers and the business community. This process includes the implementation of appropriate technology in almost every area of the company’s operations. It requires a thorough remodelling of production, sales, logistics and customer experience management. The overarching goal of digital transformation of business is to increase efficiency, boost revenue and adapt to new conditions and customer needs. According to a survey conducted by McKinsey among senior management, as many as 85% of the respondents see the need for digital transformation.
Online sales development is one of the elements of digital transformation. In developed countries, a significant 83% of companies operating in the B2B sector distribute their products online. The furniture industry is no exception here – accustomed to the convenience afforded by online shopping, partners are looking for similar experience in the business channel. As a result, trends from the B2C e-commerce sector are being incorporated into B2B. Data shows that as many as 52% of B2B buyers are frustrated with the online purchase process, and 90% of them are going to switch supplier due to a bad experience with the online sales channel. This confirms the observation that providing clients with the highest possible level of customer experience on the back of e-commerce increases competitiveness.
Digital Transformation in the B2C Channel
Since the outbreak of the pandemic, retail turnover in the e-commerce channel has almost doubled, with home furnishings and furniture being among the strongest growing categories. The “Home and Décor” segment ranks second in terms of share in e commerce business in Poland. Tapping into the huge potential of digital sales by manufacturers and distributors is the next step on the development path. In 2022, the e-commerce sector is estimated to account for 16% of furniture sales in Europe, but by 2025, this share is expected to increase to 22% – so the internet will generate almost a quarter of the business.
The integration of new technological developments into the furniture industry helps reach new groups of customers, especially those from the Y and Z generations, very much immersed in the online world. Nevertheless, the personalization of the offer, the ability to configure products or presented them in an attractive way are digital approaches that fit into the latest trends in the development of the furniture industry and reach a wide range of consumers.
Source: https://www.unitygroup.com/blog/digitalization-for-the-furniture-market-get-ahead/