The Furniture Industry in the Middle East during the forecast period is functioning at a maturity stage and is increasing at a positive double digit CAGR. In the recent past years, the industry was unpleasantly hit owing to the recession in the real estate sector and the decrease in oil prices in the recent past across the Saudi Arabia. The predilection towards the multi-utilitarian furniture has also been growing owing to the advantages of low space demand and multi-usage determinations suggested. The ease of the self-assemblage creates added advantage to the consumer.
Additionally, the organized segment register the market revenues as the retailers functioning under this sector deal in great quality and designer products produced from the MDF or solid wood during the recent past years. The unorganized players be sure of majorly on the price of the material whereby they incline to compromise with the quality of the product. The unorganized sector in the Middle East Furniture market attained the remaining market share in the terms of market revenue during the recent past years. Not only has this, the unorganized players ensure effectively the raw material and the labor locally. However, the organized players in the Middle East Furniture market often get furniture imported.
The revenues accrued from the sale of the residential furniture registered the Saudi Arabia furniture market revenues in the recent years. The Bedroom furniture created the maximum revenue during in the recent past years and is projected to grow with the effective CAGR during the forecast period. Mattresses and the beds will present a great growth over the review duration.
Furthermore, the Saudi Arabia furniture market effectively witnessed to be extremely fragmented with the existence of the domestic as well as worldwide players. Furniture in the several cost sectors, involving economy, mass, premium and luxury are designed by the numerous retailers to attain the requirement of enlarging the consumer base of all the classes. Over the years, in the Middle East furniture market the competition among the domestic and international players has exaggerated due to the growth in the requirement for the furniture products.
The corporates among the local and international players has positively augmented due to the growth in the requirement for the furniture products in the Middle East region. In the Saudi Arabia the corporates with the disruptive model such as IKEA have acted as a proficient threat to the unorganized segment. The Organized companies have been efficacious owing to their great budget marketing campaigns and promotions which greatly involve the cost deduction on MRP and great quality being offered at the lower price.
Few of the foremost competition parameters involve the number of stores, pricing and variety of material utilized in the furniture, product SKUs, online existence or the distribution channel and several others.
In future, the Middle East Furniture market is projected to increase at an active double digit CAGR during the review period. Therefore, in the coming years, it is anticipated that the market of furniture in the Middle East will increase more positively.
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Ankur Gupta, Head Marketing & Communications