Market Report, "Home Furnishings in Romania", published

The home furnishings market was severely hit by the recession, as consumers’ shattered confidence and low incomes led to them refraining from purchases of expensive long-term goods. Domestic producers were most affected by the crisis, as consumers shifted towards cheaper products from China. Nevertheless, the category is showing signs of recovery as sales of home furnishings increased by 2% in 2013 (RON4.3 billion), after a quasi-stagnation in 2012. Three factors hindering the development of the furniture category are VAT (24% – high enough to discourage consumption), the banking system and the fact that Romania spends too much on categories needing social assistance.

Competitive Landscape

The Romanian home furnishings market is home to both large domestic players and renowned international companies. Domestic players were most affected by the financial crisis, as their products are mostly mid-range and high quality items. Consequently they had to adapt more strategy to taking advantage of demand from the external market. Consequently, furniture exports reached their all-time maximum in 2013 (RON6 billion), while furniture imports stood at RON1.5 billion. The Romanian furniture manufacturing industry is highly fragmented (3,000 economic entities) and a lot of companies are suppliers for IKEA. The economic uncertainties and the massive migration of the labour force abroad distorted activities in the wood industry, and consequently the activity of Romanian producers. The leader on the Romanian market is Mobexpert (10% share in 2013), a company which deals with both production and retail of home furnishings. The second-placed player was IKEA, with a share of 7%. Mobexpert has the greatest turnover, while Lemet saw the most expanded store network.

Full Report Details at
- http://www.fastmr.com/prod/905192_home_furnishings_in_romania.aspx?afid=301

Industry Prospects

Since the ameliorating economic situation will be increasingly reflected in consumers’ shopping behaviour, the home furnishings category is set to see a CAGR of 3% over 2013-2018, so that by the end of the forecast period value sales are expected to stand at RON5.1 billion. The recovery of the market is also supported by companies’ expansion plans in terms of opening new stores. Mobexpert, Lemet, IKEA or Kika all plan to increase their national coverage over the course of the forecast period. In addition, certain product niches are expected to attract more and more consumers from 2014 onwards, such as garden or children’s furniture.

Home Furnishing Market Research

Analyse key trends and developments in Romania for all product categories, competitors and channels.

Evaluate the market position and financial performance of the leading national and international market players.

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