New requirements for the furniture industry
The furniture industry is facing many challenges. Coping with the current situation and reorientation for the post corona era is only part of the tasks and ultimately the accelerator.
The necessary change from a linear to a circular economy is irreversible. Climate and environmental protection is a common task for all generations and an obligation for every area of public life. This also applies to the furniture industry. The implementation of the SDGs via climate protection strategies with the sustainability goal of a neutral climate balance as well as the transparent design of supply chains requires changes in the companies.
Megatrends & demographic change as drivers
Reorientation and change is a must with a view to customer needs. Above all, the Megatrends New Work, Mobility and Individuality are the drivers. Digitalization, modern office worlds, remote work, serviced apartments, co-living or cocooning demand corresponding offers from the furniture industry.
And Germany is getting older, fewer and more international. Demographic change is creating new target customer groups. A generation shift full of challenges in the usage behavior of Millennials, Generation Z and Silver Societies.
Investments put to the test - CapEx vs. OpEx
The way companies finance their purchasing is changing. And this also applies to the area of investment funds. With a corresponding impact on the accounting of expenditures.
Buy or lease - these two options are increasingly being weighed up. The drivers for this are different. Decisions have to be considered from different perspectives and the right balance has to be found.
Financial budgets are becoming tighter and the time dimension of use is not always assured. At the end of the day, the survival of the company is at the bottom of the considerations. However, this also requires the appropriate air to breathe. The furniture industry must face up to this task for its B2B customers.
Servitization - the chance for customer closeness
Servitization is the path from product to service - "Product as a Service". The first step is a change of perspective. They have to take the perspective of their customers to understand the importance of their products. Lived customer closeness can be achieve by focusing on individual customer needs. At first get to know and understand the customers. And only then look on the products and consider what customers want in addition to the products.
Servitization is the change of the business model. A rental business based on the Circular Economy offers opportunities for long-term customer relationship via multiple customer journeys. A paradigm shift for the furniture industry full of opportunities.
Rental Hybrid - the business model of the future
Primarily due to the use of materials, manufacturing and the nature of the products, the furniture industry is largely predestined for multiple uses. And the rental furniture market is on the move. Fundamentally, demand is increasing, more so than in previous years. The offers have to grow, the reasons are well known.
To start with a rental business model is an extension to the existing sales. The advantage of a hybrid business case - producers knows their products.
For success, 4 key points are decisive and must be checked before starting, regardless of whether it is a pure rental business model or a hybrid based on sales and rental.
The product suitability in terms of material usage, manufacturing, sustainability, profitability and the development of the understanding for "Product as a Service". The analysis of existing customers (if any) and new target customers, including fixing the customer journeys.
The marketing and digital strategy to target customers for Rental, including customer loyalty programs such as Subscription. Setting up the organization with a view to focusing on the company's own core competencies and integrating component solutions.