By Rohit Kaila, Head of Technology and Site Leader Wayfair India TDC.
Today’s home furnishing industry bears little resemblance to what we all experienced as shoppers a decade ago. Back then, we brought tape measures to the store to check item dimensions. And if we found items that delivered on comfort but not color, sales personnel shared binders of endless color options that we could drape on a sofa and, from there, use our imagination to see how it would look in our home.
Don’t get me wrong, we still shop in stores today, but thanks to technology, the role of the store and the buying experience overall has transformed significantly. This shift began with eCommerce, but new innovations such as augmented reality (AR), virtual reality (VR), blockchain, and IoT truly ushered consumers into the new era of furniture retail.
The new world of online furniture retail: Have it your way
According to Statistica, the current market size of furniture retail is nearly 30 billion U.S. dollars, and it’s expected to exceed more than $40 billion by 2030. It wasn’t that long ago that the idea of buying a piece of furniture online may have seemed far-fetched, as, among other things, it could not replicate the tactile experience shoppers get when in the store.
But clearly, much has changed. Most notably, the advent of innovations has made shopping for furniture online a far more enjoyable experience. It begins with options. Today, online furniture websites provide customers with a vastly larger catalog of choices than a brick-and-mortar school could imagine since there are no physical constraints in the digital realm. But vast selections alone are just the beginning. That’s why innovations like AR and VR are so important.
Once shoppers identify potential items, AR and VR allow them to view each piece online. They can examine not just static images but pictures from all sides and angles. They can personalize it to fit their style and home. The ability to customize furniture is growing—Straits Research reports that the global customized furniture market will reach $87.64 billion by 2031, up from $31.48 billion in 2022. This means that retailers delivering these capabilities will be rewarded with increased sales and long-term customer loyalty.
But this buying experience doesn’t end with customization. Using new AR innovations, customers can take a 3D rendition of the item and place it in their home where, with spatial awareness capabilities, they can see how it fits their space, assess how it looks, and then, if needed, make further changes. For example, if the color of a sofa is off, they can try other options until they get the perfect match. You cannot do that in the store! At this point, they can visit the nearest store to give it the final comfort test. This is a game gamer changer that really helps shoppers buy with confidence.
As for any who doubts how important these technologies are in the buying process, check out this research from Eclipse Group titled “The Impact of Augmented Reality on Retail:”
• 77% of AR users said they use it to see product differences, such as possible variations of colors and styles.
• 71% of shoppers said they would shop more often if they could use AR.
• 61% said they would choose to shop with stores that have AR over those without it.
• 55% admitted that shopping with AR makes the experience more fun and exciting.
Meeting the needs of the conscious consumer
In addition to the capabilities above, other transformations are taking place, which are largely driven by data. A great example is today’s supply chain, which is more transparent than ever thanks to new technologies such as blockchain, data analytics, sensor technologies, enterprise resource planning (ERP) software, and warehouse management systems (WMS). What does that mean for shoppers?
First, they understand various key factors, including the origin of the materials being used, how they were made, the labor practices involved, potential environmental impacts, and more. For Wayfair, we are leading the way by including sustainability certifications on approved items as part of our Shop Sustainably commitment.
This shift is part of a larger movement called conscious consumerism, where purchasing decisions are made based on those that have positive social, economic, and environmental impacts. This includes buying from companies committed to sustainability, reducing consumption, eliminating waste, and other factors. According to a recent Green Divide report from NIQ (formerly NielsenIQ), 70% of consumers say sustainability is now more important to them when selecting products than it was two years ago.
In the online furniture sector, these elements are all part of a term gaining significant momentum—the furniture lifecycle. When following the guidance of the furniture lifecycle, manufacturers design items that take into account environmental, social, and economic factors at each stage. This includes everything from sourcing, design, manufacturing, and distribution all the way to disposal.
As I said at the beginning, the furniture-buying experience of today has undergone a massive shift, driven by a host of innovations such as AR, VR, and the explosion of data. At the same time, we’ve witnessed the arrival of the conscious consumer whose purchasing demands extend far beyond the look and feel of a piece of furniture. Those manufacturers and retailers that embrace all the innovations at their disposal to help customers find items that meet their unique styles and align with the growing ethical and sustainability demands will be the ones setting the stage for retail’s next phase.
