What will the furniture industry be like in 2025?

Stable Growth of E-Commerce in the Furniture Industry

The year 2024 was not the easiest for the furniture industry, with media reports highlighting the challenges faced by many companies in this sector. However, in terms of e-commerce, the past year can be considered successful. In November, sales in the “furniture, RTV, and home appliances” category increased to 21.3% compared to 20.8% the previous year. Despite an unfavorable economic environment, a clear market trend emerged, focusing on business process optimization and automation through available tools, including those related to artificial intelligence (AI).

Optimization and Adaptation of New Technologies

With rising customer expectations, Polish furniture companies primarily invested in presenting their offerings online and improving accessibility for their target audience. In the digital era, consumers demand higher-quality images, detailed descriptions, professional visualizations, and precise technical data to facilitate purchasing decisions in online stores. Product Information Management (PIM) systems have become a key solution to these challenges, helping businesses manage large volumes of data efficiently. PIM systems, supported by AI-driven solutions, enable the generation of unique product descriptions that maintain brand identity and product line DNA while eliminating redundancy. Additionally, for companies operating in multiple markets, these systems can assist in translation management.

As more companies embrace omnichannel strategies—selling through both digital and offline channels (e.g., brick-and-mortar stores)—pricing policy management has gained significant importance. The year 2024 was marked by cost-saving efforts, which is why price monitoring and optimization tools attracted considerable attention from business owners. A comprehensive approach to pricing, supported by advanced pricing engines, competitor price monitoring systems, and electronic price tags, has become essential for optimizing margins and profitability. Successful operations across multiple sales channels require an integrated pricing strategy, and the concept of Pricing Omnichannel 360° is worth exploring for flexible adaptation to market changes.

Another rapidly expanding trend in the furniture industry is the use of AI. E-commerce stores can leverage AI to optimize customer service by implementing specialized chatbots or AI assistants. This solution is particularly beneficial for automating customer interactions, reducing response time, and improving the overall shopping experience by providing quick access to relevant information.

Opportunities and Challenges Facing the Industry in 2025

Cross-Border Expansion – Entering New Sales Markets

Wayfair’s decision to exit the German market highlights the challenges faced by global players in the furniture sector. The projected 8% decline in sales in Germany in early 2025 demonstrates that even major brands must make tough strategic decisions. However, Polish manufacturers can turn this situation into an opportunity. By thoroughly analyzing foreign market specifics, developing B2B e-commerce models, implementing Direct-to-Consumer (D2C) strategies, and considering potential acquisitions of foreign companies, Polish brands have a real chance to expand and attract new customer segments.

Competition from Asian E-Commerce Platforms

The continued rise of Asian e-commerce platforms poses a major challenge for local furniture manufacturers and retailers. However, both national and European regulations, laws, and directives may help protect domestic businesses. The Chamber of Electronic Economy (Izba Gospodarki Elektronicznej) has been advocating for fair competition through its “Equal Start” (Taki Sam Start) campaign since 2020, aiming to establish equal legal and competitive conditions for European and Asian e-commerce companies.

Adapting to Changing Consumer Habits and Expectations

New generations of consumers, particularly Millennials and Generation Z, are reshaping purchasing behaviors. Mobile transactions are becoming increasingly dominant in their customer journey, with smartphones serving as primary shopping tools and interactions shifting toward digital platforms. Personalization and hyper-personalization of product offerings will be critical to meeting customer expectations.

Beyond visually appealing product presentations, next-generation consumers demand intuitive, personalized interactions, which generative AI can deliver. AI-driven recommendations and adaptive interfaces will play a crucial role in enhancing the online shopping experience.

The Growth of Used Furniture Sales

The re-commerce model has gained popularity in recent years, driven by changing consumer needs and cost-conscious shopping habits. Businesses should consider incorporating the resale of used products into their sales strategy. A notable example is IKEA’s “Buy Back & Resell” program, which allows customers to return unwanted furniture in exchange for store credit. This approach benefits both parties: IKEA fosters customer loyalty while maintaining a presence in the secondary market, which is largely dominated by platforms like OLX and Vinted (or marketplaces in the U.S.).

Presence on Marketplaces

Online marketplaces are a crucial sales channel for the furniture industry, offering manufacturers and retailers access to a broad customer base without requiring significant investments in their own e-commerce infrastructure. By participating in marketplaces, furniture brands can leverage built-in marketing tools, logistics, and payment systems, simplifying the sales process and extending their reach.

Additionally, marketplaces enhance consumer trust through reviews, ratings, and recommendations, which are critical in the decision-making process for high-value purchases such as furniture. As a result, marketplaces serve not only as sales platforms but also as brand-building tools that foster customer loyalty.

The Future of the Furniture Industry in 2025

Looking ahead, 2025 is set to be a year of further digitalization and innovation in the furniture industry. The key challenge will be leveraging data-driven decision-making rather than relying on intuition, as well as utilizing AI technology to deliver personalized shopping experiences and remain competitive in international markets.

With rapidly evolving consumer trends, companies must invest in new technologies, adapt pricing strategies, and refine sales models—both within their own channels and through marketplaces.

Success in 2025 will belong to businesses that can respond swiftly to market changes, manage data effectively, and prioritize quality and innovation. By learning from the past year’s experiences, the Polish furniture industry has the potential to strengthen its position and achieve significant growth on the global stage.

The article is based on an interview for the Business.Meble.pl portal (February 2025)

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