Value sales within the Japanese furniture stores market increased by 1% in 2012.
Since the Tohoku earthquake in March 2011, the housing market has witnessed a gradual recovery, leading to an increase in sales.
The growth in sales at Japanese furniture stores was driven by economy products in 2012. With the slow economic recovery, consumers economised on spending and sales of premium furniture continued to suffer.
Under the stagnating economic situation, an increasing numbers of consumers are spending more time at home. In order to economise on spending, the trend of "uchishoku" or home dining continued to be popular among households.
As consumers are increasingly spending more time at home, they became more concerned about making their homes more comfortable. By changing colours of curtains or carpets, consumers enjoy home decoration and interior coordination.
Nitori Co Ltd represented the dominant force within the Japanese furniture stores market through 2012 with a 16% value share.
Nitori Co Ltd offers reasonably priced furniture and homewares and 80% of its sales come from its private label Nitori. With wide colour variations and simple designs to match any homes, Nitori Co Ltd has seen its sales grow over the past few years.
IKEA Japan KK is another company with growing sales. Since its entry into the Japanese market in 2006, IKEA Japan KK has continuously demonstrated strong growth with its vast product offerings and fashionable appeal.
IKEA Japan KK has a unique DIY selling style and its stores display stylish layouts of coordinated furniture and homewares in various situations including kitchens, bedrooms, and living rooms.
Through to 2017, value sales at Japanese furniture stores are expected to post a compound annual growth rate (CAGR) of 1%. Although industry growth is anticipated to decline marginally as the reconstruction is completed, general awareness of interior design and home decoration is expected to grow among consumers. With the unstable economy, reasonably-priced products will continue to drive category growth.
For more information on Japanese furniture stores market, see the latest research: Japanese Furniture Stores Market
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