RTA Furniture Market Size

Ready to Assemble (RTA) Furniture Market Analysis

The RTA Furniture Market is expected to register a CAGR of greater than 5% during the forecast period.

Ready to assemble furniture is also known as Knock-Down (KD), flat-pack, kit furniture, or self-assembly. This furniture is shipped either flat-packed or unassembled to the customers who arrange and fix it according to their convenience. Since its inception, RTA furniture has evolved through development in technology, material quality, and designs.

The market is expected to witness strong growth during the forecast period owing to the growth in the real estate sector, an increase in urbanization rate,and discretionary spending on furnishing products. Moreover, the trend of working from home is on the rise, which, in turn, has increased thedemand for home office furniturein the form of space-saving modular units. However, complexity in supply chain & logistics, long replacement cycle, uncertainty in raw material costs, and easy availability of counterfeit products arerestraining the growth ofthe RTA furniture market.

Vendors leverage both traditional and social media platforms for advertising. Companies create campaigns and exhibition shows to promote their brands and products, reaching out to their target audience through TV commercials and social media platforms. For instance, IKEA uses separate pages for different countries on Facebook to cater to the varying requirements of the customers. They also make their catalogs available digitally for desktop and mobile users. Similarly, Ashley Furniture HomeStore partnered with iCrossing, to get in touch with the customers through social media. Apart from Facebook, the company also has a strong presence on YouTube, Twitter, and Flickr.

With the growing trend of customization, the players have started designing customized RTA furniture to increase their customer base to increase their sales. Key players are using customer interaction platforms to get customers to feedback on regular basis. For instance, IKEA offers a unique service to their customers, where they can add a personal touch through customization. Through this service, the customers can suggest additional modifications to the furniture design selected by them. With consumers shifting lifestyles like giving extra attention to home décor, the key players are expected to achieve a competitive advantage through customization.

Asia-Pacific is the fastest-growing region in theglobal RTA furniture market. China, Japan, Australia, India, and South Korea are the top contributing countries in the region. Many key players in the furniture market including RTA furniture are entering into partnerships with the e-commerce retail stores to strengthen their distribution network which is likely to drive the market growth in the region. Increasing middle-class level population, rise inhouseholdexpenditure, change in lifestyle, growth in the real estate sector, rise in urbanization rate,increased preference for branded furnitureare some of the major factors that will increase thedemand for the RTA furnituremarket in the region during the forecast period.