Report Overview

An expanding customer base and government’s initiatives to boost the industry are projected to propel the expansion of the India online furniture and home decor market during the forecast period between 2023 and 2029

India Online Furniture and Home Decor Market - Industry Trends & Forecast Report, 2029

India online furniture and home decor market size was estimated at USD 25.18 billion in 2022. During the forecast period between 2023 and 2029, the size of India online furniture and home decor market is projected to grow at a CAGR of 4.08% reaching a value of USD 32.02 billion by 2029. Major growth drivers for the India online furniture and home decor market include deepening internet penetration, changing consumer preferences, and the convenience offered by online shopping platforms. The rapid expansion of internet access and smartphone penetration in India has played a crucial role in the growth of the online furniture and home decor market. As more people gain access to the internet, they have greater exposure to online shopping platforms, leading to increased online purchases of furniture and home decor items. Indian consumers are increasingly embracing the convenience and benefits of online shopping. The shift in consumer behavior towards digital channels, coupled with changing lifestyles and preferences, has boosted the demand for online furniture and home decor products. Consumers now prefer the ease of browsing through a wide range of options, comparing prices, and making informed purchasing decisions from the comfort of their homes. Also, India's rapid urbanization and the increase in disposable income among the middle-class population have contributed to the growth of the online furniture and home decor market. Urban dwellers, with higher purchasing power, are more likely to invest in furniture and home decor products to enhance their living spaces.

India Online Furniture and Home Decor Market – Overview

India online furniture and home decor market refers to the virtual marketplace where consumers can browse, select, and purchase various furniture and home decor products through online platforms and e-commerce websites. This market encompasses a wide range of items, including but not limited to furniture pieces like sofas, beds, tables, chairs, cabinets, and storage solutions, as well as home decor accessories such as lighting fixtures, rugs, curtains, wall art, and decorative accents. The online nature of this market enables consumers to explore and shop for these products conveniently from their preferred digital devices, accessing a vast array of options, comparing prices, reading customer reviews, and making purchases with doorstep delivery services. The market's growth is fueled by factors such as increasing internet penetration, changing consumer preferences, convenience, discounts and promotions, and technological advancements that enhance the online shopping experience. Also, to support vendors in the development of sustainable home furnishings, various legal agencies such as the Forest Stewardship Council (FSC) and the Sustainable Furnishing Council (SFC) offer guidance and assistance. For instance, the SFC aids furniture manufacturers in adopting sustainable practices to reduce carbon emissions and waste stream pollutants, while also discouraging the use of non-recyclable materials in the production of home decor items. This particular trend is expected to positively influence the market's growth during the forecast period.

India Online Furniture and Home Decor Market

Growth Drivers

Government Initiatives to Boost the Industry

The Government of India has implemented several initiatives to boost the online furniture and home decor market. One such initiative is the "Make in India" campaign, which aims to promote domestic manufacturing and increase employment opportunities. Also, the Digital India campaign focuses on improving digital infrastructure and connectivity, enabling more consumers to access online platforms. The introduction of Goods and Services Tax (GST) has streamlined taxation and reduced logistical complexities, benefiting online retailers. Moreover, the government's emphasis on affordable housing and smart cities has created a favorable environment for the growth of the online furniture and home decor market in India. These initiatives collectively support and stimulate the industry's expansion.

Restraints

Logistics Management Challenges Leading to Higher Overhead Costs

The growth of the market is hindered by the challenging logistics management landscape, which results in high overhead costs. Vendors face difficulties due to factors such as the absence of accurate delivery addresses and logistical complexities, including delayed product deliveries and inefficient routing. These challenges contribute to increased overhead costs for vendors. Moreover, the absence of standardized delivery services not only affects the brand value of companies but also weakens profit margins. Additionally, the escalating labor costs further erode the profit margins of vendors, posing an additional challenge to the market's growth. Addressing these logistical and cost-related challenges is crucial to fostering a conducive environment for the expansion of the market.

Impact of COVID-19 on India Online Furniture and Home Decor Market

COVID-19 pandemic adversely affected the India online furniture and home decor market. With lockdowns and social distancing measures in place, consumers increasingly turned to online platforms for their furniture and home decor needs. This led to a surge in online purchases as people spent more time at home and sought to improve their living spaces. Additionally, the pandemic accelerated the adoption of virtual reality-based visualization tools and online consultations to enhance the online shopping experience. However, disruptions in the supply chain and logistics posed challenges, and some consumers faced delays in product deliveries.

India Online Furniture and Home Decor Market

Segmental Coverage

India Online Furniture and Home Decor Market – By Product Category

By product category, the India online furniture and home decor market is bifurcated into Furniture and Furnishings & Home Decor segments. The furnishings & home decor segment is expected to hold a higher market share during the forecast period by product category. The consumers have a strong desire to create appealing and comfortable living spaces, driving the demand for furnishings and home decor items. These products play a significant role in enhancing the aesthetic appeal and functionality of homes. Secondly, the growing popularity of interior design and home improvement shows, along with the influence of social media platforms, has heightened consumer interest in home decor and furnishings. Also, the convenience and extensive product offerings provided by online platforms have further fueled the demand for these items.

India Online Furniture and Home Decor Market – By Furniture Items

Based on furniture items, the India online furniture and home decor market is divided into Beds, Sofa Sets, Dining Furniture, and Chairs & Tables segments. The beds segment holds the highest share in the India online furniture and home decor market by furniture items due to its inherent significance and consumer demand. Beds are essential furniture items in households, fulfilling the need for comfortable sleep. The segment offers a wide range of options in terms of size, design, material, and functionality, allowing consumers to choose based on their preferences and requirements. Online platforms provide a convenient and extensive selection of beds, enabling consumers to browse, compare, and make well-informed purchasing decisions. These factors, including the essential nature of beds and the convenience of online shopping, contribute to the segment's dominant market share in the India online furniture and home decor market.

India Online Furniture and Home Decor Market – By Furnishings & Home Decor

Based on furnishings & home decor, the India online furniture and home decor market is segmented into Textiles (Linen, Curtains, Cushions & Covers), Table Decor & Wall Decor, Mattresses, Lighting, and Others (including Spiritual, Flooring) segments. The textiles segment held the highest market share by furnishings & home decor due to its significant role in enhancing the aesthetics and comfort of living spaces. The textiles segment includes linen, curtains, and cushions & covers. Consumers have a strong demand for various textile products such as curtains, rugs, cushions, and beddings to personalize their home interiors. The segment offers a wide range of options in terms of patterns, colors, and textures, allowing consumers to find the perfect fit for their preferences. Online platforms provide convenience and a vast selection of textile products, enabling consumers to easily explore, compare, and purchase these items. The combination of their decorative value, versatility, and the convenience of online shopping contribute to the textiles segment's dominance in the market.

India Online Furniture and Home Decor Market – By Commercial/Personal Usage

Based on commercial/personal usage, the India online furniture and home decor market is split into Personal and Commercial segments. The personal segment held a higher share in the India online furniture and home decor market by commercial/personal usage. It is primarily due to the strong demand from individuals and households to personalize their living spaces according to their preferences. Consumers are increasingly investing in furniture pieces and home decor items to create appealing and personalized environments. The convenience of online platforms provides a wide range of options, allowing consumers to explore different products, compare prices, and make purchases tailored to their specific needs. The dominance of the personal segment reflects the significant desire for individual expression and the availability of online platforms catering to personal usage in the India online furniture and home decor market.

India Online Furniture and Home Decor Market – By Region

Regionally, the India online furniture and home decor market is divided into Tier 1, Tier 2, and Tier 3 cities. The tier 1 cities segment held the highest share in the India online furniture and home decor market. These cities have a larger population and higher urbanization rate, resulting in a larger customer base and increased demand for furniture and home decor products. The higher purchasing power and disposable income of residents in Tier 1 cities also contribute to their dominant market share. Tier 1 cities are often hubs of economic activity and commerce, attracting a larger number of online retailers and e-commerce platforms. These platforms offer a wide variety of products, competitive pricing, and convenient delivery services, catering to the preferences and demands of urban consumers.

Competitive Landscape

Major players operating in the India online furniture and home decor market include Pepperfry, HomeTown, Home Centre, At Home by Nilkamal, Godrej Interio, Urban Ladder (Reliance Retail), IKEA, Space Wood, and Durian. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Product Category

• Furniture

• Furnishings & Home Decor

By Furniture Items

• Beds

• Sofa Sets

• Dining Furniture

• Chairs & Tables

By Furnishings & Home Decor

• Textiles (Linen, Curtains, Cushions & Covers)

• Table Decor & Wall Decor

• Mattresses

• Lighting

By Commercial/Personal Usage

• Personal

• Commercial

By Region

• Tier 1

• Tier 2

• Tier 3