Spread out in front of your eyes, the furniture is waiting to find a new master. Here, a solid wardrobe will soon host a young woman’s wardrobe. There, a kitchen will soon allow a man to indulge in his greatest passion.
Does this scenario appeal to you? It could come true. But there is no question of opening a furniture store without a solid strategy.
Step by step, in this article we will guide you through the design of your project and give you all the details you need to put together a solid furniture store business plan.
Focus on the furniture market
The first step in opening a furniture store is to do market research.
Two objectives here:
- Learn about the state of the furniture market: growth, consumer expectations, new trends, etc.
- Check that there is a business opportunity in the area of planned establishment
Competition is therefore fierce in the furniture market, and supermarkets seem to be gaining ground over independents. For you who want to open a furniture store, this means that you will have to think carefully about the concept of your store in order to find a way to differentiate yourself from the competition.
For this you will have to rely on a market study carried out at the level of the implantation area.
Market research for a furniture store
The market research should allow you to validate that there is indeed a business opportunity at the local level.
For this you will need to:
- Analyze demand at the level of the implantation area: what is the demographic profile of the inhabitants? What are their expectations in terms of price and type of products? What is the dynamic on the job market? Do the inhabitants have a high purchasing power? What are the dynamics in the real estate market? Are there frequent moves? In what type of property (size, main or secondary residence, etc.)?
- Analyze the competition already present: are the major brands already established? What products and services do competitors offer? Where are they located? Is there an underserved market segment or geographic area? Are customers satisfied with the current offer?
Open a furniture store, okay… but with what concept?
As we saw above, while the furniture market is picking up, some market segments are doing better than others. And a similar trend can be observed at the level of distribution modes, where large-scale distribution and chain stores seem to gain market share for the benefit of independents.
Choice of segment
The choice of segment will depend in part on the results of your market research as there will certainly be competitors already established in your city. Thus, if your municipality already has 5 brands specializing in kitchens, needless to say that opening up to this niche will be delicate.
To face the competition (which is ultimately omnipresent: think of e-commerce), the ideal is to differentiate yourself. In other words, offering what others aren’t already offering. For example, if the offer in the sector is more focused on inexpensive furniture, position yourself more on high-end furniture.
If you want to stay in the same niche with your competition, however, your best weapon will be to showcase unique advantages. To take the case of a kitchen designer, you could offer free installation, or attractive prices.