'Stay-at-Home Boom' Furniture Industry Smiles Again This Year?

Last Year's Record-Breaking Performance Sparks Debate: 'Second Heyday' vs. Industry-Wide Negativity Over Big Conglomerate Dominance... Diverging Outlooks

The outlook for the furniture industry this year is divided. The photo is not related to the content of the article.
[Photo by Hanssem]

[Asia Economy Reporter Kim Jong-hwa] The outlook for the furniture industry this year is divided. While optimistic forecasts suggest that this year will mark a "second heyday" following last year's record-breaking performance, pessimistic views argue that it is difficult to see the future positively due to decreased demand in remodeling and total interior sectors.

The furniture industry recorded "unprecedented results" last year as remodeling and interior demand increased due to the impact of COVID-19, along with a rise in housing transactions that boosted moving demand.

Hanssem posted sales of 2.0674 trillion KRW and operating profit of 93 billion KRW last year, achieving double-digit growth compared to the previous year. Hyundai Livart also achieved sales of 1.3846 trillion KRW and operating profit of 37.2 billion KRW, growing 11.9% and 55.8% respectively year-on-year.

The industry expects this favorable performance to continue this year. The prolonged COVID-19 pandemic has extended the time people spend at home, sustaining the interior boom. The expansion of the non-face-to-face market and the government's real estate supply expansion policies are also seen as positive factors.

An industry official said, "Lifestyle changes centered around the home space are becoming a trend of the times," adding, "As demand for personalizing one's own space increases and consumers place greater meaning on the home as a space, the home furnishing industry will continue its growth trend."

On the other hand, a negative business outlook is expected for the entire industry, including small and medium-sized enterprises, due to the intensifying concentration on large corporations and brands. The "record-breaking" illusion was caused by this concentration, and the government's housing supply expansion policy is not expected to impact short-term performance.

An industry insider said, "Many households have already renovated their homes through remodeling last year, and since the government announced plans to expand housing supply, the demand for home renovations this year is expected to be less than anticipated," adding, "While the overall market size will shrink, the market concentration on brands like Hanssem, Hyundai Livart, and LG Hausys will intensify, making it more difficult for small and medium-sized enterprises."

This content was produced with the assistance of AI translation services.