Rising Purchasing Power Drives Luxury Furniture Demand


    The rising purchasing power of consumers world-wide has helped increase the demand for a wide variety of luxury items, with luxury furniture as a major segment, says Transparency Market Research. Luxury furniture consists of furniture made from high-quality materials and reputed manufacturing processes. The prime driving factor for demand lies in its aesthetic value. In addition, the increasing GDPs of developing countries and the steady economic resurrection seen in developed countries following the recent economic troubles have boosted the demand for luxury furniture as a fashion statement. In this regard, the global luxury furniture market has been helped significantly by the rapid spread of urbanization in developing Asia Pacific, South American, and Middle Eastern countries. The increasing number of HNWIs in countries such as China, India, Saudi Arabia, Kuwait, and Qatar has also helped augment the demand for luxury furniture. The booming global construction industry has also directly aided the growth of the global luxury furniture market. With high number of residential and commercial construction projects springing up all over the world, the global luxury furniture market is expected to experience corresponding growth in demand. Unfortunately, the market is majorly restrained by the lack of skilled workers in developing regions. Even for multinational giants, exporting expertise can be tough business. The lack of experts in emerging markets such as Asia Pacific and Latin America has thus emerged as a major restraint in the global luxury furniture market. Additionally, the rise in the prices of key raw materials required in top-notch manufacturing processes has also hampered the global luxury furniture market. This has been compounded by the restrictions on the use of certain materials which have been shown to be harmful to the environment.