The objective of this article is to update our fans with data that are related to our activity. Below you will find a list of factors that might have direct influence in our business strategy. All readers are welcome to share any relevant data as well as their perceptions about these trends.
A Renovation Wave for Europe - greening our buildings, creating jobs, improving lives
A refurbished and improved building stock in the EU will help pave the way for a decarbonised and clean energy system, as the building sector is one of the largest energy consumers in Europe and is responsible for more than one third of the EU's emissions. But only 1% of buildings undergo energy efficient renovation every year, so effective action is crucial to making Europe climate-neutral by 2050. Currently, roughly 75% of the building stock is energy inefficient, yet almost 85-95% of today’s buildings will still be in use in 2050.
Renovation of both public and private buildings is an essential measure in this context, and has been singled out in the European Green Deal as a key initiative to drive energy efficiency in the sector and deliver on objectives.
Given the labour-intensive nature of the building sector, which is largely dominated by local businesses, renovations of buildings also plays a crucial role in the European recovery of the COVID-19 pandemic. To kick-start the recovery, the Commission has identified doubling the renovation rate in its dedicated recovery plan.
o pursue this ambition of energy gains and economic growth, the Commission published on 14 October 2020 a new strategy to boost renovation called "A Renovation Wave for Europe – Greening our buildings, creating jobs, improving lives" (COM(2020)662). It aims to double annual energy renovation rates in the next ten years. These renovations will enhance the quality of life for people living in and using the buildings, reduce Europe’s greenhouse gas emissions, and create up to 160,000 additional green jobs in the construction sector.
Internet penetration in EU is growing
ICTs have become widely available to the general public, both in terms of accessibility as well as cost. A boundary was crossed in 2007, when a majority (55 %) of households in the EU-28 had internet access. This proportion continued to increase, passing three quarters in 2012 and four fifths in 2014. By 2017, the share of EU-28 households with internet access had risen to 87 %, some 32 percentage points higher than in 2007.
Widespread and affordable broadband access is one of the means of promoting a knowledge-based and informed society. Broadband was by far the most common form of internet access in all EU Member States: it was used by 85 % of the households in the EU-28 in 2017, approximately double the share recorded in 2007 (42 %) .
Source: Eurostat ; European E-commerce Report 2018 Edition(https://ec.europa.eu/eurostat/statistics-explained/index.php/Digital_economy_and_society_statistics_-_households_and_individuals#Internet_access)
Source: Eurostat ; European E-commerce Report 2018
Online shopping Trends are growing
Online retail continues its double digit growth, since the European e-commerce turnover increased by 12.75 % to €540 billion in 2017 and according to the results of the 2018 e-commerce foundation reports, B2C is expected to rise.
The proportion of individuals aged 16 to 74 in the EU-28 who ordered or bought goods or services over the internet for private use continued to rise: in 2017, it stood at 57 %, an increase of 13 percentage points when compared with 2012 . Three quarters or more of individuals in Germany and the Netherlands ordered or bought goods or services over the internet in 2017 and this share rose to at least four fifths in Luxembourg, Denmark (both 80 %), Sweden (81 %) and the United Kingdom (82 %). By contrast, this proportion was less than 30 % in Croatia and less than 20 % in Bulgaria and Romania.
Excluding the four EU Member States that reported a break in series — Estonia, Latvia, Romania and Sweden — the largest increase in the proportion of individuals who ordered or bought goods or services over the internet between 2012 and 2017 was observed in the Czech Republic (up 24 percentage points), followed by Spain (up 20 points). Unsurprisingly, some of the smallest increases (up 6 or 7 percentage points) were observed in Denmark and Finland where the percentages of individuals ordering or buying goods or services online were already relatively high in comparison with other Member States; this was also the case in Norway. However, the share of individuals ordering goods or services over the internet also rose at a relatively modest pace in Ireland (7 points) and Croatia (6 points).
Individuals who ordered goods or services over the internet for private use in the 12 months prior to the survey, 2012 and 2017 (% of individuals aged 16 to 74)
Source: Eurostat 2018 (https://ec.europa.eu/eurostat/statistics-explained/index.php/Digital_economy_and_society_statistics_-_households_and_individuals#Internet_usage)
Individuals using the internet for ordering goods or services from other EU countries - (% of individuals aged 16 to 74), 2018
Source: Eurostat , 2018 https://ec.europa.eu/eurostat/tgm/graph.do?tab=graph&plugin=1&language=en&pcode=tin00096&toolbox=type
Share of online shoppers in the previous 12 months, 2017
Source: Eurostat, 2018; European E-commerce Report 2018
Internet use & online shopping differs strongly across the EU
Although the relation between internet use & online shopping differs strongly across the EU, it is a fact that the internet users are growing across EU and as we can confirm through the graphic below , the biggest part of the internet users do online purchases.
This general growth is a positive signal to invest on the e- business model and to developer sustainable and efficient structures to deal with the e-commerce now-a-days challenges.
Source: Eurostat, 2018; European E-commerce Report 2018
16-54 year-old purchase most frequently online
Overall, the share of e-shoppers in internet users is growing, with the highest proportions being found in the 16-24 and 25-54 age groups (73 % each). The proportion of e-shoppers varied considerably across the EU, ranging from 26 % of internet users in Romania to 87 % in the United Kingdom.
E-shopping: biggest increase among young internet users
E-shopping growing steadily, with the biggest increase among young internet users . Online shopping is very popular in the EU. The proportion of individuals aged 16-74 having purchased online in the 12 months prior to the 2018 survey stood at 60 % (Table 1). Consumers appreciate the convenience of being able to shop anytime anywhere, having access to a broader range of products, comparing prices and sharing their opinion on goods with other consumers. 87 % of individuals aged 16 to 74 in the EU had used the internet in the 12 months prior to the survey, of whom 69 % had bought or ordered goods or services for private use. Online purchases by internet users increased by 19 percentage points compared with 2008 (Figure 1). Those aged 25-54 had the highest share of online shoppers among internet users up to 2016. In 2015 the youngest age group (16-24) overtook the EU average level to reach in 2017 and 2018 the level of 25-54 year old. E-commerce picked up over the 2008-2018 period among all age groups, with individuals aged 16-24 showing the biggest increase (28 percentage points). Over eight in ten internet users in the United Kingdom (87 %), Denmark (86 %), the Netherlands and Sweden (84 % each), and Germany (82 %) had bought or ordered goods or services over the internet in the 12 months prior to the survey (Figure 2). On the other hand, fewer than 40 % had shopped online in Romania (26 %), Bulgaria (31 %) and Cyprus (38 %). The largest increases (15 percentage points or more) between 2013 and 2018 were recorded in Estonia, Czechia, Spain, Lithuania, Slovakia and Italy.
Source:Eurostat 2019 (https://ec.europa.eu/eurostat/statistics-explained/pdfscache/46776.pdf)
Cross border e-purchases
In the EU, national e-purchases still have the most significant values when it comes to the sellers origin , however, e-purchases from other EU countries are the next ones with more relevant values on the market. Location seems to have importance on the e-purchase choice but the growth, investment ,policies and the quality of the e-commerce can improve this numbers instigating the growth over and between the EU countries.
Source: Eurostat, 2018; European E-commerce Report 2018
Evolution of RTA and overview of the Housegoods & Furniture Market
World Furniture Outlook 2017/2018
According to CSIL the main furniture producer is China, with 39% of world furniture production. Other major furniture manufacturing countries are the US, Germany, Italy, India, Poland, Japan, Vietnam, the UK and Canada. The leading importers of furniture are the United States, Germany, the United Kingdom, France and Canada.
The main furniture exporting country is China, followed at a distance by Germany, Italy, Poland and Vietnam. A major new development is the decrease of Chinese furniture exports in 2016. The fastest growing furniture exporter (from a low base) is Vietnam.
The international furniture trade of this group of 100 countries (which we shall refer to as the world), amounted to about US$ 132 billion in 2016. This corresponds to about 1% of world trade of manufactures. Forecasts are subject to major uncertainties because of possible effects of Brexit and of international trade policies of the new US administration.
The bulk of international trade of furniture originates in China, Germany, Italy, Poland and Vietnam and goes to the US, Germany, the UK, France and Canada.
Forecasts to 2018
For the year 2018 furniture consumption is forecasted to grow by 3.5% in real terms worldwide. The fastest growing region continues to be Asia and Pacific, with all other regions growing between 1% and 3% in real terms.
Source: www.worldfurnitureonline.com - CSIL Milano
Top furniture importing countries. Imports, 2012-2018. Current US$ billion
Source: worldfurnitureonline.com-CSIl Milano (https://www.worldfurnitureonline.com/research-market/world-furniture-outlook-0058524.html)
RTA Furniture Market
In terms of product type, the Residential RTA Furniture is dominating the market, with a market share of 73.5% in 2016, and the rest is Office RTA Furniture, which occupied for 26.5%. In future, the Residential RTA Furniture will remain the leading role.
In terms of sales channels, the online developed rapidly in the past few years, due to more and more consumers choose to purchase RTA furniture through smartphone, tablets and PC. In future, the online will gradually more important to RTA Furniture manufacturers.
Source: Wiseguyreports 2019
Global RTA Furniture Market valued approximately USD 11.8 billion in 2017 is anticipated to grow with a healthy growth rate of more than 3.99% over the forecast period 2018-2025. The RTA Furniture Market is continuously growing across the world over the coming years.
Rising demand for furniture and the scarcity of wood and increasing adoption due to the features such as quality and durability of the furniture is the drivers of the market across the world.
Furthermore, growing adoption in developing economies is creating lucrative opportunity in the market across the globe. RTA furniture provides choice of cabinet colors & designs, it is cost effective and it has wide range of products are available. These factors also increasing demand of RTA furniture across end user industries over the upcoming years. However, complexities associated with assembling the furniture, ease availability of counterfeit products and fluctuating raw material prices are the restraining factors of the market across the globe.
Source: Kenneth Research 2019(https://www.openpr.com/news/archive/208569/Kenneth-Research.html)
Comparison between RTA and fully assembled furniture consumption in Europe, 2010-2015
Household goods are one of the most popular online purchases - 3th place
The figure below shows that most purchases, by a third or more of e-shoppers, involved clothes and sports goods (64 %), travel and holiday accommodation (53 %), household goods (45 %), tickets for events (39 %) and books, magazines and newspapers (32 %). Fewer than one in five e-shoppers bought telecommunication services (20 %), computer hardware (17 %), medicines (14 %) and e-learning material (7 %).
People aged 25-54 made up the highest proportion of e-shoppers buying household goods (50 %).
The future perspectives for this sector are great having in mind that there is a very high progression margin to this market.
Source: Eurostat 2019 (https://ec.europa.eu/eurostat/statistics-explained/pdfscache/46776.pdf)
Web sales predominantly done via own website
The importance to sale through our own website or app
Looking further into web sales, these can be done via own websites or apps or via e-commerce marketplaces available on external websites or apps. E-commerce marketplaces, and in general online platforms, may facilitate economic growth by enabling sellers to access new markets and reach new customers at lower cost.
For the survey on ICT usage and e-commerce in enterprises’, the respondents were asked to indicate if they received orders for goods or services via the enterprise's own website or apps and/or via an e-commerce marketplace website or apps. An enterprise may use one or both web sales possibilities.
As Figure below demonstrate , during 2017, 87 % of EU enterprises with web sales used their own websites or apps, while 40 % used an e-commerce marketplace. The highest percentages of enterprises with web sales via own sites or apps were registered in Croatia, Slovakia and Finland (each 97 %), while the lowest were registered in Slovenia (67 %) and Luxembourg (69 %). Finland, Croatia, Denmark and Czechia are the countries with the lowest percentages of web sales via marketplaces (less than 20 %). Using web sales via marketplaces was most common in Italy (64 %), Cyprus and Poland (both 53 %).
Share of turnover from web sales mainly realised via own websites or apps
Source: Eurostat https://ec.europa.eu/eurostat/statistics-explained/index.php?title=File:V1Web_sales_broken_down_by_own_website_or_apps_and_marketplace,_2017_(%25_enterprises_with_web_sales).png
Note: The eurostat articles takes a closer look at individuals’ electronic commerce ( e-commerce ) in the European Union . It is based on the results of the 2016, 2017 & 2018 Survey on ICT (information and communication technology) usage in households and by individuals.