Furniture on an online frame – Newspaper Kommersant No. 222 (7423) dated 11/30/2022

Russian furniture manufacturers have begun to adapt production to new distribution channels amid falling offline sales. A special collection for online platforms has already been developed by Angstrem, Mr. Doors and the First Furniture Factory. But experts see a lot of risks in this approach. For example, with a further decrease in demand, such products may not be in demand, and manufacturers will have to pay extra to marketplaces for their storage in warehouses.

The fact that Angstrem has developed a special line of small-form products (hangers on a metal frame, consoles, coffee tables, wall shelves) for sale on marketplaces was told to Kommersant by the company’s executive director Vadim Chernushkin. He clarified that trial products have already been placed on online platforms. “In a couple of months, we will evaluate the opportunities for further development of this area,” says Mr. Chernushkin.

To develop limited and capsule series of furniture for sale on online platforms, Mr. Doors, says co-founder Maxim Valetsky. At the same time, Mr. Valetsky adds, the finished products of the brand are already presented on large marketplaces. In addition, in November, the First Furniture Factory, according to its CEO Alexander Shestakov, launched the sale of modular kitchens, including on Ozon and Avito.

Creating separate collections of furniture for marketplaces is a necessary measure. Online retailers have restrictions on size, ease of assembly and affordability, explains Vadim Chernushkin. According to him, Angstrem decided to place products in the warehouses of marketplaces in order to provide customers with faster delivery times.

Sales through marketplaces allow furniture manufacturers to attract a new audience of buyers, Alexander Shestakov believes. In addition, the development of your own online store requires a certain amount of investment and high competencies in the field of e-commerce, so furniture retailers are increasing their online presence through marketplaces, says One Story partner Olga Sumishevskaya.

However, in her opinion, selling through marketplaces carries increased risks for manufacturers in terms of keeping products in warehouses. If you do not guess with the assortment, the goods will be stored in warehouses for a long time, and sellers will have to pay an additional commission to the marketplace, Ms. Sumishevskaya explains.

Leyla Pavlova, a partner at the consulting agency Between2countries, notes that the line of small-form items should include at least three items in the same style, since it is important for buyers to receive ready-made solutions for arranging spaces. This approach to creating collections was promoted, in particular, by IKEA. At the same time, according to Ms. Pavlova, Russian manufacturers often continue to create separate pieces of furniture instead of full-fledged collections.

Another reason for manufacturers to work with marketplaces is the decline in offline sales. Olga Sumishevskaya says that now sales in furniture stores are supported mainly by household goods. Small forms of furniture are in demand, as they allow you to quickly and inexpensively update the interior, Leila Pavlova adds.

The volume of furniture production in Russia in the first nine months of 2022 decreased by 1.4% year-on-year and amounted to 36.9 million pieces, according to the Association of Furniture and Woodworking Industries (AMDPR). At the same time, over the past three months, furniture sales in physical terms have been even lower than in 2020, Mr. Shestakov adds. At the same time, according to AMDPR, in monetary terms, sales increased by 19%, to 258.4 billion rubles.

Alina Savitskaya