How an Outdoor Furniture Company Extended Its Business with an Apt Analysis and Market Outlook?
This UK-based outdoor furniture company had consistent growth in the European market. As the profits rolled in, the firm decided to augment its business and become a global manufacturer and seller of outdoor furniture and accessories. For doing so, the company would need a strategic plan. The company’s management decided to hire Research Nester for an in-depth competitive analysis & benchmarking to understand how the company stands in the market concerning its competitors and how to excel overseas accordingly.
An overview:
1
The company specializes in luxury outdoor furniture, with their motto “One’s home should reflect who they are”.
2
The firm offers a wide variety of color palettes, they also mention the grade of materials used in the making, like the use of high-grade architectural polyester powder finishing, which is applied electrostatically and cured in a high-temperature oven.
3
They offer a range of fabrics from standard to premium. These fabrics are both waterproof and soft to the touch, having been made from 100% solution-dyed acrylic.
4
The company provides a try-before-you-buy policy, in which they provide the customer with the furniture, they wish to see in their house before they buy it. Only service cost is charged which is based on the distance from the factory.
5
All these factors made the company a leading manufacturer of outdoor furniture in the European market. The organization generated high revenue and attained sustainable growth.
6
Analyzing the organization’s growth, the executives decided to level up the business and extend it overseas. For this, the company would require a strategic and analytical approach so that it could make a mark in the global market among its competitors.
7
The company’s management recruited Research Nester to curate a blueprint for the firm to go along with, analyzing the global outdoor furniture market and benchmarking competitors.
Our Solution:
Research Nester analysts conducted thorough research on the company’s manufacturing history, products offered, growth pattern, competitors, and net profit in comparison to the global outdoor Furniture Market and drew up the following key points for the company to adopt to excel in their overseas venture:
- Regionally, North America is expected to account for the largest market, in terms of demand for furniture, so opening up new ventures there would be beneficial.
- The company should renew its product line, by adding practical-looking furniture, rather than just providing luxury furniture as different regions have different demands.
- The company should also move on to selling singular products rather than sets only, for example, chairs are estimated to be the fastest-growing product in the sector.
- The firm should focus on its e-commerce first, by taking up orders from overseas commercial segments like hotels and restaurants through their website before setting up franchises physically there. This would help the company undermine the competition better.
Results
Following the blueprint set by Research Nester analysts through their competitive analysis and benchmarking consulting services solution, the company is set to make its debut globally. The firm upgraded its product line and came up with an international range of enhanced fabrics made from Teflon coated with polypropylene, which passed the Martindale rub test, making it resilient yet opulent. The firm started offering singular products also. The company gained a net revenue of ~USD 4 billion in the first quarter of 2022, higher than ~USD 1 Billion in 2020, and is all set to open its franchise physically in the US.
