There are several categories influential to the Nugget

Online furniture sale:

Industry Intro & Performance

• The Online Household Furniture Sales industry includes e-retailers and traditional furniture stores with significant online sales platforms.

• Over the past five years, many companies entered this industry because of its lower operational costs and sales tax collection advantages over traditional brick-and-mortar locations. “Over the next five years, continued economic improvements are expected to contribute to the industry's strong growth. Increases in per capita disposable income, consumer sentiment and homeownership rates will positively affect consumers' willingness to purchase big-ticket items, such as furniture. As a result, over the five years to 2020, industry revenue is forecast to rise at an average annual rate of 6.6% to an estimated $22.7 billion.”

• Product segmentation (Different categories)

• Since Nugget is a multipurpose couch set, it could be counted as any of four major furniture types.

• Key external drivers:

  • Per capita disposable income: When disposable income is low or falling, consumers are more likely to repair or delay replacing furniture.

  • Consumer Confidence Index: When consumer sentiment is strong, consumers are more likely to make large furniture purchases. If consumer sentiment is weak, consumers are likely to refrain from buying furniture due to fears of lower income, unemployment or a recession. The Consumer Confidence Index is expected to increase during 2015.

  • Number of broadband connections: The development of the Internet has been stable and flat

  • Homeownership rate: Homeowners are more willing than renters to purchase furniture and household goods because they feel their residence is more permanent. Therefore, as the homeownership rate rises, demand for furniture will increase.

• All of the above key external drivers are expected to increase over next 5 years (since 2015)

Resource: IBIS World.