Navigating FY 2024-25: Trends That Will Shape the Future of Furniture Retail

As we settle the 2024-25 financial year, the furniture retail landscape continues to evolve, driven by shifts in consumer behaviour and market dynamics. 

According to IBIS World’s report on furniture retailing in Australia from 2024-2029, the surge in home-centric lifestyles, increased discretionary spending, and adoption of pay-later financial solutions creates space for smaller, innovative players to carve out their niche.

Despite some challenges, such as a slowdown in residential construction and the rising competition from online-only retailers, the industry is set for positive growth, with a projected profit increase of 13.3%. 

In this blog, we’ll explore three key furniture retailing trends to watch in FY 2024-25 that will shape the industry’s future and provide actionable insights for staying competitive.

3 Key Furniture Retailing Trends to Watch in 2024-25

Trend #1: Online & Hybrid Shopping Experiences

Recent survey data from our marketing team highlighted that while 58% of participants still prefer making purchases in-store, 37% would opt for a hybrid approach, and 5% would purchase directly online. 

The emerging shift towards online and hybrid furniture shopping experiences is particularly noticeable among Millennials and younger generations, who are increasingly drawn to the convenience of online browsing and shopping.

They typically begin their purchase experience with big-ticket furniture items by researching options online before finalising their purchase in a physical store. On the other hand, older generations lean toward an in-store-only experience. 

Our survey also revealed that the primary drivers for online shopping include convenience, value for money, and the ability to browse or shop out of hours.

Furthermore, if online shopping were the only option, consumers indicated that high product quality, generous warranties, and clear return policies would positively influence their purchase intent.

For furniture retailers, adapting to changing consumer behaviours by enhancing the online shopping experience will ensure continued success into 2025. 

Trend #2: 3D Product Visualisation Tools for Online Furniture Shopping

As modern shoppers increasingly seek the convenience of hybrid shopping, furniture retailers must find innovative ways to bridge the gap between traditional in-store and online experiences.

The 3D Cloud Furniture Shopping Trends Study 2024, conducted in partnership with Provoke Insights, surveyed over 400 recent furniture buyers aged 25-69 to explore the intersection of digital and in-store experiences. One of the study’s focal points was the adoption and impact of 3D technology in the furniture retail landscape.

The study revealed that many consumers prefer to research products online before visiting a store to confirm that the quality and aesthetics match the online description. This finding underscores a key challenge: shoppers often need help to trust furniture quality based solely on online product descriptions and find it difficult to visualise how a product will look in their living space. 

Notably, 65% of participants preferred shopping with retailers that offer 3D product configurations and visualisation tools, and 72% indicated they would use these tools when shopping for furniture.

This illustrates the need for furniture retailers to adapt to evolving digital trends and highlights a growing consumer expectation for immersive and personalised experiences when shopping for furniture online.

By embracing 3D visualisation tools, furniture retailers can continue to differentiate themselves and maximise profit margins in an increasingly competitive market, meet customer expectations, and provide a seamless online shopping experience.

Trend #3: Sustainability is a Strategic Investment in the Future

As we look ahead to our furniture retailing predictions for FY 2024-25, sustainability remains a key consideration factor for modern shoppers committed to protecting the environment.

Today’s consumers, especially Millennials and Gen Z, are increasingly drawn to sustainable furniture brands and eco-friendly designs that support a circular economy.

These generations are not just advocating for sustainability—they recognise its significant impact on both present and future generations. Due to its shorter lifespan, fast furniture contributes to the escalating landfill crisis and perpetuates the waste cycle. 

For furniture retailers, embracing sustainable offerings is more than just following a trend—it’s a strategic investment in the future and an opportunity to gain a competitive edge by aligning with the values of consumers who prioritise quality, longevity, and environmental responsibility.

Furniture retailers can further this commitment by aligning with like-minded partners, adopting environmentally responsible practices, and highlighting the long-term cost-effectiveness of sustainable furniture crafted with higher-quality, durable, and eco-friendly materials.

Achieve Your FY 2024-25 Furniture Retailing Goals with Furnlink

As Australia’s premier wholesale hospitality and commercial furniture provider, Furnlink offers a partner program to boost sales and profitability for resellers and distributors of all sizes.

Our robust partner program supports your commitment to environmental responsibility and provides comprehensive assistance, including expert marketing support, efficient stock management, and nationwide shipping solutions.

By partnering with us, you’ll gain access to our extensive industry expertise, exclusive brand partnerships, and versatile furniture customisation options to expedite your success. We are dedicated to nurturing long-term, win-win partnerships, and we invite you to explore the benefits of becoming a Furnlink partner today.

For more information, contact us today to learn how we can collaborate to achieve your goals for FY24/25.