Fact. The Covid-19 pandemic changed the rules of the game in several industries, and many of these new standards are here to stay, whether we like it or not. Reminiscing about the “good old days” when everything was done in person will not help us. The only way forward is to embrace the new reality and adapt to the shifts that will most certainly continue to unfold.
Let’s see what’s happening in the furniture industry now that restrictions are being lifted and life is going back to what it was before (or is it?). In 2020, the pandemic made it essentially impossible for brands to sell their products using traditional channels, and B2B companies were forced into the e-commerce space, which, until then, had been uncharted territory for many of them.
They had to learn quickly, and now e-commerce has become the ultimate sales channel.
In a way, it was a perfect storm situation in the B2B furniture industry.
The trade show format, where EVERYTHING used to happen, was no longer an option in 2020, while customers wanted to buy more and more furniture (people were forced to work and study from home spending most of their time there, and many decided to do home improvement projects). Faced with this challenge, companies realized that something had to change drastically, as regular sales channels simply wouldn’t work.
Clients were looking for ways to make their living arrangements more comfortable, almost everybody wanted a home office now, and people had to be able to order everything online. That’s why a digital transformation (more like a revolution!) happened in the B2B furniture industry.
A sector that traditionally relied on face-to-face sales and marketing had to adapt, it was a matter of survival. Developing e-commerce and figuring out how to take orders online was the only way forward.
It was absolutely necessary, considering how the home industry was dealt a number of tough blows on several fronts. The cost of materials surged, supply chains were disrupted, because manufacturers all over the world, and especially in China, experienced serious problems. Due to material shortages, established partnership arrangements between producers of fabrics, furniture frames and other components fell apart. Some factories went out of business during the strict lockdowns in China when workers were not allowed to travel between provinces.
Even now, many production lines have not yet resumed operations.
Since specialists responsible for the development of new samples and quality control were not able to travel and be physically present at manufacturing facilities, it was hard to launch production at new factories. Brands found themselves in a dead-end situation – it was simply impossible to set any delivery dates.
So the demand for new furniture was growing exponentially, but brands could not rely on any of their established strategies to meet that demand. This forced companies to embrace e-commerce and employ digital channels ASAP.
The e-commerce boom in the B2B sector changed everything. E-commerce used to be something that was GOOD TO HAVE. Now it's a MUST HAVE for all B2B furniture companies. What else is there if you can no longer develop relationships at tradeshows, factories and in offices? When travel is restricted, digital tools are your only option.
In 2020, digital capabilities became a lifeline for various industries that had to adapt to the new social distancing guidelines. Switching to digital technology helped numerous companies across the country to reinvent their operational models in an instant, draw new customers and minimize supply disruptions.
Digital tools also helped enterprises acquire more accurate data about customer behavior and needs.
The furniture industry is no exception – e-commerce is pushing the market forward, as millions of consumers are switching to online shopping.
One thing is clear – e-commerce is here to stay, it is not going anywhere after the pandemic. On the contrary, it will continue to grow and develop.
It is important for brands to accept this new reality and act accordingly. Major digital transformation of all marketing efforts and sales channels is the first order of business.
Everything should be taken online – online consultations, video workshops for the team and dealers, product promotion webinars, virtual showrooms and collection presentations, product video libraries, materials and sales terms.
The digital revolution is not just some crisis response, it is also a solution to multiple issues the industry was facing long before the pandemic. Digital tools align several aspects in the sales and product training space. For example, webinars and automated webinars bring the efficiency of communication with dealers and the sales force to a whole new level. Video libraries promote the brand to huge audiences and strengthen it globally. Video consultations make it possible for retailers and designers to learn everything they need to know about products outside the tradeshow framework.
Now if someone is unable to travel and be physically present at market they will not feel like they are missing out, because virtual showrooms and market videos will be available online in real time.
What’s our key take-away from all this? B2B furniture companies are going digital, and the trend will continue. You need to get with the program (if you haven’t started yet), because, honestly, it had to be done YESTERDAY.
