Since the financial crisis in 2008, the US furniture industry has gradually recovered. The size of the US sofa market in 2012-2017 is growing steadily. In 2016, the US sofa industry market reached US$12.5 billion, up 8.7% year-on-year. In 2017, the market size reached US$14.2 billion, and the compound growth rate in the past five years was 10.55%.

American sofa industry has a high concentration

The US market CR2 (the largest two companies' output as a percentage of total output) is 32%, and CR10 (the largest 10 companies' output as a percentage of total output) is 79%.

The reason why the American sofa industry has a high degree of concentration is due to the early development of the industry. In the previous development process, it has experienced several rounds of reshuffle. Leading companies have gradually outperformed the industry with strong products and brand strength. In 2017, LA-Z-BOY had the highest market share, accounting for 21%, followed by AshLey and Manwah ranked second and third, with market share of 11% and 10% respectively.

Retail channel management with high control

American retailers have strong channel control, so product power and brand power are more important for furniture companies. Different from domestic furniture brands, they have strong control and offline channels. Professional furniture retailers are the largest channel for selling software sofas in the United States, accounting for about 71% of the sofas sold in the United States in 2017.

Functional sofa penetration continues to increase

In the American sofa industry, functional sofa penetration is significantly higher than in other countries. The main reason is that long-term user education + high disposable income, making the function sofa occupy the mainstream market. On the one hand, the United States is the birthplace of functional sofas and has a long history of development. In 2018, the US functional sofas accounted for 40.3% of the overall sofa market, and one of the two sets of sofas sold was a functional sofa.

（Source: JJgle.com）