How is the industry doing? An update on the international transport crisis

This essential occasion for all industry professionals is, once again, rich in detail. Some 1056 individuals – representatives from brands, specifiers and retail – answered the questionnaire related to the June to September 2021 period.

Business activity remains dynamic
At a time of emergence from successive lockdowns, the economic recovery has also included the world of decor. Over the past four months, sales remained stable for 31% of respondents, and 40% of them indicated that they increased. And this increase is significant, because it’s from 25 to 50% for 41% of those surveyed, and even over 50% for 13% of them. It is for brands that this trend is the strongest, with 59% of respondents noting an increase in sales figures. An increase in sales took place for 40% of retail representatives and 32% of specifiers. And the upswing looks set to last: 71% of brands consider prospects for the next four months to be positive or very positive, as do 64% of specifiers and 55% of retailers.
Other figures indicate renewed momentum. Thus, boutiques have added an average of 6 new brands to their assortments over the past four months, compared to 4 in the previous period. On the specifier side, the number of residential projects surged by 47% compared to the previous period, and an average of 7 projects were signed, compared to 5 during the previous barometer.

"We are usually optimistic, but there are a number of global and local factors, which we cannot ignore, and which severely impact the behavior of our clients. With the coronavirus in our rearview mirror, we now have to deal with global economic woes left in its wake by the pandemic. Recovering from that is going to take at least as long as it has taken to get us into this situation."
Anonymous interior designer or decorator (United States)

53% of retailers are experiencing longer supply times, and many of them, an increase in purchasing costs. 

Sourcing is a concern
When reading the Barometer, we can see that the raw materials and merchandise transport crisis is also affecting the world of decor, particularly shops and specifiers. In these two categories, a third of buyers feel that that are being strongly impacted by a total disruption in supply or by limited inventory from their suppliers. 53% of them are experiencing longer supply times, and many of them, an increase in purchasing costs. Due to this situation, 55% of specifiers and 42% of retailers have already chosen to source more locally, with a quarter of individuals surveyed considering this option in the coming months.
This global phenomenon is impacting many industries. Such is the case for the toy sector, where concerns are growing as we approach the Christmas period, or in the building sector, where certain materials – wood, aluminum, etc. – are becoming scarce, prompting delays and cost increases. 

"Transportation costs inbound is currently 5,5 times higher than normal this time of year. Now outbound costs of transportation and congestion in the outbound lines of transport have begun to increase and tense up."

Anonymous brand (Denmark)

“I no longer order certain products, because I can’t risk having to pass on the cost for products that, as a result, won’t sell as well. When it becomes possible, and when the increase can be controlled, I will raise product prices in store and explain to my clients that the cost of raw materials, such as cotton, for example, have been subject to inflation.”
Christel THIERY, Owner of MARIE-PIPELETTE – Independent decor shop/concept store (France)

"Unfortunately, we have to import all finished elements needed in a interiors remodeling project, so lead times have to be closely analized. For small projects I source locally with what is available at the time."
Gina Molinari, Conceptos Diseño y Construcciones – Architecture (Honduras)

Online sales and the secondhand market are gaining ground
This second edition of the barometer has also allowed certain trends to stand out. For example, for shops, online sales are increasing considerably. Thus, over the past four months, 34% of retailers have observed an increase in sales volume from their online store(s), and 45% of them, an increase in sales via online marketplaces.
Similarly, the secondhand market seems to be seeing progressive growth.
Currently, 41% of retailers believe that they will need to develop this offer in the future, and major players have already gotten into the game: Zalando, La Redoute, les Galeries Lafayette, etc.
The trend is even more significant for specifiers: for 45% of those who responded to the survey, demand from their clients is increasing in this area, and more than two-thirds of specifiers consider it essential to offer these types of products in the future. 

“Local or national sourcing for Gen X consumers, and secondhand for Gen Z consumers, are underlying trends.”

Anonymous independent decor shop/concept store (France)

“It would be nice to be able to have access to secondhand materials, and not just furniture, so we could take a more ethical approach, and to reduce costs on certain projects.”
Bénédicte OLDRA, Director of BO INTERIEURS – Interior Design or decor (France)

Discover the infographic, which reflects the major indicators of the Barometer, as well as comparisons with the one conducted in May 2021.