Furniture Distribution Channels

The flock of players in the distribution of furniture consists typically of export agents, import agents, importing companies, buyers’ groups that represent the interests of a larger number of collective importers, wholesalers, department stores and retail outlets of different kinds. The preferred flow of furniture is however from a manufacturer to importer or directly to retailer’s warehouse or chain stores because furniture is not well suited to multiple handling. Sometimes, it may be possible to sell directly to industries and institutions, and occasionally through a local manufacturer if the products complement each other. Some manufacturers sell direct to consumers through brand stores or factory outlets. Also, franchised stores by some major furniture manufacturers have become more common. These are specialized distributors, whose main business line is furniture.

As a contrast, there is also the non-specialist distribution, including department stores, Do – It – Yourself (DIY) stores and mail order houses, to which furniture contributes a minor part of their total merchandising. There are naturally country-specific differences in the importance of distribution channel members.

There is a tendency to shorten the distribution structure by cutting the middlemen out of the business. At the same time, the use of out-sourcing and contract manufacturing has become the new standard operating mode for the large international furniture industries. Flat-pack or knock-down (KD) furniture is a key transportation system to allow the expansion of such mass or middle market furniture business. In general, the transportation of KD items reduces the damage to furniture in comparison with assembled furniture. This has implications to packaging solutions as well.