The Furniture Market in Vietnam

Delissa-July 28, 2023

According to the assessment of the Vietnam Timber and Forest Product Association, in recent years, there has been a strong increase in domestic demand for consumer furniture products. Among them, the purchase of household furniture items such as living room sofas, dining tables, and chairs has shown significant growth. Additionally, there is a notable trend of rapid growth in the demand for wooden furniture products for hotels, rented offices, and other establishments compared to previous years.

With a population of over 97 million people, rapid urbanization, and the construction of 70-80 million square meters of new housing every year, combined with stable economic growth, it can be predicted that the demand for furniture products in the domestic market of Vietnam will remain highly potential and stable in the long term.

This truly represents a promising market for foreign businesses to expand. However, successfully marketing your brand in Vietnam requires an approach that takes into account the unique characteristics of the market. In this article, we will explore the essential tips for effectively marketing a furniture brand in Vietnam.

I. AN OVERVIEW OF THE FURNITURE INDUSTRY IN VIETNAM

1/ Industry Revenue Is Constantly Rising

According to the Statista report, the revenue of the furniture and interior furnishings industry in Vietnam was estimated to be around 478 million USD in the year 2019. During the period from 2019 to 2023, the annual growth rate of the furniture industry’s revenue is projected to be 13.5%. Consequently, the furniture and interior furnishings business in Vietnam is forecasted to reach a revenue of approximately 793 million USD by the end of 2023.

Within this industry, the product category with the highest revenue is interior furnishings and household items, which generated 358 million USD in revenue in 2019.

According to Statista’s report, the furniture business revenue in Vietnam ranks 37th in the global furniture market.

Despite the average per capita income not being high, the demand for high-end furniture in Vietnam is not inferior to that of Hong Kong, Singapore, or other high-income countries. Among them, Hanoi and Ho Chi Minh City are two markets where the demand for luxury furniture products is rapidly increasing.

According to statistics from the Italian Trade Agency in Vietnam, the average per capita consumption of wooden furniture in Vietnam is currently over 21 USD per year. This translates to a total domestic furniture consumption scale of about 4 billion USD in 2018. In the same year, Vietnam spent nearly 500 million USD on furniture imports, and this is predicted to continue increasing in the coming years.

2/ Kitchen Furniture Is In High Demand

The period from 2020 to 2025 is predicted to be a booming time for the kitchen furniture segment in the Vietnamese furniture market. The kitchen furniture segment includes kitchen appliances and other wooden furniture items. Experts attribute the rise of the kitchen furniture segment to increasing urbanization, kitchen renovations, and significant investments from hotel industry entities and restaurants due to the tourism development in Vietnam.

II. FURNITURE BUYING BEHAVIOR OF VIETNAMESE PEOPLE

According to a survey conducted by a South Korean furniture company and published at the seminar “Trends in Using Interior Wood Materials from 2020 to 2022,” the majority of Vietnamese people still maintain the habit of visiting furniture stores to choose and order ready-made products. These products are readily available and cater to mass demand.

However, the survey results also show an increasing trend in seeking advice from interior designers and architects, especially in recent years when the lifestyle of Vietnamese people is changing. Alongside preserving traditional family values with shared spaces, there is a growing emphasis on respecting individual preferences and personalities. Therefore, it is understandable that the trend of self-selecting materials, shaping products, and seeking design advice when in need of furniture is on the rise.

The target audience for furniture selection is also experiencing significant changes, with women accounting for 60% – 70% of decision-makers, especially in products like kitchen cabinets and wardrobes. This proportion is expected to rise in the future. Hence, besides functionality, the aesthetic value of products needs to be further emphasized, and the trend of purchasing furniture online is also gradually growing with the explosion of the digital age and e-commerce platforms.

The Millennials generation (those born between 1980 – 2000) is becoming the main workforce globally and a potential customer group that the furniture industry has been targeting in recent years. These individuals are often not interested in physically visiting stores to view and select furniture. They tend to prefer buying online for convenience and time-saving. Alternatively, when purchasing high-value items, they often seek product information and reviews on websites or e-commerce platforms before visiting the store to see the products in person. This shows positive signs for international businesses selling furniture in Vietnam.

III. 10 ESSENTIAL MARKETING TIPS FOR THE FURNITURE INDUSTRY: HOW TO INCREASE BRAND AWARENESS & REVENUE

Currently, the competition in the furniture industry is fierce, making marketing campaigns more challenging to achieve effectiveness and requiring significant budgets. However, if foreign furniture brands know how to leverage Online Marketing and optimize its usage, your business can attract a large number of potential customers in Vietnam at a much more affordable cost.

1/ Optimizing Your Google My Business Account For A Wider Coverage

Google My Business is an effective marketing tool provided by Google, and it is free to use. Furniture stores can utilize this tool to enhance their visibility on Google with users, including appearing in search results and on Google Maps.

By verifying and updating accurate information through Google My Business, store owners enable Vietnamese buyers to easily find their businesses on Google. When optimizing your Google My Business account, your shop can be displayed across all Google experiences, especially for users searching for furniture stores nearby.

It is crucial to provide accurate and consistent information because the details from your GMB page will be synchronized with Google Maps. On the map, a list of businesses and stores will appear based on their registered locations, with the closest ones being prioritized and displayed first.

The information you need to provide, complete, and accurate includes:

Store name, address, opening hours, and closing hours.
Business category, description, contact details, and website link.
Operating area.

To make this tool work effectively, you should:

Publish daily content (including new promotions or details about products/services).
Respond to and publish customer reviews and feedback about your shop.

2/ Optimizing Store Website Enhances Customer Experience

The first impression accounts for 70% of the likelihood that Vietnamese customers will choose to use a product, so having a website with good interactivity is crucial. To create a lasting impression, your website needs to be professionally designed and visually appealing, as it represents the online face of your business. Particularly in the furniture industry, a beautiful website will showcase much more professionalism than a Facebook page.

Next, the information provided to customers must be well-organized, logically arranged, easy to use, and easy to find. Highlight the unique selling points you offer. This will determine whether customers will come to you or not.

International furniture businesses should pay attention to the following points after building a furniture website:

Avoid using too many colors: Furniture often emphasizes luxury, so using a few main colors is sufficient.
The website should be optimized for both desktop, mobile, and tablet devices.
Invest in high-quality and eye-catching images.
Use elegant fonts that are easy to read, without being overly decorative or blurry, and ensure there are no spelling errors.
Clearly display the shop’s address, phone number, and contact information.
Include a Chatbox for immediate support on the website and a hotline call button. Create quick communication channels between customers and the business as it allows for real-time communication and assistance with customers, attracting and drawing more customers to the store.

3/ Content Marketing – Being Well-Written Is Not Enough

Investing in Content Marketing is meaningful and persuasive, meeting the readers’ needs and showing that you care about consumers’ interests and have a passion for architectural beauty. This helps build long-term bonds with them, and they are willing to share their passion and common interests with you. Eye-catching and engaging content will attract new Vietnamese customers to you and quickly win them over.

Blog Category – This is a form of marketing encouraged to be used in the industry, showcasing interior decoration ideas, beautiful home designs, and cost-saving solutions. The content on your blog can deliver useful information to customers, improve the website’s search rankings, enhance marketing effectiveness, and establish brand credibility in the interior design and decoration industry.

Here are some content ideas you can consider:

Content addressing furniture and interior design choices.
Helping customers understand how to arrange their homes, stores, and business locations to be cozy and attractive.
Providing decoration tips from design experts.
Analyzing feng shui elements in building and interior design.
Publishing trending interior content such as interior color schemes, furniture arrangement, current smart and multi-functional interior trends, home decor trends, etc.
Content on how to preserve and maintain furniture for durability and beauty.

4/ Run Google Ads To Reach People In Need

There are 3 types of Google ads commonly seen in the furniture industry:

Search Ads: These ads are displayed when users search for specific keywords that have been set up for the ad. Therefore, the keywords should be related to the furniture products that the business is selling in the market.

Video Ads: These ads appear when Google identifies that users have an interest in the furniture industry.

Display Network Ads: These ads run on websites that users visit, and they will see furniture business ads on those websites they are browsing.

5/ Investing In A Long-Term Seo Strategy

Did you know that organic search and clicks account for more than 50% of website traffic? This is the result of building an effective long-term SEO marketing strategy. Therefore, doing SEO for your furniture store ensures that you don’t miss out on a significant amount of potential target traffic.

SEO includes all activities aimed at optimizing the website of your store. Local SEO helps increase the visibility of your business in local searches by combining keywords and location.

Remember, creating quality content on your website is crucial, so don’t rush through it. Instead, use your interior decoration knowledge to provide valuable information to consumers. The content should address the issues and questions that customers encounter, offer helpful advice, and provide suitable solutions.

Properly incorporate keywords into website content, such as in titles, meta descriptions, article content, introductions, and the Google My Business page of your furniture store. Distribute keywords naturally; Google may penalize content that excessively repeats keywords in one article. Therefore, including keywords sensibly will yield better SEO results.

6/ Social Media Marketing To Engage Customers

Facebook is also one of the channels that effectively helps you build credibility for your brand. By showcasing your furniture products on your fanpage, customers in Vietnam can easily see what you have to offer.

Moreover, the viral nature of Facebook is limitless, as each interaction from customers can spread to their friends, making your products visible to a wider audience. By leveraging this, you can sell your products and promote your brand more effortlessly.

In addition, with the rapidly increasing user base (currently over 120 million users on Zalo), Zalo has naturally become an effective and cost-saving marketing communication channel. Apart from its massive user base, Zalo also offers other outstanding advantages that attract businesses.

Below are some suggestions to maximize the benefits that social media brings to the home and interior decoration field:

Post content about interior products and positive reviews you have received. Customers will see the quality of your products and the reliable reputation of your customer service.
Share before and after images and videos showcasing the difference in home decor after using your interior furnishings.
Utilize customer reviews and feedback photos to post on social media platforms.
Run social media ads, targeting specific groups of customers to increase the effectiveness of your marketing efforts.

7/ Video Marketing Strategy – The Best Way To Showcase Your Products & Knowledge

Numerous studies have shown that users tend to prefer watching videos over reading text, and they spend more time watching videos. Videos have a high potential for application across various marketing channels such as websites, Facebook, TikTok, Zalo, YouTube, etc. Quickly get acquainted with and implement video in your interior furniture advertising to achieve high effectiveness.

Below are some content ideas for videos that you can apply to your interior furniture business:

Introduction Video: Who are you? What value do you provide? Why should people trust you? Customers tend to trust transparent and reputable information. Invest in a clear and captivating introduction video, keeping it concise and attractive.
Product Information Video: Through videos, users can learn more about the products they are about to purchase, such as their origins, materials (e.g., what type of wood is used for the table, where the statue’s ceramics are produced, whether the screws are made of iron or steel, etc.), all of which help build trust in your store.
Review Videos: Video reviews and feedback always receive attention. Real feedback from previous customers serves as a reliable basis.
Installation and Warranty Videos: Customers often worry about difficulties and complexities in installation and warranty processes. Show them that these tasks are straightforward and easy to perform.
Q&A and Knowledge-Sharing Videos: Provide tips on how to match interior colors for living rooms, libraries, and bedrooms. Explain which materials are safe for health. Highlight the benefits of choosing smart interior furniture. Show furniture that is safe for babies, …”

8/ E-commerce Platform – Expand Your Sales Channels

In addition to selling on Facebook and your website, you can also showcase your products on e-commerce platforms such as Shopee, Tiki, Lazada, and more.

These platforms have a large community of Vietnamese users with high shopping demands. Moreover, they offer various promotions and shipping policies, which make customers prefer shopping on e-commerce sites.

Furthermore, these e-commerce platforms often provide support for sellers and offer attractive advertising incentives. So, don’t hesitate to try selling your furniture products on these platforms.

9/ Great After-Sales Service For Customers

Furniture will not be a one-time purchase in a lifetime. Whenever customers need additional amenities for their home, move to a new place, or build/purchase a new house, they will have the need to buy furniture. Therefore, after-sales service is a crucial factor for customers to stay loyal to your business for a long time.

Consumers of furniture products always prioritize the credibility of the store as their top criterion when they intend to make a purchase. Furniture, similar to technology and electronics, requires skilled professionals with experience in installation and repairs. Customers will prefer vendors that provide installation, warranty, and repair services. Consider outsourcing or training an experienced technical team to serve customers whenever necessary.

Additionally, offer discount vouchers and special deals on occasions like birthdays. This creates an opportunity for customers to remember and return to you whenever they have a need.

This approach is a marketing method that directly targets the minds of customers, making it a sustainable marketing strategy.

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