E-commerce in the furniture industry: an analysis of the emerging business models

Abstract

The current economic situation of Italian furniture industry presents strong inefficiencies in the traditional distribution channel because of its length, which increase significantly the final price and make Italian producers less competitive. E-commerce model is diffusing in this market, but it is not clear if this new channel may become a solution to push the recovery of furniture producers or it will create new obstacles. This dissertation will analyse what is the current situation of e-commerce business models in the furniture industry and define the critical factors that could hamper or strengthen that business. In particular, the first chapter will make an overview of the furniture industry and analyse the difficulties of the traditional distribution channel. The second chapter will examine the current e-commerce situation and the main critical factors a firm will take into consideration in order to open an e-commerce. The third one will scrutinize the different e-commerce business models and examine the advantages and disadvantages of each one. The forth chapter will present the analysis of two business cases in the Italian market, showing the functioning of a well-established e-commerce reseller ( Sediarreda) and the steps a producer has to pass in order to open a own e-commerce ( Uno contract).