The furniture industry in Sydney, Nova Scotia, Canada, is large and highly profitable. This is evident due to the availability of many well-established furniture stores, apart from Burke, that has a huge command of the market.
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The market share of the competitors in this industry is evenly balanced since each of them commands a particular niche in the market. For instance, Keltic offers a huge display of inbuilt furniture for its customers, while Schwartz offers different varieties of imported and inbuilt furniture to suit the taste of the consumer.
The largest share of the market is commanded by Burke due to the different varieties of products they offer, and this gives them an edge over the other competitors since they also offer American brands such as Ashley, Concept Décor, Intercon and Palliser among many others (BRAND SOURCE Burkes HOME FURNISHINGS, 2014).
Most customers prefer Burke due to the opportunity to customize their products meaning that Burke can design specific furniture for a customer depending on the color they choose as well as the design.
The market share ratio for Burke Furniture is 2:1, which means that for every two customers that purchase furniture at Burke, there is one customer who purchases from the competitors. This happens due to the high level of diversification and competition in the market as well as the location of the large industry players in Sydney. The insane offers customers are likely to receive from the competitors are also a factor.
The furniture market in Sydney is growing very fast and is characterized by fierce competition for customers by the major market players, which have led to numerous offers and discounts offered to consumers.
For instance, at the moment, Schwartz is offering a thirty-six months interest-free arrangement for a customer to pay for their furniture in installments. Furthermore, statistics from Canada show that the furniture industry in Sydney, Nova Scotia earned a whopping $171,389,000 in revenues alone (Statistics Canada, 2014). This is a huge amount and goes a long way to prove that the industry is rapidly growing and thus, Burke should expect more industry players shortly.
The Sales level in Sydney’s furniture market is affected by various factors such as; pricing, location, loyalty, and brand name. The customers in this region are sensitive to the prices being offered for the products they purchase. Schwartz is capitalizing on this by giving a discount of up to 30% and interest-free installments (SCHWARTZ Furniture, 2014).
Loyalty is also another factor that is determining the level of sales a company makes sense the reason Keltic commands a huge market is due to its existence in the industry for 25 years as well as their inbuilt furniture and state of the art showroom (Keltic Furniture, 2014).
On the other hand, customers are also responding to the brand name, and that is why most of them prefer Burke since they can purchase different customized designs which add to their aesthetic value.
The market opportunities to be explored involve coming up with a purely local and traditional brand of furniture made from locally available materials. This brand will aim at reminding the locals of their heritage. More so, one can also open furniture that allows the customers to exchange their old furniture with new ones at a specific fee. Burke can also capitalize on the need for imported brands and increase the variety of brands they have in store.
The key success factors in this industry are pegged on excellent customer service, fair pricing, and building customer loyalty by winning their trust.
In conclusion, the future of the furniture industry looks bright due to the emergence of new industries in Sydney, which translates to more offices and people who will need furniture. The increased competition among the industry players is also a message to any new entrants to brace themselves for a tough battle for customers.
BRAND SOURCE Burkes HOME FURNISHINGS. (2014). Retrieved Feb 18, 2014, from http://www.burkesbrandsource.ca/bcwen/furniture.html
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Keltic Furniture. (2014). Retrieved February 18, 2014, from http://www.kelticfurniture.com/about-us.html
SCHWARTZ Furniture. (2014). Retrieved February 18, 2014, from http://www.schwartzfurniture.com/
Statistics Canada. (2014). Retrieved February 18, 2014, from http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/trad38d-eng.htm