Challenges and opportunities for the leather furniture market
Our latest eguide details how replacing outdated equipment and processes with Versalis can help you capitalize on the customization, premiumization and ecommerce trends in the leather furniture market.
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Leather Furniture market overview
Today’s leather furniture shoppers want it all: unique, personalized furniture that showcases their style, luxurious, stylish furniture made from sustainable materials, and top-notch quality. Current consumer expectations mean manufacturers need to offer an array of furniture models, finishes and colors to satisfy every taste.
In contrast to the past, where furniture buyers used ecommerce sites for research and browsing purposes, customers searching for furniture online are ready to buy. However, consumer expectations for fast delivery speed means manufacturers must streamline and optimize production to deliver products quickly.
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With the leather furniture market projected to grow at a CAGR of 4.4% from 2024 to 2031 and online furniture sales set to exceed $166 billion by 2025, leather companies hoping to seize these opportunities need to address the following challenges head-on.
What are Furniture industry challenges
- Competition
In addition to competitive pressure with other leather furniture manufacturers, leather furniture companies are now contending with the perception that synthetic leather furniture is a more eco-friendly alternative.
- Cost
With raw leather prices fluctuating and the costs associated with material procurement comprising approximately 60% of total production costs, manufacturers are under immense pressure to minimize waste.
- Sustainability
As sustainability becomes a more pressing concern, reducing hide waste is no longer just a cost-saving measure—it is an industry necessity.
- Efficiency and visibility
Traditional leather-cutting processes are labor-intensive, which can lead to inefficiencies and a lack of visibility into production timelines.
- Speed
As consumers increasingly turn to the internet for their furniture purchases, manufacturers must find ways to speed up production without compromising quality.
Transform challenges into opportunities with Versalis
Manufacturers that invest in digitalized, data-connected cutting with Versalis Furniture have been able to achieve premium quality with less waste, boost material savings by 3% and increase throughput by 25%.
How did they do it?
Standardized quality
By digitalizing the cutting process, Versalis reduces variability, ensuring uniform product quality, regardless of operator skill level. Advanced features such as AI and augmented reality for flaw identification enhance product quality while reducing the need for costly recuts.
Increased hide yield
Versalis’ automated nesting and highly precise cutting ensures that companies get the most from every hide. The advanced nesting software uses powerful algorithms and optimal combination strategies to increase material savings by up to 10% compared to manual processes--regardless of operator skill.
Maximized throughput
The integrated, all-in-one cutting line boosts throughput, cutting up to 20 hides per hour. As a result, manufacturers can reduce costs and enhance productivity while meeting consumer demands for quick turnaround times.
Latest resources
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