Business Performance

What is the business situation?

Nugget launched on Kickstarter in 2014 as a company selling playroom furniture that can be used anywhere. They wanted to sell furniture through e-commerce in an easy way. They were targeting anyone and selling directly to people on the internet.

Currently, the company is seeking to extend its target audience to kids from 5 to 15 years old, and their moms, particularly moms making over $75,000 a year. For this reason, they need a new marketing and communications strategy to increase their brand recognition among this new target audience, in order to expand their market share.

Why does it matter?

E-retail:

Nugget is a specialty store because it is a retail business that focuses on a specific product category, that is futon/bean bag furniture
The share of furniture being sold from speciality stores is slowly increasing, from 41% in 2011 to 45% 2013
Business performance in this particular business model is growing, while slow, still growing

US furniture and home furnishings e-commerce revenue from 2013-2018 projections (in billions of US dollars):

17.7 in 2013
20.4 in 2014
23.3 in 2015
26.1 in 2016
29.2 in 2017
32.5 in 2018
Revenue increased (and forecasted to increase) steadily and by relatively the same amount between all years. Overall this business category is doing well and only getting better.

Furniture and home furnishings sales as percentage of total U.S. e-retail sales from 2013 to 2018:

6.7% in 2013 to 6.6% in 2018
Virtually no change
Small but steady share of the e-retail market
The statistics show the share of furniture and home furnishings sales in total U.S. e-retail sales from 2013 to 2014, and a forecast thereof until 2018
Furniture and home furnishings sales are expected to account for 6.6 percent of total retail e-commerce sales in the United States in 2017.

What are the gaps?

Furniture was one of the last segments of the market to join the e-retail movement. This means that online furniture sales are new and may not have had the same opportunity for growth as other e-commerce categories. Additionally, when buying furniture consumers often want to try the product out before they commit to purchasing it, which is an obstacle for online shopping.

Sources:

eMarketer. (n.d.). U.S. furniture and home furnishings e-commerce revenue from 2013 to 2018 (in billion U.S. dollars). In Statista - The Statistics Portal. Retrieved April 14, 2016, from http://www.statista.com.libproxy.lib.unc.edu/statistics/257524/us-furniture-and-home-furnishings-e-commerce-revenue/.

(n.d.) Share of the leading 100 U.S. furniture store sales from 2011 to 2013, by store type. In Statista - The Statistics Portal. Retrieved April 14, 2016 from http://www.statista.com.libproxy.lib.unc.edu/statistics/241688/share-of-the-leading-100-us-furniture-store-sales-by-store-type/.

eMarketer. (n.d.) Furniture and home furnishings sales as percentage of total U.S. e-retail sales from 2013 to 2018. In Statista - The Statistics Portal. Retrieved April 14, 201 from http://www.statista.com.libproxy.lib.unc.edu/statistics/278896/us-furniture-and-home-furnishings-retail-e-commerce-sales-share/.