ITALY INTERIOR DESIGN AND FURNISHING SECTOR

 Italy, a country with 13 industrial districts, has a long tradition of furniture manufacturing that has always boasted innovative and well-designed products.  According to FederlegnoArredo Studies Center, the Italian Federation of Woodworking and Furniture Industries, in 2022 the furniture sector went through a +22.2% increase in sales, with +26.7% in Italy and +16.3% in exports  – with respect to the first semester of 2021.  Given the national and international political scenarios, forecasts for 2023 are difficult to make.  Shortages with the supply chain, energy costs, increase in raw material commodity prices and inflation are among the critical factors affecting this sector during this historical pandemic and geopolitical period.

The pandemic has changed consumers habits and people are spending more for their homes for comfort during lock downs or isolation and in response to remote and hybrid work.  Italy’s Budget Law has extended the ‘Furniture Bonus’ also for 2023, with a Personal Income Tax deduction of 50 percent on purchases of new furniture and large household appliances in a variety of energy classes (A for ovens, E for washers, dryers and dishwashers, F for refrigerators and freezers) to furnish a property undergoing renovation, and consumers may be more prone to purchase furniture and household appliances, in spite of the increase in the cost of living.

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The furniture sector places great attention on sustainability and research of new production paradigms for a more effective use of raw materials.  Challenges that this sector will have to face in the future include digitalization (i.e. transformation of distribution channels with increase in eCommerce); technological development of production; effective management of supplies and logistics; improved service quality to clients; and environmental sustainability (i.e. recycling; reuse of products and packaging).

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