The Swedish furniture industry – a study of strategic groups and performance

Figures & data

Figure 1. Nine strategic groups with the SFI (the sizes of the bubbles represent total revenue in 2017 of the different SGs).

Table 1. The Swedish furniture industry – growth and profitability.

	Growth % per year				ROA % per year (unweighted average)
Strategic group	04–17	04–08	08–13	13–17	04–17	04–08	09–13	14–17
Household furniture suppliers	−0.3	4.8	−2.6	−1.8	9.8	11.4	9.0	8.9
Bedding suppliers	0.7	−2.2	−2.0	8.3	7.4	8.5	3.9	10.2
Design furniture suppliers	5.0	12.3	−1.9	5.6	6.7	8.5	6.7	6.8
Traditional large office interior suppliers	1.0	9.4	−3.5	0.0	3.1	7.0	3.8	−2.9
Institutional sector interior suppliers	7.4	15.2	−2.4	9.6	9.7	11.7	7.0	10.6
Retail shop interior suppliers	3.9	11.6	0.8	−0.2	8.6	12.0	5.3	8.7
Kitchen/bathroom interior suppliers	7.7	7.2	1.0	10.8	11.4	12.8	9.0	9.1
IKEA suppliers	−0.8	10.7	−4.8	−4.4	3.8	6.6	1.5	3.1
Sub−suppliers	1.1	6.3	−1.5	−0.4	6.2	7.8	3.1	7.8

Table 2. The Swedish furniture industry – comparison between revenue-weighted and unweighted ROA figures.

Strategic group	ROA – revenue-weighted average	ROA – unweighted average	Difference
Traditional household furniture suppliers	10.4	9.8	6%
Bedding suppliers	8.4	7.4	14%
Design furniture suppliers	11.2	6.7	67%
Large office interior suppliers	3.1	3.1	0%
Institutional sector interior suppliers	10.3	9.7	6%
Retail interior suppliers	8.3	8.6	−3%
Kitchen/bathroom interior suppliers	15.0	11.4	32%
IKEA suppliers	5.6	3.8	47%
Sub-suppliers	7.1	6.2	15%

Table 3. Estimates of explanatory and performance variables as a basis for qualitative analysis.

Strategic group	Demand structure change	Exposure to low-cost competition	Power balance towards customers	Strength of competitive advantage	Growth	Profitability
Kitchen/bathroom interior suppliers	++	+	0	++	+++	+++
Institutional sector interior suppliers	++	+	−	++	+++	+++
Traditional household furniture suppliers	0	… –	… −	… .++	… .−	+++
Design furniture suppliers	++	+	0	… ++ (large) − (small)	++	++
Retail shop interior suppliers	+−> −	0	0	++	+(+)	++
Bedding suppliers	+−> −	−	0	0	0	++
Sub-suppliers	−	… −	… −	+	0	++
IKEA suppliers	.0	… –	… .–	0	0	+
Traditional large office interior suppliers	… –	… −	… −	… –	0	+

Table A1. The Swedish furniture industry – comparison of revenue and number of employees in 2004 and 2017.

Strategic group	Revenue 2017, SEK millions	Revenue 2004, SEK	Growth 2004–17	No. of employees 2017	No. of employees 2004	Growth 2004–17	No. of companies 2017	No. of companies 2004
Home furniture suppliers	1150	1200	−4%	490	900	−48%	17	24
Bedding suppliers	2500	2250	9%	880	1000	12%	7	10
Design furniture suppliers	1600	950	65%	760	690	12%	22	25
Traditional large office interior suppliers	3350	2960	13%	1.800	3100	−42%	3	3
Institutional sector interior suppliers	2650	1350	96%	1.290	1000	28%	29	33
Retail shop interior suppliers	1600	1050	52%	640	700	−8%	9	10
Kitchen/bathroom interior suppliers	5550	2760	101%	2.520	1850	36%	21	21
IKEA suppliers	2200	2450	−10%	770	1390	−45%	6	11
Sub-suppliers	850	750	14%	640	790	−19%	29	35
Total	21,450	15,720	36%	9790	11,420	−14%	143	172

Table A2. The Swedish furniture industry – firm sizes among SGs.

Strategic group	Revenue average 2017	Revenue median 2017	Employees average 2017	Employees median 2017
Household furniture suppliers	67	29	29	19
Bedding suppliers	354	241	125	122
Design furniture suppliers	72	57	35	26
Trad. large office interior suppliers	1122	713	599	251
Institutional sector interior suppliers	89	53	44	27
Retail shop interior suppliers	179	126	71	58
Kitchen/bathroom interior suppliers	265	75	120	36
IKEA suppliers	368	336	128	115
Sub-suppliers	33	20	25	17