Online shopping in India is becoming mainstream where spending per shopper has doubled in the last 5 years and is adding ~20+ million new product shoppers every year. India’s strong online shopper growth trend will be a key growth driver for Online Home and furniture category as well.

1. Furniture and home market is geared to become $40 billion by 2026

Over the next 5 years, market recovery is strong across the board driven by pent-up/ deferred demand, with online sales expected to be growing at a strong 39% over FY 20 – 26.

2. The online furniture category will foresee 3X growth in shoppers in the next 5 years with a ~1.8x jump in annual spending per shopper. This will enable >5x GMV growth for the category over FY 21-26

The online furniture category is seeing a steep growth with more and more shoppers putting trust in online for high ticket furniture purchases.

3. Similarly, the online home category is expected to see a growth of ~2.5x in shoppers in the next 5 years with a 1.3x jump in the annual spending per shopper to indicate ~4x GMV growth

The online home category includes home decor, furnishings, mattresses, and lighting. The category is growing at a fast pace given the quantum of choices, quality packing, and access to delivery.

4. Verticals are particularly strong in higher priced furniture & mattress category

Within the furniture category, verticals have crafted a niche for themselves. Verticals dominate the premium “Solid Wood” market whereas horizontals dominate the budget “plastic/metal and engineered wood” market.

5. The ASP on verticals is 10x higher for furniture and 2x higher for décor than horizontals, indicating the difference in target customer base

Verticals are focused on a set of customers who are experience conscious, look for choices and quality of the product than just price, and willingness to pay and for the online channels is high.

Horizontals are strong in the mass market whereas Verticals have a strong positioning in the Masstige. Verticals with superior omnichannel presence, customer experience, product innovation, specialized supply chain, and technology capabilities are well-positioned to scale.


  • Mrigank leads business research and strategy engagements for leading internet sector corporates at Redseer Strategy Consultants. He has developed multiple thought papers and is regularly quoted in media and industry circles.