FEASIBILITY ANALYSIS
Design Me
United Arab Emirates University
COLLEGE OF BUSINESS & ECONOMICS
ENTR310, Section ( 51 )
INSTRUCTOR: TEEMU KAUTONEN
Group Members:
1. Klaithem Alshamsi 201901426
2. Asma Alshehhi 201814220
3. Fatima AlAhababi 202008440
4. Maitha Alkaabi 201905332
Content:
Content………………………………………………………………... 2
Business idea:
Service………………………………………………………………….4
Actual Customers……………………………………………………....4
Customer Behavior……………………………………………………..5
Benefits of Becoming a Design Me Partner……………………………5
The cost of Design Me services………………………………………..6
Special offers…………………………………………………………...6
Payment Methods……………………………………………………....6
Sustainable Shipping & Packaging Methods……………………..…6 -7
Timeliness of Entry to Market…………………………………….8 -14
Customer Value Added………………………………………………15
Industry-Related Issues:
Number of competitors……………………………………………….
Stage Of Industry Life Cycle…………………………………………
Growth Rate of Industry………………………………………………
The importance of our app to customers………………………..
Industry Operating Margins…………………………………………...
Target Market:
Mid-life Success……………………………………………………..
2
Mainstream Families………………………………………………...
Young Achievers……………………………………………………
Customer-Related Issues:
The changing consumer……………………………………………..
Economic Downtown From COVID-19…………………………….
E-commerce Adoption……………………………………………….
Survey for target Market and Timeliness of Entry to Market…...
References……………………………………………………………
3
Business idea:
Service:
Leading online furniture delivery service operating in the United Arab Emirates.
Seamlessly connecting consumers with furniture companies. Place your order in just a few
clicks on our platform by choosing from a wide variety of existing interior design and
decorating ideas created by professional interior designer, or you can easily create your
own interior design using 3D models for free, we have the responsibility to offer exactly
the same pieces of furniture that customers choose by contracting with different furniture
companies such as IKEA, POTTERY BARN, ETHAN ALLEN, 2XL, DWELL,
CHATTELS & MORE, SANDRA BOTTICELLI.
The First Option:
The Second Option:
Actual Cutomers:
Providing interior design service to furniture companies to meet the needs of customers
and consumers interested in interior design and furniture service such as Generation Z and
Generation y since there is high demanded for furniture service.
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Customer Behavior:
Our platform will not cause significant change in customer behavior since they are familiar
with online shopping. In contrast, it saves time and money for the customer also reduce
the waste since customer can choose the appropriate furniture and help customer to work
more efficiently.
Benefits of Becoming a Design Me Partner:
Extra revenue stream
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Additional consumer
Delivery -- save the delivery cost
The Cost of Design Me Services:
Furniture delivery charges and are the additional costs that may be incurred while
installation service costs Dhs 40.
Cut fees around 40% from participating companies.
Special Offers:
Additional service fee of AED 50 for access to a wide range of existing interior design and
decoration ideas created by professional interior designers.
Payment Methods:
Credit Card
Cash Payment
Sustainable Shipping & Packaging Methods:
Way to benefit the environment we are planning to focus on obtaining Sustainable
Shipping and Packaging Methods:

Hybrid Electric Trucks:
A hybrid pickup truck will generally cost more than a gas-powered truck, the
increased fuel economy will allow for a three-year average payback period.

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Bulk-shipping:
Ship items in bulk is the least environmentally harming and it will contribute to
reduce the shipping price for the customers as well as the time.

Use Sustain Packaging that can be Repurposed:
a side that it is Eco-friendly to the environment it can also improve our brand image
for a typical customer.

Use Sea Freight Shipping and Rale Transport to minimize Emission:
Rail and Sea freight transport have the minimal emissions per km and unit
transported, while flight and automobile transportation generate emissions greatly
more.
Timeliness of Entry to Market:
7
To estimate the market entry timing by understanding associating factors and their relation
to the market entry timing using qualitative and quantitative research methods.
1- UAE Home Furniture Market:
UAE home furniture market is expected to observe a potential growth in the predict period,
2023- 2027. One important element of home decor is furniture, it has many applications
and can be customized to satisfy the requirements of final users via machine processing or
handcrafting.
ongoing technological progress and different innovations regarding
products, middle size and all companies in UAE are expanding the market presence, by
ensure new contracts and entering new markets. (TechsciResearch pvt ltd, n.d.)
E-commerce is a part in strengthening the market growth such as Amazon, Wayfair, and
Home Depot supply a large range of furniture goods from many major brands as a part of
their product portfolio. Moreover, the eCommerce market sector Furniture is focused on
the commercial online selling of various moveable goods created to assist various daily
actions and tasks. Branded furniture firms are gradually beginning to dominate this
industry. (TechsciResearch pvt ltd, n.d.)
Market Growth:
Bedroom Furniture sales is enhancing the Market Growth
The demand for multifunctional furniture is reason to motivate the market growth. The
real estate prices have dropped significantly which resulted into a major reduction in house
sizes. As the rooms size started to get smaller, increasingly, customers are looking for
easy-to-move and small size furniture for efficient use of the extra space. To meet such
kind of requirements; the vendor organizations have provided multifunctional furniture
with stores. In UAE, numerous mattresses with additional storage compartments are
becoming more popular. the growing demand for furniture that can be converted and has
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uses other than those of traditional furniture in the nation. These all contribute to market
expansion. (TechsciResearch pvt ltd, n.d.)
increasing Consumer spending on Furniture Products feeds the Market Growth
With the increasing percentage of consumers switching their preference to high quality
furniture products on account of the inflating disposable income and best lifestyle
demands, is greatly increasing the growth of the home furniture market. The average
yearly cost of furniture per consumer unit has grown, showing the market's steady
expansion. (TechsciResearch pvt ltd, n.d.)
Global Living Standards predicted to push the Market Growth
The UAE region's increasing urbanization and population increase are the main factors
driving the market's expansion. This is also driving up demand for home furnishings. As
a result, significant funds are being invested in infrastructure rehabilitation projects, and
consumer acceptance of stylish furniture is increasing, driving the market's expansion.
(TechsciResearch pvt ltd, n.d.)
UAE furniture Market Segmentation:
UAE Furniture Market by Product Type (Bed, Sofa, closet, Dining Set, Chairs and Others),
Raw Material (Wood, Metallic, Plastic and others) and All Room Types. Price Range
between Mass and Luxury. Distribution Channels are Furniture Outlets, Supermarkets,
Home Centers, Flagship Stores, Specialty Stores, and Online. (TechsciResearch pvt ltd,
n.d.)
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Market Players (competition):
AL HUZAIFA FURNITURE, Dar Al Décor Furniture, Danube Home, IKEA, Home
Center, Royal Furniture, Marina Gulf Trading, Alshaya Group, and homes r Us, are the
major market players operating in UAE market. (TechsciResearch pvt ltd, n.d.)
(TechsciResearch pvt ltd, n.d.)
During the period of 2020–2025, the UAE furniture industry is anticipated to see positive
CAGR. Due to the stability of oil prices in the foreseeable future, the country is projected
to experience an increase in the expat population due to the growth in nuclear families and
increased demand for residential flats. (TechsciResearch pvt ltd, n.d.)
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Key Market Trends:
Kitchen Furniture Segment
Residential kitchens have become significant part of houses in the country and are the
hearts of the households. clients in the market are intensely interested in designing kitchens
to their own taste. Consumers expenditures as much as AED 170,000- 420,000 to renew
their kitchens. (UAE Home Furniture Market Size, Share | 2022 - 27 | Growth, Trends,
n.d.)
(UAE Home Furniture Market Size, Share | 2022 - 27 | Growth, Trends, n.d.)
The Bedroom Furniture Segment:
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(UAE Home Furniture Market Size, Share | 2022 - 27 | Growth, Trends, n.d.)
Market concentration:
(UAE Home Furniture Market Size, Share | 2022 - 27 | Growth, Trends, n.d.)
Demand and consumers:
To meet the demands of the clients, companies are constantly developing adjusted and
customized products. Ready-to-assemble furniture is acquiring traction among customers,
due to the lower costs and compact models. (FURNITURE MARKET UAE, 2021)
In Abu Dhabi and Dubai, there are numerous overseas (170 nationalities and above),
accordingly, the country is developing as a potential market for of furniture. The demand
for furniture is possible to rise when Dubai adds 40,000 new hotel rooms and apartments
to satisfy the increasing demand of travelers following the “Expo 2020” in Dubai.
Additionally, The UAE Luxury Furniture Market is estimating at 2.5% in 2026.
(FURNITURE MARKET UAE, 2021)
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This increase in demand has resulted to the rising local demand and the appearance of
multiple players to the same audience. (FURNITURE MARKET UAE, 2021)
2- Delivery Service Market:
Many people in the UAE depend on the delivery service for all products, and with the
development of technology and economic improvement, the delivery service is more
widespread and successful. There are many well-known delivery companies in the UAE,
such as Talabat.
3- Level of Experience & Market Knowledge:
Most of our team are inexperienced and had little knowledge of the market and entry
strategies. Therefore, we aim to gain experience and penetrate the market before
planning our business.
4- Economic Stability:
One of the freest economies in the world is that of the UAE. This custom of
embracing trade and business dates back to the early history of the Gulf, when ships
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travelled to India and down the chasm of East Africa all the way down to
Mozambique. (Uae Economies, n.d.)
The UAE, which has business-friendly free zones and a rapidly expanding
economy, continues to be a strategic Centre. 2020 saw a $359 billion increase in
the UAE's GDP. This is a reflection of the UAE's abundant naturalresources, which
account for 10% of the world's oil reserves and the fifth-largest natural gas reserves.
(Uae Economies, n.d.)
The furniture market and e-commerce are expected to maintain rapid growth in the next
period from 2023 to 2027, and there are many competitors in the market. In addition, the
demand for furniture and delivery services is growing, and the economic situation is
expanding rapidly. All these factors will facilitate and accelerate timely market entry.
However, due to lack of experience and market knowledge, the timeline for restoring
market access is estimated to be moderately timely.
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Customer Value Added:

Incremental innovation:
The first company in the world linking furniture producers and customers in an
efficient manner through home design applications that provide you free interior
design and decorating ideas created by professional interior designer among
majority of interior design applications.

Good reputation:
Good reputation for two reasons. Firstly, the company has the responsibility to
bring every piece of furniture that the consumer wants within 5 days which means
we have a comparative advantage of delivery speed compared to other competitors.
Secondly, the quality of the furniture is high at the best price.

Corporate Social Responsibility:
Focusing on the environmental aspect by adopting a sustainable shipping and
packaging method.
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Number of competitors:
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Stages of industry life cycle
1- Development
2- Introduction
3- Growth
4- Maturity
5- Decline
The stages start with development Typically, marketing efforts start while a piece
of furniture is still being developed. In this stage of the product life cycle, the
target market is surveyed, their wants, objectives, and difficulties are examined,
and rivals and a market segment are generally observed. The outcome of these
measures aids designers in creating the final design of the product. After furniture
has completed all development stages and is prepared to enter the market, the
introduction stage begins. Additionally, it is a stage of customer base
development. Inbound marketing is a wise course of action in this situation. This
strategy calls for producing high-quality content that aids customers in finding
the business and understanding what it provides. This stage of the product life
cycle thus calls for the highest resources. Investments are required in this case for
everything from using social media influencers to creating traditional TV
advertising. Marketers look forward to following the product life cycle's growth
phase the most. This is the point where, if everything goes as planned, all of the
work and expenditures start to pay off. This stage determines the products' future
course and how long they will remain useful. Since it's the peak of the life cycle,
when a product reaches maturity, it implies that marketers are doing a good job.
The potential of the products is now fully realized, and sales have stabilized.
Maintaining these results for as long as feasible is the fundamental objective of
the maturity phase. The last stage is decline,Even the most popular product
eventually approaches the end of its useful life. A few months, a year, five years,
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ten years, twenty years, etc. The longer marketers postpone the decline, the better
job they did in earlier stages of the product life cycle. When it inevitably does,
the emphasis must be placed on limiting output, focusing only on certain TA
segments, and developing new goods.
Growth rate of industry

In 2022, it is expected that the Furniture segment will generate US$1,149.00m in
revenue.

Revenue is anticipated to rise at a rate of 10.18% per year (CAGR 2022-2027),
with a market volume of US$1,866.00m predicted by 2027.

With a predicted market size of US$123,500.00m in 2022, the country accounts
for the majority of revenue.

By 2027, 3.5 million consumers are projected to be using the Furniture category.

User penetration is expected to reach 33.0% by 2027 and will be 25.2% in 2022.
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
It is projected that the average revenue per user (ARPU) will be $453.00 USD.
The importance of our app to customers:
The importance of our app that clients are able to reduce the costs and time instead of
hiring another company to do the offline work. They also can keep redesigning by
themselves till they reach their preferred taste. Moreover, our app is Suitable for people
who are busy and don't have time to contact designers frequently, they can also see
different furniture and brands on one platform, which makes the search process easier.
operating margins:

In 2022, the furniture market amount $3.79 billion in revenue. The market is
expected to increase by 4.45% yearly (CAGR 2022-2027).

With a market volume of US$1.01 billion in 2022, the sector with the biggest
market share is living room furniture.
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
In terms of global comparison, the United States generates the majority of
revenue (US$235.30 billion in 2022).

In 2022, per-person revenues of
US$374.90 are earned. This is based on
population data.
Target Market:
Mid-life Success:
Most of the individuals and couples in this group are in their 30s and 40s and are childless.
These folks constitute the most affluent of the younger groups, having completed college
and holding professional jobs. They like to travel, stay active, and live in urban or suburban
areas. People in the mid-life success group are prepared to spend more on furniture if they
believe they are getting a better deal. They prefer high-quality, high-performing products,
but they also shop about to find the best deals. For them, aesthetics and design are
important.
Mainstream Families
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In smaller towns, mainstream families reside in modestly priced homes, mixing middleclass and working-class households. They like outdoor pursuits like sports and camping,
as well as watching television with their families. This market group purchases furniture
that is reasonably priced and versatile. They appreciate traditional designs and understated
beauty when it comes to fashion. Considering that many people still have young children,
durable and simple-to-clean products are a plus.
Young Achievers
Young achievers can be newly independent singles or young
families that are renting or buying new homes. Young
achievers are well-versed in the newest technology and
social media, despite having lesser household incomes
than their elder counterparts. To compare product
reviews and conduct price research, they will turn to the
internet. Complete room packages could pique their interest
because many of them may have just graduated or started their careers. Although they
value style, at this stage of their lives they are more concerned with getting the most
furniture for their money.
Customer-Related Issues:
The changing consumer:
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As more and more activities are performed at home and as homes are smaller, customers
will give bettering their living space top priority. Therefore, brands must create products
that are adaptable and compact. Consider comfortable velvet poufs to relax on after a long
day in front of the computer or useful, modular home office chairs and desks that
complement the decor of the home.
Economic Downtown From COVID-19:
Because of the COVID-19 epidemic, there has been increased unemployment and
decreased consumer expenditure, which has had a detrimental impact on demand for
discretionary items like new furniture. Furthermore, income restrictions are anticipated to
intensify the price-based rivalry between domestic operators and import competitors,
supporting sector consolidation. The coronavirus pandemic's revenue loss in 2020 and the
subsequent economic repercussions undoubtedly contributed to increased revenue
volatility.
The good news is that higher consumer spending brought on by restored employment and
improved demand for business owners in the industry will lead to a comeback in predicted
revenue in 2021. The growth in consumption of furniture and home goods through the first
five months of 2021 grew 31% from the same period the previous year and was
significantly higher than pre-pandemic growth rates of 5%.
E-commerce Adoption:
The majority of millennials (47%) purchase furniture online, compared to 40% of Gen
Xers and 37% of baby boomers. This trend will likely continue. Millennials are expert
comparison shoppers who use the internet and social media, and they will spend a few
weeks looking into things before making a purchase. As a result, furniture producers will
need to modify their items for these online marketplaces and add information and options
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for their younger target audiences. Whatever the case, offering more information and
options online is advantageous to all demographics.
Survey for target Market and Timeliness of Entry to Market:
23
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25
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References:
 TechsciResearch pvt ltd. (n.d.). UAE Home Furniture Market Size, Growth,
Trends,
Forecast
2027.
TechsciResearch
Pvt
Ltd. https://www.techsciresearch.com/report/uae-home-furnituremarket/11732.html
 UAE Home Furniture Market Size, Share | 2022 - 27 | Growth, Trends.
(n.d.). https://www.mordorintelligence.com/industry-reports/uae-homefurniture-market
 FURNITURE MARKET UAE. (2021, November 8). Ukrainian Association
of Furniture Manufacturers. https://uafm.com.ua/en/meblevyj-rynok-oae/
 uae
economies.
(n.d.).
THE
embassy.org/business-trade/uae-economy
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EMPASSY. https://www.uae-