MILAN — Little question, the pandemic era was a time to focus on one’s living and private working space. This renewed sense of pride in the house and office fueled substantial growth and consolidation for the design sector’s players across the globe last 12 months, a trend that is anticipated to persist throughout 2023.  

“We see potential for a 5 to 7 percent CAGR (compound annual growth rate) as a stable range of growth in the long run,” Claudia D’Arpizio, a Bain & Co. partner and Global Consumer Products and Retail lead told WWD. “Within the short term, we see headwinds emerging within the U.S. and Nordic countries, mostly linked with rising mortgage rates slowing down real estate. At the identical time, the Middle East market is accelerating, fueled by capital inflows [from an influx of Russian citizens] and a flourishing real estate market,” she added.  

Italy’s Molteni Group, which booked a sales rise of 25 percent to 460 million euros in 2022, explained that the post-COVID-19 increase was higher than normal and 2023 revenues must be in step with last 12 months’s levels, because the central role of the house garners increased importance.   

“For the past 40 years we’ve got had a median growth rate of about 10 percent,” said Giulia Molteni, Molteni Group’s chief marketing officer and granddaughter of Angelo Molteni, the group’s founder, who was also a key figure within the inception of Salone del Mobile in 1961.

For the 61st edition of the fair, which can run from Tuesday to April 23, home, kitchen and furniture label Molteni & C will debut its first outdoor collection designed by artist Vincent Van Duysen, who re-envisaged the famed Palinfrasca couch first designed by legendary Molteni designer Luca Meda within the ‘80s.

Giussano-based Molteni Group also owns office furnishing corporations UniFor and Citterio. Geographically, the U.S. and China are among the many family-run company’s top markets.  

“We see China as a long-term investment. We were one among the primary to reach in Greater China they usually are keen about our custom-made designs,” Molteni said.   

By category, Bain & Co. sees living and bedroom lighting growth driven by recent consumer trends. In its last report published in 2022, the firm said sales are expected to extend to 50 billion euros to 60 billion euros by 2026 from 40 billion euros recorded in 2021, with the living and bedroom and lighting categories expected to keep up positive momentum.

While the associated fee of raw materials and energy prices are stabilizing, furniture makers within the high-end segment have passed on the worth increases onto the patron. A big share of 2022’s growth, up 13 percent year-on-year, have been driven by price increases somewhat than volume, D’Arpizio explained.  

Poltrona Frau chief executive officer Nicola Coropulis, described 2023 as a “complex” 12 months as a result of inflation, uncertainty in China and provide chain disruptions.  

Poltrona Frau, which is owned by Haworth Lifestyle Brands (formerly often called Poltrona Frau Group), will unfurl a wide selection of categories within the residential and custom interiors areas, in order to supply its clients a wide range of solutions for his or her spaces.  

The Italy-based firm is now a part of Michigan-based Haworth Inc., which took control of Poltrona Frau in 2014 and whose portfolio also includes Cappellini, Cassina, Kvadrat and Janus et Cie, to call a number of. 

Into 2023, Poltrona Frau will focus on a simpler penetration in strategic geographies coupled with channel expansion. This 12 months, an additional give attention to the U.S. market will see an all-new retail concept and store in the guts of Recent York City on 181 Madison Avenue as a result of open its doors this fall; a relocation to a recent and bigger space of its retail store inside Harrods of London, and a recent store in Shanghai — the latter two each set to be ready within the third quarter.  

Supporting its multichannel approach to satisfy customer needs, Poltrona Frau will roll out its direct e-commerce channel by launching its e-shop to all major European markets including Scandinavia.  

“It could be difficult for me to predict with certainty how we’ll end the 12 months; nevertheless, I can say that our previous efforts have helped us achieve record performance in 2022,” Coropulis added.  

Based on D’Arpizio, a wave of consolidation is anticipated to comb through the sector within the near term.

“There are many ‘hidden gems’ that have began consolidating inside larger holding groups, and there may be [for sure] an overarching consolidating direction that can proceed within the years to return, with the target to hitch forces and adapt more quickly to ever-evolving market dynamics,” D’Arpizio added, explaining that more targeted investments in innovation, digital and business model advancement are key to advancing the sector as an entire.  

Given Design Holding’s strong sales momentum, the corporate’s CEO Daniel Lalonde said the corporate is well-poised to make much more acquisitions because it inches toward its long-term goal of becoming the LVMH Moët Hennessy Louis Vuitton of design.  

Founded in November 2018, Design Holding already comprises leading brands B&B Italia, Flos, Menu, by Lassen, Lumens, Louis Poulsen, Arclinea, Maxalto and Azucena and produces Fendi Casa through a three way partnership with the Roman fashion house. Design Holding has a presence in greater than 130 countries. 

Italian Design Brands, one among the nation’s largest high-end furniture and design holdings, recently confirmed its initial public offering will go ahead as planned before the primary half of the 12 months, despite market volatility.  

In total, IDB’s portfolio encompasses 10 corporations and 13 brands including upscale furniture brands Saba Italia, Gervasoni, and Meridiani; lighting corporations Davide Groppi, Axolight and Flexalighting in North America, in addition to luxury contract corporations like Modar and Cenacchi International, which makes installation of luxury furnishings for stores, showrooms, offices, hotels and prestigious homes on the planet.  

Based on essentially the most recent design sector report released by Fondazione Symbola, Deloitte Private and Poli, Italy’s sector is the world’s largest, driven by 30,000 corporations and 61,000 employees in 2020.   

Italy’s wood furnishing sector saw a 12.7 percent rise in 2022 versus 2021, increasing its value to 57 billion euros versus 43 billion euros in 2019, in line with preliminary figures for 2022, released by wood furnishings consortium Federlegno Arredo Eventi Study Centre. Despite rising energy and transport costs, market leaders remain optimistic about 2023, as design firms pulled through the pandemic years, fueled by consumer demand to renovate, and update their personal and industrial spaces, the consortium said in an announcement.  

Salone del Mobile’s organizers said that the most important event that can unfurl on the Rho trade grounds will bring together 1,962 exhibitors, including greater than 550 young talents under age 35 and 27 design schools. This 12 months, the Salone will include the thirty first edition of the Euroluce lighting biennial.  

“Needless to say we expect more visitors than last 12 months when the Salone was in June and still in a worldwide situation not completely settled down after the pandemic and in full war,” the fair’s president Maria Porro said.

Geographically, markets just like the United Arab Emirates and the U.S. are rising amongst top markets, together with Spain, Portugal and France. Recent regions have begun to point out interest in Salone del Mobile, amongst them India, South-East Asian countries like Vietnam, in addition to South Korea. Porro added that the fair has sold a solid variety of tickets to trade operators from China, “confirming that the country is back to its full normality.”