Oct 04 2020

Number of the month: Furniture investment after VAT reduction

Together with GfK, we present facts and figures about the furniture market every month. This month's topic is the impact of the VAT reduction ...

...of the Germans are planning to bring forward purchases in the area of furniture (incl. kitchen) due to the temporary reduction in value added tax. 
In this context, 8 percent of those surveyed say that they will definitely buy earlier than planned and 24 percent would like to make the decision dependent on whether they get a particularly favorable offer. These are the findings of a representative GfK survey conducted in June 2020.

GfK consumer climate on the rise

After the Germans held back with purchases, particularly in April, the GfK consumer climate has been recovering since June and the propensity to buy is rising. In the case of more expensive products in particular, the reduced value-added tax can certainly be an attractive incentive to buy. Germans have been keenly interested in their own homes, and not just since the Covid 19 pandemic. Germans are far more domestic than people in other countries. 74 percent value their home as a personal retreat where they can relax. And Corona has once again significantly increased the amount of time people spend on domestic activities: 37 percent watched TV more often than usual, 34 percent cooked more often, and 23 percent each spent more time doing housework or working in the garden. In contrast, almost a quarter of Germans cancelled a planned vacation and stayed at home instead or took a vacation in their own country. These are also the findings of a GfK survey conducted in June 2020.

Marketing opportunities: Who buys?

It makes sense to invest in your own home to make it comfortable. Women and people between 18 and 39 years of age in particular, and above-average numbers of families, are therefore planning to invest in new furniture earlier than planned. A chance for the furniture industry to convince exactly this target group with attractive offers.

Read here the 3 views of 3 experts on the subject of VAT reduction

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