Different types of video games dominate leisure time by demographic, so furniture manufacturers need to reevaluate how they perceive comfort. The growth of the popular game has surpassed the value of the music and movie industries. One of the reasons for this explosive growth is the global Coronavirus pandemic, where 4 out of 5 US consumers played video games in the 6 months to August 2020.
As a result, most furniture manufacturers today are concerned with making gaming enthusiasts sit as comfortably as possible. The problem is that manufacturers have mostly ignored this use case and are set to increase the price of gaming furniture because of several factors related to the pandemic.
There’s even more bad news for gamers. Game enthusiasts waiting for GPU speeds to drop or stabilize will be a big shock. The recent increase in the rate of Ethereum has led to an increase in the share of GPUs by AMD and Nvidia. As reported by DigiTimes, TSMC has informed its biggest consumers – AMD and Nvidia of its plan to increase the price of its chips by around 20%.
Reports suggest things will get worse as supply will also halve shortly.
There are billions of gamers in the world; therefore, improvements are needed to improve the gaming experience. The goal can be achieved by keeping the supply steady and controlling price increases. This is difficult but not impossible!
Gaming furniture increases in price
As a result of the high cost of PC parts, you may also need to invest in better gaming furniture. Such a move could alter predictions of future growth. Currently, projections suggest that the gaming chair market will experience a CAGR of around 5.2% between 2021 and 2026. However, this does not take into account recent price increases or a possible drop in demand.
In recent months, the price of gaming chairs has increased across the industry. Major gaming chair brands such as Herman Miller, Secretlab, AKRacing have increased prices by 10-20%. In an age of lockdown, this probably won’t help curb the need for voracious appetites. At the time, gaming chairs provided the necessary support for people who sat for more than six hours a day. Today, the world is no longer focused on COVID. Warm weather and more comfortable restrictions appear to be more conducive to increased fitness/outdoor recreation than gaming.
It is likely that demand will be affected. For example, it is now possible to spend over $2000 on a fully loaded Herman Miller Aeron chair. Meanwhile, Secretlab’s popular Softweave plush gaming chairs hover around the $700 mark. Both cite higher material and transportation costs as reasons for the increase. As a result, both insist they have no choice but to pass the costs on to their customers.
But it’s not just gaming chair brands that pass on shipping and material costs to consumers. Big retailers like IKEA are facing similar challenges with the same ‘get-to-consumer’ solution.
IKEA-Furniture giant raises prices due to supply chain troubles
IKEA – the world’s largest furniture brand is increasing the price of its products by about 9% on average. It is important because the furniture brand is constantly facing increasing material and transportation costs.
Previously, IKEA said it was buying containers; rerouting cargo between warehouses, and chartering more ships to minimize disruptions in the supply chain. But now it is said that they are forced to pass the costs on to customers because they expect the chaos to continue.
Other brands such as Herman Miller and Secretlab also said that in general video games prices of their gaming furniture and casual furniture will increase across markets, with local variation indicating varying inflationary pressures. , as well as supply chain and commodity issues.
IKEA will pass the cost on to retailers
IKEA revealed plans to increase the prices of its products in November after Inter IKEA Group, which supplies IKEA’s franchise stores, released its complete summary for the 2021 financial year.
Even after the furniture mogul experienced huge sales during the Covid-19 pandemic, its pre-tax profit fell 16% year on year, resulting in a loss of 320 million euros. “The increase is due to the sharp rise in raw material prices and evapotranspiration.”
Martin van Dam, IKEA’s chief financial officer, told Reuters that IKEA has long accepted video games price increases to keep the prices of its products stable. However, as supply chain issues are expected to continue well into 2022, the company plans to pass on some of the higher material and shipping costs to retailers. Store owners will have the final say on the extent of price adjustments.
According to Reuters, Van Dam said it will be hard to grow in fiscal year 22 because of pricing and scarcity of raw materials, along with logistical problems. He is optimistic for it, but it will be very, very difficult. towel for our retailers and even in our supply chain. “
The government research institute found that global supply chain problems are the result of a combination of factors. During the early days of the coronavirus pandemic, restrictions on social distancing and the overall economic downturn slowed down production.
In most cases, shortages increase in the manufacturing supply chain, with examples including plastics and glues. These are the main factors contributing to the current impact.
The coronavirus pandemic has also resulted in a shortage of talented workers, a worldwide concern, with the transportation and warehousing industries being impacted the most.
So if you plan on building your own facility shortly, you may end up paying more for the pieces of furniture you choose to set up.