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Interior Design Services
First Research, March 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US interior design industry includes about 10,000 companies with combined annual revenue of about $8 billion. Major companies include units of architecture and design firms such as Gensler, HOK, and Perkins + Will. The industry is highly fragmented: the 50 largest firms account for about 10 percent of revenue.
COMPETITIVE LANDSCAPE
Constructing and renovating residential, commercial, industrial, and institutional buildings drive demand for interior design services. The profitability of individual companies depends on accurate bidding, timely delivery, and a steady volume of projects. Large companies have advantages in marketing, developing partnerships, building a large client referral list, and getting priority service from suppliers. Small companies can compete effectively by providing better service, specializing, and using unique or custom product sources.
Competitors include suppliers and consumers. Suppliers compete by expanding their services to include interior design; consumers compete by establishing their own independent businesses, typically a home-based operation focusing on interior decorating.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services of interior designers are selling products as part of an integrated design service, providing fee-based consulting services, and managing subcontractors. Full service interior design services account for about 75 percent of industry revenue; resale of merchandise, 15 percent.
Homeowners, businesses, and government entities engage interior designers to plan, design, and supervise physical and aesthetic projects for interiors of buildings. Clients may hire interior decorators, who are part of this industry, to consult solely on the aesthetics of interior spaces, not the physical structure.
Designers...
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