Furniture Online Company “Tylko” Wins European Markets Thanks to AR

The Polish company “Tylko” already has over 100,000 customers, some using 6-7 products. And yet it operates only in the e-commerce model, even though the penetration of this industry is the lowest in Europe (<20%). “Tylko” is growing at 40% annually on furniture online market, recording revenues of EUR 60M in 2022. The entire furniture market is shrinking by 20-30% annually.

It all started over 15 years ago with the creation of a design studio. Then a co-working space with an architectural firm. And finally, the Bridge company, which was very active in both design and technology with the use of AR. It helped to obtain funding from the Paua Ventures fund from Berlin, and then an international group of angel investors. The turning point, however, was the Przemiany Festival, organized in 2012, for which the company created the first furniture configurator.

When the company “Tylko” was founded, only 1 of its 5 founders had previously dealt with furniture. He also brought experience in parametric. It meand knowledge of what makes a given piece of furniture configurable in a controlled way by algorithms. The furniture was to be designed by customers. But the company had a hard time finding a partner who would produce them for them.

Moving small steps

When he was finally found, the business could start. The activity began with one product – a bookcase, but over time the offer has expanded to include much larger wardrobes, and kitchens are to be added soon. Using the application provided by “Tylko,” you can configure a piece of furniture for your own needs. Thanks to AR, you can see how it will look in the apartment.

With custom products, it was also necessary to have custom packaging, so the company wrote a system for them that produced dies for every size of the furniture. In addition, an innovative packaging method was added to optimize the space and pictorial, personal instructions for each order. And a sticker system on each element to make assembly easy. And customers also appreciate the fact that “Tylko” furniture is minimalist and straightforward in form. However, it is not cheap because its price reflects the high materials, accessories, and processing quality.

Furniture only online

From the beginning, the company focused on the affluent markets of Western Europe, which was possible thanks to online sales and sending the product straight from the factory to the customer. Not surprisingly, customers from Germany now generate the most revenue (40%), followed by the UK and France (both 15%). With high ratings on all industry portals, the chance of becoming a unicorn doesn’t seem remote.

Read more about Insbuy, an app to buy furniture from your TV.

 

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