The furniture sector in Georgia is showing signs of strain as supply outpaces demand, according to Giorgi Dabrundashvili, General Manager of Ashley Homestore Georgia. Speaking on “Business Morning”, Dabrundashvili described the current state of the industry as economically challenging, with price reductions being driven by an oversaturated market.
“If I analyze the sector from an economic perspective, there is not entirely good news in the furniture industry,” he said.
Dabrundashvili attributes the market shift to the real estate boom of the past few years, which temporarily inflated demand for furniture. That surge led to the emergence of many new furniture businesses, both manufacturers and importers. Now, as real estate activity stabilizes and returns to pre-2021 levels, many of these businesses are struggling to maintain sales volumes.
“In recent years, a large increase was created by artificial demand, largely fueled by the war. Because there was a lot of demand, many players appeared in the sector. Now that the industry is returning to its previous state, there is an oversupply, so this forces you to lower prices,” he explained.
Despite the broader industry’s slowdown, Ashley Homestore continues to hold a stable position in the market. The American furniture brand operates three branches in Tbilisi and one in Batumi.
“In Batumi this year, there is no growth, if not a decline. Previous years saw more demand from incoming customers than locals,” he said. “Our main market is Tbilisi, which remains stable. We may even close the first half of the year with a slight increase.”
Dabrundashvili also acknowledged the growing strength of local furniture production, citing improvements in design and consumer trust. While this hasn’t significantly impacted Ashley’s sales, he noted that consumers have become more demanding, raising the overall level of competition in the market.
“The conclusion that the proportion of local furniture in the local market is becoming more real is accurate. We’re an American brand with our own design, so our niche is slightly different, but the market is definitely shifting.”
With the furniture sector recalibrating after years of abnormal growth, Dabrundashvili expects a normalization of 20–30% market correction, which he sees as necessary for long-term sustainability.
