Testing a new concept for the furniture industry

Sustainability has been part of Slettvoll Møbler's DNA from the very beginning. Creating long-lasting products that can be passed down through generations has always been fundamental to the business. The factory's location in Stranda, Sunnmøre, makes it a cornerstone of the local industrial community.

Slettvoll is a major player in the Scandinavian furniture market, with exports accounting for around 30 per cent of its sales. In 2021, Designindustrien, part of the Federation of Norwegian Industries, named the company 'Exporter of the Year'. In announcing the award, Designindustrien attributed Slettvoll's success to its distinctive export model and firm control of the entire value chain.

At a time when furniture was sold exclusively through large retail chains, Slettvoll chose to break away and opened its first shop in a barn in Bærum in 1999. Today, the company has 19 shops across Norway, as well as prime locations in Sweden and Denmark. Slettvoll is an innovative company at the forefront of design, textile use, functionality and process technology.

Sustainable production and furniture longevity are becoming increasingly important, but encouraging customers to invest in quality rather than a 'use and discard' approach requires new business models. Slettvoll is strengthening its commitment to sustainability by offering furniture leasing and selling pre-owned furniture.

In partnership with Sparebank1 SMN, the company has developed a pilot solution for the business market, which will later be launched for private customers. Customers can lease the products and take out a service and maintenance agreement. When the lease expires, Slettvoll takes back the furniture and restores it for further use. The furniture is then sold as pre-owned or as so-called B-grade products, reaching a new customer group. The aim is to make it easy for customers and better for the environment.

'This is an interesting and timely project with significant potential, including opportunities to expand into Scandinavia and Germany in the near term. Slettvoll is leading the way in its industry, and no other companies offer leasing and second-hand sales through their own stores in the way they plan to,' says Kari-Anne Lade Gjørvad, our customer adviser in Møre og Romsdal.

Based on the project's risk and environmental profile, we have awarded grants for both the preliminary and main project phases, totalling NOK 3.9 million.

'We have also emphasised that the results will be made available to other furniture manufacturers. The concept is new to the furniture industry and could generate strong profitability and significant value creation in Norway,' says Gjørvad.

'We now have a clear marketing strategy for the leasing project, and we expect to reach a large customer base that will drive more traffic to our stores. Our collaboration with Innovation Norway has been extremely valuable in several ways, from discussing ideas with our customer adviser and mentor to development and investments,' says Karoline Fløtre Gati, Project Manager at Slettvoll.

She emphasises that our support has enabled them to maintain the pace of the project and helped make the launch possible.

The new business model will bring changes across the entire organisation. Product development will need to place greater emphasis on repairability when designing furniture, customer service staff will need training and closer contact with end customers, and stores will offer a new service for furniture maintenance and the sale of second-hand furniture through dedicated digital platforms.

'We will keep the industry updated on what we learn from the project. Leasing and the sale of used furniture are both widely discussed in the industry, and many companies are keen to make them a reality,' says Gati.