Companies in this industry plan and design interior spaces such as hotels, hospitals, residences, commercial businesses, and offices. Although no major companies dominate the industry, a number of large architecture and design firms offer interior design services, such as Gensler, HOK, Interior Architects, and Perkins + Will (all based in the US), as well as Stantec (Canada), DB&B (Singapore), and M Moser Associates (Hong Kong).
The US interior design industry includes about 11,500 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $9 billion.
Construction and renovation of 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. The US industry is highly fragmented: the 50 largest US firms account for about 10% of revenue.
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
Full-service interior design accounts for about 70% of industry revenue; resale of merchandise, about 15%.
Homeowners, businesses, and government entities engage interior designers to plan, design, and supervise physical...