furniture doc

8/3/2019 Furniture Doc

http://slidepdf.com/reader/full/furniture-doc 1/4

http://demo.fb.se/e/ikea/dreamkitchen/site/default.html

http://www.livemint.com/2010/09/22221609/Ikea-would-like-to-open-stores.html

Growth Of The Furniture Industry In IndiaEdit Article | Posted: Jan 30, 2010

Read more: http://www.articlesbase.com/furniture-articles/growth-of-the-furniture-

industry-in-india-1800876.html#ixzz1Ku8wS7d0

India is a land of wonderful and marvelous artistic work of wood. The rich handicraft

and beautiful traditional attributes of art and design have established a reputation

of Indian Furniture Industry in the nation and worldwide. The exceptional designs,

rich, compact, and luxurious trends and, not the least, the supreme quality have

given elegance to the furniture segment in the traditional as well as modern aspect.

The fast emerging concept of standard lifestyle, interior designing, sense of comfort andarchitecture has given Furniture Industry an essential ever growing platform and thusempowering the industry to be termed as great manufacturers and exporters of grand qualityfurniture in terms of art, style, technology and beauty. And of course, globalization and mediaare also strong factors to give rise to the industry. The strongest factor for this upraise is the hugeinvestment done by the foreign manufacturers and the credit definitely goes to versatile range of products by the industry.

The Indian wooden furniture industry is generating approximately a turnover of Rs 3,500 croreannually. The market of wooden furniture solely owns the share of nearly Rs 60 crore. And as per one of the survey done recently, the industry is expected to grow by 20 percent in coming

times.

The marked development of the industry has enhanced the leading foreign brands to budget intheir confidence and money in Indian Furniture Industry. The world market now feels pleasureand confident to join hands with Indian Furniture brands, to name few are Godrej & BoyceManufacturing Co. Ltd., Furniturewala, Zuari, Yantra, Renaissance, N R Jasani & Company,Furniture Concepts, Durian, Kian, Millenium Lifestyles, Truzo, PSL Modular Furniture, BPErgo, Tangent, Featherlite and Haworth and much more to add to the growth of the industry.

To conclude the vast development and growth of the industry, it can be well quoted that it hasinfact become a great pride for the nation to hold a magnificent impact for its fine art andmarvelous work in furniture all over the world. The future is with too many bright colours of growth miles and miles ahead in terms of unique furniture of all trends to occupy every thoughtof decorating or renovating the era for decades and decades. Three cheers for the excellentgrowth of Indian Furniture Industry.

Main countries of origin for furniture imports



http://www.articlesbase.com/myhome/articles/edit_article/1800876


http://www.articlesbase.com/myhome/articles/edit_article/1800876




Holding the 8th place in terms of consumption, India ranks only 33rd as an

importing country. Domestic demand is largely satisfied by local production, as

shown by the low import penetration ratio. Nonetheless, as the potential demand

for foreign products is huge, imports are increasing at a very fast pace.

India – a preferred destination for International BusinessIndia has undergone tremendous economic development in last few decades. Considering the fastgrowing and barely tapped middle class market, India has now become one of the most favoreddestinations for international businesses to expand. Some of the major changes and recent trends thathave given strength to Indian economy include India joining the trillion-dollar GDP club, fastgrowing middle class with rising income levels and majority of Indian population falling in below 34years of age. These trends along with the growth in sectors like real estate have a significant positiveimpact on the Furnishing Industry in India.

Furniture Industry in IndiaThe Indian furniture industry is fragmented in nature with many small players. In terms of value, thisindustry is worth INR 350 billion (2007-08) maintaining a growth rate of 10 percent. The organizedsector, which accounts to 10 percent of the total market, has contributed significantly to the overallindustry growth by witnessing significantly higher growth rate between 17 and 20 percent. However,the unorganized sector, as experts opine, is growing only at a rate of 5 to 6 percent.Industry Segmentation – The furniture industry can be segmented into the following threecategories:-

1. Household segment – The size of the overall real estate industry in India is estimated to be aroundUS$ 12 billion (Source: FICCI). This figure is growing at 30% for the last few years. Almost

80% of real estate developed in India is residential space and the rest comprise of office, shoppingmalls, hotels and hospitals. Within the household segment, major share is the middle class populationof India. About 25 per cent of the urban middle class populations live in homes with five rooms or more, while 45 per cent live in houses with three rooms or less.

2. Office segment – In line with the growth in the Indian economy and subsequent demand for officespace, this segment has witnessed good growth at a compounded annual growth rate of 20%. Thethrust on real estate and office construction is expected to sustain in the near future, indicatingcontinued growth for the furniture industry.

3. Contract segment – It primarily caters to hotels and its growth is consequently linked to growthin tourism and development of new hotels. As per the World Travel Market‘s Global Report 2008,scope for new tourism development could be seen notably in emerging economic giants India andChina, which are likely to remain a strategic priority as growth is predicted to be robust, albeit slowdown in global economy. The growth of hotel industry in India can be attributed to the recent growthin the service industry and economy as a whole.



The consistent growth in the Indian economy and rising living standards are the

key factors driving the demand of the Indian furniture industry. Other than

these factors, growth in the organized retail industry, real estate growth,

increasing affluence of Indian consumers and growth in hospitality and tourism

industry of India have significant influence on the industry demand.

Understanding the Value Chain of Furnishing IndustryE.4.1. Furniture Industry Value Chain

The value chain of the Indian furniture industry can be divided under two broad

categories – imported furniture and domestically manufactured furniture. The

channel flow across these two categories is summarized in respective charts

below.

Imported Furniture Value Chain:

Domestically Manufactured Furniture Value Chain :

Imports

Manufacturers

Importers

Franchisee

Own Stores

Distributor

Distributor

Retailers

Raw Material SuppliersManufacturers

Franchisee

Own Stores

Distributor

Raw Material



Market Segment Market Attractiveness Main Criteria / Advantages

Household Furniture – LowEnd Segment Huge target customer base,

advantage in terms of volume;

Minimum efforts andinvestments required for marketdevelopment (entry through JVand distribution through existinghypermarkets) and promotion;Huge demand but limited supplyfrom organized sector

Office Furniture Office Segment of India is in a booming stage, growing at a fast pace (20% CAGR), Limitednumber of sector strong playersin the industry,

Handicrafts & Décor Products There is no need for macro-investment; Products are presentthroughout the low value to highvalue added band, providing anopportunity to make goodmargins

Household Furniture – HighEnd Segment Increasing Affluence of Indian

upper middle class; Givenhigher disposable income,customers are ready to pay an

extra buck for better quality anddesigns; No strong industry player in this segment

furniture doc

Documents