furniture industry of bangladesh

Factors Influencing Growth of the Furniture Industry

Furniture industry is essentially an ever growing industry that requires employment of variegated raw materials in quite large proportions. The range of the materials includes wood, wood base panel, leather, glass, plastic, metals and textiles and many more. The furniture is manufactured in various types, size, shapes, colour combinations (such as sofas, chairs, wardrobes, mattresses, kitchens etc.) to serve different purposes like schools, institutional, offices and residential.

Bangladesh furniture is manufacturing and exporting high level of quality furniture in terms of design, fashion and technology. Bangladesh furniture has a strong image all across the world. However, a large segment of furniture is imported from various foreign countries as well. The Bangladesh furniture industry generates a turnover of Rs 3,500 crore annually. Eighty five per cent of the industry falls under unorganized sector and remaining fifteen percent is under formal sector, made up of manufacturers and exporters catering to the different segments of the industry. The market of wooden furniture solely owns the share of nearly Rs 60 crore. According to a recent study, the industry is expected to grow by 20 per cent in coming time.

Main Factors

The concept of good living and better lifestyle is fast catching up middle class’ mentality of Bangladesh. Interior designing is no longer confined to rich and wealthy Bangladesh. Even middle class people do not mind paying an added buck in getting their homes decorated with modern and designer furniture. These factors have resulted to a boom in decor industry especially when it comes to furniture. It is no more a surprise that foreign manufacturers are making huge investments in the furniture industry of India along with Bangladesh furniture manufacturers and exporters. Globalization has impacted a lot and this leads to the growth in demand of furniture. Media also plays a vital role in making people learn about good living. In conclusion, below mentioned four categories are the factors for the rise in furniture industry;

Architects Builders Interior Designers Participation in Furniture Trade Fairs for increased exposure

In addition to the major segments such as households, offices and schools, furniture is high in demand if we take other sub-categorized segments like Kitchen, Bathroom, Bedroom, etc. into consideration. According to a recent survey, there is an increase of 38 percent in home improvements and 37 percent increase is observed in leisure holidays, which shows two pursuits

of Bangladesh consumers willing to put huge sum to fulfill furniture requirements. This has led many leading foreign brands to make their genuine inception in Bangladesh industry via domestic retail outlets. Some of the big players in the Bangladesh furniture industry are Otobi, Navana, Hatil, Akhtar, Partex, Brothers etc. to name a few.

Furniture Industry of Bangladesh

Traditionally furniture industry in Bangladesh developed as cottage based industry. It is in 90’s when the furniture industry in Bangladesh has transited from cottage based industry to mechanized mass production oriented industries. Following that the furniture businesses began to grow accommodating modern machineries, innovative designs and use of diverse materials. Furniture industry of Bangladesh is shifting its focuses from dependency on teak for raw materials to processed wood .

The main varieties of products are wood, processed wood & Medium Density Fibre board (MDF), and laminated board, particleboard, rattan/bamboo and wrought iron furniture. For a more personal domain as one’s home, the preferred raw materials still remains solid wood, but combination of solid wood with other materials like cane, rattan, laminated boards, plywood and MDF are becoming very popular. But for offices furniture designs are usually focused on the more contemporary style and the preferred use of materials include plastic, MDF, laminated boards and wrought irons. Around 70% production of furniture sector of Bangladesh is home furniture and 30% is office furniture.

One of the key strengths of the local furniture industry is diversity in product portfolio . According to CSIL (Centre for Industrial Studies), Bangladesh has a strong potential in linking home décor craft items with the furniture industry. The export of furniture products from Bangladesh started from 1995. It is estimated that, by 2015 Bangladesh has export potential of crafts furniture accessories worth of USD 10 million along with furniture worth USD 40 million. The potential can be materialized through exploiting low labour cost which is a vital factor in becoming competitive in the world market. In wood furniture manufacturing, labour accounts for up to 40% of the total costs. In Bangladesh labour costs account for 20% of the production. Here, the hourly wage rate in furniture is between $ 0.06- 0.40, less than in China ($0.50- 0.75) which is the largest furniture exporting country .

At present two relevant associations i.e., Bangladesh Furniture Export Association and Bangladesh Furniture Industries Owners Association (BFIOA) are actively working on

materializing the potential of this sector. Bangladesh Furniture Export Association has 19 members.

Profiles of Furniture Industry In Bangladesh

Government of Bangladesh has declared the furniture industry as a ‘Thrust Sector ‘. The sector’s contribution to GDP (gross domestic product) is 0.29 percent on average, while the industry is comprised of around 41,560 enterprises and employs nearly two lakh skilled and semi-skilled people .

According the officials of Bangladesh Furniture Industries Owners Association (BFIOA)There are 28,000 furniture factories in Bangladesh (including all SMEs) among them 1,952 companies are registered member of furniture owner’s association. However, according to the baseline survey of furniture industry in Bangladesh by Dr. Ali Nesar Khan (2011), there are a total of 9,913 wooden and 2,628 non wooden furniture manufacturers in Bangladesh employing around 1,19,810 workers. Also there are around 74,926 carpentry households employing another 1,54,285 workers. Adding to this, there are 1,20,000 craftsmen producing soft furniture and 200,000 suppliers supplying raw and semi-processed materials. Out of this huge employment, almost 1,00,000 workers are women . Among the employees working in furniture sectors, 20% are working in large industries and 80% are working in SMEs . There are a number of furniture clusters in Dhaka which are located at Badda, Sutrapur, Mirpur area of Dhaka. A number of large companies have their factory in Savar and Gazipur area. Number of large companies is few compare to the total number of furniture industry in Bangladesh. There are 15 large Furniture companies are doing their business in the country which includes Otobi, Navana, Hatil, Akhtar, Partex, Brothers etc .

Table 1: Average sales and profit among different classes of furniture manufacturer.

Firm size Numbers of Enterprise

Average Annual Sales (BDT)

Gross Profit (%)

Net Profit (%)

Micro 7,961 1,877,400 21.6 9.87

Small 1,676 5,118,333 25.74 12.41

MSM 2 276 8,571,429 29.67 14.67

MSM 1 40 19,350,000 32.10 15.1

Large 35 104,100,000 35.80 15.8

In both local and international market, the growth of Bangladesh furniture market is evident. The booming real estate sector in Bangladesh and the rising demand of furniture product in world market, lead the expansion of furniture sectors in Bangladesh. In fact, the demand is so elevated that the demand supply gap is evident in Bangladesh. While the industry is growing at a rate of 9.55%, the demand for furniture is increasing by 20%. Local production for furniture of USD 958 million along with USD 16.84 million imports. Bangladesh earned $19.26 million from exports of wooden furniture in fiscal 2009-10 . Local manufacturers export to the US, Canada, Australia, UK, Middle East, Gulf countries, and other Asian countries, like India, Japan, Taiwan, Singapore, Thailand and Vietnam .

An analysis of EPB data since FY2006-2007 indicating 53.55% decrease in the export of soft furniture over a period of last four years and this decrease is due to the lack of design and technology research, lack of initiatives to promote this industry and keep abreast with other parts of the world . Nonetheless, according to Bangladesh Furniture Industries Owners Association (BFIOA), real export is much higher than (20% higher) than the official figure.

About 60% of raw materials of furniture sector are imported from different countries. Around 65% of wood comes through import. Most of the tic, gamar and hard wood come from Africa; oke wood and barmatic wood come from Myanmar. Around 100% of Wood coating and lock, 60% of ply board, 20% of particle board, 50% of adhesive is imported .

Table 2: Trend of export and import in furniture sector (soft furniture) of Bangladesh (Unit: US$ million)

FY 2006-2007 2007-2008 2008-2009 2009-2010

Import

Export 8.16 5.49 4.44 3.79

Source: Export data has been compiled from http://bfidexpo.com/furniture_association.php (accessed on 15 May 2012),

According to Bangladesh Furniture Industries Owners Association (BFIOA) one of the difficulties that the association (and government) currently faces is that maximum companies do not declare their real amount of sell; and that is why the figure of real trade volume is not available to the association or government for effective policy formulation. In addition to such problem, industries of this sector are also facing shortage of land. In the past, Furniture industry association demanded to have enough land so that an industrial cluster can be established where at least fifty companies can be accommodated. Though specific land was allocated in Kachpur area of Narayangonj district, the amount of land was quiet few (around 20 acre) compare to the Association’s original demand. In the end, land was not given to furniture association. However, a new location has been identified near Faridpur area where amount of land is much higher than land area of Kachpur area.

Furniture associations of Bangladesh participated in several fairs in Japan. Recent fair in Japan took place 2008; but the outcome of that fair is not as expected. One of the main reasons is the weakness of design of furniture products manufactured in Bangladesh. Therefore, this area needs much consideration for positive intervention. At the same time more marketing development in outside Bangladesh is necessary .

At present, there are no rules and regulation addressing standard of products from furniture sector is available. Hence, for effective export promotion of furniture product, it is necessary to maintain certain standard. In this regard, Katalyst, a foreign donor agency, is working on the development of furniture sector of Bangladesh. Moreover, the agency is also giving support to the sector in terms of market exploration and development. But their assistance is very short term and has no direct connection with the association .

Furniture industry is facing face shortage of wood supply from domestic forest. This is one of the great threats to the industry. To confront the constraint, initiatives have been taken both from government and from some private companies. In addition to that, Furniture Associations regularly organize programs to encourage people for tree plantation. The association also demanded to the government to lease certain amount land for tree plantation. Another severe problem which the industry is facing is shortage of electric supply which forced factories to maintain generator. As the cost of fuel of generator is getting higher, the production cost is going up .

There is no tax incentive for export of furniture product at the moment. However, the industry is discussing with EPB so that tax incentive can be applied to the sector. Under the circumstances,

EPB has given certain export target to this sector, which the association expects to achieve by this year.

Akhtar Furniture Acadamy is the first and only private institute that provides education exclusively on furniture. The institute commenced on January 2012 and at present the institute has facility to train student on furniture manufacturing, marketing, general education (like English course) and technical courses (like driving, electrical instrument repairing, electronics, computer education etc). The institute has planned to expand its branches in coming years (Targeted number of branches by year is: 6 branches within 2013, 64 branches within 2016 and finally 364 within 2020). Though the institute at present concentrates on short length courses (three to six months), it has planned to start four diploma courses also. The institute has applied for approval from Bangladesh Technical Education Board and hope to have the approval within June 2012. The authority of the institute has a plan to convert the institute into a well-functioning polytechnic institute in near future.

Major Furniture Industry in Bangladesh

Otobi Limited

Otobi is one of the pioneers in furniture industry in Bangladesh. At present, Otobi has the widest distribution network all over the Bangladesh, including over 400 retail outlets, exclusive dealers and franchises. Otobi has now franchise in Kolkata with distribution centers in sic cities in India.

Basic information of Otobi Limited

Established 1975

Product profile Wooden, Melamine Laminated Chip Board, MDF, Cane and Metal furniture.

Annual production volume BDT 6,600,000,000

Countries exported to India

Potential export destination Africa, Canada, Middle East, UK, USA.

Source: Booklet of Bangladesh Furniture St Interior Decor Exposition 2012; available athttp://www.bangladeshconsulatela.com/docs/Booklet_bfidexpo-2012.pdf

With an opening capital of just Tk 5,000, Nitun Kundu, a graduate of fine arts, starts the business Dhaka in 1975. At present, It has 300,000 sq ft factory in Mirpur, Dhaka. Otobi is the first Bangladeshi company to become global. Otobi builds its flagship 42,000 sq ft retail store in Gulshan, Dhaka .

At present, Otobi furniture can be considered as market leader due to their immense market share of the branded market (80%). During last three years, Otobi is having double digit growth in terms of annual sales . Otobi’s products range office, household, and hospital furniture to specialized furniture like kitchen cabinets, built-in cabinets and workstations. Otobi employs over 5,000 people in it’s corporate office and manufacturing plants.

PARTEX Furniture Industries Ltd.

PARTEX Furniture Industries Ltd. is a concern of Partex Star Group of Bangladesh. PARTEX Furniture manufactures solid timber and timber-substitutes products. The industry offers a combination of timber, special particleboard, and decorative plywood. Within a short span of time the company has been able to claim a sizable portion of the market. At present, the production area of the company is about 162,000 sft and the company is building a new factory of area 3,50,000 sft. Around 1200 skilled manpower are currently employed in this company. The company has strong backward integration for their furniture production as their sister concerns produce Particle Board, MFC board, Filled / Flush Door, Plywood, Veneered Board, PVC Sheet & Door etc .

Basic information of PARTEX Furniture Industries Ltd.

Established 1991

Product profileWooden furniture, Laminates Board furniture, Upholstery (Tubular Metal) furniture, Steels and Metal furniture.



Potential export destination Middle East, UK, USA.

Source: Booklet of Bangladesh Furniture St Interior Decor Exposition 2012;

NAVANA Furniture Limited

NAVANA Furniture Limited, a sister concern of Navana Group, was founded in 2002. NAVANA Furniture has its factory in Savar, operating in more than 12,000 sq.m area. It sells Office solutions, Home solutions, Medical and Lab solutions, Industrial solutions and Interior Designing Furniture.. The company has around 80 outlets across Bangladesh and also expanding business internationally. At present, around thousand of people are employed in corporate office and manufacturing plants of Navana furniture in Bangladesh

Akhtar Furnishers Ltd (AFL)

Akhtar Furnishers Ltd (AFL) commenced its business in 1976. At present, around 800 people are directly working under the shade of Akhtar Furnishers Ltd. The company have thier own seasoning capacity of 2000 cft. solid wood a month.

Basic information of NAVANA Furniture Limited

Established 2001

Product profile Home furniture, office furniture, project furniture, doors, wardrobes, sawn timber



Potential export destination European countries and Middle East

Source: Booklet of Bangladesh Furniture St Interior Decor Exposition 2012; available athttp://www.bangladeshconsulatela.com/docs/Booklet_bfidexpo-2012.pdf

PESTEL Analysis

A PESTEL analysis is a framework or tool used by marketers to analyze and monitor the macro-environmental (external marketing environment) factors that have an impact on an organization.

PESTEL stands for:

P – Political E – Economic S – Social T – Technological E – Environmental L – Legal

PESTEL Analysis for Furniture Industry In Bangladesh is given below.

Political Analysis

Section A: Question 1 of the survey represents the political issue for Furniture Industry In Bangladesh. The question was open ended and from the question the issues came up like-

Political stability Export-Import policy

Basic information of Akhtar Furnishers Ltd.

Established 1976

Product profile Wooden, Melamine Laminated Chip Board and MDF


Countries exported to Australia, UK, USA

Potential export destination USA, UK, UAE

Source: Booklet of Bangladesh Furniture St Interior Decor Exposition 2012; available at http://www.bangladeshconsulatela.com/docs/Booklet_bfidexpo-2012.pdf

Tax and Tariff policy Trade restriction Labor laws and labor unrest

Economic Analysis

Section A: Question 2 of the survey represents the political issue for Furniture Industry In Bangladesh Economic factors affect the purchasing power of potential customers and the firm's cost of capital. The question was open ended and from the question the issues came up like-

Economic growth Interest rates Exchange rates Rate of inflation Per capita income Labor cost Market/Industry trends

Social Analysis

Social factors include the demographic and cultural aspects of the external macro environment. These factors affect customer needs and the size of potential markets. Section A: Question 3 of the survey represents the social issue for Furniture Industry In Bangladesh. The question was open ended and from the question the issues came up like-

Income level Social status occupation Age Family size Cultural factors Fashion trends

Technological Analysis

Technological factors can lower barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions. Section A: Question 4 of the survey represents the technical issue for Furniture Industry In Bangladesh. The question was open ended and from the question the issues came up like-

Automation Social Media (Facebook, Twitter etc) Technology incentives Website Supply chain management Ease of accessibility, information and communication

Environmental Analysis

Section A: Question 5 of the survey represents the environmental issue for Furniture Industry In Bangladesh. The question was open ended and from the question the issues came up like-

Protection of nature Business Ethics Corporate Social Responsibility Ethical business operation

Legal Analysis

Section A: Question 6 of the survey represents the legal issue for Furniture Industry In Bangladesh. The question was open ended and from the question the issues came up like-

Consumer rights and laws Employee protection Health and safety of labor Consumer rights and laws Advertising standards

SWOT Analysis

A SWOT analysis (alternatively SWOT matrix) is a structured planning method used to evaluate the strengths, weaknesses, opportunities, and threats involved in a project or in a business venture. A SWOT analysis can be carried out for a product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective.

Strength

A firm’s strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage. Furniture Industry In Bangladesh Strengths were searched in Section 3: Question 1 of the survey through open ended question. The strengths are-

Strong brand name Unique Design Good reputation among customer Automation in production Software based central inventory Imported raw materials from China Customer database maintenance Wide customer base

Weakness

The absence of certain strengths may be viewed as a weakness. Section 3: Question 2 of the survey represents the weakness of Furniture Industry In Bangladesh.They are-

Lack of patent protection: anyone can copy the product Absence of high end product Not advertised at larger scale Poor website quality

Opportunity

The external environmental analysis may reveal certain new opportunities for profit and growth. Opportunities also arise from factors influencing consumer purchase decisions such as desire of quality, special discounts and offers, and excellent and competitive customer service. Section 3: Question 3 describes the opportunities.

Demand for Eco friendly product Zero wastage target for cost minimization Integrated marketing communication Niche for higher end products Opportunity to go global (Export)

Threats

Social trends showing lowered entrance of first-time buyers into the housing market affect furniture sale. Increasing competition and lowered disposable income are factors that motivate buyers to purchase low price furniture, even at the cost of compromising quality. Threats such as these, demands the furniture manufacturer to reform its value chain, and optimize innovative technology in order to provide good quality at lowered prices. Section 3: Question 4 provides a good insight on the threats for Brothers Furniture Ltd.

Shifts in consumer tastes away from the firm’s products Emergence of substitute products New regulations Increased trade barriers

How Does The Economy Affect the Furniture Industry?

According to the expert Leslie Carothers who has been in the furniture and interior design business for the past 31 years, is an international speaker and has also been the writer of Furniture Today.com’s *Retail Ideas* blog for the past 9 years.

She asked a question ‘Does the economy affect the furniture industry?’ and then she explained by visualizing with pictures. So let’s see what she explained about the furniture industries.

“The economy absolutely affects the industry, as furniture is a discretionary item” says Leslie Carothers of The Kaleidoscope Partnership, a social media and marketing company focusing on the furniture industry. “When the economy is good people are definitely more willing to invest in furniture as well as better quality furniture as they have more money for such investments.” In addition she believes that, “whether or not a local economy is strong, furniture companies,

whether retailers or manufacturers, who are executing in the following ways are thriving in today’s economy.” The companies that are more environmentally aware are thriving in the new economy.

Carothers explained that “The consumers are much more environmentally aware and more educated, thanks to the internet, about hoe their purchases impact the environment. Parents, especially, understand the importance of not having their purchases end up in a landfill. Companies that make or sell authentically and environmentally responsible products are thriving – whether or not the local economy is strong.”

Furniture companies working with Flash-Sale sites to offer something otherwise unattainable are thriving.

Companies working with flash-sale sites, like Joss and Main, One King’s Lane, Gilt, and offering items that are unattainable elsewhere are thriving because consumers want both quality and the most they can get for their discretionary dollar. Consumers want both quality and the most they can get for their dollar. Many shoppers may not be able to afford a new, high quality piece are now looking to purchase items from flash sales sites.

Retailers that are partnering with the vintage sites like First Dibs and Vintage and Modern are also doing very well. This as another profitable distribution channel for retailers that also have a brick and mortar stores. The stores that sell the vintage items are doing very well.

Furniture companies that realize today’s consumers are savvier and more educated than ever before are thriving.

Today’s customers are looking for items that fit their lifestyles, their personal styles and tastes, and those pieces of quality. All these factors play into their final decisions, and all within a certain capped budget. Carothers believes that “The blogosphere has a huge impact, and is doing a great job educating the general consumer.”

More importantly Carothers talks about the younger consumers (25-35 years) knowledge of sustainability. “These consumers have been educated since babyhood and that doesn’t mean green to them. It means quality to them. Because they are environmentally conscientious “they are open to alternative methods of purchasing furniture where they can get the good quality pieces that they love at prices they can actually afford today. There’s an awareness in their minds that we didn’t have.”

Furniture companies that realize that consumers are doing most of their research online and making their information transparent are thriving.

Today’s consumers are researching before making their purchases. They are buying things that they love, but they are going online to research quality and price and things that matter to them – whether fabrics are sustainable, or made here in the USA. Carothers believes that the younger consumers are now expecting the vendors that they know and love to understand and provide those kinds of items.

The economy’s influence on this, she explains, “Is that it’s forcing the consumers to look at all the facts and weigh their options. The internet, as we all know, has made that easier than ever. The US economy has forced today’s consumers to look much more carefully and make their choices much more carefully. They want the best they can get when they need it.”

Furniture companies that are willing to mix the old with the new are thriving. Social media and the internet are great influencers. “The blogosphere has made it hip and cool to own vintage pieces, to repurpose and up-cycle.” The newer items may not be as good quality as the vintage piece in the second hand store. Because of the bloggers, there’s no more stigma attached to owning a vintage piece of furniture. This really focuses on the younger buyer.

Furniture companies that are making or selling products geared toward the needs for universal design are thriving.

The older buyer, 50 and above, has a different focus and different needs. “The older consumer is looking ahead to retirement, downsizing to a smaller home and also inheriting inheritance. They purchase with the intent of need, as opposed to that of desire. They look at what they really want to live with for the rest of their lives.” Furthermore she adds, “I do think that people 50 and up are buying, but they’re buying much more judiciously.” Carothers explains, “but there are pockets of the country where the economy is strong and this does not necessarily apply there.

Furniture companies that are making quality products are thriving. “Regardless of the economy, people are looking to buy better quality and they are educating themselves before making their decisions. The impulse purchase pricing is not as strong as it used to be because people are taking time to really think about the need for their purchases. More and more are now consulting with friends and family more for help with their decisions. “People are looking for a little bit of approval so they don’t make the wrong decision – They’re looking for reinforcement.”

Carothers believes that, in the end, the economy is changing us, making us more aware, making us much savvier.

Furniture companies offering lower priced “on trend” accessories for the home are thriving.

Just as in fashion, the things that are trendy don’t have staying power. Accessories are the best way to follow and enjoy these trends. “Accessories are lipstick for the home,” Carothers explains. “That’s what people are doing. They’re buying their lipstick for the home in the form of pillows and all the other little pretties.” These smaller items are often seen as things that can potentially be given away as well, perhaps to children when they go to college or go out on their own. These are items that can be recovered easily or repurposed. There’s a conscientious effort being made to ensure that these items won’t end up in landfills, as the consumer thinks about the environment as well as the economy. Accessories are a great way to add color and personality. Accessories are a great way to follow trends even in a weak economy.

Furniture companies actively involved with new global markets are thriving.

“When you look at the global economy in respect to furniture, you have to look at the bigger picture and the manufacturer has to ask itself how big or small it hopes to be,” Carothers explains. “Would it prefer to be a small company with as few as 5 employees or would it prefer to be a global company with a world-wide presence. The manufacturers have to make those decisions as to where they want to be distributed and the economy impacts those decisions because if they are big they have to go where the money is. They have to in order to survive and stay in business.”

She explains, “If you look at all the points of distribution that are available to you as a retailer or manufacturer and you figure out how to best use those sites to your advantage, whether a blogger or some other resource – you suddenly have a lot of options you didn’t have before because you were too dependent on a local economy. If you’re a legacy manufacturer, now is a good time to

rethink your business and marketing strategies. This allows the legacy manufacturer not only to maintain relations with its current clientele but to take advantage of opportunities to develop new relationships as well.”

How trade shows help

Shows like High Point, explains Carothers, help bring the consumer, the marketer and the furniture companies together. Carothers believed that “High Point has worked well w the new economy and has done everything they can to support the new visitors in their show. Cheminne Taylor Smith, Vice President of Marketing for High Point Market Authority, and High point has revitalized High Point, and how she has done it is nothing short of truly spectacular. She has helped everyone there see what the [new] possibilities are. She used her position to reposition her market to reach visitors and new customers and made it designer friendly. She reinvented High Point and it is the biggest in the world.” By combining creative new ways of marketing and bringing consumers and vendors together, High Point is a perfect example of how thinking outside the box can help companies in furniture markets, and any other market for that matter, survive and succeed even during a down economy.

Carothers concludes by explaining that “The brick and mortar retailers that are thriving in this economy are those that are doing these things: They are interacting with their customers in social media channels, and via mobile apps. They understand and are making their stores destinations for out of the ordinary events because they understand that people need a place to connect and network off-line. These retailers are allowing their stores to be used as spaces to be used in creative ways, and in so doing they are becoming a destination place, and therefore becoming an important part of the community.”

Leslie Carothers is the founder and CEO of The Kaleidoscope Partnership and its division, Slow Down Social, delivering one on one internal training, onsite *Slow It Down Social* workshops and executive level social media strategic advice to international furniture and design brands and their executives. She is also the community manager for Olio board and has firsthand knowledge of how brands are using Oilbird‘s free site to reach and create relationships with today’s global consumers.

Conclusion:

Dealership’s financial success depends largely – next to fluctuations in demand and changing market conditions – on a good cooperation with the customers. Additionally, the decisions at the central level, including the timeliness of product deliveries, the amount of dealer allowance,

credit sales, trade promotion, ensuring product quality according to customers’ preference, and charging reasonable price are a decisive influence on the profitability of dealership business. The present research may have a contribution to the literature since it has been observed that value generation and promotion as the most important factor concerning the satisfaction level of the dealers of Partex Furniture Industry Limited (PFIL) under study. From the end user perspective both the authorities of PFIL and the regulatory bodies may attach more importance to the linkage between benefits provided to the dealers and the level of satisfaction of the dealers working with the industry. This organization may focus to increase its consumer sales promotional activities as the market needs. The findings of this paper will be beneficial both to the principal company as well as to the dealers of furniture industry in Bangladesh. For the companies this will help to get the maximum satisfaction of dealers’ of PFIL as well as its end users, in effect, dealers can play an important role to increase the earnings of the company. The major limitation of this paper is that this research was only conducted to explore and find out the factors affecting the satisfaction of dealers of Partex Furniture Industries Ltd. But it can be conducted on other furniture industries in Bangladesh as well as overseas.

References