Indian furniture industry pdf

Increasing global competition with manufacturing growth in emerging markets, improved logistics and lower tariffs on foreign trade put increasing pressure on EU-based companies. In the domestic market, increased demand for low-cost items makes it difficult for companies focusing on long lasting and quality products to compete.

Moreover, increased raw material, labour and energy costs within the EU also challenge business-as-usual practices. In order to face these existing threats, new practices and out-of-the-box thinking such as outward investments and joint ventures are surely one of their most preferred options. China is the market leader, but still falls behind traditionally strong competitors such as Italy and Germany in terms of quality and unit price.

It is also experiencing a growing challenge from lower-income countries such as Poland and Vietnam. Moreover, China now faces more unfavourable macroeconomic circumstances such as rising cost, shrinking international demand, technology gap and escalating trade barriers.

The current pandemic is further going to enervate their export position as these economies are deeply affected by COVID Need for integrated and cluster-based infrastructure development for furniture. The global and domestic trade environment, coupled with government intent for the growing indigenous capability in the furniture sector will provide a window of opportunity to exporters in India to harness the latent potential.

Exporters have been interested in enhancing their production capabilities by opening up manufacturing bases in identified regions. The furniture industry in India is dominated by micro and small units. Manufacturing units are not well-equipped in terms of technological know-how, access to capital, ability to design and innovate, control quality and market their products in international market.

To achieve the production levels, quality and design standards set by the international markets is the key for these micro and small players to maximize their potential and contribute towards the growth of the sector. Cluster based development would help to synergize their existing resources and provide an opportunity for these players to acquire technology, access capital, upgrade skills, encourage indigenous design and help MSMEs units handle large orders or cater to the need of the international buyers.

Thus, the common facilities proposed would benefit the entire industry, especially the MSME segment. Emphasis on four factors — lack of indigenous development and acquisition of technology, adoption of acquired technology through research, brand building and inadequate emphasis on human resource development is critical for the furniture sector in India.

Exports from the cluster are primarily value-added products, large volume and low volume goods. The idea is to promote and produce competitive products in which the country has a distinctive advantage. India should try and produce what it is good at and at the cheapest price so that people are inclined to buy and the product is competitive globally.

Also, the focus should now be on exporting more finished products rather than raw materials, to counter many tariff and non- tariff barriers. The other strategy is to identify new sectors that have the potential to sustain in the market for the next 20 years, like furniture. If we take furniture exports, India has abundant raw material, manpower, skills, etc. The government is subsidizing artificially to support uncompetitive sectors for long, which is proving to be counterproductive.

If we take the example of China, the focus on new sectors has yielded them rich returns. India should adopt a similar approach to futuristic sectors, and the furniture sector certainly merits attention in this regard.

Dear Abhishek, Very nice article providing holistic insights on the Furniture Industry. Hi Nish, you can try searching the hs code on many websites which provide this data of past years. Would definitely like to be involved in discussions on this topic and also invest more into this sector as we are already manufacturing office furniture on a large scale in India.

Thanks for sharing this great information. This furniture is very amazing. If you want more information about this furniture, you can visit my site. It will help me a lot. Toggle navigation. Oldest Newest Most Voted. Inline Feedbacks. Pratik Sharma. Various furniture companies such as Pepperfry, Urban ladder and others are creating huge demand from these online channels. Apart from this, the demand for low cost plastic furniture is also increasing in commercial sector.

The ease of business doing policies in India gives rise to new businesses across the country. In addition, these increasing numbers of small and medium businesses further boost the demand for low cost plastic furniture products. This factor is believed to foster the growth of India furniture market over the forecast period. Rapid urbanization in India and growing demand for modular and compact furniture is expected to positively impact the growth of furniture market in near future.

Further, growing urbanization in Indian states such as Gujarat, Maharashtra, Tamil Nadu and others is supporting the culture of housing societies. Moreover, the corporate sector in India is uplifting on the back of ease of doing business reforms introduced by the government.

These factors are believed to bolster the growth of India furniture market. Further, growth of real estate sector in India is anticipated to boost the demand for modular furniture in urban areas in India. Apart from this, rising investment in retail sector by various national and international entities is anticipated to foster the growth of furniture market in India. Moreover, the technological advancements such as availability of high speed internet networks such as 4G and spiked absorption of smart gadgets is boosting the e-retail sector in India.

These advancements further provide ease to the customers to buy furniture through online channels. In addition, the rising number of smartphone users across the country and online shopping is encouraging the furniture industry players to introduce their products through online channels. The players such as Pepperfry, Urban ladder and others are generating significant revenue through online platforms.

Apart from this, percent FDI policy for townships and settlements development project is attracting more foreign investors in the real estate sector which increase the quality of residential apartments. Further, rising demand for high-end and western style furniture is envisioned to bolster the growth of India furniture market by the end of However, the low cost furniture products offering by unorganized players further decrease the revenues of major market players in India.

Further, the unorganized players sell their product through local shops which decreases the cost of branded furniture. The high cost of quality and durable furniture in India is the major restraint for furniture industry.

The high cost of wood and leather further increase the cost of overall furniture product. Direct access to analyst to help you understand the market in a better way to handle your critical question. Citing your business specific requirement our consultant would assist you ensuring targeted goal is achieved.

All Rights Reserved. Request Data. Request TOC. Executive Summary 2. Research Methodology 3. Market Attractiveness By Distribution Channel 3. Risk Analysis 4. Demand Risk 4. Supply Risk 5. Growth Drivers 6. Challenges 7. India Furniture Market Segmentation Analysis 7. Market Attractiveness By Furniture Material 7. Competitive Landscape 9. Nilkamal Limited 9. Zuari Global Ltd. Wipro Enterprises P Ltd.