Overview of Furniture Industry in India

Overview of Furniture Industry in India

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Topics • Introduction

• Growth of Indian Furniture Industry

• Characteristics of Indian Furniture Industry

• Influencing Growth Factors

• Key Customer Segments

• Indian Furniture Manufacturers

• Employment & GDP Contribution

• Conclusion

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Introduction

India is traditionally land of wonderful artistic works, and also renowned for its tradition, culture, heritage, and handcrafts. It has tremendous experience in the field of woodcrafts and furniture and huge customer base across the globe.


Growth of Indian Furniture Industry

• Market worth of 8 billion USD

• Grows every year by 20%

• Highly unorganized - only 20% is organized

• Organized sector growing at 30% CAGR

• Constitutes 0.5% of the total GDP

• Employs more than 3,00,000 people

• Wooden home furniture is the biggest segment

• 14th largest furniture market in the world


Characteristics of Indian Furniture Industry

• Industry; organized 20% and non-organized 80%

• Manufacturers - three-tier selling and distribution structure, comprising the distributor, wholesaler and retailer

• Segments; home market 65% and institutions 35%

• Imported furniture – 85% of Organized Furniture

• Importing Countries: Germany, Spain, Korea, China, Malaysia, Philippines, Indonesia etc

• Home market: Decor 68% and Furnishing 32%

• 11% of Wooden furniture imported, growing at 60%

• India largest importer in 2004-2005: 17%


Influencing Growth Factors

• Indian Industry: High Quality & Brand Value

• Good living and better lifestyles in India

• Growing middle class society

• Increasing exposure due to trade shows

• Huge foreign investments and healthy competition

• Better supply chain and logistic services

• Government reforms in tax regulations

• Growing e-commerce industries

• Small start-ups with innovative ideas

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Key Customer Segments

• Domestic

• Office

• Hotel

• Furniture parts


Indian Furniture Manufacturers

• Godrej & Boyce Manufacturing Co. Ltd.

• Zuari

• Furniturewala

• Yantra

• Renaissance

• Jasani and Company

• Durian

• Kian

• Furniture Concepts

• Nitraa Furniture Pvt. Ltd.

• Millennium Lifestyle


Employment & GDP Contribution

• Marginal contribution of 0.5% to India’s GDP

• Developed economies: China 20%, Europe 5%,

• GDP contribution is less due to un-organized sector

• Employs more than 3,00,000

• Highest Employment in Tamil Nadu: 23%


Conclusion

• Local tradition and culture contributed to ornamental woodwork for palaces, temples, public houses, and work of arts.

• Usage of wooden goods in home also increased lately, as people started using wood for decorating, furnishing cupboards and so on.

Thus the Indian furniture market grew from the ground level to now and which will further develop in future days

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Overview of Furniture Industry in India

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