69fcb Potential of Furniture Market in India (Market Outlook To 2020 - 2015 PDF

Market Intelligence 2015
Potential of Furniture Market in India
POTENTIAL OF F URNITURE MARKET I N

I NDIA
( MARKET OUTLOOK TO 2020)
Indonesian Trade Promotion Center Chennai 1

T ABLE OF C ONTENTS
List of Figures -------------------------------------------------------------------------------------------- 6
List of Tables --------------------------------------------------------------------------------------------- 8
1. Introduction ---------------------------------------------------------------------------------------11
1.1. Market Definitions ................................................................................................11
1.2. Defining the Market by Products .......................................................................13
1.1. Abbreviations ........................................................................................................14
1.2. Market Size and Modeling...................................................................................16
Approach – Market Sizing ...................................................................................16
Variables (Dependent and Independent) ..........................................................17
Multi Factor Based Sensitivity Model ................................................................17
Final Conclusion....................................................................................................20
2. The Potential of Furniture Market in India ------------------------------------------------21
Historical India Furniture Market, FY’2010-FY’2015.......................................21
Organized and Unorganized Furniture Market ...............................................23
India Furniture Market Structure .......................................................................24
India Furniture Market Future Potential, FY’2016 - FY’2020..........................26
2.1. By End User, FY’2015 ...........................................................................................30
Housing Segment..................................................................................................31
Bedroom Furniture ...............................................................................................32
Living Room Furniture ........................................................................................34
Dining room Furniture.........................................................................................35
Kitchen Furniture..................................................................................................36
Office Segment.......................................................................................................36
Hotels, restaurants, cafes Segment .....................................................................37
3. Market Information------------------------------------------------------------------------------40
3.1. Trend of Furniture in India..................................................................................40
Home Furniture Preferences ...............................................................................40
Office Furniture .....................................................................................................42
Hotel Furniture......................................................................................................44
Industrial Furniture ..............................................................................................47

General Style of Furniture in India.....................................................................48

General Style of Indonesian Furniture in India ........................................................49
3.2. Regional Demand of India Furniture Market, FY’2015 ...................................51
Western Region .....................................................................................................51
Southern Region....................................................................................................51
North Region .........................................................................................................52
Eastern Region.......................................................................................................52
3.3. By Type of Cities, FY’2015 ...................................................................................54
3.4. User Profile of Furniture in India .......................................................................56
3.4.1. By Age, FY’2015...............................................................................................56
3.4.2. By Income Group ............................................................................................57
3.4.3. By Gender, FY’2015.........................................................................................58
3.5. End Buyer Behavior..............................................................................................59
3.5.1. Buying Habits ..................................................................................................59
Seasonal Demand..................................................................................................59
Repeat and New Customers................................................................................61
3.5.2. Product Cycles.................................................................................................62
4. Trade Information--------------------------------------------------------------------------------65
4.1. Furniture Import in India, FY’2010-FY’2015 .....................................................65
4.2. By Imports (Value, Volume, Major Destination), FY’2010-FY’2015 ..............66
Furniture Trading and Margin............................................................................71
4.3. Furniture Supplier Countries ..............................................................................72
4.4. Competitor Analysis.............................................................................................74
China.......................................................................................................................74
Malaysia .................................................................................................................75
Indonesia ................................................................................................................77
4.5. Indonesia's Role in Supplying Furniture in India ............................................80
Role of Indonesia in India Furniture Market ....................................................80
Strengths and Weaknesses...................................................................................82
Import Regulations ...............................................................................................84

Import Policy of Furniture in India ....................................................................85

Non Tariff Barriers................................................................................................86
Quality Standards and Certification Requirements.........................................87
Certification Procedure ........................................................................................87
Environmental, Social and Health Safety Requirements for Imported
Furniture.................................................................................................................87
Packaging and Labeling .......................................................................................87
4.6. Distribution Channel of Furniture in India.......................................................88
4.6.1. Domestic Manufacturing Model...................................................................88
4.6.2. Import Based Model .......................................................................................91
5. Strategies -------------------------------------------------------------------------------------------93
Competition Snapshot of Major Organized Furniture Players in India .......94
Conclusions from Competitor Analysis ..........................................................103
Appropriate Business Model.............................................................................104
Export Opportunities..........................................................................................106
Entry Barriers.......................................................................................................108
Strategic Alliance.................................................................................................109
Technological Impact .........................................................................................109
Prospective Product Category in India Home Furniture Segment..............110
Effective Management of Stock Keeping Units ..............................................111
Efficient Utilization of Roles of Human Resources........................................112
6. Important Information------------------------------------------------------------------------ 114
Trade Promotion Officer in India of Foreign Countries................................114
Indian Embassy in Indonesia ............................................................................115
Chamber of Commerce in India- ASSOCHAM..............................................116
Indian Chamber of Commerce in Indonesia (INDCHAM) ..........................118
Directorate General of Foreign Trade (DGFT)................................................118
Chamber of Commerce of India for Indonesia- Indo-ASEAN-Sri Lanka
Chamber of Commerce & Industry..................................................................125
Association of Southeast Asian Nations..........................................................126
Association of Furniture Manufacturers and Traders (India) ......................127

List of Furniture Product in Fairs Organized by Association of furniture

manufacturer and traders ..................................................................................129
Indonesian Representatives in India ................................................................130
List of Importers..................................................................................................131
Disclaimer ----------------------------------------------------------Error! Bookmark not defined.
Contact Us----------------------------------------------------------Error! Bookmark not defined.

L IST OF F IGURES
Figure 2-1: India Furniture Market Size on the Basis of Revenue in USD Million,
FY’2010-FY’2015 ----------------------------------------------------------------------------------------22
Figure 2-2: India Furniture Market by Organized/Unorganized on the Basis of
Revenues in Percentage (%), FY'2010-FY'2015 --------------------------------------------------24
Figure 2-3: India Furniture Market Future Projections on the Basis of Revenue in
USD Million, FY’2010-FY’2020----------------------------------------------------------------------29
Figure 2-4: India Organized Furniture Market Segmentation on the Basis of End User
by Revenues in Percentage (%), FY’2015 ---------------------------------------------------------30
Figure 2-5: India Organized Home Furniture Market Segmentation by Major
Furniture Categories on the Basis of Revenue in Percentage, FY’2015 -------------------32
Figure 2-6: India Organized Bedroom Furniture Market Segmentation by Major
Figure 2-7: India Organized Living Room Furniture Market Segmentation by Major
Figure 3-1: India Office Furniture Segmentation by Contract Furniture or Ready to
Use Office Furniture on the Basis of Revenues, FY’2015 -------------------------------------44
Figure 3-2: India Furniture Market Segmentation by Product Designs on the Basis of
Number of Orders in Percentages (%), FY’2015 ------------------------------------------------49
Figure 3-3: Indonesian Furniture Market in India Segmentation on the Basis of
Product Designs, FY’2015 ----------------------------------------------------------------------------50
Figure 3-4: India Organized Furniture Market Segmentation by Regional Sales on the
Basis of Revenue in Percentage, FY’2015---------------------------------------------------------53
Figure 3-5: India Organized Furniture Market Segmentation by Type of Cities on the
Figure 3-6: User Profile by Age Group in India Organized Furniture Market on the
Figure 3-7: User Profile by Income Groups in India Organized Furniture Market on
the Basis of Revenue in Percentage (%), FY’2015 ----------------------------------------------58
Figure 3-8: User Profile by Gender Category on the Basis of Number of Orders in
India Organized Furniture Market in Percentage (%), FY’2015 ----------------------------59
Figure 3-9: Buyer Behavior on the Basis of Seasonal Demand in India Organized
Furniture Market in Percentage, FY’2015 --------------------------------------------------------60
Figure 3-10: Buyer Behavior by Utility of Product in India Organized Furniture
Market on the Basis of Number of Products Sold in Percentage (%), FY’2015 ---------62

Figure 3-11: Consumer Preference on the Basis of Product Cycles (Number of Years
of Use) in Percentage, FY’2015 ----------------------------------------------------------------------64
Figure 4-1: Furniture Imports in India in USD Million, FY’2010-FY’2015 ---------------66
Figure 4-2: Indonesian Furniture Imports in India in USD Million and Share of
Indonesia Furniture in Total Furniture Imports in India in Percentage (%), FY’2010-
FY’2015----------------------------------------------------------------------------------------------------82
Figure 4-3: Business Model for Domestic Manufacturing of Furniture in India -------91
Figure 4-4: Business Model for Import Based Furniture in India --------------------------93

L IST OF T ABLES
Table 1-1: List of Products in India Furniture Industry --------------------------------------13
Table 1-2: Correlation Matrix for India Furniture Market -----------------------------------18
Table 1-3: Regression Coefficients Output-------------------------------------------------------20
Table 2-1: India Furniture Market by Organized/Unorganized on the Basis of
Revenues in USD Million, FY'2010-FY'2015 -----------------------------------------------------24
Table 2-2: Future Parameters and Influence of Several Factors on India Furniture
Market Potential ----------------------------------------------------------------------------------------28
Table 2-3: India Organized Furniture Market Segmentation on the Basis of End User
by Revenues in USD Million, FY’2015 ------------------------------------------------------------30
Table 2-4: India Organized Home Furniture Market Segmentation by Major
Furniture Categories on the Basis of Revenue in USD Million, FY’2015 -----------------32
Table 2-5: India Organized Bedroom Furniture Market Segmentation by Major
Furniture Categories on the Basis of Revenue in USD Million, FY’2015 -----------------34
Table 2-6: India Organized Living Furniture Market Segmentation by Major
Furniture Categories on the Basis of Revenue in USD Million, FY’2015-----------------35
Table 2-7: Proposed Supply of Hotel Rooms in India across Major Cities, FY’2020 --38
Table 3-1: Sample Price Range for Different Products in Home Furniture --------------41
Table 3-2: Customer Preferences for Furniture in India by their Income Groups -----41
Table 3-3: Total Hotel Room Supply on the Basis of Major Cities in India --------------45
Table 3-4: Sample Budget for Furniture in a Single 3 Star Hotel Room ------------------46
Table 3-5: Sample Budget for Furniture in Common Area of a 3 Star Hotel ------------47
Table 3-6: Sample per Unit Price Range for Major Furniture Products in Restaurant
or Cafe-----------------------------------------------------------------------------------------------------47
Table 3-7: India Organized Furniture Market Segmentation by Regional Sales on the
Basis of Revenue in USD Million, FY’2015-------------------------------------------------------53
Table 3-8: India Organized Furniture Market Segmentation by Type of Cities on the
Basis of Revenue in USD Million, FY’2015-------------------------------------------------------55
Table 3-9: Buyer Behavior on the Basis of Seasonal Demand in India Furniture
Market in USD Million, FY’2015 -------------------------------------------------------------------60
Table 3-10: Description of Values Attached to the Furniture -------------------------------63
Table 4-1: India Furniture Market Imports by Product Categories on the Basis of
Import Value in Percentage, FY'2014-FY'2015 --------------------------------------------------67
Table 4-2: India Furniture Market Imports by Major Product Categories on the Basis
of Import Value in USD Million, FY'2014-FY'2015---------------------------------------------67
Import Volume in Thousands, FY'2014-FY'2015 -----------------------------------------------68
Major Import Destination in Percentage and USD Million, FY'2015----------------------69
Table 4-5: India Furniture Market Average Import Prices of Different Furniture
Products in USD, FY'2014-FY'2015-----------------------------------------------------------------72
Table 4-6: India Furniture Market Average Import Prices of Different Furniture
Products for Malaysia, China, Indonesia and Turkey in USD, FY'2015 ------------------72
Table 4-7: Major Furniture Supplier Countries for India, FY’2013-FY’2015-------------73
Table 4-8: Timber Product Exports from China, 2014-----------------------------------------75
Table 4-9: Timber Product Exports from Malaysia (1st January to 30th June), 2015----77
Table 4-10: Associations for Trade of Timber Products in Indonesia ---------------------78
Table 4-11: Timber Product Exports from Indonesia, 2014 ----------------------------------78
Table 4-12: Comparative Analysis of Asian Supplier Countries (China, Malaysia and
India) for Furniture in India -------------------------------------------------------------------------79
Table 4-13: Strength and Weakness of Indonesian Furniture -------------------------------82
Table 4-14: Strength and Weakness of Chinese Furniture -----------------------------------83
Table 4-15: Strength and Weakness of Malaysian Furniture --------------------------------84
Table 4-16: India Furniture Import Duty Structure in Percentage Terms (%), FY’2015
--------------------------------------------------------------------------------------------------------------86
Table 5-1: Pricing Analysis of Bedroom Furniture across Different Companies in
India Home Furniture Market, FY’2015 ----------------------------------------------------------94
Table 5-2: Pricing Analysis of Living Room Furniture across Different Companies in
Table 5-3: Pricing Analysis of Dining Room Furniture across Different Companies in
Table 5-4: Analysis of Furniture Retail Stores in India on the Basis of Key
Performance Indicators (Average Walk-ins, Conversion Rate, Average Margins and
Others), 2015---------------------------------------------------------------------------------------------96
Table 5-5: Competitive Snapshot of Major Players in India Home Furniture Market
------------------------------------------------------------------------------------------------------------ 102
Table 5-6: Competitive Snapshot of Major Destination Stores in India Home
Furniture Market ------------------------------------------------------------------------------------- 102
Table 5-7: Competitive Snapshot of Major Online Players in India Home Furniture
Market--------------------------------------------------------------------------------------------------- 103

Table 6-1: Key Executives in Head Office of India Trade Promotion Organization 114
Table 6-2: Indonesian Representatives in India ---------------------------------------------- 115
Table 6-3: ASSOCHAM Regional Offices, India---------------------------------------------- 117
Table 6-4: DGFT and its Regional Authorities with respective Jurisdiction ---------- 118
Table 6-5: Benefits to Members of the Association of Furniture Manufacturers and
Traders -------------------------------------------------------------------------------------------------- 127
Table 6-6: Managing Committee of Association of Furniture Manufacturers and
Traders -------------------------------------------------------------------------------------------------- 128
Table 6-7: Advisory Committee of Association of Furniture Manufacturers and
Traders -------------------------------------------------------------------------------------------------- 128
Table 6-8: Membership Details ----------------------------------------------------------------- 129
Table 6-9: List of Product by Categories at India Furniture Expo organized by
Association of Furniture Manufacturers and Traders -------------------------------------- 129
Table 6-10: Indonesian Representatives in India --------------------------------------------- 130

1. I NTRODUCTION
1.1. M ARKET D EFINITIONS
Bed Room Furniture Market: This includes the retail sales of furniture from both
online and offline organized stores used in bed room of the Indian households such
as beds, dressing tables wardrobes and a few others from imported and domestically
produced goods calculated at the retailer’s price. Second hand and refurbished
products have not been considered. The furnishings used in bedroom have not been
considered in the bedroom furniture market revenues
Dining Room Furniture Market: This includes the retail sale of imported and
domestically produced furniture used in dining room in India household such as
dining chairs and dining tables through organized stores calculated at the retailer’s
price. Second hand and refurbished products have not been considered. The
furnishings used in dining rooms have not been considered in the dining room
furniture market revenues.
India Home Furniture Market: India home furniture market consists of revenue
generated from online and offline sales of home furniture products which include
beds, dressing tables, wardrobes, dining tables & chairs, sofa sets, center tables and
other furniture products used at homes. It includes the sales carried out in the
organized furniture market only. It does not include the sale of used or refurbished
products.
India Furniture Market: India furniture market consists of revenue generation from
online or offline sales of imported and domestic furniture products which include
home furniture, office furniture, hotels/cafes furniture and industrial furniture. The
revenues of the furniture market do not include sales of second hand products.
Industrial Furniture Market: This includes revenues obtained from sales of
furniture for use in different industries which generally consists of storage cabinets,
chairs, tables, racks, machinery tables and several others from imported and
domestically produced goods calculated at the retailer’s price i.e. billing price.
Second hand and refurbished products have not been considered
Kitchen Furniture Market: This includes the sales of furniture from both online and
offline organized stores used in kitchens of Indian residents such as kitchen cabinets
from imported and domestically produced goods calculated at the retailer’s price.
Second hand and refurbished products have not been considered
Living Room Furniture Market: This includes the sales of imported and
domestically produced furniture from both online and offline organized stores used

in the living room of Indian household such as sofas, center tables and several others
calculated at the retailer’s price. Second hand and refurbished products have not
been considered. The furnishings used in living room have not been considered in
the living room furniture market revenues.
Metal Furniture: It refers to those furniture items manufactured by the use of more
than 50% metal material for instance metal beds, dining chairs, workstation, bar
chairs and others.
Office Furniture Market: This includes the revenues generated from the sales of
office furniture through customized, contract and ready to use furniture through
retailers and online store. Second hand and refurbished products have not been
considered.
Organized Market: It refers to the market where sellers’ functions as per rules,
regulations implemented by government and concerned authorities. These
organizations/companies operate on a large-scale business by involving large
number of workers and sales points. The sales of furniture from brick and mortar
stores such as EBOs, MBOs, Large and Small Format Stores and other outlets
encompass the organized market for furniture.
Plastic Furniture: It refers to those furniture products made by plastic, rubber and
other polymers such as chairs, molded tables, plastic stools and others.
Tier 1 cities: These include cities in India that possess a population of more than
4,000,000.
Tier 2 cities: These cities possess population levels between 1,000,000 and 3,999,999.
Tier 3 cities: Tier 3 cities in India are comprised of less than 1,000,000 residents.
Unorganized Market: It refers to the market where sellers do not have to bear the
tax imposed on trade and securities by government authorities. This market largely
encompasses sale of furniture from small-scale manufacturers, independent vendors,
onsite carpenters and other small format retailers.
Wooden Furniture Market: It refers to the revenue generated from the sale of
furniture products made from more than 50% wooden material, for example, coffee
tables, center tables, dressing tables, stools and others.

1.2. D EFINING THE M ARKET BY P RODUCTS
The furniture market is largely governed on the products

sold as per the room in a household. The furniture
products in India has been defined by furniture items
which are tagged as bedroom furniture, living room
furniture, dining room furniture, kitchen furniture, office
furniture and industrial furniture.
Table 1-1: List of Products in India Furniture Industry
List of Product by Categories

Beds, Wardrobes, Dressers, Chests, Side Tables, Book
Bedroom Furniture Shelves, Nightstands, Armoires, Vanities, Trunks, And
Mirrors
Dining Room Furniture Dining tables, Dining Chairs
Kitchen Furniture Cabinets , Sideboards
Sofas & Sectionals, Loungers, Wooden Sofa Sets, Sofa
Cum Beds, Recliners, Chairs, Accent Chairs, Wing
Chairs, Rocking Chairs, Ottomans, Benches & Stools,
Living Room Furniture
Coffee Tables, Side Tables, TV Units, Bookshelves &
Display Units, Magazine Racks, Console Tables, Lobby
Sets, Bean Bags
Office Furniture Office Chairs, Office Tables, Cabinets, Executive Sofas
Source:
Note: Value of mattress is not included in the value of beds.
However, different product profiles such as bedroom

furniture, living room furniture, dining room furniture,
kitchen furniture, office furniture and industrial furniture
have also been segmented into further major product
categories. For example bedroom furniture majorly
contains beds, dressing tables and almirahs. Similarly the
living room furniture majorly contains sofas and center
tables.
On the trade scenario, 4 digit HS codes have been referred
to explain the trade in furniture. The following 4-digit HS
codes have been used:
 9403: Harmonized Codes of Other furniture and parts

This has been considered since it contains all the furniture

products
 9401: Harmonized Codes of Seats(other than those of
heading 9402), whether or not convertible into beds,
and parts
This has been considered since it also includes furniture
products which are convertible to seats such as beds and
sofas
Note: HS Classification of Chapter 94 includes Furniture; Bedding, Mattresses, Mattress supports, cushions
and similar stuffed furnishings; Lamps and Lighting fittings, not elsewhere specified or included; illuminated
signs, illuminate name-plates and the like; Prefabricated Building
1.1. A BBREVIATIONS
AFMT – Association of Furniture Manufacturers and Traders

APHI – Association of Indonesian Forest Concessionaires
APKI – The Indonesian Pulp & Paper Association
APKINDO – The Indonesian Wood Panel Association
APTA – Asia Pacific Trade Agreement
ASEAN – Association of Southeast Asian Nations
ASMINDO – The Indonesian Furniture Industry & Handicraft Association
ASSOCHAM – Associated Chambers of Commerce
BPO – Business Process Outsourcing
CAD – Computer Aided Designing
CAGR – Compounded Annual Growth Rate
CECA – Comprehensive Economic Cooperation Agreement
CIF – Cost Insurance and Freight
CRM - Customer Relationship Management
CTC – Chennai Trade Centre
CVD – Countervailing Duty
DGFT – Directorate General of Foreign Trade
DIY – Do It Yourself
EAN – International Article number
EBO – Exclusive Business Outlet
ERP – Enterprise Resource Planning
EXIM – Export Import
FTA – Free Trade Agreement

FY – Financial Year
GPEI – Indonesian Exporters Association
GTIN – Global Trade Item Number
HDF – High Density Fiber
IEC - Importer Exporter Code
INR – Indian Rupee
ISWA – The Indonesia Sawmill & Woodworking Association
IT – Information Technology
ITC-HS - The Indian Trade Classification – Harmonized System
ITeS - Information Technology Enabled Service
ITPO – India Trade Promotion Organization
JSG – Joint Study Group
KPO – Knowledge Process Outsourcing
LC – Letter of Credit
LPO - Legal Process Outsourcing
MBO - Multi Brand Outlets
MDF – Medium Density Fiber
MNC – Multi National Corporations
MoU – Memorandum of Understanding
MPI – Indonesian Forestry Community
MTCS – Malaysian Timber Certification Scheme
MTIB – Malaysian Timber Industry Board
PAN – Permanent Account Number
PEFC – Programme for Endorsement of Forest Certification
PRF – Permanent Reserved Forests
PU – Polyurethane Coating
RCEP – Regional Comprehensive Economic Partnership
SKU – Stock Keeping Units
SME– Small and Medium Enterprises
Sq. Ft. – Square Feet
STC – State Trading Corporation
TLAS - Timber Legality Assurance System
TT – Telegraphic Transfer
UPC – Universal Product Code
USD – United States Dollar

1.2. M ARKET S IZE AND M ODELING
APPROACH – MARKET SIZING
Hypothesis Creation: The research team has first framed a hypothesis about the
market through analysis of existing industry factors, obtained from the Furniture
Association of India magazines, journals and several articles available on the
internet. The team has used both public and proprietary databases to define each
market and collect data points on several market aspects such as overall market size,
segmentations and estimated future growth. The data for international trade has
been collected from the ministry of commerce after identifying the HS codes and
obtaining the data for the furniture imports under pre specified HS codes.
Hypothesis Testing: The research team has then conducted computer assisted
telephonic interview (CATI) with several industry veterans including decision
makers in Godrej Interio, Durian, Style Spa, Home Town, Urban Ladder, Pepperfry
and architects, retail store manager, independent vendors, contractors, carpenters,
operations head /manufacturing plant owners, importers, potential target including
working professionals, married couples, young adults, senior citizens or
grandparents and other entities in the ecosystem to get their insights on the market
onboard and to seek justification to the hypothesis framed by the team.
Sanity Checking @ Decision Tree Analysis: General consensus on data collected

from primary research and public and proprietary databases has been reached by
conducting in-house decision tree analysis of the data points available and by
comparing it with macro-economic factors. Data has been collected and verified
through cross-sanity checking between primary and secondary sources. Secondary
data sources include the analysis of existing industry factors, obtained from
company reports and from magazines, journals, online articles and from Association
of Furniture Manufacturers of India. The secondary data sources are used to form
the initial perception and contention on several forces playing their role in
determining the future growth in the industry.
Future Forecasting via Poll Opinions and Statistical Tools: Multi-Factor regression
and scenario analysis was conducted on the lag variables i.e. on the historical market
size of the industry by identifying the independent and quantifiable variables
directly affecting the market. The forecasting was done by using SPSS statistical
tools. The variables were checked for multi-co-linearity and other bias that could be
there in the model. The conclusion from the regression was then double-checked by

conducting poll opinions. Structured interviews were conducted through telecom

with several industry veterans including major decision makers from Godrej Interio,
Home Town and Durian along with architects, retail store manager, independent
vendors/contractors, carpenters, and operations head/manufacturing plant owners.
These interviews help the research team to authenticate the data collected from
secondary data sources and to reject or accept the hypothesis regarding the future
projections.
Interpretation and Proofreading: The final analysis was then interpreted in the
research report by our expert team well versed with the furniture industry.
VARIABLES (DEPENDENT AND INDEPENDENT)
Reasons for the selection of the independent variables:

 Personal Disposable Income: Personal disposable income is one of the determining factors
that have a direct bearing on the consumer expense on the furniture market in India. An
increase in personal disposable income will lead to an increase in spending on furniture
products.
 Retail Market: A strong and propelling retail market displays a strong potential for business
activities and remarkable opportunities for investors. An increase in retail market size
correlates to an increase in furniture market.
 Urban Population of India: Urban Population has a direct bearing on the furniture sales in
India as an increase in number of people will lead to higher requirement of branded
furniture products.
 Residential Units in India: The increase in number of residential units has a direct
relationship with furniture sales. An increase in sale of homes across the country will lead to
an increase in demand of furniture products.
The report applies Correlation and Regression analysis methods to forecast the
future of the furniture industry. The capabilities of SPSS and predictive analytics
software have been leveraged to determine the relevant indicators used for
forecasting this industry.
In the present case, India furniture market revenue has been taken as the dependent
variable and other variables such as urban population, personal disposable income,
residential units market and retail market affecting the industry have been taken as
independent variables.
MULTI FACTOR BASED SENSITIVITY MODEL

The model first identifies the correlation (whether linear or non-linear) between the
dependent and independent variables. After calculating the degree and strength of
relationship between the variables, the regression model is used to calculate the
sensitivity of each factor on the dependent variable. Finally, the expected value and
sensitivity of the independent variable is used to determine the future value of
dependent variable.
Table 1-2: Correlation Matrix for India Furniture Market
Personal
Disposable India
Urban Residential
Income in Retail
India Furniture Market Population Units in
USD Market in
in INR Million In India in India
Million at USD
Millions
Current Million
Prices
Pearson
India 1 .966 .988 .964 .986
Correlation
Furniture
Sig. (2- .000
Market in .002 .000 .002
INR tailed)
6
Million N 6 6 6 6
Personal Pearson .966 1 .948 .971

.937
Disposable Correlation
Income in Sig. (2- .006
.002 .004 .001
USD tailed)
Million at
6
Current N 6 6 6 6
Prices
Pearson .988 .948 1 .932
.998
Urban Correlation
Population Sig. (2- .000
.000 .004 .007
In India in tailed)
Millions 6
N 6 6 6 6
Pearson .920
India .964 .971 .932 1
Correlation
Retail
Sig. (2- .009
Market in .002 .001 .007
USD tailed)
6
Million N 6 6 6 6
Residential Pearson .986 .937 .998 .920

1
Units in Correlation
India in Sig. (2- .000 .006 .000 .009
Millions tailed)

6
N 6 6 6 6
Notes:* Correlation is significant at the 0.05 level (2-tailed).

** Correlation is significant at the 0.01 level (2-tailed).
From the correlation table, we can conclude that:
 The Urban population has been the strongest factor with a correlation value of 0.988
and has influenced the furniture of India positively.
 The number of residential units in India has also been another strong factor
contributing to growth of furniture market in the country with a correlation of 0.986.
 Personal disposable income of India is the third strongest factor and has driven the
furniture. This is comprehensible from the correlation value of 0.966.
 The retail market size shows a positive correlation with India furniture market
representing a correlation value of 0.964.
Regression Matrix
A multiple regression model has been used through SPSS statistical tool that
analyzes the multiple correlation coefficients, R, its square, and an adjusted version
of this coefficient as summary measures of model fit. Further, R-Square is used to
explain the validity of the independent variables. R Square, also known as the
coefficient of determination, represents the proportion of total variation in the
dependent variable explained by the variation in the independent factors.
Applying multiple regression analysis to a set of data leads to regression coefficients,
one for each explanatory variable. These coefficients give an estimated change in the
response variable associated with a unit change in the corresponding explanatory
variable, conditional on the other explanatory variables remaining constant.

Table 1-3: Regression Coefficients Output
Standardized
Model Unstandardized Coefficients
Coefficients
B Std. Error Beta
(Constant) -160912442.577 191049631.203
Personal Disposable Income in
61.149 302.577 .078
USD Million at Current Prices
Urban Population in India in
-7099.321 16715.896 -.723
1 Millions
India Retail Market in USD
1091.133 980.036 .378
Million
Residential Units in India in
494601.436 595810.900 1.287
Millions
Dependent Variable: India Furniture Market
FINAL CONCLUSION
The conclusion regarding the expected value of dependent variable is determined by

using weighted average of the output of subjective judgment, primary research and
opinions polls since the regression model has been rendered inaccurate with high
standard deviation The weighted average method enables us to filter out the
possible noise in each computation method and help us to derive the best possible
future projections.

2. T HE P OTENTIAL OF F URNITURE
M ARKET IN I NDIA
HISTORICAL INDIA FURNITURE MARKET,

FY’2010-FY’2015
In FY’2015, the furniture market in India clocked revenue

worth USD 19,833.0 million which increased by 17% from
USD 16,951.3 million in FY’2014. The furniture market has
In FY’2015, the experienced a substantial growth in the last few years.
furniture market in There are several factors which have led to this growth
India clocked annual such as surge in real estate and housing activity,
revenue of USD
increasing growth in the information technology and
19,833.0 million,
services sectors, growing affluence both in the urban and
increasing by 17%
rural areas and higher proportion of middle class Indians
from USD 16,951.3
million in FY’2014. aspiring for better lifestyle. The furniture manufacturers
in the country have increasingly catered to the urban
middle class requirement for stylish home in compact
apartments. Additionally, the import of furniture from
countries such as China, Malaysia, Indonesia and
Bangladesh is also being driven by the urban affluent
households.
The furniture market in the country has been immensely

The annual revenue of driven by a substantial growth in the real estate, tourism
Indian furniture and hospitality sector over the years. The rising number
market amounted to of commercial projects along with a greater spending on
USD 12,949.2 million the infrastructure has also provided an enormous growth
in the FY’2011, to the furniture market in the last few years. The market
witnessing a double has grown from USD 13,972.9 million in FY’2012 to USD
digit growth of 26% 15,185.4 million in FY’2013. The annual revenue of Indian
from USD 10,280.4 furniture market amounted to USD 12,949.2 million in the
million in FY’2010. FY’2011, a double digit growth of 26% from USD 10,280.4
million in FY’2010. Increasing presence of malls in
metropolitan cities in India along with surge in
entrepreneurial business environment majorly in the
services and manufacturing industry such as BPOs, KPOs,
LPOs and other consumer driven businesses were the

primary growth drivers of furniture market in India

during the period FY’2010-FY’2011. However, in the
succeeding years, the market growth rate slowed down to
single digit and recorded 7.9% and 8.7% growth in
FY’2012 and FY’2013, respectively. Gradual increase in
prices, increasing cost of wood and metal along with
declining revenue per square feet of retail outlets were
some of the major reasons for the slowdown in the
growth rate. Overall, the revenue of the Indian furniture
market grew at a CAGR of 14.0% for the period FY’2010-
FY’2015.
Figure 2-1: India Furniture Market Size on the Basis of Revenue in USD Million, FY’2010-
FY’2015
25,000.00
19,833.0
20,000.00
16,951.3
15,185.4
15,000.00 13,972.9
USD Million
12,949.2
10,280.4
10,000.00
5,000.00
0.00
FY'2010 FY'2011 FY'2012 FY'2013 FY'2014 FY'2015
Source: Industry Articles, Interviews with Industry veterans in India Furniture Market, Analysis
Note: India furniture market consists of revenue generation from online or offline sales of furniture products
which include home furniture, office furniture, hotels/cafes furniture and industrial furniture. The revenues of
the furniture market do not include sales of second hand products.
Note: Exchange Rate taken as USD 0.0191 per INR

ORGANIZED AND UNORGANIZED FURNITURE

MARKET
The furniture market of India has been predominantly

driven by the unorganized segment which has comprised
of a gamut of independent retailers, local carpentry shops,
numerous SMEs and wholesalers. Indian customers have
traditionally employed on-site carpenters in order to
install furniture in their respective homes and offices. This
has helped the customers to customize designs based on
The organized their preferences, unlike the predefined readymade
furniture market has furniture models offered by the branded companies.
been observed to Owing to this, the unorganized market has continued to
grow from 8% in
flourish in the Indian furniture space. However, the
FY’2010 to 20% in
arrival of various international players and increasing
FY’2015.
number of branded furniture players’ establishing their
base in the domestic market has been witnessed in the last
few years. The organized furniture market has been
observed to grow from 8% in FY’2010 to 20% in FY’2015.
The increasing organized retail establishments in the
country along with the surging demand for branded
products due to rising income levels has led to many
brands foraying into the furniture market, thus catering to
the rising demand of the masses. The growth over the
time period FY’2010-FY’2015 has been steady as more
number of people has been attracted to branded furniture.
The urban working professionals who have preferred to
spend less time and effort on the preparation of an
appropriate design for their products have favored to
visit branded retail stores to purchase the products.

Figure 2-2: India Furniture Market by Organized/Unorganized on the Basis of Revenues

in Percentage (%), FY'2010-FY'2015
100.0%
8.0% 9.9% 12.2%
90.0% 14.3% 17.7% 20.0%
80.0%
70.0%
60.0%
Percentage (%)
50.0%
92.0% 90.1% 87.8%
40.0% 85.7% 82.3% 80.0%
30.0%
20.0%
10.0%
0.0%
FY'2010 FY'2011 FY'2012 FY'2013 FY'2014 FY'2015
Unorganized Organized
Note: Unorganized Market refers to the market where sellers do not have to bear the tax imposed on trade and
securities by government authorities. This market largely encompasses sale of furniture from small-scale
manufacturers, independent vendors, onsite carpenters and other small format retailers.
Note: Organized Market refers to the market where sellers’ functions as per rules, regulations implemented by
government and concerned authorities. These organizations/companies operate on a large-scale business by
involving large number of workers and sales points. The sales of furniture from brick and mortar stores such as
EBOs, MBOs, Large and Small Format Stores and other outlets encompass the organized market for furniture.
Table 2-1: India Furniture Market by Organized/Unorganized on the Basis of Revenues in

USD Million, FY'2010-FY'2015
FY’2010 FY’2011 FY’2012 FY’2013 FY’2014 FY’2015

Unorganized 9,458.0 11,667.2 12,268.2 13,013.8 13,950.9 15,866.4
Organized 822.4 1,282.0 1,704.7 2,171.5 3,000.4 3,966.6
Total 10280.4 12949.2 13972.9 15185.4 16951.3 19833.0
INDIA FURNITURE MARKET STRUCTURE

India Furniture Market

(USD 3,966.6 Million in FY’2015)
India Home Furniture Market India Institutional Furniture Market

(USD 2,459.3 Million in FY’2015) (USD 1,507.3 Million in FY’2015)
India Bed Room Furniture Market

(USD 1,513.4 Million in FY’2013)
India Office Furniture Market
(USD 753.7 Million in FY’2015)
Beds Dressing Wardrobe Other Bed

Market Table s Market Room
(USD Contract Ready to Use
Market (USD Furniture
726.4 Furniture Office Market
(USD 90.8 665.9 (USD 30.3
Million in Market (USD 300.0
Million in Million in Million in
FY’15) FY’15) (USD 453.7 Million in
FY’15) FY’15)
Million in FY’15)
FY’15)
India Living Room Furniture Market

India Hotel Furniture Market

Sofa Sets Center Table Others
Market Market (USD 56.8
(USD 425.6 (USD 85.1 Million in
Million in Million in FY’15)
FY’15) FY’15)
India Industrial Furniture
Market
India Dining Room Furniture Market
India Kitchen Furniture Market

Source:

INDIA FURNITURE MARKET FUTURE

POTENTIAL, FY’2016 - FY’2020
India is one of the largest growing economies in the

The Indian furniture world. More than 32% of the population resides in urban
market which has areas as of FY’2015. Heavy demand of household items
grown at a historical 5 including furniture and furnishing products from the
year CAGR of 14.0% urban class has historically been conducive to the growth
will incline at a of furniture market in India. This trend is expected to
compounded annual
prevail in the future as well, as greater number of people
rate of 17.3% from
has been migrating to the urban areas in order to raise the
FY’2015-FY’2020.
standard of living and earn more income. The Indian
furniture market which has grown at a CAGR of 14.0% for
the period FY’2010-FY’2015 will incline at a compounded
annual rate of 17.3% from FY’2015-FY’2020. The market is
expected to rise from USD 19,833.0 million in FY’2015 to
The market is USD 44,122.9 million in FY’2020.
expected to rise from India witnessed a remarkable growth in number of High
USD 19,833.0 million Net worth households by 17% in FY’2015 and their
in FY’2015 to USD combined net worth has been estimated to have increased
44,122.9 million in to USD 2,444.8 billion. This is projected to increase in the
FY’2020. next few years as well and is expected to reach net worth
of USD 7.926.5 billion by FY’2020. This inclination in their
spending capacity will continue to impel the demand of
premium and luxury furniture items in India. As a result,
more number of companies in the furniture space such as
IKEA is expected to make inroads into the India furniture
market, further augmenting the overall revenue in the
coming years.
On the other hand, online retailing of furniture products
has emerged as a lucrative marketplace for a significant
number of people. Especially, the urban working class of
India has showcased preference to shop ‘on-the-go’
through online portals as they have been highly occupied
with their work schedule. It must be noted that a large
proportion of the Indian population has still been highly
skeptical to purchase furniture products online. However,
that trend has been slowly and steadily shifting, primarily
in urban cities of the country. It has been expected that

more number of customers will opt for online purchase of

E retailing of furniture furniture products with an increase in confidence about
is also gaining quality and customer service which will lower walk-in
mileage and rates at brick and mortar furniture retail stores.
popularity, powered However, E-commerce industry in India can be limited by
by inclining a comparatively under-developed transportation
penetration of internet infrastructure. Indian consumers prefer to buy furniture
and growing products from native retailers and independent vendors
disposable income. as these retailers facilitate an easy installation process,
supportive after sales service and smaller customizations
of furniture, unlike the online portals.
Destination stores hence, will likely act as an attraction for
Indian consumers
a significant number of people as they would act as ‘one-
prefer to buy furniture
stop-shop’ for furniture and furnishing products with an
products from native
retailers and added advantage of ‘touch and feel’ availability.
independent vendors Moreover, retailers are expected to invest in R&D in order
as customers believe to provide more high quality furniture products.
that these retailers Materials such as HDF with PU Coating which are
facilitate an easy stronger and nature friendly will likely be adopted by
installation process of many players in the market.
furniture, unlike the Rapidly growing number of offices in the country has
online portals. surged the demand for commercial furniture such as
wooden and metal workstations, office chairs, and cabin
tables among others. In addition to this, the growing
tourism industry has also provided a strong impetus to
the demand for contract furniture used in hotels and
restaurants such as molded furniture installed in malls,
Materials such as bar furniture, luxury dinning and beds for hotels.
HDF with PU Coating The residential real estate market has been witnessing
which are stronger prolific growth in the last couple of years, owing to the
increasing population and growing demand for
affordable housing accommodation. Major metropolitan
cities such as Delhi, Mumbai, Kolkata and others have
also showcased growing demand for luxury housing
complex such as villas, penthouses and apartments in the
recent years. This has augmented the need of furniture
such as sofa sets, dining sets, beds, chairs which are
further expected to witness prolific growth in the
upcoming years as well. Even though the India furniture

segment is highly unorganized, a number of companies

such as Godrej Interio, Home Centre, Home Town and
others have been eyeing to cater to the mounting demand
of branded home furniture in the country. Thus, the
growth of organized retail culture, rising real estate
activities, increasing demand and rising e-retailing &
online sales of furniture in the country are expected to
contribute substantially to the market growth in the
outlook period FY’2015-FY’2020.
Table 2-2: Future Parameters and Influence of Several Factors on India Furniture Market
Potential
Future Degree of
Remarks
Parameters Influence
 High emphasis by the Government on the
“housing for all” scheme presenting strong
opportunity in the urban affordable housing
segment
Addressable  Present opportunity of USD 12 billion investment
Opportunities Positive; for the private sector to explore number of
in Affordable models in urban affordable housing segment
Houses which can be profitable for all stakeholders.
 Expected demand of 535,400 units across Delhi-
NCR, Mumbai (MMR), Bengaluru, Chennai,
Hyderabad, Kolkata and Pune.
 This will aid the introduction of unique furniture

Increasing designs and use of different cost effective
Product Medium; materials in the market to meet the demand of the
Innovation customers, thereby positively impacting the
market.
 New supply of 200,000 sq feet in first quarter of
the year in Bengaluru
 Current estimates shows 30.49 million sq feet of
mall space under construction across the top
cities which are projected for completion over
Increase in Positive; phases by end of 2018.
Retail Market  Of total estimated ‘under construction’ mall
space, 48% i.e. 14.72 million sq feet (spread across
30 malls) is expected to be operational by end of
2015 with Delhi-NCR (11 malls) and Bengaluru (7
malls) witnessing the highest concentration of
new mall spaces.

 It is proposed that the future supply of hotel

Hotels Positive; rooms would increase by 56,270 rooms which is
50% of the current supply
 The commercial spaces in India have been
increasing from 3.8 million sq meters in FY’2010
to 6.5 million sq meters in FY’2015 owing to
increase in business establishments in the
Increase in
country.
Commercial Medium;  The “Make in India” campaign and the
Space
strengthening of the service sector of the country
will further lead to incline in the commercial
spaces at a CAGR of 15.4% over the five years
FY’2016-FY’2020.
 It has been proposed that there would be a
development of 100 smart cities across the
Positive; country.
Smart cities
 In the 2014 Union budget of India, Finance
Minister USD 1 Billion were allocated for the 100
smart cities.
Source:
Notes: Shaded region represents the degree of impact
Figure 2-3: India Furniture Market Future Projections on the Basis of Revenue in USD
Million, FY’2010-FY’2020
50,000.00
44,122.9
45,000.00
40,000.00 36,839.6
35,000.00
31,084.4
30,000.00 26,907.7
USD Million
25,000.00 23,216.4
20,000.00
15,000.00
10,000.00
5,000.00
0.00
FY'2016 FY'2017 FY'2018 FY'2019 FY'2020

Note: India furniture market consists of revenue generation from online or offline sales of furniture products
which include home furniture, office furniture, hotels/cafes furniture and industrial furniture. The revenues of
the furniture market do not include sales of second hand products.
Note: Exchange Rate taken as USD 0.0191 per INR
Note: P denoted Projected
2.1. B Y E ND U SER , FY’2015
Figure 2-4: India Organized Furniture Market Segmentation on the Basis of End User by
Revenues in Percentage (%), FY’2015
7.0%
12.0% Housing
Office
19.0% Hotels/Cafes
62.0%
Industry
Source: Interviews with Furniture Retailers
Table 2-3: India Organized Furniture Market Segmentation on the Basis of End User by
Revenues in USD Million, FY’2015
End User Revenues in USD Million, FY’2015

Housing 2,459.3
Office 753.6
Hotels/Cafes 476.0
Industry 277.7
Total 3,966.6

HOUSING SEGMENT
Home furniture is considered as a basic necessity in a

household. The Indian middle-class household has been
generally observed to comprise of five rooms, inclusive of
kitchen and bathroom. In the year 2011, 32.1% of urban
households have been observed to live in one and two
room houses.
It is the largest segment of the furniture market in the
The rising demand of country and it has witnessed a consistent rise in the last
furniture from modern few years. In FY’2015, it contributed a share of 62% in the
work spaces which furniture market revenue. There were a number of factors
includes IT-ITES, which has escalated the demand for home furniture items
BPOs, KPOs and in the country in the recent years. The rising number of
LPOs services have residential housing complex launches and increasing
also played a demand for high end furniture items in the households
significant role in
due to rising spending capacity has aided the growth of
augmenting the sales
home furniture market in the last few years. Furthermore,
of the overall
the concept of fully furnished apartments has also
commercial furniture
in the recent years. propelled the institutional sales of home furniture items;
The establishment of this has resulted into increased contribution of home
MNCs in metropolitan furniture in the overall sales volume. The ingress of
cities in the country "Ready to Live" furniture solutions for new residential
has also impelled the schemes and housing projects have been gaining massive
sales of office traction in the last few years, thereby, driving the sales of
furniture, thereby home furniture in the country. In FY’2015, home furniture
aiding the overall segment generated revenue worth USD 2,459.3 million.

Figure 2-5: India Organized Home Furniture Market Segmentation by Major Furniture
Categories on the Basis of Revenue in Percentage, FY’2015
4.6%
10.8%
Bed Room
Living Room
23.1%
Dining Room
61.5%
Kitchen
Source: Industry Articles, Interviews with Furniture Retailers

Note: India home furniture market consists of revenue generation from online and offline sales of home furniture
products which include beds, dressing tables, wardrobes, dining tables & chairs, sofa sets, center tables and
other furniture products used at homes. It includes the sales carried out in the organized furniture market only.
It does not includes the sales of refurbished products
Table 2-4: India Organized Home Furniture Market Segmentation by Major Furniture
Categories on the Basis of Revenue in USD Million, FY’2015
Product Category Revenues in USD Million, FY’2015

Bedroom 1,513.4
Living Room 567.5
Dining Room 113.5
Kitchen 264.8
Total 2,459.3
Source: Industry Articles, Interviews with Organized Furniture Retailers
BEDROOM FURNITURE
Bedroom furniture accounts for the largest share in
organized home furniture market in India. It primarily
includes beds, headboards, dressers, chests, armoires, bed
benches, bookcases, chairs, vanities and nightstands.
Bedroom furniture held 61.5% of the total sales revenue of

organized home furniture market in India, as recorded in

FY’2015. Bedroom furniture stood as the highest revenue
generating segment due to high priority and need
Bedroom furniture
requirement showcased for bed room furniture items by
held 61.5% of the
Indian customers. A large number of Indian customers
total sales revenue of
home furniture market laid significant emphasis on increasing comfort levels of
in India, as recorded their personal space before proceeding towards other
in FY’2015. sections of the household. Additionally, the cost of
bedroom furniture has been observed to vary widely and
has been significantly dependent upon the type of wood
and brand. For instance, purchase of beds from branded
retail stores can generally range from USD 382.0 to USD
1,528.0 and can increase beyond USD 1,910.0.
Figure 2-6: India Organized Bedroom Furniture Market Segmentation by Major Furniture
Categories on the Basis of Revenue in Percentage, FY’2015
6.0% 2.0%
Beds
Wardrobes
48.0%
44.0% Dressing Tables
Others

Note: Others include, corner tables, side tables, shelves and others
Beds Market Include the revenues of the beds sold in organized furniture stores. This includes the sales of all
variants of beds such as beds with or without storage, upholstered beds, double beds, single beds, kid’s beds and
bunk beds.

Table 2-5: India Organized Bedroom Furniture Market Segmentation by Major Furniture

Beds 726.4
Wardrobes 665.9
Dressing Tables 90.8
Others 30.3
Total 1,513.4

Note: Others include, corner tables, side tables, shelves and others
LIVING ROOM FURNITURE

The living room furniture was the second most important
choice as it garnered 23.1% share in sales of furniture in
organized stores during FY’2015. This segment
encompasses a wide range of coffee tables, sofas, sofa
tables, corner tables, chairs, bookshelves, TV stands,
ottomans, display cabinets, consoles and upholstered
furniture such as sofas and overstuffed chairs. Rise in
urbanization has led to an increase in the demand for
modern designs of living room furniture items including
bean bags, molded furniture, and wooden stools among
other products. Also, the modern Indian nuclear families
Indian customers have been observed to purchase living room furniture
have opted to choose which has higher utility. Hence, products such as sofa
design over cum beds and coffee tables have been on the rise. The
durability for living
products placed in the living room in general give an
room furniture.
overall perception of a house in India. Hence, Indian
Customers have customers have opted to choose design over durability for
majorly selected these products. As a result customers have majorly
moderately selected moderately expensive living room furniture
expensive living products and focused more on the design aspect.
room furniture Moreover, there has been a growing preference of
products and focused imported sofa sets from countries such as Malaysia and
more on the design Indonesia. Sofa sets which contain leather material have
aspect been prominent in the market. However, the growing
young Indian population has brought about a slow shift
in this trend and has opted for fabric materials. For the
purchase of sofa sets from established furniture brands,
the average selling price has fallen in the range of USD

1,528.0 to USD 2,292.0 for a 3+2+1 sofa set.
Figure 2-7: India Organized Living Room Furniture Market Segmentation by Major
Furniture Categories on the Basis of Revenue in Percentage, FY’2015
10.0%
Sofas
15.0%
Center Tables
75.0% Others

Note: Others include coffee tables, TV units and others
Table 2-6: India Organized Living Furniture Market Segmentation by Major Furniture

Sofas 425.6
Center Tables 85.1
Others 56.8
Total 567.5

Note: Others include coffee tables, TV units and others
DINING ROOM FURNITURE

Dining room furniture primarily encompasses dining sets,
inclusive of tables and chairs. The dining room furniture
also includes other items such as bar stools, sideboard
cabinets, serving carts and wine storage units. This
segment accounted for a share of 10.8% in the home

furniture market revenue in FY’2015. Leading furniture

makers have been focusing on keeping simple and sleek
Leading furniture designs of chairs and tables (which occupy less space) in
makers have been accordance with the demand of the people. The average
focusing on keeping selling price of a dining set in a branded showroom is
simple and sleek usually in the range of USD 668.5 to USD 1,337.0.
designs of chairs and
tables (which occupy KITCHEN FURNITURE
less space) in Kitchen furniture largely includes modular furniture. It
accordance with the includes cabinets and dish case. The kitchen segment
demand of the people.
contributed a share of 4.6% in the overall organized home
furniture market in FY’2015. Even though the arrival of
“ready to live” and fully and semi furnished apartments
are provided by leading builders and construction
companies, the contribution of kitchen furniture in
organized home furniture market revenue remained
nearly stagnant in the recent years, majorly owing to the
fact that Indian customers strongly focus on
customization of kitchen according to their requirements
and they are less likely to change the kitchen furniture
quite frequently as other home furniture items. Moreover,
kitchen has been always observed in the back-drop for
furniture products. Most Indian home owners have
utilized metal based furniture in kitchen which possess
high life cycle and also provide a premium look at lower
costs.
OFFICE SEGMENT
The Office segment in

the furniture market The Office segment in the furniture market has garnered
has garnered 19% of 19% of the market revenues as observed in FY’2015 which
the market revenues is relatively smaller proportion of the furniture market in
as observed in the country. The rising demand of furniture from modern
work spaces which includes IT-ITeS, BPOs, KPOs and
LPOs services have also played a significant role in
augmenting the sales of the overall commercial furniture
in the recent years. The establishment of MNCs in
metropolitan cities in the country has also impelled the
sales of office furniture, thereby aiding the overall market

growth in the last few years. Moreover, the improving

economic situation has also provided a strong driving
force to the growth of various industry verticals such as
healthcare, retail, consumer goods, education and others,
thus leading to greater number of commercial
establishments, in turn impacting the sales of office
furniture. The commercial spaces absorption in the
country's top eight cities rose 32% to 17.9 million square
feet in 2015. Bangalore has the highest office space
absorption with 174% year-on-year growth in 2015,
followed by Pune at 162% which further has raised the
demand of contract office furniture at these areas.
HOTELS, RESTAURANTS, CAFES SEGMENT
The country’s hospitality sector is booming. The growing

influence of western culture in India has enhanced the
structure of hotel industry in India in the last few years.
This has led to a gradual growth in the sales of high-end
and luxury furniture in hotels, restaurants and bars across
the country. Additionally, the growing culture of
In FY’2015, hotel clubbing in the urban areas has also led to a rise in the
furniture accounted consumer’s footfall in numerous bars and clubs, resulting
for a share of 12.0% in greater number of clubs being launched in urban areas
in the overall sales of of a city. This has also escalated the demand of furniture
furniture in the used in hotels, cafes and other such areas. In FY’2015,
country garnering
hotel furniture accounted for a share of 12.0% in the
revenues worth USD
overall sales of furniture in the country garnering
476.0 million.
revenues worth USD 476.0 million. The major reason for
its low demand is that most of the furniture in offices,
hotels, cafes and industry are contract furniture and this
demand is majorly catered by unorganized sector while a
minor share is also catered through customized furniture
from organized retailers. However, through partnerships
with furniture retailers hotel furniture segment is
gradually moving towards organized sector for its
requirements. Moreover, hotels industry has been
flourishing, which is a great opportunity for furniture
retailers and traders. Supply of hotel rooms is expected to

grow by 50% till FY’2020 with proposed supply of 56,270

rooms within branded hotels market. The increase in
hotel room supply will be ignited by all the hotel
segments such as luxury, upscale, mid market, budget
and extended stay hotels. The furniture in industry also
gathered a minor share of 7.0% in the industry revenues
as per FY’2015.
Table 2-7: Proposed Supply of Hotel Rooms in India across Major Cities, FY’2020
Active
Proposed Increase
Major Develop Mid Extended
Supply in Future Luxury Upscale Budget
Cities ment of Market Stay
FY'2020 Supply
Supply
Agra 503 29% 43% 0.00% 0.00% 56.30% 43.70% 0.00%
Ahmada
1,026 34% 64% 0.00% 57.00% 25.40% 0.00% 17.50%
bad
Bengalur
5,317 47% 52% 20.90% 35.20% 19.20% 19.40% 5.30%
u
Chennai 3,311 44% 83% 3.20% 0.00% 47.20% 41.40% 8.10%
New
2,502 19% 87% 0.00% 34.70% 58.20% 7.10% 0.00%
Delhi
Gurgaon 2,084 34% 10% 0.00% 11.50% 52.40% 24.60% 11.50%
Noida 1,873 142% 13% 13.30% 35.20% 35.00% 5.20% 11.20%
Goa 1,743 36% 50% 6.00% 13.50% 53.50% 27.00% 0.00%
Hyderab
2,474 42% 61% 0.00% 13.90% 44.90% 24.30% 16.90%
ad
Jaipur 1,119 22% 92% 0.00% 45.90% 41.80% 12.20% 0.00%
Kolkata 2,870 113% 70% 15.70% 42.50% 30.80% 11.00% 0.00%
Mumbai 5,561 44% 33% 16.30% 24.80% 39.80% 18.70% 0.40%
Pune 2,005 32% 64% 25.50% 19.50% 35.80% 19.30% 0.00%
Other
23,882 77% 70% 1.80% 21.00% 49.80% 25.60% 1.80%
Cities
Total 56,270 50% 61% 6.90% 23.70% 43.60% 22.20% 3.60%
Source: HVS, the Federation of Hotel & Restaurant Associations of India,

Luxury Hotels-These hotels offer world class service while providing amenities and facilities such as restaurants
and lounges, concierge service, meeting rooms, and spas. They are typically rated 5-stars or 6-Stars in the
rating scheme.
Upscale Hotels: An upscale full service hotel facility that offers luxury amenities, full service accommodations,
on-site full service restaurants, and the highest level of personalized and professional service. The only difference
between a luxury and upscale hotel is the quality of services which is better in complete Luxury Hotels. They are
rated 4 star or 5 star in the rating scheme.
Mid Market - These hotels exceed the basic needs of the guest by offering additional amenities and facilities to
include restaurants. They are typically rated 3-Stars or 4-Stars in the rating scheme
Budget Hotels are small to medium-sized hotel establishments that offer a very limited amount of on-site
amenities and often only offer basic accommodations with little to no services, these facilities normally only

cater and market to a specific demographic of travelers, such as the budget-minded traveler seeking a "no frills"
accommodation.
Extended stay hotels are small to medium-sized hotels that offer longer term full service accommodations
compared to a traditional hotel.

3. M ARKET I NFORMATION
3.1. T REND OF F URNITURE IN I NDIA
HOME FURNITURE PREFERENCES
The demand of home furniture segment has varied across

different income levels. For instance, a high income class
person always prefer branded furniture with high quality
wood such as teak, sheesham or mango as an alternate
wood. They generally prefer products with fine finishing
such as veneer coating which makes furniture more
attractive. High income group prefers quality and
durability; price is not the major criteria for this income
class. Additionally, higher income class generally resides
The demand of home in mansions and villas with fine finishing and hence do
furniture segment has not sacrifice on spending a high price on furniture
varied across different products.
income levels. For an Additionally, before purchasing the furniture products,
instance a high this income group considers the furnishing of the whole
income class person house and matches the designs accordingly so that their
always looks for furniture products can well adapt the home environment.
branded furniture with On the other hand, middle income class which consists of
high quality wood small businessmen and working class people has specific
such as teak, budget constraints. Hence, these people keep budget as
sheesham or mango as
their top priority and at certain times compromise on the
an alternate wood.
designs. The major demand in this group comes from
cheap priced furniture such as MDF, particle board,
rubber wood and others which can last for around 5 to 7
years. It has been observed that this income class
generally looks out for the furniture which can be easily
moved or dismantled due to instability of work location.
For example an IT consultant employee in Bangalore may
look at the furniture which can easily be moved from one
place to another anytime in case the person has to switch
his place of work or city which is quite common in MNCs
these days. Also these people do not consider the
furnishing of the entire house while purchasing the

furniture but just look at the nearer surroundings. For

example, to purchase a dressing table they will only
consider the bedroom furniture and design of the
bedroom furnishings while the higher income class
considers the furniture and furnishings of the entire
house. This income class has also been observed to use
very less imported products; however this trend has been
steadily changing due to rising personal disposable
incomes of the households.
On the other hand, the lower income class in India does
not prefer purchasing branded furniture due to low
budget and generally contact local carpenters to make
furniture or opt for cheap and low quality furniture from
a local retailer.
On a general note, the trend in the country for furniture
products has been highly variable. There has been the
demand of both simple and compact design furniture
along with the use of vivid color combinations as per the
preferences of different people belonging to different age,
income and regional groups.
Table 3-1: Sample Price Range for Different Products in Home Furniture
Product Category Price Range

Beds USD 74.5 – USD 2,865.0
Dressing Table USD 57.3 – USD 1,298.8
Wardrobe USD 76.4 – USD 3,629.0
Sofa USD 133.7 – USD 9,550.0
Center Table USD 45.8 – USD 1,432.5
Dining Set (Table and Chair) USD 157.2 – USD 4775.0
Source: Interviews with Furniture Retailers, Analysis
Table 3-2: Customer Preferences for Furniture in India by their Income Groups
Income Group Preference

High Durability, premium design, high
High Income Group quality of furniture material such as teak,
sheesham and several others
Medium to low quality, low price, medium
Medium Income Group durability and attractive looks such as rubber
wood, plywood, MDF, particle board and

several others.
Low budget, contact local carpenters, opt for
Lower Income Group
used or second hand products at lower prices.
Source: Analysis
Note: The middle class of India has been defined on the basis of annual income between the range of INR 2.4
lacs- INR 1 million, and investable finance (financial assets excluding primary residence) of INR 12 lacs to 50
lacs. The higher class has been considered above this income range where as the lower income is counted below
the range.
OFFICE FURNITURE
The office furniture in India is primarily demanded with
compact and simple style that can be adapted with the
office surroundings. MDF and particle boards are
generally not used in office furniture since they are not
durable. Teak and sheesham are also not demanded
because of their high price. Thereby offices generally
demand contract furniture which is made out of a
combination of plywood and board or laminated board.
The preference for office furniture in India is also
dependent on whether the office is rented or owned. The
Over 60% of the general trend has been that the rented offices go for such
office furniture is furniture which can be easily dismantled and are cheaper
covered by contract in price while the owned offices or long term leased
furniture which is offices use fixed and durable furniture which can lasts for
customized by various long.
organized stores It has been observed that there has been the lack of
especially in big retail premium grade-A office spaces in Mumbai during recent
chains. years. This will lead to increase in the number of projects
coming up for premium office spaces which in turn
would lead to rise in the demand for office furniture,
especially the contract furniture. Grade-A supply is
expected to increase between 2017 and 2019 in the Bandra
Kurla Complex (BKC) core business district and
secondary business district (SBD)-Central in Mumbai.
Also lack of premium offices has increased the emphasis
on high quality furniture.
Over 60% of the office furniture is covered by contract
furniture which is customized by various organized
stores especially in big retail chains. Retail chains have to

get their furniture customized with respect to the space

and size of any particular store and keeping it in line with
the furniture of other stores of its retail chain. On the
other hand, other furniture products such as chair and
tables are purchased on a ready to use basis. These can be
imported or domestically procured. These chairs are
particularly of an executive style. The major demand in
the executive chairs is for the revolving type to cater to
the comfort needs of people working in the offices.
Strategic partnership with retail chains

It has been observed that the big retail chains also tie up
with organized furniture dealers to obtain customized
furniture for their retail stores at different locations. The
stipulated contract time is 2 to 3 months. These
partnerships help the retail chains to use similar furniture
designs in its varied sized stores. These partnerships are
usually dealt by the head office and provided at the
retailer’s location after sending the pictures of retail
location or getting the furniture sellers to visit the location
and take the measurements. After this the furniture
company provides the customized furniture within the
stipulated time period to the retail stores.
Corporate partnerships with furniture retailers

There has also been a trend of different corporate to
partner with furniture retailers. As per this arrangement,
the furniture retailers provide the branded furniture to
the corporate at cheaper rates than the retail prices and in
return, the corporate provides the retailer with a right to
manage every time the company has to change its
furniture or furnishing products. These retailers also act
as architect when the company needs opinion on the
required product changes.

Figure 3-1: India Office Furniture Segmentation by Contract Furniture or Ready to Use
Office Furniture on the Basis of Revenues, FY’2015
Contract Furniture
39.8%
60.2%
Ready to Use Office
Furniture
Source: Interview with Furniture Retailers,
HOTEL FURNITURE
The hotels can be classified on the basis of premium or
five star hotels which generally use their own architect
and use premium quality products. In India, these hotels
are mostly theme based and their furniture requirements
are therefore customized based upon the theme. For
instance, the Nahargarh Haveli in Jaipur is based on a
traditional antique theme and thus contains all the
furniture and furnishing based out of a classic or antique
furniture genre. Other example could be the ITC Gardenia
in Bangalore which is completely based on a modern style
and thus contains all sort of modern art furnishing and
modern style furniture. These hotels go for premium
quality woods such as teak or sheesham and higher end
furnishing products. The furniture in the hotels is
generally used for longer periods. Both looks and
durability are considered while purchasing the furniture
for a hotel. These hotels can procure the furniture in
domestic markets or can import from countries such as
Malaysia, China, Indonesia or other; however, the
purchases are always done in bulk.

Relatively smaller hotels such as 2 or 3 star hotel generally

use cheaper but expensive looking products. These
products are generally demanded with a purpose of
satisfactorily elegant looks and within the budget. The
cafes and restaurants also use some furniture such as
chairs and tables which are generally purchased in bulk.
The lower to middle end cafes and restaurants generally
look for plastic or steel furniture as well, along with the
wood based furniture. On the other hand, the higher end
cafes or restaurants use more of solid wood in the
furniture accompanied with high end furnishing
products.
The total number of
hotel rooms available This has also been observed that the hotels generally
in India has bolstered change their furniture after an average of 4-5 years. The
at a CAGR from total number of hotel rooms available in India has
12.7%. bolstered at a CAGR from 12.7%. The number of rooms
has increased from 61,795 in FY’2010 to 112,284 in
FY’2015. The increase in available rooms in the Indian
hotel industry is in direct correlation with the demand of
furniture items as more rooms would require more
number of furniture products.
The style or the design of furniture in these hotels or cafes
is purely dependent upon the theme of a particular hotel
or café. They can be demanded in either fixed or easily
dismantled style. The import tendency in the hotels is
generally higher than the offices and industries.
Table 3-3: Total Hotel Room Supply on the Basis of Major Cities in India
Major
FY’2010 FY’2011 FY’2012 FY’2013 FY’2014 FY’2015
Cities
New Delhi 8,129 9,111 10,697 11,338 12,370 13,277
Mumbai 9,877 11,303 12,052 12,807 13,022 12,731
Bangalore 5,597 5,947 7,713 8,536 10,162 11,317
Chennai 3,806 4,066 4,904 6,330 7,105 7,464
Pune 2,672 4,691 5,672 5,317 6,159 6,197
Gurgaon 1,980 3,246 3,782 4,559 5,190 6,088
Hyderabad 3,782 4,036 4,797 5,411 5,734 5,875
Jaipur 2,472 2,554 3,054 4,129 4,523 5,018
Goa 3,288 3,375 3,885 4,406 4,703 4,909
Ahmadabad 1,521 1,785 1,975 2,477 2,777 2,991

Kolkata 1,520 1,588 1,787 2,163 2,243 2,530

Agra 1,439 1,439 1,739 1,299 1,293 1,719
Noida 300 351 527 841 1,239 1,322
Others 15,412 18,039 21,729 24,642 24,657 30,846
Total 61,795 71,531 84,313 94,255 101,177 112,284
Source: HVS, the Federation of Hotel & Restaurant Associations of India,
 Sample Furniture Budget of a 3 star Hotel

In order to check the average budget for furniture in a
hotel there are several parameters to be covered for
different types of hotels. We have assumed a sample case
of a 3 star hotel. The hotel has 70 rooms and every room
consists of one double bed and dressing table, two
wardrobes, two single sofas and one center table. Every
room also contains few furnishing items such as lamps,
paintings and several others. The cost of furniture has
been observed to be low for hotels as compared to
housing segment as they source furniture products from
wholesalers and order in bulk amount. As a result, hotels
often obtain a higher discount on furniture prices.
The average cost per room can be calculated as follows:
Table 3-4: Sample Budget for Furniture in a Single 3 Star Hotel Room
Products Price (USD)

Beds (1 Double) 334.3
Dressing Table (1) 95.5
Wardrobe (2) 343.8
Sofa (2 single seat) 286.5
Center Table (1) 76.4
Furnishing Products 229.2
Total 1,365.7
Source: Interviews with Procurement Managers of Hotels

Note: The number in bracket shows the number of pieces
The average cost per room would then be multiplied by

number of rooms and added with the budget of common
area furniture to get the total budget of the sample hotel
for furniture products.
Table 3-5: Sample Budget for Furniture in Common Area of a 3 Star Hotel
Products Price (USD)

Three Seat Sofa (6) 4,125.6
Center Table (2) 305.6
Furnishing Items 573.0
Total 5,004.2
Source: Interviews with Procurement Managers of Hotels

Note: The number in bracket shows the number of pieces
Table 3-6: Sample per Unit Price Range for Major Furniture Products in Restaurant or
Cafe
Products Price Range

Tables USD 57.3 – USD 76.4
Chairs (Hotel) USD 28.7 – USD 38.2
Chairs (Restaurant/Café) USD 11.5 – USD 22.9
Furnishing Products USD 382.0 – USD 573.0
Source: Interview with Restaurant/Café Managers

Furnishing products include lamps, paintings, curtains and several others.
INDUSTRIAL FURNITURE
The furniture used in the industries is generally
domestically manufactured or readily available with
industrial furniture retailers. Industrial furniture
generally consists of storage cabinets, chairs, tables, racks,
machinery tables and several others.
The demand of the furniture in industries is generally
catered through domestic unorganized carpenters.
However, a minor proportion of demand is also catered
through ready to use furniture available with industrial
furniture retailers. Industrial furniture is domestically
procured rather than the imports.
The preference in the industrial furniture is for solid
quality furniture which is durable for long periods,
termite free and extremely low priced. Fire resistant
coated materials are also preferred in industries. This is
due to the reason that the industries require material with
high durability so that it could last longer and being
termite free and fire resistant helps it to protect from

losses during rain or fire incidents.
GENERAL STYLE OF FURNITURE IN INDIA

India furniture market has been segmented on the basis of
product designs such as modern, classical and
customized. There has been a preference towards modern
style of furniture in India. This style is majorly demanded
by young generation since they have seen a classical style
of furniture from a long time, so they have preferred to
change the style and hence prefer modern furniture. Also,
modern furniture is compact and is in line with the
It has been monitored international trends which have further increased its
that 60% of the preference especially in younger generation. It has been
furniture orders in
monitored that 60% of the furniture orders in FY’2015
FY’2015 have been
have been for the modern style of furniture. Moreover
for the modern style
modern furniture is easy to move and disassemble which
of furniture.
is highly preferred quality amongst the working class.
Classical style of furniture is right behind the modern
style of furniture, around 30% of all furniture orders have
been traced for the classical style of furniture. There are
still a large number of people preferring classical style of
furniture majorly due to its heavy and durable wood.
On the other hand most of the customized furniture has
been demanded in the office space which accounted for
10% of total orders. However, it has been witnessed that
there is a slow change in preference towards customized
furniture in the modern homes such as modular
customized wardrobes and modular kitchen.

Figure 3-2: India Furniture Market Segmentation by Product Designs on the Basis
of Number of Orders in Percentages (%), FY’2015
10.0%
Modern
30.0% Classical
60.0%
Customized
Source: Interviews with Furniture Retailers,
G ENERAL S TYLE OF I NDONESIAN F URNITURE IN

I NDIA
The major demand for The Indonesian furniture in India has majorly been
the Indonesian segmented based on the style of manufacturing namely:
furniture in India as of colonial, classical, modern and customized.
FY’2015 has been for The major demand for the Indonesian furniture in India
the colonial and as of FY’2015 has been for the colonial and classical style
classical style of of furniture which has originated from the high income
furniture majorly by group of the country. Moreover, key decision makers in
the high income group Indian families are in the age group of 35-45 years or
of the country. This is
above 45 years of age which have showcased preference
due to the fact that the
towards these furniture styles.
key decision maker in
It has been noticed that 40% of the overall Indonesian
any Indian family is in
the age group of 35- furniture demand in India as of FY’2015 was for the
45 years or above 45 colonial style of furniture. The consumers have also been
years of age which opting for the classical or traditional style of furniture for
have a preference the same reasons. However larger preference has been
towards these
Indonesian
furniture Trade Promotion Center Chennai
styles. 49
observed for the colonial furniture as compared to the

classical furniture. The classical furniture hauled out 35%
of the Indonesian furniture demand in India as of
FY’2015. A large variety in quality and price available in
modern-based furniture has led to its reasonable demand
led by the lower income group. This especially consisted
of rubber wood, semi rattan and other variants of wood
furniture which are cheap and durable.
Customized furniture only catered 5% of the demand out
of the overall Indonesian furniture imports. The
customized furniture has observed emerging demand in
the country.
Figure 3-3: Indonesian Furniture Market in India Segmentation on the Basis of Product
Designs, FY’2015
5.0%
Colonial
20.0%
40.0%
Classical
Modern
Customized
35.0%

3.2. R EGIONAL D EMAND OF I NDIA

F URNITURE M ARKET , FY’2015
WESTERN REGION
The demand for furniture has been witnessed to emanate
majorly from the western and southern India. People
Old fashioned from western states such as Gujarat & Rajasthan and
jharokhas, southern states such as Kerala, Karnataka, Tamil Nadu
wooden arches, and Andhra Pradesh have contributed nearly 61.0% of the
with traditional revenues generated. Sale of furniture in the western
carvings from region of India was observed to be the highest at 33.0%
Patan (Gujarat),
due to the high demand of solid wood. Solid wood
Renukunta and
materials such as teak and sheesham which are more
Mahabalipuram
expensive than MDF and particle board have been
have been more
popular in south preferred by the local customers as they possess high
Indian states. strength, can withstand high temperatures and are
resistant to dry-wood termites. Moreover, waxing the
surfaces of these materials increases their life and hence
they have to be replaced comparatively less often.
SOUTHERN REGION
Sale of furniture in south India was observed to register
second highest revenues in the year FY’2015 with a
percentage contribution of 28.0%. People residing in the
southern region of the country have generated a high
demand of traditional and carved furniture items. Old
fashioned jharokhas, wooden arches, with traditional
carvings from Patan (Gujarat), Renukunta and
Mahabalipuram have been more popular in south Indian
states. However, with a rise in younger and IT-based
population in this region, modern style furniture has
gathered a steady rise in demand. The working
population in cities such as Bengaluru and Hyderabad
has preferred to make repeated purchases of furniture
due to relocation which is majorly due to change in
working place. This has led to comparatively higher sales
of furniture than northern and eastern regions.

NORTH REGION
North and Northern regions of India have summed 21% of share in
eastern regions terms of sales revenues in the furniture market in India.
of India have These regions have been observed to use furniture made
summed 21% up of lighter wood materials such as particle board, MDF
and 18% of share and plywood. The cost of furniture items produced from
in terms of sales these materials is significantly lower in comparison to
revenues in the
solid wood material. The mindset of the people to use
furniture market
medium quality and lower priced products has been
in India.
witnessed to generate a higher demand in north India.
EASTERN REGION
The eastern region of the country which comprises of
states such as Assam, Arunachal Pradesh, Manipur,
Mizoram and others have generated a higher demand of
light weight furniture products. Furniture made out of
rattan and plastic materials has been observed to be more
favored in eastern regions of the country as there are easy
to move and are available in significant low prices in
comparison to wooden products. Demand of furniture
products from the east India has contributed 18% to the
sales revenues in the Indian furniture market. Moreover,
the lower buying capacity of people residing in the
eastern regions has instilled them to opt for such furniture
preferences.

Figure 3-4: India Organized Furniture Market Segmentation by Regional Sales on the
Basis of Revenue in Percentage, FY’2015
18.0%
33.0% West South
21.0%
North East
28.0%
Table 3-7: India Organized Furniture Market Segmentation by Regional Sales on the
Basis of Revenue in USD Million, FY’2015
Region Revenues in USD Million in FY’2015

West 1,309.0
South 1,110.6
North 833.0
East 714.0
Total 3,966.6

Note: The north region consists of states such as Haryana, Punjab, Himachal Pradesh, Jammu and Kashmir and
others.
The eastern states include West Bengal, Assam, Arunachal Pradesh, Mizoram, Manipur and others.
The western states include Rajasthan and Gujarat.
The southern region of India includes states such as Tamil Nadu, Kerala, Karnataka, Maharashtra, Madhya
Pradesh and others.

3.3. B Y T YPE OF C ITIES , FY’2015
The behavior and choice preference of India customers

has been witnessed to significantly vary across different
cities. Most of the demand of furniture products from the
organized companies has originated from tier-1 cities.
These include metropolitan areas such as Delhi, Mumbai,
Chennai, Kolkata, Bangalore, Ahmadabad, Pune and
Hyderabad. Tier-1 cities have been the largest contributor
towards the sale of furniture products in India in FY’2015
and accounted for a share of 75.0% of the total furniture
market revenue. People living in tier-1 cities have
initiated to purchase more number of branded products
which offer premium comfort but at a higher price. The
A number of
rise in personal disposable income of people living in
brands such as
these areas has also contributed to the dominated sales of
Godrej Interio
such products.
and Durian have
established their On the contrary in tier-2 and tier-3 cities of India, a
retail presence in majority of the customers still utilize the services of a
these cities on carpenter to produce customized furniture products. A
account of rising number of brands such as Godrej Interio and Durian have
demand and the established their retail presence in these cities on account
rapidly of rising demand and the rapidly increasing real estate
increasing real prices in the metropolitan cities. Due to this reason, the
estate prices in tier-2 and tier-3 cities, which offer low cost rental space to
the metropolitan the brands, seem to be more viable option for the brands
cities. to scale up their business. It has been observed that better
pricing coupled with a mix of traditional and
contemporary retail concepts such as online shopping
portals can help furniture brands and retailers to scale up
their business and improve the penetration to tier-2 and
tier-3 cities in the country. For instance, @Home which is
a flagship brand of Nilkamal in furniture business has
spread across its business in numerous cities in India
including Vadodra, Coimbatore, Surat and others. In the
year FY’2015, revenue generated from sales of furniture in
tier-2 and tier-3 cities stood at a percentage share of 15.0%
and 10.0% respectively.

Figure 3-5: India Organized Furniture Market Segmentation by Type of Cities on the
Basis of Revenue in Percentage, FY’2015
10.0%
Tier 1
15.0%
Tier 2
75.0% Tier 3

Note: Tier 1 cities: These include cities in India that possess a population of more than 4,000,000.
Tier 2 cities: These cities possess population levels between 1,000,000 and 3,999,999.
Tier 3 cities: Tier 3 cities in India are comprised of less than 1,000,000 residents.
Table 3-8: India Organized Furniture Market Segmentation by Type of Cities on the Basis
of Revenue in USD Million, FY’2015
Type of Cities Revenues in USD Million in FY’2015

Tier 1 2,974.9
Tier 2 595.0
Tier 3 396.7
Total 3,966.6

3.4. U SER P ROFILE OF F URNITURE IN I NDIA
3.4.1. B Y A GE , FY’2015
The age group of 25 – 35 years has been considered as the

prime target group by furniture retailers in India. This age
group not only comprises of young married couples but
also comprise of young working individuals who
influence their families for purchase decisions. Moreover,
in India, this age group has been observed to change
home locations comparatively more often as per their
office location. In the year FY’2015, Indian customers with
the age group of 25–35 years generated sales of 55% of
furniture products. The customer age group of 36 – 45
years contributed a share of 32.5% to the total sales in the
furniture market. Customers in this age group have been
witnessed as more informed and consider numerous
factors before the purchase of the most appropriate
furniture product. The sales of furniture to customers
above the age of 45 years stood at the least with 12.5%
share in revenues.
Figure 3-6: User Profile by Age Group in India Organized Furniture Market on the Basis
of Revenue in Percentage, FY’2015
12.5%
25 - 35 Years
36 - 45 Years
55.0%
32.5%
Above 45 Years

Note: The data is mentioned for the person who has billed the purchase of furniture out of the total furniture
billings
3.4.2. B Y I NCOME G ROUP
The Indian market for furniture products has observed a

varied demand from different income classes. The higher
income class has contributed 72.5% to the total revenue in
the furniture market. This has owed to more expensive
furniture products purchased by this income group. The
upper class of the Indian society has considered cost as a
Middle income group secondary factor and has laid emphasis on design and
has corresponded to a durability of the product. The combination of stylish or
percentage share of trendy design has come at a premium price and hence,
22.5%. Customers in sales of such products have resulted in a higher share of
this segment have the upper income class. Middle income group has
given near equal
corresponded to a percentage share of 22.5%. Customers
weight to price,
in this segment have given near equal weight to price,
quality and durability.
quality and durability. Middle income population in India
has been observed to keep a fixed budget for its furniture
products and is willing to stretch it by nominal amounts
in order to obtain a better product. These customers have
showcased highly varied behavior which has been
impacted from tertiary factors such as influence from
friends/ family, home budget and other financial
obligations. Customers who are considered in the lower
income group were observed to contribute only 5% to the
furniture sales through organized stores.

Figure 3-7: User Profile by Income Groups in India Organized Furniture Market on the
Basis of Revenue in Percentage (%), FY’2015
5.0%
High Income Class

22.5%
Middle Income Class
72.5% Low Income Class
Source: Analysis
Note: The lower income class has been defined on the basis of annual income of less than INR 2.4 lacs. The
middle class of India has been defined on the basis of annual income between the range of INR 2.4 lacs- INR 1
million, and investable finance (financial assets excluding primary residence) of INR 12 lacs to 50 lacs. The
higher class has been considered above this income range where as the lower income is counted below the range.
3.4.3. B Y G ENDER , FY’2015
Buying furniture is a complimentary decision usually

made by couples in a particular household. It is mainly
According to the
because of the fact that the males look for the quality and
billing basis, in
price while females look for the design and size.
FY’2015, 55% of the
furniture billings were The share of buying furniture is almost similar in both the
done by females while genders. However, in the recent years the trend of buying
rest 45% were done furniture is getting biased towards females. According to
by the males. the billing basis, in FY’2015, 55% of the furniture billings
were done by females while rest 45% were done by the
males. This is mainly because of the increase in female
working population in the country coupled with the fact
that they have also started looking at those aspects such

as price and quality which were earlier looked by the

males.
Figure 3-8: User Profile by Gender Category on the Basis of Number of Orders in India
Organized Furniture Market in Percentage (%), FY’2015
Female
45.0%
55.0%
Male
Source: Source: Interviews with Furniture Retailers,

Note: The Indian customers generally prefer to go in groups to purchase the furniture; hence this data has been
covered on the basis of the billed orders.
3.5. E ND B UYER B EHAVIOR
3.5.1. B UYING H ABITS
SEASONAL DEMAND
Around 56% of the
demand for furniture Historically, the demand for furniture in India has not
has generated during been seasonal. However, a surge in the demand has been
Q4 and Q1 in observed during festival seasons. It has been witnessed
FY’2015 that around 56% of the demand for furniture has
generated during Q4 and Q1 in FY’2015. Majority of the
Majority of the demand for furniture in India was generated at the time
demand for furniture of Dhanteras, Diwali, Christmas and the New Year. A
in India was generated high proportion of revenue generated during the time of
at the time of festivities especially in the months of January, February,
Dhanteras, Diwali, October, November and December. The furniture market
Christmas and the
in India depicted a significant rise in the sales volume that

garnered huge amount of revenues. The largest revenues
from furniture market in India have been recorded in
quarter 4. The revenues garnered during quarter 4
amounted to 32% of overall organized furniture market. .
This was followed by the Q1 which contributed 24% of
overall revenues due to changing season discounts during
New Year. However, the furniture revenues are not
seasonal. Normal revenues are generated throughout the
year since there are a lot of residential real estate projects
going on and increasing income of people are providing
an impetus to furniture sales all through the year.
Figure 3-9: Buyer Behavior on the Basis of Seasonal Demand in India Organized
Furniture Market in Percentage, FY’2015
22.0%
Q4(Oct-Dec)
32.0%
Q1(Jan-Mar)
Q3(Jul-Sep)
22.0%
Q2(Apr-Jun)
24.0%
Table 3-9: Buyer Behavior on the Basis of Seasonal Demand in India Furniture Market in
USD Million, FY’2015
Seasonal Demand USD Million

Q4(Oct-Dec) 1,269.3
Q1(Jan-Mar) 952.0
Q3(Jul-Sep) 872.7
Q2(Apr-Jun) 872.7
Total 3,966.6

REPEAT AND NEW CUSTOMERS

In India, the furniture retail stores have observed higher
sales generated through new customers in comparison to
repeat customers. In the year FY’2015, 65% of orders were
sold to new customers whereas repeat customers only
accounted for 35% of the total number of products sold.
This has been on account for a high life usage cycle of
furniture products. A middle class Indian customer has
In the year FY’2015, majorly been noticed to purchase furniture products in a
65% of orders were cycle of 5-6 years, hence recurring sales from the same
sold to new customers customers have been less in comparison to products
whereas repeat purchased by new customers. Moreover, the number of
customers only repeat customers for furniture products has been
accounted for 35% of witnessed to depend upon the brand value of the
the total number of retailers. The retail stores which have developed a high
products sold. popularity amongst customers through the sale of high
quality and cost effective furniture products along with
efficient after sales service have realized higher number of
repeat customers in comparison to newly established
stores. Additionally, the number of repeat customer has
been monitored to be more for furnishings in comparison
to furniture products. The purchase of complementary
products can be observed for both new and repeat
customers and is majorly dependent upon the
requirement of the customer. For example, in case
customers have a requirement to purchase sofa sets, then
they might look forward to purchase center table or in
case of purchase of beds, the customers might look
forward to buy side tables or dressing tables.

Figure 3-10: Buyer Behavior by Utility of Product in India Organized Furniture Market on
the Basis of Number of Products Sold in Percentage (%), FY’2015
35.0% New Customers
65.0%
Repeat Customers
3.5.2. P RODUCT C YCLES
There are some of the reasons which limit the time for
which a particular furniture product is used. This
depends on the value that a consumer attaches to a
product. The increasing personal disposable income and
excess of adverts and products have made consumers
attach more values to the product apart from its function
value, such as social value, novelty value, emotional value
and circumstantial value. The following are the values
attached to the furniture products in the order of their
ranking in consumer perception.

Table 3-10: Description of Values Attached to the Furniture
Value Description
The functional value of furniture is the value derived
from the price, services and quality of the product.
Functional Value The quality of product also considers utility derived
from the product and its durability.
The furniture in a household reveals the social status

of a particular household these days. By purchasing
premium quality furniture with fine looks and big
Social value
brands, the consumer tries to build his own social
image.
Different consumers can have different circumstances

at varied point of times. Thereby providing special
discounts or attractive schemes in diverse situations
Circumstantial value
such as at times of festivals may attract more
consumption.
The novelty value is attached to the ideas of renewal

and upgradation; this is also a key factor in deciding
Novelty value
the product cycle of a product.
The products such as furniture are long lasting and

hence the consumer has some attached emotions and
Emotional value sensations to these products which have a value. This
value is also considered while changing the furniture.
Source:
Note: These have been explained in the decreasing order of their rankings
Based on the aforementioned factors the product cycle of

the consumers has been segmented into three parts: 60%
of the consumers do not change their furniture products
before 6 years. This percentage also includes the people
60% of the consumers who refurbish their old furniture after some time and use
do not change their them again. 25% of the total furniture purchasers change
furniture products
their furniture once between ranges of 3 years to 6 years,
before 6 years.
while only 15% of the consumers repurchase a particular
product before 3 years. These furniture products
generally contain inexpensive furniture or the purchasers

in the very high profile who can afford changing the

furniture and furnishing products in short time span.
Figure 3-11: Consumer Preference on the Basis of Product Cycles (Number of Years of
Use) in Percentage, FY’2015
15.0%
More than 6 Years
3 Years – 6 Years
25.0%
60.0%
Less than 3 Years

Note: Number of respondent in the above case were 1,000 potential customers including married couples and
families in tier 1 cities such as Delhi, Mumbai, Chennai, Bangalore, Pune, Kolkata, Ahmadabad, Hyderabad.

4. T RADE I NFORMATION
4.1. F URNITURE I MPORT IN I NDIA , FY’2010-

FY’2015
Imports have formed a significant proportion of the

products sold to the upper-middle income class and
higher income class of the Indian society. A large number
of people have become aware of the variety of products
available in foreign countries and have showcased a
preference to purchase foreign branded furniture
products. Most of the furniture products have been
majorly procured from China due to low import costs and
The increase in the availability of high quality products.
demand of branded
India's rapidly expanding economy at healthy pace, the
international products
surge in real estate and housing activity has led to an
has resulted into a
increase in people’s preference towards the imported
9.6% increase in value
of furniture imports furniture products. This had led the furniture imports to
from FY’2014 to grow from USD 380.0 million in FY’2010 to USD 757.5
FY’2015. million in FY’2012.
The imports of furniture then saw a decline in the years
FY’2013 and FY’2014 which recorded the imports at USD
724.4 million in FY’2014. This was due to the weakening
of rupee which made the exported furniture expensive in
comparison to the domestic products. This was also
backed by the stagnation in real estate sector in the
country, reducing the demand of imported furniture in
India.
Overall the furniture imports in India have grown at a
CAGR of 15.9% which recorded the imports at USD 793.6
million in FY’2015.

Figure 4-1: Furniture Imports in India in USD Million, FY’2010-FY’2015
900.00
793.6
800.00 757.5 749.4
724.4
700.00
600.00 573.7
USD Million
500.00
380.0
400.00
300.00
200.00
100.00
0.00
FY'2010 FY'2011 FY'2012 FY'2013 FY'2014 FY'2015
Source: Ministry of Commerce, India

Note: 4 digit HS-code: 9403, 9401
Note: We have not considered the mark up of distributors on the sale of imports
4.2. B Y I MPORTS (V ALUE , V OLUME , M AJOR

D ESTINATION ), FY’2010-FY’2015
During the years FY’2014 and FY’2015, beds were

observed as the highest imported products with 59.6%
and 52.6% share in terms of value in FY’2014 and FY’2015
respectively. This sharp decline in import share occurred
due to the elevation in imports of sofas in the country. A
more number of sofas were imported into India in the
year FY’2015. It was observed that though import of beds
marginally declined from USD 157.7 million in FY’2014 to
USD 156.6 million in FY’2015, imports of sofas bolstered
by USD 35.3 million. Other products such as dining sets,
dressing tables, kitchen cabinets and almirahs (wardrobe)
have contributed a relatively small share in the import
market. The increase in Chinese imports has acted as a
formidable challenge for the furniture industry in India

and has led to the stagnation of domestic small and

medium enterprises.
Table 4-1: India Furniture Market Imports by Product Categories on the Basis of Import
Value in Percentage, FY'2014-FY'2015
Product FY’2014 FY’2015

Bed 59.6% 52.6%
Sofa 21.7% 30.9%
Dining Table 5.0% 5.1%
Dining Chair 4.5% 4.4%
Center Table 6.3% 4.4%
Kitchen Cabinet 1.6% 1.6%
Dressing Table 1.1% 0.9%
Almirah (Wardrobe) 0.2% 0.1%
Total 100.0% 100.0%
Source: Zauba, Customs, Government Import Export Databank
Table 4-2: India Furniture Market Imports by Major Product Categories on the Basis of
Import Value in USD Million, FY'2014-FY'2015

Bed 157.7 157.6
Sofa 57.5 92.8
Dining Table 13.2 15.1
Dining Chair 12.0 13.3
Center Table 16.7 13.2
Kitchen Cabinet 4.2 4.8
Dressing Table 2.9 2.6
Almirah 0.4 0.4
Total 264.6 299.9

Note: The value of products mentioned in the table above comprise of categories which are tagged as their
respective names in the export/ import databank. Hence, due to the presence of variation in product entries in
the trade data bank furniture products considered above have amassed a lower value of imports.
With respect to the total volume of furniture imports to

India, beds were observed as the highest imported
furniture items in both FY’2014 and FY’2015. The volume
of beds imported increased from 15,912.6 thousand units
to 22,337.4 thousand units in the year FY’2015. The rise in
number of bed imports to India increased by 40.4% as a

result of decline in global per unit prices. The fall in prices

of bed resulted as an after-effect of measures to increase
sales in the country. Sofas stood as the second most
imported furniture products for both FY’2014 and
FY’2015. Imports from China and the US were the major
A growth in nuclear driving factors for sofa imports.
families in the It was observed that sofa imports to India reduced
country along with moderately from 10,536.0 thousand units in FY’2014 to
reduction in housing 10,078.3 thousand units in FY’2015. One of the key
unit spaces has reasons for such as decline was the increased acceptance
fueled the decline of of bean bags as a replacement for sofas. Most of the
these products. middle-income class group in India has comprised of
young professionals who prefer trendy furniture products
which have high utility (flexible usage) and low costs.
Bean bags, which fit these criteria, have acted as a perfect
substitute for sofas at many places. Also, dining tables
and center tables, which were traditionally a compulsory
part of an Indian home, have observed decline in imports
during FY’2014-FY’2015. A growth in nuclear families in
the country along with reduction in housing unit spaces
has fueled the decline of these products.
Imports of other furniture products which include
almirahs (wardrobe), kitchen cabinets and others have
steadily increased on account of their utility and demand
from the young Indian population. The young working
professionals who often relocate as per work
requirements and possess a need for using high quality
and trendy products for their temporary homes have been
the growth drivers for these furniture products.
Table 4-3: India Furniture Market Imports by Product Categories on the Basis of Import
Volume in Thousands, FY'2014-FY'2015

Bed 15,912.6 22,337.4
Sofa 10,536.0 10,078.3
Center Table 1,086.5 805.2
Almirah (wardrobe) 70.6 161.4


Total 29,399.6 35,187.6
Also, the command of Germany, Italy, Spain, Korea and

Malaysia has changed as China has significantly increased
its manufacturing capacity of durable products at highly
competitive costs. These nations fall significantly behind
China in terms of value of imports. German and Italian
made high quality furniture has been lower in demand
exclusively due to their high costs which has made them
unaffordable for the middle class income segment of
India. This income group has created a highly competitive
scenario for imported products where these products are
scrutinized for their value of money. Countries such as
Malaysia and Indonesia, which are well known for the
high export of wooden logs to India, have not been able to
penetrate substantially into the market. This is due to the
high competition faced by the consumer perception of
high quality durable products. Indian customers have
either looked for high quality furniture items or low
priced products. The perception of Indian customer of
superior quality of western manufactured products has
been the most deterrent factor for the low imports of
furniture from South East Asian countries. Companies
such as Godrej Interio, Home Town and others have
sourced furniture products from these countries and then
re-branded them to sell under their company name.
Table 4-4: India Furniture Market Imports by Product Categories on the Basis of Major
Import Destination in Percentage and USD Million, FY'2015
Country Percentage Share in FY’2015 Import Value in FY’2015

Bed
China 49.8% 78.5
Germany 7.3% 11.5
South Korea 4.5% 7.1
US 4.1% 6.5
Italy 3.6% 5.7

Vietnam 2.5% 3.9

Japan 2.2% 3.5
Sofa
China 43.2% 40.1
US 35.1% 32.6
Italy 7.0% 6.5
Sri Lanka 4.6% 4.3
Malaysia 4.4% 4.1
Hong Kong 0.3% 0.3
Vietnam 0.1% 0.1
Dining Table
China 71.7% 10.9
Malaysia 19.3% 2.9
Italy 2.6% 0.4
Indonesia 1.8% 0.3
Vietnam 1.0% 0.1
Dining Chair
China 64.8% 8.6
Malaysia 26.7% 3.5
Italy 2.0% 0.3
Indonesia 1.8% 0.2
UAE 0.9% 0.1
Vietnam 0.8% 0.1
Thailand 0.6% 0.1
Center Table
China 67.0% 8.8
Netherlands 9.8% 1.3
Japan 9.1% 1.2
Czech Republic 7.6% 1.0
Taiwan 1.9% 0.3
US 1.7% 0.2
Sri Lanka 0.4% 0.1
Kitchen Cabinet
China 42.9% 2.1
Italy 25.2% 1.2
Germany 9.9% 0.5
Malaysia 5.9% 0.3
Thailand 3.1% 0.2
UAE 2.3% 0.1
Dressing Table
China 66.5% 1.7
Sri Lanka 20.2% 0.5
Malaysia 6.2% 0.2
Indonesia 2.9% 0.1

Almirah (wardrobe), USD Thousand

China 95.6% 407.2
Italy 1.0% 4.3
Indonesia 0.8% 3.4
UAE 0.7% 3.0
US 0.5% 2.1
Malaysia 0.2% 0.9

Note: The furniture products mentioned in the table above, namely, bed, dressing table, Almirah (wardrobe),
dining table, dining chair, sofa, center table and kitchen cabinet, comprise of all available varieties.
FURNITURE TRADING AND MARGIN

Trading of furniture products has become a more
lucrative business opportunity for small and medium
scale players in the industry. These companies, which
These companies, obtain a margin of 7-10% from in-house manufactured
which obtain a margin products, have been able to generate nearly 20-30% profit
of 7-10% from in- margins though sale of imported products. Moreover,
house manufactured with the presence of a large variety of designs at lower
products, have been costs, customers have reflected a tendency to purchase
able to generate nearly these furniture items. The average price of imports has
20-30% profit been significantly lower in comparison to the domestic
margins though sale cost of manufacturing. With the high import duties,
of imported products. margins and processing costs, imported products have
been observed to be sometimes sold nearly twice of their
original value; hence, many importers also earn margins
in the range of 40-50%. Apart from beds, dressing tables
and almirahs (wardrobe), the average import price of
products has increased from FY’2014 to FY’2015. The
increase in import prices for cabinets, dining tables and
chairs, center tables and sofas was witnessed as an
outcome of their higher demand in the Indian market. On
the contrary, products such as beds, almirahs (wardrobe)
and dressing tables which have been majorly sourced
from domestic manufacturers observed a fall in prices to
boost sales and drive customers to select imported
products.

Table 4-5: India Furniture Market Average Import Prices of Different Furniture Products
in USD, FY'2014-FY'2015

Center Table 15.4 16.4
Sofa 5.5 9.2
Bed 9.9 7.1
Almirah 5.7 2.6

Note: The average prices of products have been calculated by division of total value of imports by total volume.
Also, the total imports value and volume also contains a number of imports of furniture parts or may come in
disassembled forms. This may reduce the average price of furniture products such as beds.
Table 4-6: India Furniture Market Average Import Prices of Different Furniture Products
for Malaysia, China, Indonesia and Turkey in USD, FY'2015
Product Malaysia China Turkey Indonesia

Dining Table 86.0 13.3 215.4 105.8
Dining Chair 31.9 12.8 29.5 49.5
Sofa 23.7 3.0 220.9 76.1
Center Table 25.5 13.4 72.8 27.6
Bed 61.8 4.6 27.6 75.0
Dressing Table 115.3 30.6 153.7 149.2
Almirah (wardrobe) 6.4 3.0 NA 455.6
Kitchen Cabinet 46.8 14.9 171.3 903.8

Note: The average prices of products have been calculated by division of total value of imports by total volume.
4.3. F URNITURE S UPPLIER C OUNTRIES
Furniture imports in India cater to a large demand and it

has been observed that China has been the largest
exporter of furniture to India due to the cheap price of its
products. These products are thereby highly preferred in
the country which is followed by the imports from
Malaysia. The Malaysian furniture has a better quality
with a comparatively higher price. In FY’2015, 58.1% of

the furniture imports have been exported by China in

India and 12.7% of the total imports were made from
Malaysia.
It has also been observed that Italian furniture is also
highly preferred especially by the elite class, due to its
elite design and high price. Italy has imported 6.8% of
total imports in the country as of FY’2015. The following
are some of the major furniture supplier countries in
India.
Table 4-7: Major Furniture Supplier Countries for India, FY’2013-FY’2015
Values in Values in Values

%
S. USD USD in USD %Growth, %Growth,
Country Contributi
No Million, Million, Million, FY’2014 FY’2015
on, FY’2015
FY’2013 FY’2014 FY’2015
1 China PRP 313.8 279.8 297.1 -10.8% 6.2% 58.1%
2 Malaysia 64.3 60.8 64.9 -5.5% 6.8% 12.7%
3 Italy 48.8 46.5 34.6 -4.6% -25.7% 6.8%
4 Germany 21.9 22.7 22.4 3.9% -1.3% 4.4%
Sri Lanka
5 12.1 13.1 12.3 8.6% -5.8% 2.4%
DSR
6 USA 16.0 10.7 10.9 -33.0% 1.8% 2.1%
Hong
7 4.4 5.3 9.1 21.7% 71.4% 1.8%
Kong
8 Singapore 11.7 7.9 9.0 -32.9% 13.8% 1.8%
U Arab
9 14.5 6.0 9.0 -58.4% 48.6% 1.8%
Emirates
10 Indonesia 7.8 6.7 6.6 -13.9% -0.9% 1.3%
11 UK 5.6 5.3 4.2 -6.2% -19.5% 0.8%
12 Spain 5.7 6.0 3.7 4.9% -39.4% 0.7%
13 Canada 0.6 1.9 3.4 218.3% 80.1% 0.7%
14 Thailand 3.6 3.6 3.2 -1.4% -11.7% 0.6%
15 Taiwan 4.4 2.7 2.9 -38.4% 5.2% 0.6%
16 Korea RP 2.2 2.2 2.5 2.3% 10.8% 0.5%
17 Turkey 1.4 1.3 1.8 -9.2% 39.1% 0.3%
Vietnam
18 2.6 1.4 1.2 -46.4% -14.9% 0.2%
Soc Rep
Banglades
19 1.1 1.0 1.2 -7.3% 14.7% 0.2%
h PR
20 France 2.5 1.4 1.1 -43.1% -23.4% 0.2%
21 Others 13.3 10.9 10.1 -18.0% -7.3% 2.0%
Total 558.2 497.3 511.0 -10.9 2.8 100.0%
Source: Ministry of Commerce,

Note: The Countries have been sorted as per FY ’2015 imports

Note: 4 digit HS Code- 9403
4.4. C OMPETITOR A NALYSIS
CHINA
China has dominated as the import partner of India in
terms of furniture products, namely, beds, dressing tables,
sofa sets (with center table), dining sets, kitchen cabinets
and almirahs. Moreover, customers have been directly
able to import China-made furniture products through
online websites such as Alibaba, AliExpress, Modish
Furniture and several others. Additionally, the dominance
Chinese furniture of Germany and Italy has been conferred by China
products have significantly with increased manufacturing capacity of
been well known durable products at highly competitive prices. These
as one of the nations fall significantly behind China in terms of import
cheapest across
value. German and Italian made high quality furniture
the globe.
has been lower in demand exclusively due to their high
However, the
prices which has made them unaffordable for the middle
quality of
Chinese products class income segment of India. This income group has
has been the created a highly competitive scenario for imported
main source of products where these products are scrutinized for their
concern for a value of money.
majority of Chinese furniture products have been well known as one
buyers. of the most cheapest across the globe. However, the
quality of Chinese products has been the main source of
concern for a majority of buyers. China employs low
wage labor under 4,942 furniture enterprises as of 2014
out of which more than 80% are small and medium sized
enterprises. A large number of western manufacturers
such as IKEA have recognized China as a high potential
market for low cost manufacturing of furniture and a high
export base.
Also, in 2015, 15 MoUs were signed between Indian and
Chinese companies to cover various areas of development
in different sectors. Furniture has been an important part
of these MoU after crucial sectors such as infrastructure,
energy, IT and others. However, despite of high volume

of trade between the two countries, the absence of an FTA

has restricted the growth of trade activities amongst
China and India to reach their full potential. The only
trade agreements mutually signed by these two countries
are the Asia Pacific Trade Agreement (APTA) and the
Regional Comprehensive Economic Partnership (RCEP)
under the ASEAN states.
Table 4-8: Timber Product Exports from China, 2014
Product USD Million

Plywood 5,782.2
Fiberboard 1,641.4
MDF 1,463.3
Sawnwood 419.9
Veneer Sheets 322.8
Particle Board 113.2
Round wood 37.4
Total 9,780.2
Source: Food and Agricultural Organization of the United Nations
MALAYSIA
Malaysia has been well known across the globe for its
high quality timber products. Out of the numerous
varieties of trees and different types of wood available in
the ‘forest rich’ country, rubber wood has accounted for
nearly 85% of the furniture exports. The availability of
large quantities of mature rubber trees which possess
excellent machining properties has boosted the domestic
manufacturing of furniture in Malaysia. Apart from the
export of furniture products, Malaysia has also been one
of the largest exporters of wood logs under the Ministry
of Plantation Industries and Commodities. These rubber
wood logs have been mainly used in particle boards,
plywood and MDF boards. Some of the common
Malaysian timber which is used for wooden furniture
includes Rubber wood, Nyatoh, Sepetir, Kembang

Semangkok, Palm Wood, Balau, Dark Red Meranti, Red

Balau, Mengkulang, Ramin and Merbau.
In order to support the sustainable production of timber
products, the government launched the Malaysian Timber
Certification Scheme (MTCS) under the Malaysian Timber
Council in 2001. The primary function of the MTCS has
been to assess forest management and chain of custody
In order to support the certification as per minimum requirements of the
sustainable production
Programme for Endorsement of Forest Certification
of timber products,
(PEFC) to maintain the sustainability of Permanent
the government
Reserved Forests (PRF) of Malaysia. Additionally, other
launched the
Malaysian Timber key agencies which are accountable for management of
Certification Scheme timber and forests include the Malaysian Timber Industry
(MTCS) under the Board (MTIB), the Sarawak Timber Industry
Malaysian Timber Development Corporation, Sarawak Forestry Corporation
Council in 2001. and the Malaysian Timber Certification Council. The
country stood as the largest import source of wooden logs
for India in the year FY’2015.
Further the trade Malaysian furniture has also been easy
on the account of a number of bilateral trade agreements
have been established to propel the free flow of goods
across the borders of these two nations. The India
Malaysia Comprehensive Economic Cooperation
Agreement (CECA) signed on 1 July 2010 to liberalize
st
trade in services, provide more liberal tariff concessions

on goods and provide better market access. Additionally,
as of FY’2015, more than 100 Indian companies, which
include 61 joint ventures, have been operational in
Malaysia.
The high volume of trade between the two countries has
also been accounted for several trade agreements. A
number of bilateral trade agreements have been
established to propel the free flow of goods across the
borders of these two nations. The India Malaysia
Comprehensive Economic Cooperation Agreement
(CECA) signed on 1st July 2010 to liberalize trade in
services, provide more liberal tariff concessions on goods
and provide better market access.

Table 4-9: Timber Product Exports from Malaysia (1st January to 30th June), 2015
Product USD Million

Wooden Furniture 915.9
Plywood 619.8
Sawntimber 403.8
Logs 274.7
Fiberboard 160.3
Other Products 139.8
Builders Joinery & Carpentry 135.4
Mouldings 112.1
Particleboard 52.9
Veneer 41.3
Wooden Frame 17.0
Rattan Furniture 4.3
Total 2,877.4
Source: Malaysian Timber Industry Board
INDONESIA
India and Indonesia have worked upon a bilateral

Comprehensive Economic Corporation Agreement
(CECA) through a Joint Study Group (JSG) established in
2005. The JSG conducts studies to identify existing trade
barriers, flows of investment and other subjects. In order
to improve trade between the countries, attempt has been
made to identify degree of attractiveness, trade
complementary product lines, products which possess
competition in exports and decrease tariff barriers in each
country. Additionally, the country possesses a Timber
Legality Assurance System (TLAS) formulated under the
Ministry of Forestry to ensure high quality of timber
products for stakeholders. Moreover, the country has also
observed the working of numerous associations which
oversee trade of timber products such as:

Table 4-10: Associations for Trade of Timber Products in Indonesia
S. No. Associations
1. MPI (Indonesian Forestry Community)
2. APHI (Association of Indonesian Forest Concessionaires)
3. APKINDO (The Indonesian Wood Panel Association)
4. ISWA (The Indonesia Sawmill & Woodworking Association)
5. APKI (The Indonesian Pulp & Paper Association)
6. ASMINDO (The Indonesian Furniture Industry & Handicraft Association)
Source:
In March 2015, an Indonesia International Furniture Expo

was held in Jakarta to exhibit furniture product lines to
the international buyer community. The expo included
In March 2015, an
both international and domestic players and also
Indonesia
International observed active participation from entrepreneurs who
Furniture Expo was produce original hand crafted furniture using natural
held in Jakarta to materials, which mostly comprised of rattan/ bamboo or
exhibit furniture wood. The furniture expo showcased the capability of
product lines to the Indonesian craftsmen to produce high quality furniture
international buyer products at competitive prices. This event was held to
community. propel the growth of the furniture industry of Indonesia
which stood nearly at USD 4.0 billion and was estimated
to reach USD 5.5 billion by the year 2018.
India has been a big market for Indonesia. A large
number of e-commerce players have imported Indonesian
furniture through the unorganized segment for sale in
India.
Table 4-11: Timber Product Exports from Indonesia, 2014
Product USD Million

Plywood 2,196.0
Sawnwood 342.3
Fiberboard 47.5
MDF 42.4
Veneer Sheets 32.0
Round wood 27.4
Particle Board 0.4
Total 2,688.0
Source: Food and Agricultural Organization of the United Nations

Table 4-12: Comparative Analysis of Asian Supplier Countries (China, Malaysia and
India) for Furniture in India
Basis China Malaysia Indonesia

The packaging is not much differentiated in exports in any of the countries
among China, Malaysia or Indonesia. The furniture is packed in the same
kind of containers. The furniture can be shipped in one piece or under a
Packaging
dismantled form. Generally the chairs, dining sets and sofas are packed in
pieces while the beds and wardrobes are shipped in parts which have then
to be assembled and sold further.
Design The Chinese furniture The Malaysian The Indonesian
comes in all sorts of furniture in India is furniture is most
designs which are mostly demanded famous for its carved
generally copied from because of its simple handmade colonial
bigger brands such as straight line style. and traditional
Italian or German. The furniture.
major demand however
arises for modern style of
furniture.
Pricing Chinese furniture comes Malaysian furniture Indonesian furniture is

in low average prices comes in much more durable
such as : comparatively higher than Chinese or
Bed: USD 382.0 – USD prices than the Chinese Malaysian Furniture
1,146.0 furniture such as : and hence a slightly
sofa set (6 seats):USD Bed: USD 764.0 to USD higher priced then the
1,528.0 to USD 2,865.0 1,910.0 Malaysian furniture
6 seat dining sets: around sofa set (6 seats): USD such as :
USD 1,337.0 1,910.0 to USD 2,865.0 Bed: USD 955.0 to USD
6 seat dining sets: 3056.0
around USD 1,719.0 sofa set (6 seats): USD
1,528.0 to 2,865.0
6 seat dining sets:
around USD 1,719.0.
Product Most of the products Almost all of the The Indonesian
Specification which are imported in Malaysian furniture products are all solid
India are made of MDF products are made of woods, highly durable
or Particle board which rubber wood which is such as teak wood and
is generally not durable. comparatively more rattan woods. Abaca
durable than Chinese and several others and
furniture. The reason also smaller quantities
for the highest export of rubber wood.
of rubber wood is the
plenty of rubber
plantations
Margin The margin of retailer in The margin of retailer Generally the margin
these products remain in these products is between the range of

around 20% to 30% remain around 20% to 20%-30%, however for

30% certain high end
products the margins
may increase to up to
50%
Major Brands The trend of the local Higher availability of The major brands of
enterprises in China has skilled labour among furniture which are
been changing with local furniture retailers sold in India are
some brands coming up and vast availability of international brands
with considerable natural resources in that do operate from
strength such as QuanU, Malaysia has been South Asian countries
Qumei and Red Apple. changing the trend of due to cheap
international brands to manufacturing.
the local ones such as However there are no
Kedai Bikin, Wood and major local brands of
Steel, Heartifact and Indonesia, china or
Waris Papan Malaysia which are
very popular in Indian
market.
Source: Interviews with Furniture Importers,
4.5. I NDONESIA ' S R OLE IN S UPPLYING

F URNITURE IN I NDIA
ROLE OF INDONESIA IN INDIA FURNITURE

MARKET
The overall furniture market in India is pegged as fifth
largest in the world. In the review period, FY’2010-
Imports have formed FY’2015, the Indian population has been observed to
a significant
gradually shift towards branded furniture instead of
proportion of the
using carpenter made furniture. The stylish branded
products sold to the
furniture products manufactured by organized players in
upper-middle income
class and higher the market have been able to increase their demand from
income class of the the urban population. There has also been a trend of
Indian society. shifting to customized furniture in the country. The
overall Indonesian furniture imports in the country have
grown at a CAGR of 6.9% during FY’2010-FY’2015.

Indonesia is one of the key exporters of furniture in India

and has an imperative role in catering the furniture
demand in the country.
The availability of Indonesian furniture in modern,
classical, colonial and customized variants has spurred
the demand of Indonesian furniture in the country. This
was backed by the features of Indonesian furniture such
as well finished, cheap price and durable nature. It led to
an increase in the imports of Indonesian furniture in India
from USD 4.5 million in FY’2010 to USD 9.2 million in
FY’2012.
A large number of people have become aware of the
The increased variety of products available in foreign countries and
competition from have showcased a preference to purchase foreign branded
Hong Kong and furniture products which have increased the demand for
Malaysia in Indian
branded products especially the Italian furniture. Italian
furniture market due
furniture products are considered to be status symbol
to the cheaply
products. This has resulted into an increase in imports of
available products has
further reduced the furniture from Italy in FY’13 by 12.3% and thereby led to
imports of Indonesian a fall in demand of Indonesian furniture. This has
furniture in the reduced the imports of Indonesian furniture in the
country. country which were recorded at USD 8.6 million in
FY’2013.
The superior quality and cheap price of Malaysian
furniture has increased its import demand in India which
has reduced the demand of Indonesian furniture to a
great extent. This has led to a fall in Indonesian furniture
imports which was recorded at USD 7.3 million in
FY’2014.
However, in the past year during FY’2015, there has been
a slight surge in demand of Indonesian furniture owing to
an increased demand of Indonesian teak due to low
availability of Burma teak and high price of Indian teak.
There has been a Rattan wood which is also in high
demand. These woods have the capability to resist the
termite problem and last for ages. This has increased the
demand of Indonesian furniture imports (especially teak
and rattan products) to USD 7.5 million in FY’2015 and
the prospects for future seem to be compelling as well on

the note of large size of the population and the change in

tastes which have commenced to be more refined.
Figure 4-2: Indonesian Furniture Imports in India in USD Million and Share of Indonesia
Furniture in Total Furniture Imports in India in Percentage (%), FY’2010-FY’2015
10.00 9.20 1.80%

9.03
9.00 8.58 1.60%
8.10
8.00 1.6% 7.25 1.40%
7.00
1.20%
6.00 1.2% 1.2%
1.1% 1.00%
USD Million
Percentage (%)
5.00 4.54 1.0%
1.0%
0.80%
4.00
0.60%
3.00
2.00 0.40%
1.00 0.20%
0.00 0.00%
FY'2010 FY'2011 FY'2012 FY'2013 FY'2014 FY'2015
Indonesian Furniture Imports Share of Indonesian Furniture in Total Furniture Imports
Source: Ministry of Commerce, India, Analysis

Note: 4-digit HS code- 9403 and 9401
STRENGTHS AND WEAKNESSES

On the basis of core analysis of Furniture Imports from
different Asian Countries, the following are the strength
and weakness of Indonesia Furniture relative to other
Asian Countries.
Table 4-13: Strength and Weakness of Indonesian Furniture
Strength Weakness
 Indonesia has all hard wood  No standardization of parts across
furniture like teak which is why it producers.
is very durable and last for ages.  Improved supply chain organization
 Along with durability, Indonesian and technology in other supplying
furniture is also not costly as countries. Technology-based business
compared to Italian or German promotion and information.
brands.  Continued limitations of micro
 Handmade and carved furniture is financial institutions capable of

the specialty of Indonesian supporting process improvements by
furniture which makes it highly SMEs.
attractive.  The products neither have high quality
 Indonesian furniture has low nor low price which are the main
market saturation in India which concerns of an Indian customer
is why there is a high opportunity  The presence of Mafia in local markets
with the retailers to cover the and land mafia have reduced the
market willingness of foreign purchasers to
 The furniture industry in visit and purchase furniture.
Indonesia has location advantages  Lower brand building capacity in the
in accessing raw material supplies, Indonesian furniture since there are no
along with abundant skilled labor major brands and branding in customer
throughout the country
perspective in India that equates
 There is sizeable potential for
quality.
Indonesia producers to develop
 Indonesia is a land of a lot of natural
their presence in the markets for
calamities which makes it difficult to
office, modular kitchen and
trade.
bedroom furniture, especially by
incorporating into the value
chains of big distributors.
 Active association ASMINDO
with large network
Table 4-14: Strength and Weakness of Chinese Furniture
Strength Weakness
 Low labour costs lading to lower  Low quality products
prices  No original designs since most of them
 Customers have been directly are copied from bigger brands
able to import China-made  More focus on increasing productivity
furniture products through rather than quality
online websites such as Alibaba,  Lower brand building which has made
AliExpress, Modish Furniture Chinese products to be equated with
and several others. poor quality goods
 Immediate neighbor of India so  In India people often associate low price
imports from china are much with low quality due to incomplete
easier and quicker than other knowledge
countries.  Lower durability of furniture products
 Preference of people for cheap
furniture products have made
chine furniture thrive in the
country.
 Plethora of design and style
options from modern to classic.
 Easier access for raw materials

and cheap labour
Table 4-15: Strength and Weakness of Malaysian Furniture
Strength Weakness
 High availability of skilled  Profitability of furniture manufacturers
labour have been lower in Malaysia as
 Availability of vast natural compared with other nations
resources with large number of  Lower investments in Research and
rubber plantations in country, development
particularly timbers from forest  No branding which restricts its demand
plantations such as rubber wood by many people
and acacia  Too many taxes have been levied on
 Monetary assistance provided by furniture trade in Malaysia
government in manufacturing  High loan rates in Malaysia has led to
and exports of furniture from limitation of financial capital
Malaysia which enables them to
offer competitive prices
 Large amount of rubber
plantations in country has led to
abundance of rubber wood in the
country
 Comparatively cheaper furniture
with simple design as demanded
by most of the Indian population
 Large number of FTAs signed
between India and Malaysia
making trade easier.
IMPORT REGULATIONS
In India, the import and export of goods is managed by

the Foreign Trade (Development & Regulation) Act, 1992
and India’s Export Import (EXIM) Policy. The Directorate
General of Foreign Trade (DGFT) in India is the main
prevailing body responsible for all matters related to
export import policy.
All the importers have to register with the Directorate
General of Foreign Trade to obtain a necessary document
called the Importer Exporter Code number (IEC). IEC is

All the importers have issued against the Permanent Account Number (PAN).
to register with the After obtaining the IEC, the source of items for import
Directorate General of must declare. The Indian Trade Classification –
Foreign Trade to Harmonized System (ITC-HS) allows for the free import
obtain a necessary of most goods without a special import license. The
document called the furniture is considered under the open general license so
Importer Exporter does not require any other separate license apart from the
Code number (IEC). general export import license. Duty Credit Scrip can also
IEC is issued against be used to pay the duty on such products. However there
the Permanent are a certain goods that require special permission or
Account Number licensing which can be categorized as licensed (restricted)
items, prohibited items and canalized items
IMPORT POLICY OF FURNITURE IN INDIA
 Import Duty on Furniture
Indian imports of furniture are governed by the central

ministry of commerce, which regulates the market
through stipulating import duty on the furniture
imported from Indonesia. However, the stipulation of
imports has been mainly practiced with the interest to
incentivize the domestic industries, in lieu to set up
furniture manufacturing units in domestic countries. The
basic duty on imports of furniture is 10.0%, which is
imposed on the total assessing value of the goods
imported. Assessing value of the goods is 1% of the
landing charge of CIF (Cost, insurance and freight) value
India is known as a
country which meets added to the CIF value. Basic preferential duty is not
its significant demand levied on these products. Next to this, there is an
for furniture from additional duty, also known as CVDs (Countervailing
unorganized market; Duties) of 12.0%, which gets calculated on the assessable
while for the value of the imports including basic duty charges.
remaining demand, it Afterwards, Central excise education cess is imposed by
imports from other the central government of 3.0% on the CVDs. After this,
countries or the custom education cess of 3.0% of aggregate of all the
duties on excise is charged. In addition to this, the central
government imposes 4.0% of special duties on the import
of furniture on the total value including the all the duties.

Hence, this leads to a total of 29.3% of the custom duty

charged on the imported value of the furniture. This
import duty on furniture is quite low as compared to
other products such as flavor imports with duty of
138.9%.
Table 4-16: India Furniture Import Duty Structure in Percentage Terms (%), FY’2015
Formula Duty Rates Duty Amount

Assessable Value- A
A- 10,100.0
(CIF Value + 1% of Landing Charge on CIF Value)
Basic Duty- B
10.00% B – 1010.0
(A* Basic Duty Rate)
Preferential Duty-B
0.00% B - 0.0
(A* Preferential Duty Rate)
CVD - Additional Duty-C
12.00% C – 1,333.2
((A+B)* CVD Rate)
Central Excise Education Cess – D
3.00% D – 40.0
(C* Central Excise Education Cess Rate)
Customs Education Cess- E
3.00% E – 71.5
((B+C+D)* Custom Education Cess Rate
Special CVD- Special Duty- F
4.00% F – 502.2
((A+B+C+D+E)* Special CVD Rate)
Total Custom Duty (B+C+D+E+F) 29.65% 2,956.9
Source: Cybex
Note: CIF value is assumed as 10,000 for simplicity of calculations
 Other Policies
Since the furniture comes under the open general license,
there are no other specific policies relating to the imports
of furniture in India.
NON TARIFF BARRIERS

In India, there are no set standard government non tariff
barriers over the furniture sector. It has been witnessed
that majority of the demand in India for furniture is met
through unorganized sector which is why there is no
governing body or the set of rules that can restrict
imports. The government has not stipulated any non tariff
barriers on the imports of furniture from Indonesia,
because it will restrict the demand and will cause an

unnecessary price spiral in the country. Hence, the trade

is flowed freely into the country for furniture products.
QUALITY STANDARDS AND CERTIFICATION

REQUIREMENTS
In India, there are no such set quality standards and
certification requirements on the imported furniture from
Indonesia. However, the quality standard and
certifications are as per the Indonesian standards such as
those from Timber Legality Assurance System (TLAS)
formulated under the Ministry of Forestry to ensure high
quality of timber products for stakeholders. However, no
such regulations are currently prevalent in Indian market.
Additionally, the concept of quality is subjective in the
minds of Indian consumers on the basis of design, price,
durability or whether or not it is purchased from a
branded outlet.
CERTIFICATION PROCEDURE
The imported furniture products do not have set
standards for certification and since there is no governing
body. The government has not predetermined any
certification requirements.
ENVIRONMENTAL, SOCIAL AND HEALTH

SAFETY REQUIREMENTS FOR IMPORTED
FURNITURE
Although there are no major environmental, social and
health safety requirements in the import of furniture from
Indonesia, however, there have been some of the
complications at the times of clearance at the ports for
leather in furniture. These complications are generally
tackled in India by the importers by stating the leather as
polyurethane (PU).
PACKAGING AND LABELING

There are no packaging regulations for the imports in

India from Indonesia however the labeling has to be done
as per the guidelines issued by the Department of Legal
Metrology. The followings are the compulsory
announcements required on a packet which has been
imported and available for sale:
 Name and complete address of the Manufacturer,
Packer and / or importer of the packaged commodities.
 Net contents in terms of weight, volume or number.
 Date of manufacture/packing/import of the
commodity (month and year).
 Maximum Retail Price (inclusive of all taxes).
 Generic name of the commodity.
 Customer Care Number with name, address, Telephone
No. of the person/office which can be contacted in case
of consumer complaints.
 Size, if applicable
4.6. D ISTRIBUTION C HANNEL OF F URNITURE

IN I NDIA
4.6.1. D OMESTIC M ANUFACTURING M ODEL
The operations in domestic manufacturing of furniture in

India can be divided into 2 basic forms, namely, ‘make to
The wholesalers order’ and ‘bulk manufacturing’. The ‘make to order’
keep a gross model allows the manufacturer to produce furniture
profit margin of when an order is placed by the customer and assists in
5-8% to cover reduction of sales risk as no additional inventory is
their costs and maintained. The manufacturer only displays a variety of
sell furniture furniture products to showcase quality and to provide
products to a customers with an idea about design capabilities of the
wide range of manufacturer.
The raw materials can be obtained either through the local
market or through imports from Malaysia, Indonesia or
China. After procurement of raw materials from timber
suppliers, the furniture manufacturer develops the
designs and produces the product based on the customer
requirement. The manufacturer bears the cost of

transportation of furniture to the customer. The

requirement is routed to the manufacturer through
exclusive, franchise or dealer stores. These stores retain a
gross profit margin of 25-30%, 20-25% and 15-18%
respectively. On the other hand, the furniture products
manufactured in bulk are generally sold to wholesalers
which then forward it to retailers as they keep lower
margins and generate higher sales through lower prices.
Additionally, the The wholesalers keep a gross profit margin of 5-8% to
companies have cover their costs and sell furniture products to a wide
offered range of dealers.
consultations for Moreover, in order to promote their products, furniture
interior manufacturers also provide advertisements across various
decoration in digital (web articles, social media, television and radio)
order to aid
and non-digital (newspapers and magazines). The
customers to
marketing of products includes discount offers, financing
obtain the most
and EMI schemes.
appropriate
solution for their Manufactures have also begun to produce furniture
homes. which can be assembled through the DIY (Do-it-Yourself)
ideology. In such a case, the manufacturer designs
furniture framework in such a way that it can be
dismantled and stacked effortlessly by a customer. The
customer is also provided with a manual for assistance in
assembly and disassembly. Using this feature, the
manufacturer saves cost for transportation of products as
lesser space is required for each product in the container
and more number of products can be shipped at a given
point of time.
Additionally, the companies have offered consultations
for interior decoration in order to aid customers to obtain
the most appropriate solution for their homes. The
consultants have generally been an integral part of the
company as they require extensive knowledge of
company products and customization capabilities.
One of the major draw backs of selling through a
domestic manufacturing model in the furniture market is
the higher cost of production in comparison to imports.
Heightened labor expenses, raw material costs and
operating costs in India have reflected 30-50% higher

prices of products in comparison to imports from

countries such as China and Indonesia. This has also
resulted due the usage of traditional manual labor for
manufacturing in India whereas automated equipment is
utilized in foreign countries. Due to the presence of these
substitutes, the budget-conscious Indian customers have
showcased a varied demand for furniture products which
has in-turn led to lower sales for domestic furniture
manufacturers.
Other major risks include:
 High impact of change in raw material prices on supply

chain
 Maintenance of manufacturer-supplier relationship
 Volatility in availability of raw materials
 Uncertainty in customer demand
 High unutilized inventory
 Slippage in delivery time
 Product returns and exchanges

Figure 4-3: Business Model for Domestic Manufacturing of Furniture in India
Raw Material
Manufacturer
Wholesaler
Margin – 5-8%
Company- Franchise Store Dealer

Owned Store
Margin – 25-30% Margin – 20-25% Margin – 15-18%
Customer
Source: Industry Articles, Web Articles,

Note: Furniture dealers include companies which perform import/ export of furniture products and also sell
them to other small and large format retailers within the country.
4.6.2. I MPORT B ASED M ODEL
Import of furniture products has been observed

significantly in the Indian market. There has been a
presence of a large number of dealers and traders that
sells imported furniture products. This is due to higher
commission earned from trading of furniture items in
comparison to domestic manufacturing. High costs of

logistics, high priced raw materials and low output

capability have resulted in lower profit margins for
domestic manufacturers.
The import model of furniture industry follows a

streamline flow in which importers place orders of
furniture units which are then shipped to India. The
exporter then processes a Performa invoice. After the
negotiations the Performa invoice is accepted, 40%-50% of
payment is made in advance after which the exporter or
manufacturer starts manufacturing the products. The
The payment can
price quotations are made as per the FOB basis which also
also be taken in
installments; includes documentation costs, packaging and labeling
importers costs and hence the shipping or ocean freight becomes the
generally pay responsibility of the buyer. The payments are either done
40-50% of the by a bank or wire transfer or by letter of credit (LC). The
total cost at the most prevalent system of payment is however TT or
time of order Telegraphic Transfer. The delivery is done by the ships till
placement and the ports. The buyer can then collect the products from
transfer the the port after showing the Bill of Lading and other
remaining documents received from the seller at the port.
amount at the
time of After the arrival of shipment at the sea port, the importer
is required to proceed with financial obligations such as
port charges, import duty and docking charge (incase
shipment is not claimed within a defined period). After
making the necessary payments, the importer ships the
furniture from the port to the warehouse. These products
are inventoried at the warehouse and prepared for
dispatch.
The major drawback of this business model is the high

turn-around time. In case the required piece is not
available with the furniture dealer/ supplier it can take a
significant amount of time (several weeks) to import it
from the source country. This would lead to loss of
customer interest in the product and hence create loss in
sales. Moreover, this model also possesses a higher risk of
furniture damage during transportation as products have

to be delivered through different means (sea and land)

and require multiple loading and off-loading points.
Figure 4-4: Business Model for Import Based Furniture in India
Imported Products
Importer
Margin – 30%
Margin – 30-35%
Company-Owned Retailer
Store
Margin – 20-25%
Customer
Source: Interviews with Furniture Traders/ Importers

Note: Imported Products mentioned above includes furniture products which are either imported as stock piece
or disassembled items.
5. S TRATEGIES
The furniture market in India has been majorly driven by

the sales in unorganized sector. However, organized
brands such as Godrej Interio, Durian, Style Spa and
others have observed a steady increase in revenues over

the past five years. With an increase in disposable income

of the Indian working population and a heightened sense
of design selection, customers have begun to shift to
branded furniture products. Moreover, with the onset of
online sales of furniture products in the country,
customers have started to get accustomed to purchase
furniture from online stores. The increase in customer
confidence owed to high quality of products maintained
by e-commerce players coupled with an utmost
convenience to view a large variety of products has
propelled the online sales of furniture products in the
country.
COMPETITION SNAPSHOT OF MAJOR

ORGANIZED FURNITURE PLAYERS IN INDIA
 Product Portfolio and Pricing
Table 5-1: Pricing Analysis of Bedroom Furniture across Different Companies in India
Home Furniture Market, FY’2015
Company Beds Dressing Table Wardrobe

Godrej INR 33,000 – INR INR 10,000 – INR
INR 16,000 – INR 35,000
Interio 150,000 35,000
Nilkamal INR 4,000 – INR 72,000 INR 7,500 – INR 40,000 INR 10,000 – INR 87,000
INR 18,000 – INR
Durian INR 8,000 – INR 37,000 INR 25,000 – INR 97,000
60,000
INR 10,000 – INR
Damro INR 2,200 – INR 20,000 INR 8,000 – INR 53,000
45,000
INR 15,000 – INR
Home Town INR 6,500 – INR 57,000 INR 8,500 – INR 88,900
78,000
INR 23,000 – INR INR 12,000 – INR
Home Center INR 25,000 – INR 50,000
80,000 30,000
INR 15,000 – INR
Style Spa INR 7,800 – INR 10,000 INR 26,500 – INR 54,500
38,900
Pepperfry INR 4,000 – INR 37,400 INR 3,500 – INR 19,600 INR 6,000 – INR 52,900
INR 14,999 – INR
Urban Ladder INR 2,999 – INR 17,999 INR 29,999 – INR 92,999
45,999
INR 3,900 – INR INR 19,000 – INR
Snapdeal INR 6,000 – INR 43,000
150,000 190,000
INR 4,000 – INR
Fabfurnish INR 3,999 – INR 27,999 INR 5,999 – INR 67,999
1,42,000
Home Shop
INR 5,599 – INR 38,599 NA NA
18

Source: Company Websites, Interviews with Furniture Retailers,
Table 5-2: Pricing Analysis of Living Room Furniture across Different Companies in
India Home Furniture Market, FY’2015
Company Sofa Center Table

Godrej Interio INR 45,000 – INR 500,000 INR 7,000 – INR 25,000
Nilkamal INR 8,245 – INR 149,900 INR 2,400 – INR 27,900
Durian INR 13,640 – INR 223,080 INR 12,760 – INR 40,810
Damro INR 25,990 – INR 82,650 INR 5,400 – INR 8,070
Home Town INR 11,900 – INR 88,900 INR 2,900 – INR 31,000
Home Center INR 30,000 – INR 200,000 INR 18,000 – INR 50,000
Style Spa INR 30,695 – INR 53,695 INR 5,794 – INR 10,271
Pepperfry INR 9,899 – INR 55,200 INR 7,000 – INR 75,000
Urban Ladder INR 19,999 – INR 114,999 INR 2,999 – INR 35,000
Snapdeal INR 10,749 – INR 181,500 INR 3,500 – INR 50,050
Fabfurnish INR 7,000 – INR 189,900 INR 3,500 – INR 44,910
Home Shop 18 INR 15,999 – INR 79,230 NA
Table 5-3: Pricing Analysis of Dining Room Furniture across Different Companies in
India Home Furniture Market, FY’2015
Company Dining Sets (Table and Chair)

Godrej Interio INR 36,000 – INR 250,000
Nilkamal INR 13,360 – INR 108,900
Durian INR 10,780 – INR 31,350
Damro INR 23,920 – INR 47,490
Home Town INR 10,900 – INR 104,900
Home Center INR 12,000 – INR 30,000
Style Spa INR 24,195 – INR 76,695
Pepperfry INR18,553 – INR 61,400
Urban Ladder INR 21,499 – INR 69,999
Snapdeal INR 8,230 – INR 155,654
Fabfurnish INR 10,900 – INR 105,900
Home Shop 18 INR 29,326 – INR 96,970

 Analysis of Retail Stores (Average Walk-ins,

Conversion Rate, Average Margins and Others)
Table 5-4: Analysis of Furniture Retail Stores in India on the Basis of Key Performance
Indicators (Average Walk-ins, Conversion Rate, Average Margins and Others), 2015
Company Geographical Presence Key Performance Unique Selling Point

Indicators
Godrej Interio  Godrej Interio has  Store size range  Unique furniture
more than 85 stores – 5,000-40,000 designs and
which comprise of sq. ft. quality
50 exclusive  Average walk- dependent on
company owned ins per products made
showrooms and weekday per after R&D done
rest as franchise store – 10-15 by Godrej team
outlets  Average walk-  Sales team
 The company ins per focuses on
possess an weekend per customer
extensive network store – 20-25 requirement to
of 800 dealers  Average provide them the
 Godrej Interio conversion rate most optimum
stores have been per weekday– solution for the
clustered around 20% cost and duration
the region of tier 1  Average of usage
and tier 2 cities of conversion rate  Share of imported
India per weekend– products – 18-
 The manufacturing 22.2% 20%
units of Godrej are  Average  Share of domestic
located in Pune, number of products – 80-
Mumbai, Guwahati furniture 82%
and Uttarakhand products sold
per weekday
per store – 2-3
 Average
number of
furniture
products sold
per weekend
per store 4-6
 Average order
size of furniture
on weekdays
and weekends –
INR 22,500
 Average gross
profit margin
per store – 30-

35%
 Average sales
growth rate per
store – 10%
 Average
revenue per
store- INR 26.3
million
Nilkamal  Nilkamal has 19  Store size range  Cheaper and
@Home stores – 20,000-30,000 durable quality
across the country sq. ft. products
with an average  Average walk-  Warranty of 3
size of 25,000 sq. ft. ins per years
per store weekday per  Free expert advice
 The company also store – 22-27 using 3D
operates in small  Average walk- modeling
store format with ins per software
40 stores of weekend per  Share of domestic
average size of store –28-32 products – 100%
3,000 sq. ft. to  Average
8,000 sq. ft. conversion rate
 Retail stores of per weekday –
Nilkamal @Home 10%
are majorly located  Average
in tier 1 cities conversion rate
 The per weekend –
manufacturing 15%
units of Nilkamal  Average
are located at number of
Samba, Greater furniture
Noida, Barjora, products sold
Sinnar, Nashik, per weekday
Silvassa, per store – 2-3
Pondicherry,  Average
Hosur number of
furniture
products sold
per weekend
per store 4-5
 Average order
size on
weekdays and
weekends – INR
15,000
 Average gross
profit margin
per store – 35%
 Average sales

growth rate per

store – 10%
 Average
revenue per
store- INR 16.8
million
Durian  Durian furniture is  Store size range  Free assembly of
sold across Indian – 5,000-40,000 furniture, no
through 35 retail sq. ft. additional service
outlets  Average walk- charge added
 Durian has ins per  Warranty of 5
focused sales in weekday per years on all
selected cities such store – 10-15 products
as majorly through  Average walk-  Share of domestic
franchise ins per products – 100%
 The weekend per
manufacturing store – 20-25
units of Durian are  Average
located in conversion rate
Maharashtra and per weekday
Gujarat and weekend –
20%
 Average
number of
furniture
products sold
per weekday
per store 2-3
 Average
number of
furniture
products sold
per weekend
per store 4-5
 Average order
size on
weekdays and
weekends –INR
22,500
 Average gross
profit margin
per store –30%-
35%
 Average sales
growth rate per
store – 10%
 Average
revenue per

store- INR 25.2

million
Damro  The company  Store size range  Provide warranty
possesses nearly – 4,000-12,000 of 3-5 years and
70 retail stores sq. ft. service fee after
 Damro stores have  Average walk- warranty ranges
been majorly ins per between INR 30.0
located in the weekday per to INR 200.0
southern and store – 15-20  Share of imported
eastern region of  Average walk- products – 100%
the India ins per
 The furniture weekend per
products by store – 25-30
Damro are  Average
imported from Sri conversion rate
Lanka per weekday –
20%
 Average
conversion rate
per weekend –
16.4%
 Average
number of
furniture
products sold
per weekday
per store – 3-4
 Average
number of
furniture
products sold
per weekend
per store 4-5
 Average order
size on
weekdays and
weekends – INR
20,000
 Average gross
profit margin
per store – 30%-
35%
 Average sales
growth rate per
store – 5%
 Average
revenue per
store- INR 27.6

million
Home Town  Home town has  Store size range  Unique and wide
been scattered – 15,000-150,000 variety furniture
across India in sq. ft. designs and
major tier 1 and  Average walk- quality which is
tier 2 cities ins per usually not
 There are 35 Home weekday per available
Town stores in store –100-150 otherwise in
India in 17 cities  Average walk- unorganized
ins per stores. Home
weekend per Town do sell
store – 420-450 online through
 Average Pepper Fry and
conversion rate FabFurnish
for furniture per  Share of imported
weekday– 2.1% products – 60%
 Average  Share of domestic
conversion rate products – 40%
for furniture per
weekend – 1.0%
 Average
number of
furniture
products sold
per weekday
per store – 2-3
 Average
number of
furniture
products sold
per weekend
per store 4-5
 Average order
size on
weekdays and
weekends – INR
35,000
 Average gross
profit margin
per store – 35%
 Average sales
growth rate per
store – 15%
 Average
revenue per
store - INR 39.1
million

 Style Spa has  Store size range  Share of domestic

Style Spa around 115 stores – 3,000 sq. ft. to products –100%
in India 8,000 sq. ft.
 The furniture  Average walk-
retailer has ins per
dedicated only one weekday per
store per city apart store – 26-27
from New Delhi,  Average walk-
which has 3 stores ins per
weekend per
store – 35-40
 Average
conversion rate
per weekday –
10%
 Average
conversion rate
per weekend –
16%
 Average
number of
furniture
products sold
per weekday
per store – 2-3
 Average
number of
furniture
products sold
per weekend
per store – 5-7
 Average order
size on
weekdays and
weekends – INR
19,000
 Average gross
profit margin
per store – 30%-
35%
 Average sales
growth rate per
store – 8%
 Average Yearly
revenue per
store – INR 24.2
million


Note: Conversion rate has been calculated by the division of the average number of orders by the total walk-ins.
It has been assumed that each customer purchases a single product only. Also, the conversion rate has been
taken for furniture products only and does not include furnishing items.
 Snapshot of Major Players in India Home

Furniture Market
Table 5-5: Competitive Snapshot of Major Players in India Home Furniture Market
Particulars Godrej Nilkamal Durian Damro

Interio
Establishment Date 2000 1981 1992 1986
Target Age Group 25-35 Years 21-42 Years 25-40 Years 25-42 Years
Target Cities Tier 1 and Tier 1, Tier 2 and Tier 1 and Tier 1 and
Tier 2 Tier 3 Tier 2 Tier 2
Number of Retail 85+ 39+ 35+ 65+
Stores
Wood Material MDF, pre- Particle board, Plywood, MDF, teak,
laminated MDF, Veneer, veneer, particle
wood, frames are made of laminate, board,
rosewood solid wood block board compressible
wood, rubber
wood
Source: Interviews with Furniture Retailers, Industry Articles,
Table 5-6: Competitive Snapshot of Major Destination Stores in India Home Furniture
Market
Particulars Home Town Home Center Style Spa

Establishment Date 2007 2005 1997
Target Cities Tier 1 and Tier 2 Tier 1 Tier 1 and Tier 2
Number of Retail Stores 35 24 115

Table 5-7: Competitive Snapshot of Major Online Players in India Home Furniture
Market
Particulars Pepperfry Urban Snapdeal Stitchwood Houzz

Ladder
Establishment 2011 2012 2010 2014 2009
Date
Target Age 26-37 Years Any General middle Not 25-54 Years
Group customer class income extremely along with
who group (no specific, Architects
shops specific age digital and Service
online bracket), targeting for professionals
lifestyle Customer who age group
products; want to build less than 40
newly new years, expert
married accommodation appointments
couples facility for customers
more than 40
years of age
Target Cities All cities All cities All cities All cities All cities
Offline Metropolitan No No No No
Presence cities
Customers have been

CONCLUSIONS FROM COMPETITOR ANALYSIS
directly able to import
 Presence in the Online Space: China has the highest
China-made furniture
share in the furniture imports in India due to highly
products through
competitive price offered by Chinese exporters.
online websites such
Moreover, customers have been directly able to import
as Alibaba,
China-made furniture products through online websites
AliExpress, Modish
such as Alibaba, Ali Express, Modish Furniture and
Furniture and several
several others. An online presence helps the business to
others.
Malaysian furniture have a wider reach. Additionally, China significantly
products are also increased its manufacturing capacity of durable
cheaper in comparison products at highly competitive prices.
to the Indonesian  Affordable Prices: German and Italian made high
furniture products and quality furniture has been lower in demand majorly
provide fine quality. due to their high prices which has made them
This has escalated the unaffordable for the middle class income segment of
India. Middle class income group has created a highly
demand of Malaysian
competitive scenario for imported products where these
furniture in place of
products are analyzed for their value of money.
Indonesian furniture.

Countries such as Malaysia and Indonesia, which are

well known for the high export of wooden logs to India,
have not been able to penetrate substantially into the
market. This is due to the high competition faced by the
consumer perception of high quality durable products.
Indian customers have either looked for high quality
furniture items or low priced products.
 High Competition from Malaysian Products: On the
other hand, Malaysian furniture products are also
cheaper in comparison to the Indonesian furniture
European nations such products and offer fine quality. This has escalated the
as Germany and Italy demand of Malaysian furniture in place of Indonesian
have focused on brand furniture. Indonesian furniture retailers could work on
reducing the price of products along with increasing the
building and now
quality of the available products.
have many major
 Focus on Brand Building: They could also increase the
brands. This could
marketing of their products in other countries and focus
complement the high
on brand building. European nations such as Germany
price and superior
and Italy have focused on brand building and now have
wood quality of
many major brands. This could complement the high
price and superior wood quality of Indonesian products
as well.
APPROPRIATE BUSINESS MODEL

Integrated Business Model: In order to penetrate into the
highly competitive branded furniture market of India, the
Indian and furniture manufacturer must utilize a hybrid business
Malaysian wood model. Such an approach would involve the sale of
has been furniture products through brick and mortar retail stores,
considered as online marketplace and acquisition of products from
high quality international markets. This will not only diversify the
wood whereas
product portfolio but will also allow the company to sell
wooden imports
through a wide range of platforms.
from China have
not been well-
known for Source of Raw Materials: The procurement of raw
quality purposes. materials must be carefully evaluated in terms of pricing
and material quality. For example, Indian and Malaysian
wood has been considered as high quality wood whereas
wooden imports from China are not appreciated for
quality purposes. However, in terms of pricing, Chinese
timber has been relatively cheaper in comparison. This
has befuddled manufacturers to select a definite raw

material procurement source. Hence, one of the most
optimum approaches will include creation of a strong raw
material supplier base and creating a tradeoff between
quality and price to develop the most favorable
combination.
With the expansion of

Automated Manufacturing: In order to generate higher
e-commerce portals,
returns on investments and obtain improved profit
various online
margins, furniture manufacturers must develop
companies such as
Pepperfry and Urban automated manufacturing processes. Using advanced
Ladder have made machinery will assist in the reduction of labor costs and
significant progress turn-around time despite creating a negative impact on
through online sales the revenues due to one-time high investment cost.
of furniture.
Focused Marketing and Distribution Strategies: A
significant number of Indian customers have an
inclination towards the ‘touch and feel’ approach in order
to purchase furniture products, where, customers require
to physically view the product to make a purchase
decision. However, with the expansion of e-commerce
portals, various online companies such as Pepperfry and
The young
Urban Ladder have made significant progress through
working class
professionals have online sales of furniture. The young working class
preferred to shop professionals prefer to shop online and have
online and have experimented to shop for furniture products online; this
experimented to has been one of the major drivers of sale of furniture
shop for furniture products online. Hence, sales channels should not be
products online; limited to offline retailing through exclusive showrooms
this has been one and dealers. The manufacturer must form a strategic
of the major alliance with an online market place and also provide
drivers of sale of online retailing of furniture products on its own website
furniture products and social media platforms. This would provide flexibility
online. This is one to customers to select the most appropriate product as per
of the reasons of their convenience. Moreover, by marketing through an
increase in online sales channel, the manufacturer will obtain a wider
imports of
target audience and a better customer behavior analytics
furniture products
in order to evolve internal processes.

Participation in Exhibitions: Participation in the

promotions could also act a marketing medium through
which foreign exporters can promote their product in
India; however this is not a major crowd pulling strategy.
For instance: India Furniture Expo is an event which is
organized every year for usually for 4 days in August.
The average footfall remains to be in the range of 20,000 to
30,000 which consists of retailers, general public, traders
and manufacturers.
The average fees for booking a space remain to be around
INR 9,000 per sq.mt. However, there is a discount which
could be availed if the applicant is one of the members of
AFMT.
EXPORT OPPORTUNITIES
Expansion into Tier 2 and Tier 3 Cities: The organized
Indian home furniture market has observed slow and
steady expansion in tier-2 and tier-3 cities. The major
The organized Indian factor which has led to such a trend is the increase in
home furniture market purchasing power of the people rising in these cities along
has observed slow and with a growing sense of possessing branded furniture
steady expansion in products. Moreover, the companies have started to
tier-2 and tier-3 cities. provide consultation and customization of products
which has driven customer to shift from local carpenters
to branded players.
Growth in Real Estate Market: Additionally, the real

estate market of India is expected to observe a gain in the
coming five years which will further boost sales prospects
for furniture retailers. A higher percentage of real estate
developers have begun to self-integrate furniture
products in home projects to provide ready-made
solutions to their customers. Also, the rise in the number
of nuclear families, which has been the driving force for
the real estate market, has impelled the rise in sales of
furniture products. Some of these modern families, which
comprise of young and newly married individuals, have
driven the sales of home furniture market in India. The
younger population has showcased an affinity to new

trendy designs which are more compact and add luster to

their homes. These furniture products often are imported
from countries such as Malaysia, China, Germany and
Italy. This customer segment has been the most lucrative
target audience for furniture retailers in India.
Supportive Logistics Environment: Logistics services in

India have been improving with the advent of new
logistics companies which operate on pan India level as
well as intra-city level. With improved packaging and
Many delivery solutions, furniture retailers have gained
manufacturers confidence to quickly deliver products with minimal
have developed damages. Many manufacturers have developed their in-
their in-house house logistics team in order to ensure high quality of
logistics team in services where as some have opted to use third party
order to ensure companies for product delivery. Despite being relatively
high quality of lower in costs, the third party logistics services create
services where complexities in co-ordination.
as some have With the help of efficient and low cost logistics, furniture
opted to use third retailers/ importers will be able to transport furniture
party companies
products at low costs, which will allow them to either
for product
increase margin or invest more in R&D. Since, the
transport and logistics industry in India has not been
operating at its optimum potential, furniture retailers/
manufacturers and dealers/ traders have an opportunity
to provide speedy delivery of products with minimized
product damage by the creation of an effective in-house
logistics network.
Rise in Quality of After Sale Support Service: Consumer

complaints have generally showcased dissatisfaction in
after sales services. In case of damage of furniture
products customers have toiled to obtain replacements for
their furniture. Hence, manufacturers/ retailers must
develop a quick response after-sales service team which
will cater to such cases which will improve the brand
perception of the customer. This has been considered as
one of the major opportunities for furniture brands and
exporters as customers will prefer to purchase furniture

from those companies which not only provide cost

effective and high quality furniture products but also
support the customers through after sales services. This
can be done through quick and easy replacement of
faulty/ damaged parts.
Increase in Streamlined Trade Flow: Additionally with

an increase in global warming and India's initiative to
improve environmental parameters, the government
might look forward to increase protected forest area and
hence reduce the amount of lumbar available for
furniture. Such a scenario will likely be countered by an
improvement in trade with other countries such as
Malaysia, Indonesia, China and Turkey which allow a
more streamlined flow of wood and furniture shipments
at lower costs and fewer complexities in documentation
processes. Hence there is a greater scope for increase in
Furniture imports in the country.
ENTRY BARRIERS
The Indian furniture market has been dominated by the
unorganized sector which comprises nearly 80.0% of the
total revenues for the year FY’2015. The presence of a
large number of local carpenters who charge nominal
amount to produce customized furniture products as per
The presence of customer requirements has acted as a restraint for
a large number customers to purchase branded furniture. These products
of local have also been priced significantly lower in comparison to
carpenters who branded furniture items. The price sensitive Indian
charge nominal customer has been swayed by lucrative prices and highly
amounts to durable furniture developed in the unorganized market.
produce Also the Indian customers have heterogeneous preference
customized which is why it is highly complicated to tap on to a
furniture particular design or style.
products as per Moreover, Indian customers perceive furniture as a long
customer term investment and do not look forward to replace the
requirements has
furniture products in a short period of time. The product
acted as a
life cycle, which may last for even 20 years, has observed
restraint for
extensive utilization by the Indian customers. As a result,
customers to
the furniture market in India possesses less number of

repetitive customers and has deterred growth prospects.
Also there is high competition in the market which has
led to low information about the brands in the mind of
the consumers with varied demand. Moreover, there is
high capital investment in terms of opening up an
organized retail store and marketing of the same.
STRATEGIC ALLIANCE
Manufacturers will also be required to maintain a strong
partnership with suppliers and distributors. By
identifying critical supply chain parameters, the
manufacturers, suppliers and distributors will have to
operate under a mutual goal. In order to obtain a
continuous supply of raw materials, without the
appearance of stagnation periods, the manufacturer-
supplier partnership must reflect an effective relationship.
The furniture traders Also, in order to reduce the time of product delivery, one
could also get in can adapt the ‘just in time’ strategy where raw materials
strategic alliances and inventory are purchased and supplied in an
with the hotels so that extremely quick time period. In addition to this, the
hotels can directly foreign companies can stay in active contact with various
contact the trader or representatives of their countries in India to stay updated
the exporter for his in economic conditions of the country and plan their
requirement. future strategies accordingly.
The furniture traders could also get in strategic alliances
with the hotels so that hotels can directly contact the
trader or the exporter for his requirement.
TECHNOLOGICAL IMPACT
Technology has been observed to operate as a vital
variable in reduction of production costs and streamlining
of operations. Manufacturers can implement Materials
Requirement Planning and Manufacturing Resource
Planning software through which companies can
systematically administer the manufacturing cycle. Other
software such as ERP, CAD and CRM can be used to
manage designing, customers, purchase orders, inventory
and supplier management.

Importers could also use the 360 degree view on their

websites to increase the online sales of furniture.
PROSPECTIVE PRODUCT CATEGORY IN INDIA

HOME FURNITURE SEGMENT
Since home furniture segment is the highest revenue

grossing segment in India Furniture Industry, the product
categories in home furniture have to be decided with
utmost attention. In the Indian home furniture market,
Bed, which bedroom furniture has been observed to generate the
forms the core highest sales revenues and has stood as the most
product of demanded furniture item in the year FY’2015. Bed, which
bedroom, has forms the core product of bedroom, has been the most
been the most
sold furniture item in India. This trend has been observed
sold furniture
in both organized and the unorganized market. The
item in India
essence of bed as the most basic compulsion in a
household has led to increased sales. Secondly, Indian
customers have been observed to consider their living
room furniture, which majorly comprises of sofas and
center tables, as the primary representation of their home
to guests. Moreover, customers have reflected a high
variation in design and material preference for living
room furniture. Materials such as leather or printed fabric
have been the two major preferences of the Indian
customer.
Additionally, the young Indian working population has
steadily increased the purchase of secondary furniture
products such as bed side tables, shoe racks, drawers,
home work stations and few others. Hence, the new
entrant in the Indian furniture market and the foreign
exporters must cater to large products such as beds, sofas
and center tables along with smaller furniture items in
order to sustain its business.

EFFECTIVE MANAGEMENT OF STOCK KEEPING

UNITS
Stock Keeping Unit (SKU) is an identifier code to identify

a product through its attributes such as size, color,
warranty and many more. Through a SKU, the company
can maintain and track inventory. Some of the most
popular SKUs include Universal Product Code (UPC),
International Article number (EAN) and Global Trade
Item Number (GTIN).
The main advantages of the reduction of product choice
for customer include:
1. Higher stock turnover (by elimination of slow-selling
Excess inventory has products)
led to a weak balance 2. Low stock outs
sheet for numerous 3. Higher bargaining power with vendors
retailers as observed 4. Higher sales per square feet (use of smaller size of stores
in case of Chinese and reduction in slow-selling products)
products retailers in 5. Higher profits (lower costs due to less inventory
India. maintenance)
The concept of SKUs in the furniture industry of India has
been fragmented. Few furniture retailers have been
known to use make-to-order approach whereas others
stock furniture products. These retailers have been
observed to generally hold an inventory of 15-20% of their
products. This can vary for different products depending
upon the customer demand. The difference between SKUs
of different product categories such as living, dining,
bedroom, office and hotels has not been profound.
However, since beds have been one of the most
demanded furniture products, beds have been observed
to be stocked more comparatively.
Excess inventory has led to a weak balance sheet for
numerous retailers as observed in case of Chinese
products retailers in India. Hence, furniture retailers in
India have been shifting to the make-to-order model and
have tried to reduce the turn-around-time in order to
provide quick delivery of products. An efficient stock
keeping model would help the business to realize the
potential sales effectively.

EFFICIENT UTILIZATION OF ROLES OF HUMAN

RESOURCES
Furniture retailers have utilized the formula of square
footage/ payroll in order to estimate the cost per square
feet incurred on employees. In India, branded furniture
players have been observed to employ 1 personnel per
300 to 700 sq. ft. However, in case of high density of walk-
ins the retailers were also observed to increase the staffing
In India, branded
to 2 personnel per 300 to 700 sq. ft. in order to provide
furniture players
have been observed quick sales services and best possible solution as per
to employ 1 customer requirements. Since customers require
personnel per 300 assistance on the technical specifications of the product
to 700 sq. ft. and the estimated delivery time, sales personnel form a
However, in case of key role in in-store management. Proper training must be
high density of given to such employees about the technical specifications
walk-ins the of different products to ensure clear response to all
retailers were also customer queries.
observed to
increase the staffing The marketing team, which is required to promote the
to 2 personnel per product and develop lucrative strategic schemes for
300 to 700 sq. ft. in customers, comprise of a tem lead and sales staff of a
order to provide specialized group of individuals who study and analyze
quick sales services pricing and product preference trends to provide better
deals. The team could also take care of the proper
participation in the important promotions to market the
product potentially.
Employing a local
employee for different The operations department of a furniture manufacturing
foreign exported company majorly comprises of administrators,
products would help supervisors, CAD operators, machine and polish men,
the foreign companies carpenters, helpers and guards. A combination of these
to overcome any people would suffice the production of furniture
linguistic barriers in products. It has been noted that approximately 51% is
the realizing business allocated to wages and salaries of staff.
opportunities in India.
The training of all the human resources according to their
defined role helps in proper functioning of the
organization. Also, the employability of particular
employees has to be taken care of to realize complete

product potential. For an example, employing a local

employee for different foreign exported products would
help the foreign companies to overcome any linguistic
barriers in realizing business opportunities in India.

6. I MPORTANT I NFORMATION
TRADE PROMOTION OFFICER IN INDIA OF

FOREIGN COUNTRIES
India Trade Promotion Organization (ITPO) is the apex
trade promotion organization by government of India.
The roles of ITPO include organizing trade fairs and to
bring the Indian businesses, mainly those in the MSMEs
sector, closer to global markets. It has a major role in
growth of India’s trade with other countries.
ITPO provides a wide range of services to trade and
industry. It also acts as a means of increasing growth of
India's trade. ITPO helps in holding international trade
fairs in the country and regulating various expositions in
the country chiefly to evade any replication of efforts
while ensuring appropriate timing. It supervises world
class exhibition complex of India which is constantly
advanced to maintain it in a high standard of readiness.
ITPO has opened the state-of-the-art Chennai Trade
Centre (CTC) in January 2001 and the Trade Centre
Bangalore in September 2004. It has also been
coordinating with construction of an exhibition-cum-trade
complex 'North East Trade Centre' at Sarusajai, Guwahati.
It also assists the states to set up regional trade promotion
centers.
Table 6-1: Key Executives in Head Office of India Trade Promotion Organization
Officer Position Contact Details Email

L C Goyal, Chairman & +91-11-23371100,
cmditpo@itpo.gov.in
IAS Managing Director 23371909
Meenakshi Officer-on-Special +91-11-
ms@itpo.gov.in
Singh, IRS Duty 23371868
+91-11-
V Meera General Manager vmeera@itpo.gov.in
23379305
+91-11-
V Kumar General Manager vkumar@itpo.gov.in
23371351
+91-11-
General Manager
Jayanta Das 23378929, jd@itpo.gov.in
9810189400
J Guna General Manager +91-11- sekaran@itpo.gov.in

Sekaran 23371829
Ajay Kumar General Manager +91-11-
avashist@itpo.gov.in
Vashist 23378511
Financial Advisor
+91-11-
D M Sharma & Chief Accounts companysecretary@itpo.gov.in
23371519
Officer (FA&CAO)
+91-11-
S R Sahoo Company Secretary companysecretary@itpo.gov.in
23371965
Source: Internet Directories, Interviews with Furniture Importers,
INDIAN EMBASSY IN INDONESIA

Indian embassy in Indonesia is located at Jl H.R Rasuna
Said, Kav. S-1, Kuningan, Jakarta Selatan, 12950. The
Indian embassy in Indonesia is a diplomatic depiction of
the India’s government in Indonesia. It acts as an
intermediary between Indian government and Indonesian
government. It prepares for all the visits of Indian officials
to Indonesia and provides important information about
the country to India The embassy also deals with some
other important functions such as consulate services,
providing information about trade, business and bilateral
relations between both countries, assisting in visa and
passport services for travelers of countries, spread Indian
culture and heritage information in Indonesia and assists
students of India in getting education and scholarships in
Indonesia and vice versa. The Indian Embassy has two
other representations apart from the embassy in Jakarta,
the details of which have been shown below:
Table 6-2: Indonesian Representatives in India
Head of the
Name Address Contact Email
Mission
Jalan H.R.
consular_section
Indian Rasuna Said
@net-zap.com
Embassy in Mr Gurjit Singh, Kav.S-1, +62-21-520 4150 /
Jakarta, Ambassador Kuningan, 2/7
eoipol@net-
Indonesia Jakarta-12950,
zap.com
Indonesia
Indian Mr G. Surender Jl. Raya +62-361-259500 info@cgibali.in

Consulate Reddy, Consul Puputan No. +62-361-259502

General in General 163, Renon,
Denpasar, Denpasar,
Indonesia Bali-80235,
Indonesia
Jl. Uskup
general.consul@y
Agung A.
Indian ahoo.com
Sugiopranoto
Consulate
Mr Basar Ahmed, No. 19, +62-61-4531308
General in consul.general@i
Consul General Sumatera +62-61-4556452
Medan, ndianconsulatem
Utara,
Indonesia edan.com
Medan-20152,
Indonesia
CHAMBER OF COMMERCE IN INDIA- ASSOCHAM

ASSOCHAM was established in 1920 by various
promoter chambers to represent all regions of India. The
head office of ASSOCHAM is located in New Delhi.
Members of ASSOCHAM are representatives of the
different sectors such as trade (national and
international), industry (domestic and international),
professionals, Trade & Industry Associations and other
Chambers of Commerce. ASSOCHAM is one of the most
important associations for trade in India. The
organization acts as an interface between industry,
government and other relevant stakeholders on policy
issues and initiatives. The organization works to promote
both domestic and international trade while reducing
trade barriers and fostering favorable environment for the
development of trade and industry in India. ASSOCHAM
is certified by the Government of India to issue certificates
of origin, certify commercial invoices and recommend
business visa.
The ASSOCHAM is located at - 5 Sardar Patel Marg,
Chanakyapuri, Delhi. It is also known as the "Chamber of
Chambers" since ASSOCHAM is covering more than 400
industry chambers and trade associations. It has been
serving more than 450,000 corporate members from all
over the country.

D.S. Rawat has been the Secretary General of the

ASSOCHAM as of FY’2015. The chambers can be
contacted at +91-11-46550555 while the fax can be done
through +91-11-23017008. The ASSOCHAM can also be
contacted through the email at assocham@nic.in
Table 6-3: ASSOCHAM Regional Offices, India
ASSOCHAM
Regional Address Phone Fax Email
Offices
D-13, D-14, D
Block, Brigade
MM,
ASSOCHAM
1st Floor, 7th events@assocham.com
Southern 080- 080-
Block, events.south@assocham.com
Regional 40943251/53 41256629
Jayanagar, director.south@assocham.com
Office
K R Road,
Bangalore-
560070
ASSOCHAM BB-113,
Eastern Rajdanga Main +91-33- +91-33-
manesh.sharma@assocham.com
Regional Road Kolkata- 40053845/41 40001149
Office 700107
International
Law Centre,
ASSOCHAM 61-63, Dr. +91-44-
Regional Radhakrishnan 28120000 +91-44-
vs@lawindia.com
Tamil Nadu Salai, +91- 28120001
Office Mylapore, 9884491000
Chennai-
600004
608, 6th Floor,
SAKAR III
+91-79-
ASSOCHAM Opposite Old
27541728/
Western High Court, +91-79- assocham.ahd1@assocham.com
29
Regional Income Tax 30006352 assocham.ahd2@assocham.com
+91-79-
Office Ahmedabad-
27541867
380014
(Gujarat)
Global Express
ASSOCHAM Group, House
North No. 7
+91-
Eastern Bye No. 2, ner@assocham.com
9957999367
Regional Chandan
Office Nagar,
Survey,

Beltola,
Guwahati-
781028
ASSOCHAM 503/D, Mandir
Regional Marg-C, +91- +91-651-
Head.RORanchi@assocham.com
Ranchi Ashok Nagar, 9835040255 2242443
Office Ranchi-834002
INDIAN CHAMBER OF COMMERCE IN

INDONESIA (INDCHAM)
INDCHAM is an association of corporate entities and
people having interests in promoting economic and
business interest of Indonesia and India.
It was established in 1978. They can be contacted at
PT.Embee Plumbon Textile TCC Batavia Tower One #801
Jl.KH.Mas Mansyur Kav.126 Jakarta 10220 – Indonesia.
They can also be contacted at +6221-29529456 or
lestari@embeetex.com. The contact person would be Mr.
Lestari Ningsih
DIRECTORATE GENERAL OF FOREIGN TRADE

(DGFT)
Directorate General of Foreign Trade (DGFT) is an
attached office of the Ministry of Commerce and Industry.
It is headed by Director General of Foreign Trade. The
office was inaugurated in 1991. The organization is
involved in regulation and promotion of foreign trade
through directions. DGFT has been consigned the role of
“facilitator” while earlier it focused only on prohibition
and control of imports/exports, keeping in view the
welfare of the country.
Table 6-4: DGFT and its Regional Authorities with respective Jurisdiction
Name Address Contact E-mail Id Jurisdiction

Director H-wing, Gate No.2 Tel: 011-
General of Udyog Bhawan, 23062777
dgft@nic.in Throughout India
Foreign Maulana Azad Fax: 011-
Trade Road, 23061613

(Headquart New Delhi- 110011

er)
Delhi
Districts of
Haryana
The (i)Faridabad
Additional (ii)Gurgaon
Director Districts of Uttar
Tel. 011-
General of ‘A’ Wing I.P. Pradesh
23379115 cladelhi-
Foreign Bhawan, I.P. Estate (i)Meerut
Fax 011- dgft@nic.in
Trade, New Delhi-110002 (ii)Baghpat
23379114
Central (iii)Ghaziabad
Licensing (iv)Gautam
Area (CLA) Buddha Nagar
(v) Bulandshahar
(iv) Panchsheel
Nagar
Uttar Pradesh
excluding those
areas which are
The Joint under the
117/L-444, Tel. 0512-
Director jurisdiction of
Kakadeo, 2500352 kanpur-
General of Additional Director
Kanpur-208025 Fax: 0512- dgft@nic.in
Foreign General of Foreign
(UP) 2501344
Trade Trade, CLA, New
Delhi, Varanasi,
Moradabad and
Panipat.
Districts of Uttar
Pradesh
(i)Bijnaur
110-111, 1st Floor (ii)Moradabad
The Joint
Parsvanath Plaza, Tel. 0591- (iii)Rampur
Director
Majhola, Delhi 2488221 moradabad- (iv)Jyotiba Phuley
General of
road, Fax:0591- dgft@nic.in Nagar
Foreign
Moradabad-244103 2487447 (v)Barielly
Trade
(UP) (vi)Shahjahanpur
(vii)Badaun
(viii)Pillibhit and
(ix) Bheem Nagar
Districts of Uttar
Pradesh
The Joint (i) Varanasi
B-38/1-A-2,
Director Tel.0542-2361907 (ii)Sant Ravidas
Tulsipur, varanasi-
General of Fax:0542- Nagar
Mehmoorganj dgft@nic.in
Foreign 2362957 (iii)Mirzapur
Varanasi (UP)
Trade, (iv)Ghazipur
(v)Azamgarh
(vi) Ballia

(vii)Deoria
(viii) Kushi Nagar
(ix)Gorakhpur,
(x) Maharajganj
(xi)Basti,
(xii)Sant Kabir
Nagar
(xiii) Jaunpur
(xiv)Sonebhadra
(xv)Mau and
(xvi)Sidharthanaga
r
Haryana excluding
Districts of
(i)Faridabad
The Joint Tel. 0180- (ii)Gurgaon and
Director 2650984/265142 (iii)Panchkula
L-482, Model Town panipat-
General of 7 Districts of Uttar
Panipat (Haryana) dgft@nic.in
Foreign Fax: 0180- Pradesh
Trade 2650984 (i)Saharanpur
(ii)Muzaffarnagar
(iii)Prabubudh
Nagar
The Joint
3rd Floor, Udyog Tel: 0141-
Director
Bhawan 2227539 jaipur-
General of Rajasthan.
Tilak Marg, Jaipur- Fax: 0141- dgft@nic.in
Foreign
302005, Rajasthan 2227604
Trade
Punjab excluding
the following
districts:
The Joint 133-136,Green (i) Amritsar
Tel. 0161-
Director Field,Near Shakti (ii)Gurdaspur
2430474, ludhiana-
General of Nagar Chowk (iii)Hoshiarpur
Fax: 0161- dgft@nic.in
Foreign Ludhiana- (iv)Taran Taran
2421280
Trade 141002,Punjab (v)Roop nagar
(Ropar) and
(vi)Sahibzada Ajit
Singh Nagar.
The Joint Tel. 0183- District of Punjab
Director The Mall, C R 2506403/250740 (i)Amritsar
amritsar-
General of Building,Amritsar- 3 (ii)Gurdaspur
dgft@nic.in
Foreign 143001 (Punjab) Fax: 0183- (iii)Hoshiarpur and
Trade 2507403 (iv)Taran Taran.
The Joint Himachal Pradesh
Tel. 0172-
Director SCO-288, Sector -35 and Union
2648661 chandigarh-
General of D,Chandigarh- Territory of
Fax: 0172- dgft@nic.in
Foreign 160023 Chandigarh as well
2602314
Trade as following

districts of Punjab
(i) Roop Nagar
(Ropar)
(ii) Sahibzada Ajit
Singh Nagar and
Panchkula (district
of Haryana)
Districts of Jammu
& Kashmir
(i)Jammu
(ii)Kathua
The Joint Tel. 0191-
(iii) Poonch
Director 149-A, Gandhi 2435834/
jammu- (Iv) Rajouri
General of Nagar, Jammu 2438048
dgft@nic.in (v)Udhampur
Foreign (TAWI) Fax:0191-
(vi) Samba
Trade 2435834
(vii) Reasi
(viii) Ramban
(ix) Doda
(x) Kishtwar
Districts of Jammu
& Kashmir
(i)Srinagar
(ii)Kupwara
The Joint Tel. 0194- (iii) Pulwama
Director D-Block, Exhibition 2478617/ 0194- (iv) Ganderbal
srinagar-
General of Ground,Srinagar- 2478618 (v) Shopian
dgft@nic.in
Foreign 190001 (J&K) Fax:0194- (vi)Bandipora
Trade 2478617 (vii) Baramulla
(viii) Anantnag
(ix) Budgam
(x) Leh
(xi) Kargil
Directorate of
The Deputy Industries office
Tel. 0135-
Director Building State of
2520668 dehradun-
General of Industrial Area, Uttrarkahand
Fax:0135- dgft@nic.in
Foreign Patel Nagar
2521419
Trade Dehradun-248001
(Uttrarkahand)
(i) Maharashtra
excluding the area
Nishtha Bhawan Tel. No. 022-
The which are under
(New C.G.O. Bldg.) 22017716/
Additional the Jurisdiction of
48, Vithaldas 22038094/
Director mumbai- Joint Director
Thackersey Marg, 22033097/
General of dgft@nic.in General of Foreign
Churchgate 22031074
Foreign Trade, Pune and
Mumbai- 400020 FAX No.022-
Trade Joint Director
(Maharashtra) 22063438
General of Foreign
Trade, Nagpur

(ii) Daman
(iii) Dadra and
Nagar Haveli.
Districts of
Maharashtra
(i)Pune
(ii) Ahmed Nagar
(iii) Jalna
(iv) Beed
‘C’ Block,PMT
(v) Kolhapur
The Joint Commercial Tel. No. 020-
(vi) Latur
Director Complex 24449598/
pune- (vii) Nanded
General of Shankarseth Road, 24442783
dgft@nic.in (viii) Osmanabad
Foreign Swargate Fax No. 020-
(ix) Prabhani
Trade Pune- 411 037 24441577
(x) Ratnagiri
(Maharashtra)
(xi) sangli
(xii) Satara
(xiii) Solapur
(xiv) Sindhudurg
and
(xv) Nashik
Districts of
Maharashtra
(i)Akola
(ii)Amravati
(iii)Buldhana
(iv)Bhandara
(v)Chandrapur
(vi)Gadchiroli
Ist Floor,
The Joint (vii)Gondiya
N.S.Building, Tel: 0712-
Director (viii)Hingoli
Opposite VCA 2541256 nagpur-
General of (ix)Nagpur
Ground Civil Lines, Fax: 0712- dgft@nic.in
Foreign (x)Wardha
Nagpur- 440001 2541451
Trade (xi)Washim and
(Maharashtra)
(xii) Yavatmal.
Districts of
Madhya Pradesh-
(i)Balaghat
(ii)Betul
(iii)Chhindwara
and
(iv) Seoni
Gujarat excluding
The Joint 11/A, Govt. M.S. the areas which are
Tel. No. 079-
Director Building under the
25506297 ahmedabad-
General of Lal Darwaja, jurisdiction of Jt.
Fax No. 079- dgft@nic.in
Foreign Ahmedabad- DGFT Rajkot,
25506791
Trade 380001 (Gujarat) Vadodara, Surat
and Development

Commissioner
KFTZ.
(i)Saurashtra, the
The Joint Tel. No. 0281- District of
Amruta Estate, 4th
Director 2458417 / Gujarat(excluding
floor, M.G. Road rajkot-
General of 2458416 Kutch)
Rajkot- 360 001 dgft@nic.in
Foreign Fax No. 0281- (ii) Diu in the
(Gujarat)
Trade 2458414 Union Territory of
Daman and Diu.
Districts of Gujarat
1st Floor, Sardar (i) Vadodara
The Joint Tel. No. 0265-
Patel Bhawan (ii) Anand
Director 2429368/
Jilla Panchayat vadodara- (iii) Kheda
General of 2428789
Building, Near Polo dgft@nic.in (iv) Panchmahal
Foreign Fax No. 0265-
Club Vadodara- (v) Dahod
Trade 2428789
390 001 (Gujarat) (vi) Bharuch and
(vii) Narmada
The Joint 6th Floor, Resham Tel. No. 0261-
Districts of Gujarat
Director Bhawan, Lal 242 3381/
surat- (i)Surat
General of Darwaja 2452216
dgft@nic.in (ii) Valsad and
Foreign Surat- 395003 Fax No. 0261-
(iii) Dangs
Trade (Gujarat) 2452216
Madhya Pradesh
The Joint 3rd Floor, Nirman excluding the areas
Tel. No. 0755-
Director Sadan, 52-A, Arera which are under
2553323 bhopal-
General of Hills (Behind Govt. the jurisdiction of
Foreign Press) Bhopal- 462 Joint Director
2553303
Trade 011 (MP) General of Foreign
Trade, Nagpur
CSIDC Bhawan,
The Deputy Ground Floor,
Tel. No. 0771-
Director Sector-4
2263450 raipur- State of
General of Pandit Deen Dayal
Fax No. 0771- dgft@nic.in Chhatisgarh
Foreign Upadhya Nagar
2262450
Trade Raipur-492010
(C.G.)
The Deputy
Ashirwad Building, Tel. No. 0832-
Director
18th June Road, 2226355 goa-
General of Goa
Santa Inez Panjim- Fax No. 0832- dgft@nic.in
Foreign
403001 (Goa) 2224968
Trade
The
West Bengal,
Additional Tel: 033-
4, Esplanade East, Sikkim, Tripura
Director 22481228 kolkata-
Kolkata-700069 and Union territory
General of Telefax:033- dgft@nic.in
(WB) of Andaman and
Foreign 22485891
Nicobar.
Trade
The Joint OSIC Building, 5th Tel: 0671- cuttack-
Odisha
Director Floor 2342596 dgft@nic.in

General of Khapuria Industrial Fax: 0671-

Foreign Estate, link Road 2343034
Trade Cuttack-753010
(Odisha)
The Joint
Tel: 0361-
Director R.B.Baruah Road Assam, Arunachal
2202583 guwahati-
General of Guwahati-781024 Pradesh, Nagaland
Fax:0361- dgft@nic.in
Foreign (Assam) and Manipur
2202583
Trade
Biscomaun
The Joint Tel: 0612-
Bhawan, Ground
Director of 2212052 patna- Bihar and
Floor
Foreign Fax:0612- dgft@nic.in Jharkhand
Patna-800001
Trade 2212052
(Bihar)
The Deputy
Director Morello Tel:0364-2223360
shillong- Meghalaya and
General of Building,Shillong- Fax:0364-
dgft@nic.in Mizoram
Foreign 793001 (Meghalaya) 2223360
Trade
Tamil Nadu except
the areas which are
4th floor, Shastri
The under the
Bhavan Annexe EPBAX No. 044-
Additional jurisdiction of
26, Haddows 28283404/
Director chennai- (i)Jt. DGFT
Road,Nungambakk 28283408
General of dgft@nic.in Madurai
am Fax No.044-
Foreign (ii) Jt. DGFT
Chennai-600006 28283403
Trade Coimbatore
(TN)
(iii) Jt. DGFT
Puducherry
Districts of Tamil
Nadu
(i)Madurai
The Joint
117, First Main Tele No.0452- (ii) Theni. Dindigul
Director
Road, K.K. 2582700 madurai- (iii) Ramnad
General of
Nagar,Madurai-625 Fax No. 0452- dgft@nic.in (iv) Virudhunagar
Foreign
020 (TN) 2586485 (v) Sivaganga
Trade
(vi) Tirunelveli
(vii) Tuticorin
(Viii) Kanyakumari
Districts of Tamil
Nadu
1544, India life
The Joint Tel. No.0422- (i)Coimbatore
building (Annex.1st
Director 2300947/230084 (ii)Nilgiris
Floor) coimbatore-
General of 6 (iii)Erode
Trichy Road, dgft@nic.in
Foreign Fax No.0422- (iv) Tirupur
Coimbatore-641018
Trade 2303557 (iv) Salem
(TN)
(v) Karur
(vi) Namakkal
The Joint 19-C, Second Cross Tel. No.0413- pondicherry- Union Territory of

Director Street 2203238 dgft@nic.in Puducherry,

General of Jawahar Nagar, Fax No. 0413- Karaikal, Yanam
Foreign Boomiyanpet 2206994 and Districts of
Trade Puducherry- 605 Villupuram and
005 Cuddalore of Tamil
Nadu
C& E Wing, 6th
Floor, Kendriya
The joint Tel.No- 080-
Sadan
Director 25537213/25537
17th Main, 2nd bangalore-
General of 215 Karnataka
Block dgft@nic.in
Foreign Fax No.080-
Koramangala,
Trade 25537214
Bangalore – 560 034
(Karnataka)
(i) Kerala except
The Joint Tel. No.0484-
5th Floor, A-Block, the districts of
Director 2426378/242739
Kendriya Bhawan cochin- Thiruvanathapura
General of 7
Kakkanad, Cochin- dgft@nic.in m, Quilon and
Foreign Fax No.0484-
682 037 (Kerala) Pathanamthitta
Trade 2427069
(ii) Lakshadweep
The Joint Gokulam Building Districts of Kerala
Tel. No.0471-
Director (Ground floor), TC- (i)Thiruvanathapur
2441867 trivandrum-
General of 2/1400 Pattom, am
Foreign Thiruvananthapura (ii) Quilon,
2441867
Trade m-695004 Kerala (iii)Pathanamthitta
302, III floor, CGO
Andhra Pradesh
The Joint Tower, Tel: 040-
and Telangana
Director Kavadiguda, 27536930/
hyderabad- excluding the areas
General of Secunderabad – 27536936
dgft@nic.in in the Jurisdiction
Foreign 500080 Fax:040-
of Jt. DGFT
Trade Dist- Hyderabad, 27536932
Visakhapatnam
Telangana
Districts of Andhra
Sripriya complex,
The Joint Pradesh
No. 43-9-226, Tel. No.0891-
Director (i) Srikakulam
Railway New 2451420 visakhapatna
General of (ii) Vizianagaram
Colony, Fax No. 0891- m-dgft@nic.in
Foreign (iii) Visakhapatnam
Visakhapatnam- 2747146
Trade (iv) East Godavari
530 016 (AP)
(v) West Godavari
CHAMBER OF COMMERCE OF INDIA FOR

INDONESIA- INDO-ASEAN-SRI LANKA
CHAMBER OF COMMERCE & INDUSTRY

The Indo-ASEAN-Sri Lanka Chamber of Commerce was

founded in the year 1984. The chamber was registered
under Section 25 of the Companies Act as the Indo-Sri
Lanka Chamber of Commerce and Industry. The chamber
then extended its activities to Malaysia and Singapore,
when it was renamed as the India-Sri Lanka-South East
Asia Chamber of Commerce and Industry. Further in
1993, the chamber was again renamed as the India-
ASEAN-Sri Lanka Chamber of Commerce & Industry
with the approval of the registrar of the companies. This
was followed by the emergence of ASEAN as a powerful
economic trading chunk. The chamber also focussed on
growing the trade and economic relations with the
member countries of ASEAN. The member countries
include Brunei, Indonesia, Cambodia, LAOS, Myanmar,
Malaysia, Philippines, Singapore, Vietnam and Thailand.
The key objectives of the chamber include fostering trade
and commerce between India and the other members of
ASEAN and to increase the collaboration of technology
and industry for mutual benefits of all the members.
The chamber provides the following services:
 Exchange of trade enquiries and information between
India and these countries.
 Distributing to the members, well documented periodic
reports on member nations’ economic or commercial
information
 Organising meetings for a variety of trade delegations
from different countries with the Members of the
Chamber
 Issuing recommendation letter for issue of visa to visit
the concerned countries
 Providing statistics and information as demanded by
the members.
The chamber can be contacted at "Grace Building", 4th
Floor, No.25, Mcnichols Road, Chetpet, Chennai – 600031.
They can also be reached via phone (+91-44 -28362177 /
3464) or emails (iascci@dataone.in).
ASSOCIATION OF SOUTHEAST ASIAN NATIONS

The Association of Southeast Asian Nations, or ASEAN,

was founded on 8 August 1967 in Bangkok, Thailand,
with the signing of the ASEAN Declaration by the
Founding fathers of ASEAN which are Indonesia,
Malaysia, Philippines, Singapore and Thailand.
They can be contacted at - The ASEAN Secretariat, Jl.
Sisingamangaraja 70A Jakarta 12110 · Indonesia. They can
also be contacted on telephone ((6221)7262991 /
(6221)7243372) and fax ((6221)7398234 / (6221)7243504)
ASSOCIATION OF FURNITURE MANUFACTURERS

AND TRADERS (INDIA)
Association of Furniture Manufacturers and Traders
(AFMT) was formed in November 2008 as a nonprofit
national industry association to support the local market
and develop relations with the international market. The
major aim was to overall bar of the India furniture
industry. The association has some of the major objectives
such as to voice the opinions of the whole industry
collectively, create expertise on significant topics like
changing rules & regulations, budgetary changes, taxes &
levies, import licensing and several others, improvise by
effective technology by mergers and ventures, organizing
annual events to boost the industry, Inviting delegations
from other countries to visit India for sharing their
experiences & trade in view of the ever changing trend of
global market, organizing Seminars, educational events
and workshops, committing to eco friendly and social
responsibility and standardizing the quality.
The membership in the association provides a few
benefits to the members such as:
Table 6-5: Benefits to Members of the Association of Furniture Manufacturers and

Traders
Benefits Details
Published by the association to keep a track on the industry and
Newsletter
share the interviews of key industry veterans along with

advertisements of the companies

The training sessions are conducted for the members to remain
Training and
competitive in business by updating them about issues like
Seminars
technological advancements, design trends and several others
The most effective tool to track industry traders, manufacturers,
Directory retailers and other business houses, developers, design
community, embassies and trade commissions.
Annual Furniture and Exhibitions and fairs under one roof for all business to business
Furnishing Fair connections
Educational and Trade Educational trips on behalf of members are organized to different
Trips parts of the world
Foreign Trade
It facilitates the meetings of domestic and international traders,
Investments and Joint
companies and dealers
Ventures
Open forum is offered to all the members to discuss trade and
Grievance Cell
industry related matters
Table 6-6: Managing Committee of Association of Furniture Manufacturers and Traders
Name Designation E-mail Id

Mr. Mahesh Punia President mahesh@afmt.in
Mr. Shafique Porbandarwala Vice President shafique@afmt.in
Mr. Amit Mehra Secretary amit@afmt.in
Mr. Paras Shah Jt. Secretary paras@afmt.in
Mr. Adurathi Rao Treasurer adurthi@afmt.in
Mr. Deepak Lulla Jt. Treasurer deepak@afmt.in
Mr. Pulin Shah Immediate Past President pulin@afmt.in
Mr. Abhay Shah Committee Member abhay@afmt.in
Mr. Kunal Munshaw Committee Member kunal@afmt.in
Mr. Bhupendra Parmar Committee Member bhupendra@afmt.in
Mr. Kishan Manik Committee Member kishan@afmt.in
Mr. Huzefa Samplewala Committee Member huzefa@afmt.in
Ms. Sheetal Thacker Committee Member sheetal@afmt.in
Table 6-7: Advisory Committee of Association of Furniture Manufacturers and Traders
Company Contact
Name Represents Position
Details
Mr. Dhiren Gopal Featherlite Directors +91-80-

40209631/632
Mr. Kedarnath Pandey Geeken Seating CEO +91-9717213399
President and
Mr. Manish Parekh Nilkamal Ltd. Executive Director 1800-1219-115
(Furniture)
Mr. Nenshi Shah Euro Group Managing Director +91-22 -40194019
Mr. Sajjan Dokania Durian Industries Chairman 1800 22 3242
Table 6-8: Membership Details
Membership Details Registration Fee

Patron (5 slots p.a. only) USD 1,910.0
Corporate (10 yrs) USD 764.0
Company (10 yrs) USD 382.0
Architects / Interior (10 yrs) Designer USD 191.0
Student Membership USD 19.1
LIST OF FURNITURE PRODUCT IN FAIRS

ORGANIZED BY ASSOCIATION OF FURNITURE
MANUFACTURER AND TRADERS
The Association of Furniture Manufacturers and Traders,
India organizes a trade fair by the name of India Furniture
Expo with the cooperation of Introduction Trade Shows
Pvt. Ltd. The booking for the space could be done by
contacting Mr. Vijay Jadhav at +91-9323810153 or via
mails at vijay@infairs.com. For other information
regarding the fair Mr. Pillai can be contacted at +91-
9323013126 or info@afmt.in.
Table 6-9: List of Product by Categories at India Furniture Expo organized by Association
of Furniture Manufacturers and Traders
List of Product by Categories at India Furniture Expo

Beds, Wardrobes, Dressers, Chests, Nightstands,
Bedroom Furniture
Armoires, Vanities, Trunks, And Mirrors
Custom Made Furniture Bespoke Furniture as per the Requirements of customer
Dining Room Furniture Dining tables, Dining Chairs

Kitchen Furniture Cabinets , Sideboards

Sofas & Sectionals, Loungers, Wooden Sofa Sets, Sofa
Cum Beds, Recliners, Chairs, Accent Chairs, Wing
Chairs, Rocking Chairs, Ottomans, Benches & Stools,
Living Room Furniture
Coffee Tables, Side Tables, TV Units, Bookshelves &
Display Units, Magazine Racks, Console Tables, Lobby
Sets, Bean Bags
Outdoor Chairs, Outdoor Tables, Outdoor Sets, Balcony
Outdoor Furniture
Seating, Swings, Gazebos
Office Furniture Office Chairs, Office Tables, Cabinets, Executive Sofas
Study Tables, Chairs, Cabinets, Wardrobes, Computer
School Furniture
Tables, Bookshelves
Furniture and Furnishing for
Hospitals and Hospitality Specific furniture for hospital and hospitality industry
Industry
INDONESIAN REPRESENTATIVES IN INDIA

Apart from the Indonesia's embassy in New Delhi,
Indonesia have 3 other representations in India which
include consulates in Chennai, Kolkata, and Mumbai.
The consulates help the people in realizing trade and
promotion opportunities across the nations by providing
vital statistics and provide information about the export
and import goods. They also provide information on
exhibition and other events along with providing
assistance in visa, work permit and socio cultural
information about the country.
Table 6-10: Indonesian Representatives in India
Head of the
Name Address Contact Email
Mission
50-A,
Indonesian Chanakyapuri,
Rizali Wilmar +91-11-
Embassy in New Delhi, attag.newdelhi@
Indrakesuma, 26118642/3/4/5
New Delhi, India yahoo.com
Ambassador /6
India
Indonesian Mr. Kannan Jaya 2-D, El

Honorary Kumar, Honorary Dorado, 112, +91-44-28206845 kkri_chcnnai@vs

Consulate in Consul Nungambakka +91-44-28253337 nl.net
Chennai, m High Road,
India Chennai
600034, India
Indonesian
19, Altamount
Consulate kjrimumb@bom3
Mr. Saut Road, +91-22-23511678
General in .vsnl.net.in
Siringoringo, Cumballa Hill, +91-22-23530940
Mumbai,
Consul General Mumbai / 00
India
400026, India
Indonesian
Honorary Mr. Mahesh Nath 157, Jodhpur
trivedi_mahesh@
Consulate in Trivedi, Park, Kolkata +91-33-24732157
rediffmail.com
Kolkata, Honorary Consul 700068, India
India
3rd Floor
Ispahani
Indonesian
Center,
Trade Mr. Martin
123/124 itpcchennai@yah
Promotion Pandapotan, +91-44 -42089196
Nungambakka oo.com
Center, Director
m High Road
Chennai
Chennai
600034, India
LIST OF IMPORTERS
There are around 6,000 furniture importers in India, some
of them are as follows:
S.No. Importers Name Company Name Contact Region

1. Mr. Budhi Prakash Sudarshan Furniture 07442361088 Rajasthan
2. Mr Nirmal Sharma Jangid Brothers 9829176087 Punjab
Mr. Chandra Visakhapatnam,
3. Hansa Palace 9829041344
Prakash Tak Andhra Pradesh
4. Mr. Surjit Singh Arman Enterprises 9915752136 Ahmedabad, Gujarat
5. Mr. Pt. Murty S.S.S. Traders 8912572449 Udaipur, Rajasthan
Telos Projects
6. Ms. Shruti Agrawal 9909907405 Mumbai, Maharashtra
Expertise Pvt. Ltd
Czar Future
7. Mr. Nilesh 9829042162 Mumbai, Maharashtra
Furniture
Indo Italian Furniture
8. Mr. Mohammad 02224933522 Okhla, Delhi
Co. Pvt. Ltd.
Mr. Mohammad
9. Vinstall India 9769563189 Mumbai, Maharashtra
Lakdawala
10. Mr. Nandkishor The Sakhala 9326732001 Nashik, Maharashtra

Mangalchand International
Sakhala
11. Mr. Manoj Kumar Mm Interior 9990716565 Okhla, Delhi
Noida, Delhi And
12. Mr. Naquee Shaikh Empire Furniture 8373996660
Karwar, Karnataka
Mr. Tushar
Target Furniture
13. Tribhuwan Das 02652682128 Vadodra
Private Limited
Patel
14. Mr. Latif Saleh Naayab Interiors 9246241010 Vishakhapatnam
Wood Master
15. Mr. Lalit Badlani 8049591034 Mumbai, Maharashtra
Furniture
16. Mr. Anurag Shukla S K Enterprise 9810067613 Pan India
17. Mr. Salil Gupta Srijan Exports 9815026379 Chandigarh, Punjab
18. Santhosh Paswan Shiva Interiors 8043259041 Bangalore, Karnataka
19. Mr. Kapil Razdan Arquite 9310364866 New Delhi
Sajawat Markeating
20. Mr. Bikash Mittal 9832433226 Siliguri, West Bengal
Pvt Ltd
Shivam Steel
21. Mr. Mayurbhai 8048015750 Rajkot, Gujarat
Furniture
22. Mr. Prashant Jain Parin Furniture 9099044944 Rajkot, Gujarat
23. Mr. Sujeet Ciat 9895530000 Bangalore, Karnataka
Mr. Kapil R. Solanki Kitchen
24. 9890274035 Pune, Maharashtra
Solanki Homes
Mr. Sandeep
25. Wega Furniture 9815959999 Ludhiana, Punjab
Narola
26. Mr. Salil Gupta Srijan Exports 9815026379 Chandigarh
27. Mr. Suraj Singh Global Corporation 9769471895 Mumbai, Maharashtra
28. Mr Swaroop One Step Furniture 09769020619 Mumbai, Maharashtra
29. Mr. Santosh Anup Furniture 9850841221 Pune, Maharashtra
30. Mr. Vijay Royal Oak 9740018087 South India
Source:


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Market Intelligence 2015

Potential of Furniture Market in India

POTENTIAL OF F URNITURE MARKET I N

Indonesian Trade Promotion Center Chennai 1

Indonesian Trade Promotion Center Chennai 2

General Style of Furniture in India.....................................................................48

Indonesian Trade Promotion Center Chennai 3

Import Policy of Furniture in India ....................................................................85

Indonesian Trade Promotion Center Chennai 4

List of Furniture Product in Fairs Organized by Association of furniture

Indonesian Trade Promotion Center Chennai 5

Indonesian Trade Promotion Center Chennai 6

Indonesian Trade Promotion Center Chennai 7

Indonesian Trade Promotion Center Chennai 9

Indonesian Trade Promotion Center Chennai 10

1.1. M ARKET D EFINITIONS

Indonesian Trade Promotion Center Chennai 11

Indonesian Trade Promotion Center Chennai 12

1.2. D EFINING THE M ARKET BY P RODUCTS

The furniture market is largely governed on the products

Table 1-1: List of Products in India Furniture Industry

List of Product by Categories

However, different product profiles such as bedroom

Indonesian Trade Promotion Center Chennai 13

This has been considered since it contains all the furniture

AFMT – Association of Furniture Manufacturers and Traders

Indonesian Trade Promotion Center Chennai 14

Indonesian Trade Promotion Center Chennai 15

1.2. M ARKET S IZE AND M ODELING

APPROACH – MARKET SIZING

Sanity Checking @ Decision Tree Analysis: General consensus on data collected

Indonesian Trade Promotion Center Chennai 16

conducting poll opinions. Structured interviews were conducted through telecom

VARIABLES (DEPENDENT AND INDEPENDENT)

Reasons for the selection of the independent variables:

MULTI FACTOR BASED SENSITIVITY MODEL

Indonesian Trade Promotion Center Chennai 17

Table 1-2: Correlation Matrix for India Furniture Market

Personal Pearson .966 1 .948 .971

Residential Pearson .986 .937 .998 .920

Indonesian Trade Promotion Center Chennai 18

Notes:* Correlation is significant at the 0.05 level (2-tailed).

From the correlation table, we can conclude that:

Indonesian Trade Promotion Center Chennai 19

Table 1-3: Regression Coefficients Output

Dependent Variable: India Furniture Market

The conclusion regarding the expected value of dependent variable is determined by

Indonesian Trade Promotion Center Chennai 20

HISTORICAL INDIA FURNITURE MARKET,

In FY’2015, the furniture market in India clocked revenue

The furniture market in the country has been immensely

Indonesian Trade Promotion Center Chennai 21

primary growth drivers of furniture market in India

Indonesian Trade Promotion Center Chennai 22

ORGANIZED AND UNORGANIZED FURNITURE

The furniture market of India has been predominantly

Indonesian Trade Promotion Center Chennai 23

Figure 2-2: India Furniture Market by Organized/Unorganized on the Basis of Revenues

Table 2-1: India Furniture Market by Organized/Unorganized on the Basis of Revenues in

FY’2010 FY’2011 FY’2012 FY’2013 FY’2014 FY’2015

INDIA FURNITURE MARKET STRUCTURE

Indonesian Trade Promotion Center Chennai 24

India Furniture Market