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110 XINDIAN JOURNAL OF APPLIED RESEARCH

Volume : 3 | Issue : 9 | Sept 2013 | ISSN - 2249-555XRESEARCH PAPER Commerce

Furniture Market in India an Overview

M.Gomathi Imaya Dr.K.Padhmanaban

Ph.D., Research Scholar in Commerce, AnnamalaiUniversity, Annamalai Nagar 608 002, Tamil Nadu,

India.

Professor of Commerce, Annamalai University,Annamalai Nagar 608 002, Tamil Nadu, India.

KEYWORDS Furniture Industry, Growth, Size, GDP level.

ABSTRACT Furniture industry in the nation and worldwide to be appreciated by people. India has a favourable outlook tosell furniture and one expects the furniture industry to grow further in the coming years. The entry of Interna-

tional brands and changing consumer preference has led to the emergence of furniture retailing in India. The author clearlystated that the growth, characteristics, size and employment opportunities of furniture industry in India. In this paper theresearcher dealt with the Gross Domestic Product (GDP) level is very low in the Indian furniture market.

INTRODUCTIONIndia is the land o marvellous artistic works, and also namedor its tradition, culture, heritage, and handcrats. It has es-tablished its reputation in the eld o wood crats and ur-niture. The antique works and the keen designs and thesculpting works are the lead that has ast established its partin urniture and wood works. We have become an exporterin good quality o urniture with ne art, design, cuts, style,technology, and grace.

GROWTH OF INDIAN FURNITURE INDUSTRYThe urniture industry in India is generating a turnover o`3500C per annum. The market owns the share o Rs.60Cand as per the recent survey; the industry grows by 20 per-

cent in coming times.

The urniture industry has become a great pride or the na-tion to hold a magnicent impact or its ne arts and marvel-lous works. The oreign market eels content and condentas the Indian urniture companies like Godrej & Boyce manu-acturing Co. Ltd., Furniturewala, Zuari, Yantra, Renaissance,Jasani and Company, Furniture Concepts, Durian, Kian, Mil-lenium Liestyles and much more to add the growth o theindustry.

On the whole, it is our pride to hold a magnicent place inthe world market or Indian urniture in ne arts and superbworks. In act, global urniture industry research and consult-

ing rm, CSIC Milano has classied India has the 14th largesturniture markets in the world.

CHARACTERISTICS OF FURNITURE INDUSTRYThe urniture industry is both an organized and non-organ-ized sector. Furniture manuacturing worldwide orms a cen-tralised competition in the clustering eect. Utilization oskilled, unskilled workers, handcrated tools, machines, CAD/CAM or manuacturing and designing. Consumer expecta-tions and purchasing behaviours have marked regional vari-ations.

SIZE OF INDIAN FURNITUREThe un-organized sector or the urniture market is at 10 per-

cent and growing at about 35 percent CAGR (CompoundAnnual Growth Rate). Furniture segment compromises o 65percent o the home market and 35 percent o institutions.The entire home dcor category spends urniture accountsabout 68 percent o the share while remaining 32 percentcomprises o urnishing and home investments. Imported urni-ture constitutes to 85 percent o the total organized urniture.India imports urniture rom Italy, Germany, Spain, China, Ko-rea, Malaysia, Indonesia, Philippines, etc.

FACTORS INFLUENCING GROWTH OF THE FUTURE IN-DUSTRYIndian urniture industries are manuacturing and exportinghigh level quality urniture not only to the present days butalso to the uture and it has set a strong image all over theworld. Globalisation has impacted a lot and this leads to thegrowth in demand o urniture. Media also plays a vital role inmaking people learn about good living. The concept o goodliving and better liestyle is catching up in all levels o people,where middle class people has also started to invest theirmoney in most decorated urniture and there is no surprisethat oreign manuacturers are investing in Indian urniture.There are our main categories or the improvement in theurniture in India. They are;

Architects Builders Interior designers Trade airs or increased exposure.

INDIAN FURNITURE INDUSTRYGenerally the need or urniture is mostly these our areas: Domestic Oce Hotel Furniture parts

Fig.1 represents the needs or the urniture is given as

ollows:

Source: KPMG Analysis

The urniture sector o India makes a marginal contributionto the Gross Domestic Product (GDP) representing about0.5 per cent o the total GDP. According to the WorldBank survey, 20 percent o the urniture industry grows peryear and this growth is expected to come rom the rapidlygrowing consumer markets o Asia, which signies that

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Volume : 3 | Issue : 9 | Sept 2013 | ISSN - 2249-555XRESEARCH PAPER

REFERENCE 1. Size o Indian Furniture Market. http://www.dalalstreet.biz/orum/India-retail/size-o-India-urnituer-marketon. 2010.2. Grwoth o the urniture industry in India. www.growthothegrowthindustryinindia.in

3. Factors infuecing the growth o the urniture industry. www.urnitureglobal.com4. Furniture Market and Opportunities. www.ibereportorurniture.com.

there is growth in Indian urniture sector. As o the statis-tics, in 2006 the Indian market is estimated to be worth US$1, 358 million. About 11 percent o this wooden urnitureis imported and are growing at 50 percent to 60 percentevery year. India was the largest urniture importer in theworld 2004-2005 with a 17 percent share in the urnitureimports worldwide. A total o 10,476 importers shippedurniture to India during this period mainly rom Italy, Ger-many, Spain, China, Korea, Malaysia, Indonesia, Philip-

pines, and Japan.

SUCCESS FACTORS FOR FURNITURE MANUFACTURERSIN INDIAThe Indian urniture industry is gradually transorming into amore organised and competitive sector. The entry o globalbrands in the sector, emergence o large retail players and theresultant consolidation, are trends that highlight this transor-mation.

This fow chart 1 will tell clearly about the current status othe Indian urniture sector:

Source: KPMG analysis.

GOOD SUPPLY CHAIN MANAGEMENTSupply Chain Management (SCM) is the most essential orurniture manuacturers or catering both home and com-

mercial segments. For home the basic need will depend onthe customers need and satisaction whereas in commercialsegments the key requirements would be making timely de-liveries, as per the required specications to the builder andarchitect.

COST MINIMISATIONFurniture manuacturers in India need to diverse tastes andpreerences across customer segments and deliveries. At thesame time when the organisation getting increased and com-petitive, the margins are progressively under pressure. Im-proved manuacturing processes and minimising waste is thekey role or players in the sector.

BRAND MANAGEMENTHaving a well-known brand is important or the oce andhotel management. Buying the branded items has been atrend in these days and so people always opt or brandedurniture, so the urniture sector is increasingly looking orbranded products, as means to ensure good quality andvalue.

ROLE OF FURNITURE MARKET IN THE CONTRIBUTIONOF THE GDP AT WORLD LEVELTable 1 Furniture Market GDP Level in World

S.No. Countries Total GDP (%)

1 China 20%

2 Europe 5%

3 Germany 5%

4 UD 3.5%

5 Indonesia 2.9%

6 Italy 2.4%

7 UK 2%

8 Philippines 0.15%

9 India 0.5%

Source: Computed Table

The urniture sector makes a marginal contribution o 0.5%to Indias GDP. Moreover, even i the production is increasingevery year, it is mainly in the un-organised sector. Table 1describes that India is marketing the urniture at the GDP o

0.5% which is very minimum when compared to other coun-tries in the world.

STATE WISE EMPLOYMENT IN THE FURNITURE INDUS-TRY

The consumer in the state always needs good quality urni-ture. According to Fig 2, it is estimated that the higher per-centage o employment is 23 percent in Tamil Nadu State.This conrms that involvement o the employees to exhibittheir skills in carving, statue, birds, fowers and animals etc toproduce good quality o urniture.

CONCLUSIONLocal tradition and culture contributed to the urthest devel-opment o ornamental woodwork or palaces, temples, pub-lic houses, and work o arts. The tradition o using woodenurniture or home came into late existence. In India, oces

and hotels had urniture rom the beginning but the homeurniture came gradually, where it started with a chair, soa,bed and then the dining table. But now-a-days the usageo wooden goods in home also increased, as people startedusing wood or decorating, urnishing cupboards and so on.Thus the Indian urniture market grew rom the ground levelto now and which will urther develop in uture days.