The Branded Furniture market is valued at INR 58 bn in 2008; expected to reach INR 165 bn in 2012. Branded furniture comprises of Domestic and Commercial furniture segments. Market is dominated by the Domestic segment.
The report provides a snapshot of the market. An overview gives a quick picture of the market with estimated market size, growth rate and revenue split between the residential and commercial segments. An analysis of drivers reveals that increase in disposable income, reduction in import duties, growth in real estate sector, rising quality consciousness amongst Indian consumers, growth in IT & ITES Sector, growth in tourism, growth in organized retail is driving growth in this sector. The key challenges identified include reduction in timber harvest, FDI Regulations, market restricted to Cities.
The report identifies the current market trends including rising popularity of traditional furniture, modular kitchens, use of innovative materials, use of recycled wood, forward integration and rising popularity of kids furniture. The competitive landscape profiles the major players in this sector in terms of their business description. The report also provides details key developments in this sector.
2. Executive Summary
Branded furniture market is valued at INR XX bn in 20--; expected to reach INR YY bn in 20--
Market The overall furniture market is a% unorganized
Market for branded furniture in India is mainly concentrated in cities
Drivers: Challenges:
LE
– Increase in Disposable Income – Reduction in Timber Harvest
P
– Reduction in Import Duties – FDI Regulations
Drivers & – Growth in Real Estate Sector – Market Restricted to Cities
Challenges –
–
M
Growth in Organized Retail
A
Rising Quality Consciousness amongst Indian
Consumers
S
– Growth in IT & ITES Sector
– Growth in Tourism
Forward Integration
Kids Furniture gaining popularity
Rising Popularity of Traditional Furniture
Trends
Modular Kitchens
Use of Recycled Wood
Use of Innovative Materials
Furniture companies operate both, through direct selling in the market and through distributors
Competition 3 tier selling & distribution model, comprising of the distributor, wholesaler and retailer is popular
Market has witnessed entry of specialty furniture chains in furniture retailing
BRANDED FURNITURE MARKET - INDIA 2
4. Furniture market in India is highly unorganized
Market Overview Market Size & Growth
• Furniture market in India is highly unorganised with INR bn
organized sector having b% market share
200
• Branded furniture market in India is mainly Y
LE
150 c%
concentrated in cities
P
• Market is driven by increasing income levels and 100
increased consumption of lifestyle products X
• Key Segments:
Domestic furniture meant for home use
SAM
Commercial furniture for office & hospitality sectors
Raw Material Preference
50
0
2008
Key Consumer Segments
2012
Material 3
r%
Segment 2
v%
Material 2 q%
p% u%
Material 1 Segment 1
Source:
BRANDED FURNITURE MARKET - INDIA 4
5. Drivers & Challenges - Summary
Drivers
Increase in Disposable Income
Reduction in Import Duties Challenges
Growth in Real Estate Sector Reduction in Timber Harvest
Growth in Organized Retail FDI Regulations
Rising Quality Consciousness amongst Market Restricted to Cities
Indian Consumers
Growth in IT & ITES Sector
Growth in Tourism
BRANDED FURNITURE MARKET - INDIA 5
6. Trends - Summary
Forward Integration
Use of innovative Kids Furniture gaining
materials popularity
Trends
Rising popularity of
Use of recycled wood
traditional furniture
Modular kitchens
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7. Major Players (4/5)
Player Business Description
Company 1 • Company 1is promoted by the Company 4 and headquartered in Chennai
• Its manufacturing facility is located near Chennai and it has over r exclusive showrooms
• Its product range includes Bedroom, Living Room, Dining Room, Study room and Office
LE
Furniture
P
Financials
• It reported a turnover of INR S bn and a net income of INR T mn
Company 2
SAM
• Company 2 is based in Ahmedabad
• The company is a manufacturer and retailer of Solid Wood Furniture, Modular Kitchens and
Doors with a distribution network comprising of franchisee stores across India
• Company 6, along with Company 7 have invested in the equity of the company
• It currently has q exclusive kitchen, furniture and door showrooms
• It plans to invest INR B mn to increase the number of its stores to m in the next y years
Company 3 • Its product range includes bedroom, dining room, study room, living room and office
furniture
• It has dealer outlets and showrooms in location 1, location 2, location 3, location 4, location
5 and location 6
Source:
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8. Thank you for the attention
The report is a part of Research on Consumer Durables Industry Series.
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