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January 2019

Factors Influencing Growth of the Furniture Industry

Furniture industry is essentially an ever growing industry that requires employment of variegated raw materials in quite large proportions. The range of the materials includes wood, wood base panel, leather, glass, plastic, metals and textiles and many more. The furniture is manufactured in various types, size, shapes, colour combinations (such as sofas, chairs, wardrobes, mattresses, kitchens etc.) to serve different purposes like schools, institutional, offices and residential.

Indian furniture is manufacturing and exporting high level of quality furniture in terms of design, fashion and technology. Indian furniture has a strong image all across the world. However, a large segment of furniture is imported from various foreign countries as well. The Indian furniture industry generates a turnover of Rs 3,500 crore annually. Eighty five per cent of the industry falls under unorganized sector and remaining fifteen percent is under formal sector, made up of manufacturers and exporters catering to the different segments of the industry. The market of wooden furniture solely owns the share of nearly Rs 60 crore. According to a recent study, the industry is expected to grow by 20 per cent in coming time.

Main Factors
The concept of good living and better lifestyle is fast catching up middle class’ mentality of Indians. Interior designing is no longer confined to rich and wealthy Indians. Even middle class people do not mind paying an added buck in getting their homes decorated with modern and designer furniture. These factors have resulted to a boom in decor industry especially when it comes to furniture. It is no more a surprise that foreign manufacturers are making huge investments in the furniture industry of India along with Indian furniture manufacturers and exporters. Globalization has impacted a lot and this leads to the growth in demand of furniture. Media also plays a vital role in making people learn about good living. In conclusion, below mentioned four categories are the factors for the rise in furniture industry;

o Architects
o Builders
o Interior Designers
o Participation in Furniture Trade Fairs for increased exposure

In addition to the major segments such as households, offices and schools, furniture is high in demand if we take other sub-categorized segments like Kitchen, Bathroom, Bedroom, etc. into consideration. According to a recent survey, there is an increase of 38 percent in home improvements and 37 percent increase is observed in leisure holidays, which shows two pursuits of Indian consumers willing to put huge sum to fulfill furniture requirements. This has led many leading foreign brands to make their genuine inception in Indian industry via domestic retail outlets. Some of the big players in the Indian furniture industry are Godrej & Boyce Manufacturing Co. Ltd., Furniturewala, Zuari, Yantra, Renaissance, N R Jasani & Company, Furniture Concepts, Durian, Kian, Millenium Lifestyles, Truzo, PSL Modular Furniture, BP Ergo, Tangent, Featherlite and Haworth to name a few.