SECTOR REPORT

Date March 2014

Our ref. NK

India: Furniture Sector

Prepared by Trade Commission of Denmark, Bangalore

ABSTRACT:

This report provides a short overview of the Indian Furniture and Design industry. It
describes the industry and its potential, with focus on opportunies for Danish companies.
Growing population and rapid socio-economic development has spurred an increase in
furniture design requirements across all major sectors of the Indian economy, especially in
the retail, home sector which emphazise the need for alternative designs replacing
contemporary and traditional designs. This spurs up opportunities for Danish furniture
design companies.

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INDUSTRY

The furniture industry in India has become a great pride for the nation to hold a
magnificent impact for its fine arts & marvelous works. CSIC Milano has classified India as
the 14th largest furniture markets in the world. The furniture industry in India is worth of
US$ 8 billion and is growing at 30 percent CAGR. The furniture industry is both an
organized and unorganized sector. Furniture manufacturing worldwide forms a centralized
competition in the clustering effect.

The organized sector for the furniture market is at 15 percent and growing at a CAGR of
about 30 percent. Furniture segment comprises of 65 percent of home market and 35 percent
of commercial. The entire home décor category spends furniture accounts about 68 percent of
the share while remaining 32 percent comprises of furnishing and home investments.
Imported furniture constitutes to 85 percent of the total organized furniture. India imports
from Italy, Germany, Spain, China, Korea, Malaysia, Indonesia, Philippines etc. However,
there are only 10,550 furniture importers who mostly import from Germany, Italy, Malaysia &
Spain. The foreign market feels content and confident as the Indian furniture companies like
Godrej & Boyce manufacturing Co. ltd., Furniturewala, Zuari, Yantra, Renaissance, Jasani and
Company, Furniture Concepts, Durian, Kian, Millenium Lifestyles and much more add to the
growth of the industry.

Designs in furniture: - As far as furniture designs are concerned, well-designed & researched
furniture can improve our quality of life. CAD & Rapid prototyping are exclusively used to
improve the furniture designs from its so-called traditional designs to modern revolutionized
style & patterns.

KEY DRIVERS
 Increase in disposable income of the individuals
 Growth in real estate sector has increased the importance of furniture in recent days.
 Growth in organized retail paved way for many foreign organization start-ups in the
country
 Rising quality consciousness among Indian customers.
 Growth in IT & ITES sector has enhanced the growth in furniture industry.
 Growth in tourism facilitates the furniture industry growth

OPPORTUNITIES FOR DANISH COMPANIES

 Availability of raw materials & cheap labour
 Reduction in import duties which facilitates easier trade between countries wherein it’s
growing at 50-60% annually.
 Designs’ in furniture is given less focus in India- hence it’s an area yet untouched in
terms of business.
 Sectors such as hospital & stadium furniture yet to be explored
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  100% FDI allowed under automatic route
 Increasing demand of lifestyle products viz. imported brands such as Bo Concept,
Natuzzi, Steelcase, Ligne Roset, Durian, Herman Miller, Stanley’s Boutique etc. along
with limited availability of brands like Fendi, Casa Armani, Carl Hansen, Koinor, Ipe
Cavalli, etc.
 Moderately competitive industry
 Transition of unorganized players into organized players

UPCOMING EXPOS
EVENTS DATE AND VENUE WEBSITE

21 – 24 Feb 2014
Furniture &
Nehru Centre
Furnishings http://infairs.in/upcoming_events2.aspx?ID=1065
Dr. Annie Besant Road,
Fair 2014
Worli, Mumbai, India

Zak Interior 03 – 06 April 2014

& Exterior Chennai Trade Centre, http://www.zakinteriorexterior.com/
Expo Chennai

15 – 18 April 2014
Home Expo India Expo Centre & http://tradeshows.tradeindia.com/home-
India 2014 Mart, Greater Noida expo2014/index.html
Expressway, New Delhi

22 – 25 August 2014
India
Nehru Centre, http://infairs.in/upcoming_events2.aspx?ID=1067
Furniture
Dr. Annie Besant Road, http://10times.com/ifex-mumbai
Expo 2014
Worli, Mumbai, India

CONTACT

Nixit Kothari
Furniture Sector
Tel: + 91 80 4248 9504
E-mail: nixkot@um.dk

Trade Commission of Denmark

142, 4th Main, Defence Colony, Indiranagar
Bangalore – 560 038 INDIA

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The Trade Council is a part of the Ministry of Foreign Affairs and is the official export and investment
promotion agency of Denmark. The Trade Council benefits from around ninety Danish Embassies,
Consulates General and Trade Commissions abroad. The Trade Council advises and assists Danish
companies in their export activities and internationalization process according to the vision: Creating
Value All the Way.

The work in the Trade Council follows specific procedures and quality guidelines. In this way our
customers are secured the best possible quality under the varying working and market conditions at any
given point of time.

Ministry of Foreign Affairs of Denmark

The Trade Commission of Denmark, Bangalore

142, 4th Main, Defence Colony, Indiranagar
Bangalore – 560 038 INDIA
Tel: + 91 80 4248 9500
E-mail: blrhkt@um.dk
www.indien.um.dk

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