The furniture industry in India is considered as a "non organized" sector, with handicraft production accounts for about 85% of the furniture production in India The entry of international brands and changing consumer preference has led to the emergence of furniture retailing in India. The large furniture brands are characterised by huge expanses of dreamy designs, a multitude of hues and steep prices. From furniture to linens to mirrors to lights to other dcor accoutrement.you get them all here. For India's new-breed furniture malls, the game is no longer just about furnishing, it's about 'home dressing'.
Today, the need of the Indian consumer evolves beyond "roti, kapda aur makaan". Because of the international exposure which modern Indian consumers receive the friendly neighbourhood carpenter or the upgraded craftsman, with his imitations of designs from the foreign magazines, no longer satisfies them. The size of the Indian furniture retail market is estimated around Rs.30, 000 crores. In fact, CSIL Milano has classified India as one of the 14 large furniture markets in the world. This is in view of the fact that India has a middle class population of over 400 million, with a purchasing power on the upswing.
However, the furniture industry in India is not without its worries. The furniture sector makes a marginal contribution of 0.5% to India's GDP. Moreover, even if the production is increasing every year, it is mainly in the unorganised sector. However, all is not bleak for the industry. The office furniture segment boasts of better companies from the point of view of better size as well as technological innovations. In fact, the furniture industry in India employs an estimated 300,000 workers. In 2000, India ranked 48th among furniture exporters (140 million) and 49th among importers (20 million). This low rank may be explained by relatively high import duties and low technological competency. Also, local tastes play a major part in this sector's demand. Here's to hoping that consumer satisfaction results in a huge boost for the furniture retail business in India.
Godrej & Boyce Mfg. Co. Ltd.
- It is a part of the Godrej group and was incorporated in 1932
- The company is highly diversified and is engaged in production of a variety of items
- They mainly manufacture consumer products, Office equipment, Consumer appliances, Chemicals, Agro products, security equipment, office automation, Industrial products and Storage solutions
- The manufacturing facility is located at Mumbai, Maharashtra
- They have exclusive showrooms and dealer outlets across India
- The Godrej group had revenues around US$ 513 million in FY'06
- It was started in 1965
- It is a pioneer and one of India's largest furniture manufacturing companies
- The company has state-of-the-art manufacturing and does continuous R&D work
- The company's manufacturing plants are located in Bangalore and Hosur
- Have a capacity of manufacture around 150 workstations and more than 600 chairs a day The company has presence in 22 locations across India
- Featherlite has been retailing furniture for the past 20 years and the first outlet was open in Bangalore in 1987
- The concept of exclusive office furniture retailing was started by this company
- It has around 25 exclusive showrooms in Mumbai, Chennai, Bangalore, Delhi, Kolkata and Hyderabad. It manufactures around 20, 000 chairs and 3, 400 workstations per month and 35 percent of the production are sold through the retail outlets
- The company has strength of around 500 people which includes architects, interior designers, and others
- Style Spa Furniture Limited is promoted by the Zuari - Chambal group
- The company is headquartered in Chennai and was established in India in 1997 to manufacture and retail furniture
- The US$ 15 million manufacturing facility is a sophisticated and fully automated plant
- The plant is one of Asia's most modern and largest manufacturing facilities They manufacture furniture for home and offices and are retailed from exclusive retail outlets spread across the country. They have around 92 outlets in India
- The machines for the manufacturing plant have been imported from Europe
- The ISO certified plant produces around 0.2 million pieces of furniture annually
- The company provides after sales services through its showrooms
- Millennium Lifestyle was incorporated in 1999
- The retail experience of the family spans over 75 years
- They sell various products under different brands having different collections
- The brands which they sell from their retail stores are ArteM, Divani, Loddenkemper, RioArt, Sauder, Sherwood, and Softplus
- The collections they offer range from bedroom, dining, entertainment, occasional, office to sofas
- They also provide services like designing your own interiors sitting at home - with the help of an online interactive room designer
- Millennium Lifestyle offers a one-stop solution for customer's entire furniture requirements as they offer wide variety furniture from around the world under one roof
- They have showrooms across Bangalore and Hyderabad
- Nilkamal Group of Companies has a turnover of over US$ 125 million
- It is the world leader in the field of plastic molded furniture
- The company has diversified into lifestyle furniture business by launching @home, which is a complete home solution store with contemporary readymade wooden furniture, there are 8 manufacturing stores in India
- They provide services like design solutions, professional guidance, interest free loan besides furniture and accessories
- They also have joint ventures in Bangladesh and Sri Lanka
- The major strengths of the group are a wide direct sales network of 350 members, a strong dealer network of 350 plus, 33 regional offices located in all major industrial cities and 24 warehouses situated all across India a warehousing facility along with a marketing office set up in UAE
Challenges to Furniture Industry
Plastic - The Potential Alternatives to The Indian Furniture Industry
Plastic furniture has product benefits like being easy to maintain, excellent weather ability, light in weight and hence easy to handle, available in a variety of colours. With the availability of various types of plastics, these synthetic materials have found increasing use in the field of furniture, replacing conventional materials such as steel, aluminum, wrought iron, wood, etc.
Shortage of wood, its high cost and above all ecological concern have led to extensive use of plastics in furniture manufacture in developed countries. Since furniture industry is one of the major consumers of wood, any strategy for preservation and enhancement of forest resources would have to be linked with planned replacement of wood in furniture items. Availability of good quality wood and the time consuming costly process of seasoning have already pushed up the cost of wood beyond the reach of common man. Maintenance of wooden furniture by regular varnishing and polishing is also costly. The conventional alternatives of wood in the furniture industry are aluminum and steel. High-energy consumption by these metals has not made them suitable alternatives in larger scale. Therefore, plastics offer themselves as suitable and potential alternatives to the Indian Furniture Industry.
INDIA - Furniture Retailing Gaining Prominence
Kids' Furniture & furnishings
With households forming 65% of the $7,922 million Indian furniture market, how are entrepreneurs leveraging the potential in this niche segment of business?
Gone are the days when kids' rooms consisted only of teddy bears and hues of pink and blue. From cozy little baby cribs, playful beds and bean bag furniture to room accessories like colorful drapes, thematic wallpapers and bed linenthere are special furnishings available for every toddler's taste.
The rising number of single-child-double-income families deeply inclined to spend on lifestyle products, coupled with an exposure to international standards, is luring many urban and middle class parents to invest in high quality furniture and furnishings for their kids' rooms.
Like adults, children also require a dedicated area where they can play, learn and grow. Parents are now realizing this need for their little ones to explore their creative selves." Children are also becoming demanding and are major catalysts in their parents' decision to deck up their rooms.
But is this demand being met? According to a report by India Brand Equity Foundation (IBEF), the Indian Furniture market is worth US $7,922 million, with about 15% in the organized sector catering to households, offices and the hospitality sector. A whopping 65%, households form the biggest consumer segment. Most of the furniture, however, is for adults and doesn't cater adequately to the requirements of the kids, especially in terms of size and design.
When it comes to creating a space for children, there is still a gap, with many furniture companies either being international or having a limited range of children's items. Only a few players are catering exclusively to children's furniture and room dcor, making it an opportunity waiting to be grabbed by aspiring entrepreneurs.
@Home to expand 4-fold from 15 to 65 stores in 3 years; earmarks Rs 140 cr. for expansion
@Home stores, the home furnishing retail chain of India's largest, Rs 1,000 crore. Moulded furniture manufacturer, Nilkamal Ltd, is planning aggressive expansion of its retail network from 15 stores to 65 stores in the next three years (2012-13). @Home retail chain was set up by the company two years ago.
Currently, @Home stores are located in all major cities of the Western and the Southern India. However, after expansion, the retail chain would have expanded to most of the tier II and III cities, across India, particularly new cities located in the Northern and the Eastern regions of the country. Neelkamal will be investing Rs 140-crore on @Home's expansion.
Neelkamal, according to Parikh, is also looking at introduction of new products including some exclusive designs of furniture and cupboards for children, bathroom products, office furniture and other home furniture for launch. Apart from new range of furniture, the company will also be giving a strong thrust to its lighting and home furnishing business.
"Our aim is to make @Home cater to every requirement of the customer," said Parikh.
Home Solutions launches its first 'Value' home making retail concept in Aurangabad
Home Solutions Retail (India) Ltd., a part of the Future Group, today, announced the launch of a brand new retail format in the Home Segment called 'Home Bazaar', - a satellite version of its national home making and improvement retail brand Home Town.
Home Bazaar will have displays of various room settings such as living room, dining room, bedroom, kids' room, kitchen & bathroom. Customers will get to select from a range of products like sofa sets, dining tables, beds, kids furniture, kitchen fittings, bathroom fittings, furnishings, mattresses, paints, tiles, electrical fittings, decor lighting, plywood, etc. Home Bazaar will also have a services section catering to specialized services like plumbing, electrician, painter, carpentry etc.
Unbelievable value for old furniture at 'Collection-i 'Biggest Exchange Offer'
Collection i, a part of Future Group, is offering great value for old furniture at 'Biggest Exchange Offer', a month long event, where consumers can get best value for their old furniture, by producing original purchase bills of the old furniture.
Reliance Retail unveils Reliance Living Furnishings
The Reliance Living store offers an extensive range of trendy, innovative and comfortable lifestyle furniture and a host of furnishings keeping with international design trends under its sub-brands Reliance Living Furniture and Reliance Living Furnishings respectively. The store, spread over a retail area of 4,000 square feet, houses three private labels Home One, My Home and My Home Premium besides 120 products of home furnishing.