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Explore the robust growth factors, revenue insights, and market dynamics driving India's furniture industry, with a focus on home, office, and hotel segments. Discover the impact of organized vs. unorganized players, evolving consumer preferences, and the rise of international brands. Dive into the future outlook with emerging trends and the influence of e-commerce on furniture sales.
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The furniture market in the country has been immensely driven by a substantial growth in the real estate, tourism and hospitality sector over the years. In FY’2015, the furniture market in India clocked revenue worth INR ~ billion which increased by ~% from INR ~ billion in FY’2014. The furniture market has experienced a substantial growth in the last few years. There are several factors which have led to this growth such as surge in real estate and housing activity, increasing growth in the information technology and services sectors, growing affluence both in the urban and rural areas and higher proportion of middle class Indians aspiring for better lifestyle. Additionally, the import of furniture from countries such as China, Malaysia, Indonesia and Bangladesh is also being driven by the urban affluent households. The organized furniture market has been observed to grow from ~% in FY’2010 to ~% in FY’2015
The establishment of MNCs in metropolitan cities in the country has also impelled the sales of office furniture, thereby aiding the overall market growth in the last few years The Office segment in the furniture market has garnered ~% of the market revenues as observed in FY’2015 which is relatively smaller proportion of the furniture market in the country. Over ~% of the office furniture is covered by contract furniture which is customized by various organized stores especially in big retail chains In FY’2015, hotel furniture accounted for a share of ~% in the overall sales of furniture in the country garnering revenues worth INR ~ billion. The major reason for its low demand is that most of the furniture in offices, hotels, cafes and industry are contract furniture and this demand is majorly catered by unorganized sector while a minor share is also catered through customized furniture from organized retailers.
The retail sales of home furniture products through organized retail outlets in India generated revenues of INR ~ million in FY’2015 and represented a CAGR of ~% during the period, FY’2010-FY’2015. Companies such as Godrej Interio, Home Center, Nilkamal, Durian Furniture, and Style Spa among others have grabbed significant positioning in the domestic organized home furniture market. In spite of the fact that ~% of the furniture market belongs to the unorganized players, the growing western culture in the country coupled with increasing consumers’ preference for branded products have given a considerable surge to the branded furniture segment in the recent years. In order to cater to the mounting demand of branded furniture in India, the competition amongst the organized players has further intensified.
The arrival of international brands from Italy, Germany, Sri Lanka and other countries has brought a change in consumer perception and has resulted in the purchase of more expensive furniture products, which have in turn propelled the overall revenues of the market. However, a large number of Indian citizens have still opted to purchase customized furniture from carpenters at highly competitive prices. The employment of on-site carpenters has provided Indian customers with the flexibility to customize design, wood material and make any modifications to the product as necessary at their comfort. The growth of the organized home furniture industry has played a key role in the development of the overall furniture market in India. The future of this industry has been expected to witness an increase in number of foreign brands in the country.
Along with that, more number of companies in the organized segment will look forward to provide additional services such as customization, free home delivery and more. Moreover, with the substantial growth of the Indian e-commerce industry, many players have entered the online market for the sale of furniture products. Companies such as Pepperfry, Urban Ladder and Fabfurnish have revolutionized the sale of home furniture products in India by not only providing significant discounts but also through value added services such as free product demos, customizations, complete home solutions and others. Bedroom furniture held ~% of the total revenue of home furniture market in India, as recorded in FY’2015. Bedroom furniture has stood as the highest revenue-generating segment as furniture items placed in bedroom have been the utmost priority for Indian customers.
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