A prolific boom in India’s furniture market

The Indian Furniture market is worth around US$ 8 billion. The Indian economy has started to pick up and gather momentum after the global economic recession of 2008-2009. The furniture market in India has historically witnessed a prolific boom in the country.

There were a number of factors which have led to a growth in furniture demand in the country in the last few years. The growing economy of the country has encouraged the spending capacity of the people and companies/ organisations, which in turn has impelled the sales of branded furniture items in the market. The growing phase of infrastructure and real estate market has also augmented the demand for furniture products in the
country.

In fact, the sector is transitioning from a fragmented industry to a more organised and competitive one. Emergence of e-commerce and establishment of various startups in the country have led to the growth of the organized retail market in the country. Apart from that, the direct sales approach is paying a lot of dividend to market vendors
as the customers still prefer to purchase the products directly from the manufacturers.

Office furniture market is one of the key revenue generators of the overall furniture market in India. It accounted for a 20.45% of market share in 2014. The market is mainly dominated by the unorganized office furniture segment. However, the organized office furniture segment is also growing gradually. Market researches identify Godrej & Boyce, Featherlite, Zuari Furniture, Durian, and DAMRO as the key vendors in the office furniture market in India.

In the organized retail segment, the market is occupied by leading companies such as Godrej Interio, Home centre, Nilkamal, Durian Furniture, Style Spa among others, which have over the years grabbed significant positioning in the domestic market. Furthermore, the entry of international brands and increasing brand awareness amongst Indian inhabitants in the recent years has led to the emergence of furniture retailing in India

According to a new market report published by Credence Research “ Furniture Market – Growth, Future Prospects,
Competitive Analysis, and Forecast 2016 – 2023,” the furniture market has been estimated to be valued at US$ 137.5 Bn by the end of 2016, and is expected to reach US$ 186.5 Mn by 2023, expanding at a CAGR of 4.5% from 2016 to 2023.

Overview of the office furniture market in India
Technavio’s market research report predicts that the office furniture market in India will grow at a CAGR of above 20% during 2017-2021. The rise in number of corporate offices is one of the primary drivers for market growth. An increase in the number of office buildings and technology parks in India has increased the sales of office
furniture.

The expansion of MNCs into new offices has resulted in a rise in the number of employees, which has created a demand for office furniture. Favorable government policies, large innovative environment, and the availability of suitable legal protection are some of the factors supporting the rise in the number of offices in India. The growth of the real estate market and the construction market are also rising driving the demand for office furniture. Additionally, the development of new industries such as e-commerce and the rise in entrepreneurship ventures that contribute to the increase in office spaces, will also drive the growth of the office furniture market in India.

One of the latest trends that will gain traction in the office furniture market in India is the rise in the number of office furniture imports. India has become one of the biggest importers of office furniture and accounts for less than one-fifth of the world’s total office furniture imports. This market share is foreseen to grow during the forecast period as India’s imports are rising at a strong rate every year.

Moreover, India is currently a significant outsourcing location for the majority of the countries as it is believed to be the best place for investment by companies. This will certainly increase the need for office space in the country and significantly contribute to the growth of the office furniture market.

Competitive analysis and key vendors
Consisting of numerous local and international players, the office furniture market in India appears to be largely fragmented. The market players compete based on factors such as product portfolio, design and material used, logistics, and pricing. Vendors are trying to distinguish their products based on design and price to stay ahead of the competition. The competition among the market players is anticipated to grow further during the forecast period due to the increased product extensions and customized pre-sales and post-sales services.

During 2016, the office seating segment dominated the office furniture market in India and is expected to continue its dominance over the next four years. The rising number of corporate offices, the growing employment rate, and the introduction of innovative products and ergonomic designs, will boost the growth of this segment during the forecast period.

Wooden, plastic and metal are the main segmentations by materials and analysisof the office furniture market in India. The wooden segment accounted for the major shares of the office furniture market in India during 2016 and is expected to continue its market dominance during the forecast period as well. The major contributors to the growth of this market segment will be the extensive utilization of modular furniture and the increased demand for wooden furniture.

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