Market Driving Factor Furniture Industry

Topics: Home, Decorative arts, Furniture Pages: 2 (570 words) Published: August 31, 2011
Market driving factor
The interiors industry is currently riding on the boom of the real estate industry which is the second largest employer in India after agriculture. As the interior industry is wide and mostly unorganized we can analyze through the performance of the real estate industry. Hence we can look at the overview of real estate industry. 80% of the real estate is into residential and remaining is into commercial such as retail, hospitality, industries, IT & ITeS, Banking, SEZ, etc. The growth in commercial properties is giving thrust to the contract market for their bulk needs. According to one market survey home improvements (38%) and leisure holidays (37%) as the two pursuits Indian consumers are willing to indulge in. Many of the world's leading home fashion brands are available in India through domestic retail outlets . The market for home decor, including accessories, hardware, furniture and furnishings is estimated at USD 14.4 billion. Of this, only six percent is organised, representing a tremendous opportunity. Indian furniture market:

The Indian furniture market is estimated to be worth Rs 350,000 million. Within this, the wooden furniture accounts for Rs 60,000 million. Of this the imported furniture market is currently worth Rs 6000 million and is growing at 50 - 60% each year. The furniture sector in India only makes a marginal contribution to the GDP, representing about 0.5 per cent of the total GDP. Organised Furniture Industry and its growth

The furniture industry including furniture hardware and furniture fittings in India is estimated to be around US$8 billion and is expected to grow at a rate that is much faster than its current rate of about 25- 30%annually. The organised segment which comprises of mainly imports and a few Indian manufacturers who are mostly into the office furniture segment accounts for about 15-20% of the total pie. A major chunk of the organised imported segment (80%) comprises of...
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