Analysis of the plastic furniture market in India
The relevance of research
Plastic furniture has become very popular in recent years, due to its unique consumer qualities. The advantages of plastic furniture include ease of use, strength, practicality and a relatively affordable price. Consumers of polymer products are: construction, production of containers and packaging, automotive industry, agriculture, households, furniture industry, mechanical engineering, transport, road construction, telecommunications and electrical engineering
Purpose of the study
Analysis of the state of the plastic furniture market, assessment of the market volume, analysis of competitors, as well as identification of factors affecting the plastic furniture market
Content
Part 1. Overview of the Indian plastic furniture market
1.1. Main characteristics of the market
1.2. Dynamics of the market volume of plastic furniture 2014-2018 Potential market capacity
1.3. Assessment of factors affecting the market
1.4. Life cycle stage of the plastic furniture market
1.5. Competition from substitute products
Part 2. Competitive analysis in the plastic furniture market
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Analysis of plastic furniture production
3.1. Volume and dynamics of domestic production of plastic furniture
3.2. Share of exports in the production of plastic furniture
3.3. Segmentation of plastic furniture production by regions
3.3.1. Production by Union Territories
3.3.2. Production by states of India
Part 4. Analysis of foreign trade deliveries of plastic furniture
4.1. The volume and dynamics of imports of plastic furniture
4.2. Import structure
4.3. The volume and dynamics of exports of plastic furniture
4.4. Export structure
Part 5. Analysis of consumption of plastic furniture
5.1. Dynamics of consumption of plastic furniture
5.2. Analysis of the results of tenders for the purchase
Part 6. Price Analysis
6.1. Average producer prices by union territories
6.2. Average consumer prices by states in India
Part 7. Assessment of factors of investment attractiveness of the market
Part 8. Forecast for the development of the plastic furniture market until 2023
Part 9. Recommendations and conclusions
Research excerpt
Part 1. Overview of the Indian plastic furniture market
1.1. Main characteristics of the market
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Consumers of polymer products are: construction, production of containers and packaging, automotive industry, agriculture, households, furniture industry, mechanical engineering, transport, road construction, telecommunications and electrical engineering.
Plastic furniture has become very popular in recent years, due to its unique consumer qualities. The advantages of plastic furniture include ease of use, strength, practicality and a relatively affordable price. Such features make plastic furniture quite a successful product on the market.
Currently, plastic furniture is a popular product for many industries:
public catering;
home interior of some premises;
tourism and hotel business;
office.
It should be noted that the plastic furniture market in India mainly consists of products
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In general, experts believe that India has a great potential for the production of plastics and plastic products, including furniture, in terms of the availability of raw materials, as well as domestic consumption of these products.
Advantages of plastic furniture:
Low cost. If the budget of the enterprise is limited, and furniture cannot be dispensed with, it is advisable to purchase plastic options, which are a good option for the ratio of price and comfort.
Practicality and durability. Plastic is a material that is not subject to corrosion or rotting processes, does not swell or deform under the influence of moisture. Insects and fungi do not adversely affect plastic. It is easy to care for it, it is enough to wash the plastic surface or just wipe it.
Ease of storage and transportation. Since plastic furniture and equipment are very light, it is convenient to carry them from one room to another, and there is no need to look for loaders for this. When transporting over long distances, the chairs fold one into one, taking up very little space. Plastic sun loungers are folded, tables are disassembled into parts, which greatly simplifies the process of storing and carrying them.
Diversity. A wide range of colors and models of different designs, made of plastic, are presented on the furniture market today. Among other things, you can buy plastic products that will have a surface that imitates various textures of natural materials such as marble, wood or metal.
Disadvantages of plastic furniture:
artificial origin. Often, when heated, such products release toxic substances, especially if they were made from poor quality plastic. For safety reasons, it is recommended to keep it away from heating devices and ventilate the room more often. The latter is not always feasible for catering companies located in food courts in covered shopping malls.
Susceptibility to mechanical influences. Over time, noticeable scratches appear on the plastic; it can burst from a strong sharp blow.
Exposure to direct sunlight and exposure to very low temperatures, which limits the duration of use of this product in open spaces.
Incompatibility with some interior styles. Furniture and equipment made of plastic are not universal elements of the interior and do not fit well with the design in a classic style, which limits a number of enterprises in their acquisition.
Traditionally, the assortment of plastic furniture according to its functional purpose is usually divided into the following types:
Plastic furniture for summer cottages - furniture for a comfortable stay for the whole family in a country house (tables, chairs, armchairs, deck chairs, swings, benches, sofas, etc.).
Home furniture - nice little things and items created to provide increased comfort in the house, plastic children's furniture (chest of drawers and cabinets, chairs, tables, shelves and shelves for the bathroom, dryers and laundry baskets, breakfast tables, serving and coffee tables tables, etc.).
Furniture for cafes - for the most part, this is equipment for summer areas (tables, chairs, armchairs, including children's, bar stools, cocktail tables, etc.).
Office furniture - furniture for staff recreation areas, for field trainings, etc. (tables, chairs, stools, bookcases, cabinets, hangers).
In an extensive range of plastic tables, there are both kitchen tables and coffee tables or children's tables. Plastic tables are purchased for both summer cottages and apartments. The buyer can choose any color and shape: square, round, oval, rectangular. There are clamshell tables and combined options with a plastic top and legs made of a different material. From the side of the population there is a great demand for plastic tables with a mosaic or a pattern on the tabletop.
Plastic chairs can be colored or even transparent, of any model and design. They are very convenient for mobile equipment of recreational areas. There are chairs-transformers (""clamshells""). Plastic chairs and tables are great for decorating children's recreation areas. They are lightweight and easy to wash.
Plastic chairs, unlike chairs, have armrests. They are often used in football stadiums, because their shape is very convenient. Clamshell chairs are convenient for transportation, they can be quickly taken out to the open veranda with the beginning of the summer season. Contaminants from the surface are easily removed, they retain an attractive appearance for a long time.
Plastic benches or benches are a more practical option for mass gatherings than chairs. They will accommodate several people and gather a large company at one table.
Plastic loungers are used on the beaches of seaside resorts. The use of plastic in this area is very practical: water and sunscreens will not spoil it.
It is convenient to use plastic sun loungers for equipping outdoor recreation areas at hotels: they are quite functional, but they are cheaper than wicker ones. Some models may come with a special mattress, which will provide additional comfort on vacation. Also, a number of models are equipped with wheels that allow you to quickly move this furniture.
Depending on the nature of production, plastic furniture is divided into the following types:
Cast - also called molded. The most common type of plastic furniture seen in everyday life. It is made using special molds. The cheapest and most practical look, which is ideal for any cottage. The variety of models and colors allows you to choose furniture for every taste and harmoniously fit it into the interior.
Wicker - also known as faux rattan furniture. A very original solution for those who want to add home comfort to the interior, but cannot afford real wicker furniture. In addition, plastic wicker furniture does not require as scrupulous care as rattan furniture, and lasts much longer.
A separate type of plastic furniture should include furniture made from plastic bottles. As a rule, these are handmade products.
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1.2. Dynamics of the market volume of plastic furniture 2014-2018 Potential market capacity
The volume of the plastic furniture market in monetary terms during 2014-2018 had a different vector of development.
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Diagram 3. Dynamics of the volume of the plastic furniture market in 2014 - 2018, million rubles.
1.3. Assessment of factors affecting the market
Let's consider the main factors influencing the market and, accordingly, demand.
Social (demographic) …
Chart 5. Population dynamics in India, 2014-2019 (July)
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Fashion. Previously, a restaurant / cafe was a place where people came exclusively to eat. This main function of visiting remains today, but others have been added. Currently, a restaurant / cafe is a place where friendly meetings take place, established business relations are consolidated, celebrations are celebrated (anniversaries, weddings, etc.).
Economic
GDP is a macroeconomic indicator that reflects the market value of all final goods and services (that is, intended for direct consumption) produced per year in all sectors of the economy on the territory of the state for consumption, export and accumulation, regardless of the nationality of the factors of production used. It is the main, most complete official indicator of public welfare. The absolute and relative values of GDP give an idea of the general material well-being of the nation and the dynamics of its growth / decrease, since the higher the level of production, the higher the welfare of the country ...
The industrial production index shows the total volume of all industrial production, utilities, etc. in terms of money.
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Chart 10. The volume of retail trade in India, trillion Rs., 2014 - 2019 (Jan.-June)
The development of the HoReCa industry has a linear impact on the analyzed market…
Currently, the main trends in the development of hospitality industry enterprises include:
deepening the specialization of the hotel and restaurant offer;
formation of international hotel and restaurant chains;
consolidation of business with the corresponding development of federal networks;
introduction of computer technologies into the hospitality industry.
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According to statistics, a new catering point opens almost daily in India. However, the niche is not yet fully occupied. Even in large cities, the concentration of cafes and restaurants in the center is much lower than the existing needs, not to mention remote areas.
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The development of the sector and the increase in the number of enterprises contribute to a steady increase in the need to provide points of furniture and technical equipment, which, in turn, causes an increase in demand for plastic products.
Tourism development.
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At the same time, domestic tourism is more difficult to analyze statistically: many Indians do not use the services of tour operators, but prefer a private car as a means of transport.
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technological
The introduction of scientific developments in the plastic furniture industry will make it possible to produce better items that will be in high demand from purchasing companies ...
Ecology. Plastic products are usually produced in a liquid medium by heating or cooling a reaction vessel. Typically, the polymer product is not the only product in this reaction; other substances are also formed. This means that after separation, the product must be purified and unwanted substances must remain in the reaction medium. The amounts of suspended particles in reactor effluents are so high that they cannot be sent to seas, lakes or rivers without special treatment. The main problem is the presence in them of small amounts of some toxic pollutants, such as catalysts, solvents, monomers, malodorous substances (containing sulfur or nitrogen), which are difficult to remove from industrial waste.
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Informing potential buyers. One of the ways to find customers for plastic furniture and equipment manufacturers is to advertise in specialized publications and participate in exhibitions. At the same time, many market participants recognize that personal connections with the owners of restaurants and cafes are needed for the successful operation of the company. It took several years for most of the Indian HoReCa providers to build a customer base.
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Political
Credit policy. Today it is quite difficult to imagine the progressive development of the economy without the active participation of the credit system. It should also be noted that the assessment of the availability of credit resources for both legal entities and individuals is a significant indicator that allows assessing not only the demand for credit funds, but can also serve as a reflection of the real economic situation both in the region and in the economy as a whole. Consider the dynamics of average interest rates on loans to legal entities.
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The Government of India is actively working towards the availability of credit funds.
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State support. Officially, the Government of India announced the possibility of state support for both enterprises engaged in the production of plastic and companies operating in the HoReCa segment and being potential buyers of plastic furniture and equipment. Given the cost of quality equipment for efficient plastics production, for new companies entering the market, such support would be a significant help. However, actually getting it is very difficult.
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Concluding the assessment of the impact factors on the Indian plastic furniture market, we will summarize the key ones in the framework of the STEP analysis.
Table 4. STEP analysis of factors affecting the plastic furniture market
In general, the impact of macro factors on the plastic furniture market can be assessed ...
1.4. Life cycle stage of the plastic furniture market
The plastic furniture market has long been formed and is at the stage of maturity. This is evidenced by:
Increasing requirements for product quality on the part of the consumer;
Rising retail prices;
Reduction and enlargement of the total number of market operators.
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At the stage of maturity, the main task of marketing activities is to extend the life cycle of the product and involves:
improvement of the trade assortment due to product differentiation;
deeper market segmentation and entry into new segments;
stimulating existing customers;
conducting competitive advertising campaigns;
search for new consumer groups and encourage them to make a purchase.
1.5. Competition from substitute products
The furniture industry offers its customers furniture for every taste and budget. The main materials from which it is made are metal, plastic and wood (chipboard, chipboard, MDF).
Comparative characteristics:
1. Reliability.
2. Security.
3. Care.
4. Versatility.
5. The cost.
6. Appearance.
There are no obvious favorites here: modern products made of any materials look quite attractive, stylish and neat. And this also applies to iron products, which, thanks to their classic design, fit perfectly into any interior.
Part 2. Competitive analysis in the plastic furniture market
2.1. Major players in the market
At present, the market for plastic furniture in India is represented to a greater extent by … . The main market players include such brands as: ...
2.2. Market shares of the largest competitors
As of 2018, the largest plastic furniture market operators in India are …
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2.3. Profiles of major players
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Part 3. Analysis of plastic furniture production
3.1. Volume and dynamics of domestic production of plastic furniture
The production of plastic furniture in India is one of the most promising areas of the modern specialized market.
Domestic manufacturers of plastic furniture offer a wide range of products for different applications:
tables and chairs for catering establishments or office;
plastic lounger for hotels on the banks of various reservoirs, water parks and private households with swimming pools;
plastic bench. This furniture is in demand in various public places, from bus stop pavilions to emergency rooms in hospitals and private clinics. Additionally, plastic benches are used in household plots or arbors;
various folding furniture. Due to their low weight, products with transformation mechanisms are very popular among outdoor enthusiasts. A small set (table and chairs) fits easily in the trunk of a car or is freely carried by hand.
A large selection of products allows you to choose furniture made of polymeric materials for many business areas.
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Diagram 16. Dynamics of production volumes of plastic furniture in India for 2014 - 2018, million Rs.
Estimating the total revenues of major manufacturers in India is difficult because market operators provide data on revenues for the whole company, without a breakdown by industry. However, the general dynamics can be traced.
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As a consequence of the above-described peculiarities of providing data on revenue and the structure of revenue, only competitive dynamics can be assessed.
3.2. Share of exports in the production of plastic furniture
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3.3. Segmentation of plastic furniture production by regions
3.3.1. Production by Union Territories
In the context of federal districts, the largest volume of production falls on …
Table 7. Dynamics of plastic furniture production in India by union territories, thousand Rs.
3.3.2. Production by states of India
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Part 4. Analysis of foreign trade deliveries of plastic furniture
4.1. The volume and dynamics of imports of plastic furniture
According to GidMarket, in 2014 the volume of plastic furniture imports to India was at the level of …
The dynamics of imports of plastic furniture to India in value terms is identical to the dynamics of imports in physical terms.
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4.2. Import structure
Among importing countries in 2016-2018. leaders were...
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4.3. The volume and dynamics of exports of plastic furniture
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The balance of exports and imports in the plastic furniture market ...
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4.4. Export structure
In 2017-2018 The main exporting countries were...
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Part 5. Analysis of consumption of plastic furniture
5.1. Dynamics of consumption of plastic furniture
During 2014-2018 The dynamics of consumption of plastic furniture in physical terms was both positive and negative…
5.2. Analysis of the results of tenders for the purchase
From January 01, 2019, … tenders were announced, in which there is a purchase of plastic furniture, costing from …
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Part 6. Price Analysis
6.1. Average producer prices by union territories
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Among the Union Territories, the largest growth in 2018 was recorded in …
Consider manufacturers' prices for the most common products. Chairs and tables are the most extensive category in this segment. Almost all manufacturers of plastic furniture in India are ready to offer them.
The average manufacturer's price for plastic chairs is … Rs./unit. The product is presented in various price segments. The greatest concentration of offers is concentrated in the low price segment.
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6.2. Average consumer prices by states in India
Average consumer furniture prices in India 2014-2019 ….
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Further, in this study, consumer prices for plastic furniture (tables, chairs and garden sets) are current in August 2019.
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Part 7. Assessment of factors of investment attractiveness of the market
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The general prospects of the market are assessed by the analysts of ""GidMarket"" ...
Part 8. Forecast for the development of the plastic furniture market until 2023
We will analyze the market based on methods based on identifying trends over time, adjusted for expert opinion in the industry.
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Part 9. Recommendations and conclusions
The production of plastic furniture in India is one of the most promising areas of the modern specialized market. In view of the growing demand for this specific furniture, experts predict further development and expansion of the manufacturing industry in the country.
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Diagrams
Diagram 1. Structure of the global plastics market in 2018, % of the total volume
Diagram 2. The ratio of imported and domestic products in the plastic furniture market, %
Diagram 3. Dynamics of the market volume of plastic furniture in 2014 - 2018, million Rs.
Diagram 4. Revenue (net) from the sale of plastic furniture in the union territories, 2014-2018, %
Diagram 5. Population change in India, 2014-2019 (July)
Diagram 6. Dynamics of real incomes of the population of India, 2014-2019 (H )
Diagram 7. Dynamics of India's GDP, 2014 - 2019, % to the previous year
Diagram 8. The dynamics of the US dollar against the rupee, 2015-July 2019, Rs. for 1 US dollar
Diagram 9. Inflation dynamics in India, 2014-July 2019
Diagram 10. Retail trade volume in India, trillion Rs., 2014 - 2019 (Jan-June)
Diagram 11. Structure of the HoReCa market in India, 2018, %
Diagram 12. Dynamics of the HoReCa market in India, 2008-2018, billion Rs.
13 Chart. Structure of establishments in the HoReCa segment in India, 2018, %
Diagram 14. Dynamics of the average interest rate on loans to legal entities, 2014-Jan-April 2019
Diagram 15. Shares of major competitors in the plastic furniture market in 2018, %
Diagram 16. Dynamics of production volumes of plastic furniture in India for 2014 - 2018, million Rs.
Diagram 17. Dynamics of the total revenue of the largest plastic furniture manufacturers in India, 2014-2018, million Rs.
Diagram 18. The share of exports in the production of plastic furniture for 2014 - 2018,%
Diagram 19. Production of plastic furniture by states of India, 2018, %
Diagram 20. The volume and dynamics of imports of plastic furniture in physical terms, 2014 - 6 months. 2019, thousand pieces
Diagram 21. The volume and dynamics of imports of plastic furniture in monetary terms, 2014 - 6 months. 2019, thousand dollars
Diagram 22. The volume and dynamics of exports of plastic furniture in monetary terms, 2014 - 6 months. 2019, thousand dollars
Diagram 23. The volume and dynamics of exports of plastic furniture in physical terms, 2014 - 6 months. 2019, thousand pieces
Diagram 24. Balance of exports and imports, mln USD
Diagram 25. Structure of plastic furniture exports by country, 2017-2018
Diagram 26. Dynamics of consumption of plastic furniture in physical terms, 2014 - 2018, thousand pieces
Diagram 27. Average producer prices for plastic chairs, August 2019
Diagram 28. Average producer prices for plastic tables, August 2019
Diagram 29. Average price for plastic chairs, August 2019
Diagram 30. Average price for plastic chairs with wooden and metal legs, August 2019
Diagram 31. Average price for plastic tables, August 2019
Diagram 32. Average price for a set of garden furniture, August 2019
Diagram 33. Forecast of the volume of the plastic furniture market in 2019 - 2023, million Rs.
Tables
Table 1. Industrial production index by states of India (in % of the previous year), 2014 - Apr. 2019
Table 2. The dynamics of the US dollar against the rupee, 2015 - July 2019, Rs. for 1 US dollar
Table 3. Weighted average interest rates of credit institutions on loans to non-financial institutions in rupees (% per annum), 2014 - 2019
Table 4. STEP analysis of factors affecting the plastic furniture market
Table 5. The main companies participating in the plastic furniture market in 2018
Table 6. Profiles of companies participating in the plastic furniture market in 2018
Table 7. Dynamics of production of plastic furniture in India by union territories, thousand Rs.
Table 8. The structure of imports of plastic furniture by importing countries in 2016-2018, %
Table 9. Data on tenders for the purchase of plastic furniture over 100 thousand Rs., announced from 01.01.19 to 31.08.19.
Table 10. Producer price indices for plastic furniture, 2014 - July 2019, %
Table 11. Average consumer price index for furniture in India, 2014-July 2019, %
Table 12. Assessment of factors of investment attractiveness of the plastic furniture market
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