The analysis of the Indian furniture market is aimed at searching for up-to-date information and analyzing the market size, consumers and competitors in the market under study, the changes that occurred in 2017-2019, as well as the forecast and trends in the industry in the long term for the period up to 2024.
Part 1. Overview of the Indian furniture market
1.1. Main characteristics of the market
1.2. Dynamics of the furniture market volume in 2016-2020 Potential market capacity
1.3. Assessment of factors affecting the market
1.4. Furniture market life cycle stage
1.5. Competition from substitute products
Part 2. Competitive analysis in the 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 furniture production
3.1. Volume and dynamics of domestic furniture production
3.2. Share of exports in furniture production
3.3. Segmentation of 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 furniture
4.1. Volume and dynamics of furniture imports
4.2. Structure of imports by countries
4.3. Volume and dynamics of furniture exports
4.4. Structure of exports by countries
Part 5. Analysis of furniture consumption
5.1. Dynamics of furniture consumption volume
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 furniture market until 2025
Part 9. Recommendations and conclusions
Description of the current market situation
According to open statistical sources, more than 14 thousand furniture companies are currently operating in the Indian furniture market, of which about 5 thousand are manufacturers.
So, for 2020, the leaders in the production of furniture products is the Central Federal District, which occupies 37% of the total production in India. In second place is the Volga Federal District with 29%, this region showed the largest increase in production in 2019-2020, which amounted to 14%.
Table.1 Production of main types of products in physical terms since 2017 (operational data in accordance with OKPD2), million rubles
Furniture sales figures
However, if you look at furniture retail sales figures, you can see a decline in demand and sales in 2020. Although the pace of production in the whole country is growing, but due to the consequences of the economic crisis, including those caused by the spread of the pandemic, the figure for 2020 is almost equal to the sales volume of 2017.
Thus, by the end of 2020, the increase in furniture retail sales amounted to “minus” 6,3% and sales for the year stopped at the level of Rs 421230 million.
Diagram 1. Retail sale of furniture, million Rs.
Slightly more noticeable than the decrease in the level of sales of furniture to end consumers can be seen from the indicators of the volume index of retail sales, which for the period 2017-2020 rose above 100% only in 2018, and in 2020 fell to a significantly low level of 91,32% .
Diagram 2. Index of physical volume of furniture retail sales, 2017-2020, %
Market Development Forecasts
By collecting and analyzing various forecasts for the economic development of the furniture market, these trends can be identified:
• According to experts' forecasts, the furniture market in 2021 may expect an increase in sales associated with pent-up demand that arose in 2020 due to the current global economic situation and the spread of COVID19, as well as rising prices for imported furniture, accessories, components and raw materials
• As it was noted from population surveys, the increase in demand is possible due to the implementation of plans among the population to renovate the home interior, which is necessary with more time spent at home for work and household chores, as well as due to the implementation of plans to purchase housing on preferential terms
• Thus, the trend for the online furniture business to go away, also related to the development of smart systems for choosing goods and services, which were previously shifted to a greater extent to retail stores, will be in great demand and increase sales in the market. Thus, two years ago, experts recognized India's lagging behind in online sales of furniture from Western Europe, where this sales channel has a share of 30%. India was expected to reach this level no sooner than in five years. But in a few months of 2020, many enterprises managed to reach this indicator and even exceed it.
It is important to note that, according to the Association of Furniture and Woodworking Industries of India (AMDPR), state support is now needed to develop the furniture industry in India and support domestic manufacturers, including in reducing the share of purchased furniture for government agencies.
Speaking about forecasts, the director of the association, Alexander Shestakov, does not count on the rush demand of Indians for furniture in 2021. The main reason is the decrease in purchasing power and the projected increase in prices for the products themselves by 5-7% and for imported components by 15-20%.
According to AMDPR, the realization of pent-up demand for home and garden furniture in the second half of 2020 allowed the industry to painlessly survive the first phase of the crisis. However, so that the demand for furniture does not fall due to rising prices, the furniture market requires investments from government programs, as well as the development of the sector for the sale of furnished apartments in new buildings.
For a more detailed overview of the dynamics of the market volume, analysis of consumer demand for the purchase of furniture, we suggest ordering a full-fledged market research.
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