India Furniture Market Outlook to 2020 - Advent of E-commerce Marketplace and Preferences of Multi-functional Furniture to Fuel Growth
Region:Asia
Product Code:KR382
April 2016
310
About the Report
The report titled "India Furniture Market Outlook to 2020 - Advent of Ecommerce Marketplace and Preferences of Multifunctional Furniture to Fuel Growth" provides a comprehensive analysis of the Furniture market in organized residential and non-residential market. The report covers aspects such as the overall furniture market, organized home furniture market, segmentation of organized home furniture market by product categories, regional sales, target group, age group, city-wise home furniture sales, by distribution channel and by material categories. The report also covers extensive analysis of customer preferences in India home furniture market, along with the trade scenario of furniture in India. The publication extensively covers the competitive landscape of major organized furniture manufacturers and retailers with their detailed company profile. The online space of furniture in India has been separately covered in the report with their business model, operating model along with margins. The future analysis of the overall home furniture market and by segments has also been discussed in each of the sub-segments. Furthermore, the report also provides coverage on children's furniture market, modular kitchen market, mattresses market. The report also provides detailed information on the investment required to set up a furniture manufacturing plants in India, with detailed profitability analysis. The report is useful for Furniture exporter, Retailer, Manufacturer, and other stakeholders to align their market-centric strategies according to ongoing and expected trends in the future.
The furniture market in the country has been immensely driven by 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 16.5% from INR ~ billion in FY'2014. The furniture market has experienced substantial growth in the last few years. The organized furniture market has been observed to grow from ~% in FY'2010 to ~% in FY'2015. The Office segment in the furniture market has garnered ~% of the market revenues as observed in FY'2015 which is a relatively smaller proportion of the furniture market in the country. In FY'2015, hotel furniture accounted for a share of ~% in the overall sales of furniture in the country garnering revenues worth INR ~ billion.
India Home Furniture Market
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. Bedroom furniture accounted for the largest share in the home furniture market in India. The living room furniture was the second most important choice as it garnered a ~% share in revenues for the year FY'2015. This segment encompasses a wide range of coffee tables, sofas, center tables, corner tables, chairs, bookshelves, TV stands, and others. Dining Furniture accounted for ~% in the home furniture market in FY'2015. Leading furniture makers have focused on keeping simple and sleek designs of chairs and tables. The kitchen segment contributed a share of ~% in the overall home furniture market in FY'2015
The demand for furniture products in the organized home furniture industry of India has been observed to majorly generate from the western and southern India. The Indian market for home furniture products has observed a varied/mixed demand from different income classes. The higher income class has contributed ~% to the revenues in the organized home furniture market. In terms of age bracket, the age group of 25 - 35 years has been considered as the prime target group by furniture retailers in India. On the basis of cities, most of the demand for home furniture products from the organized companies have originated from tier-1 cities. By distribution channels, the sale of home furniture products through exclusive showrooms was observed to contribute highest to the revenues
Imports have formed a significant portion of the products sold to the upper-middle-income class and higher income class of the Indian society. India was observed as the largest importer of furniture in the world and accounted for ~% of global furniture imports, with beds been imported the highest in the country. In terms of import destination, China has been discussed as a leading import for furniture products in India for almost every product category. The organized furniture market has been guided by several major players such as Damro, Home Town, Home center, Godrej Interior, and others. The onset of online furniture retailers has provided customers with an opportunity to view a large array of furniture products anywhere and anytime. This has heightened competition amongst local carpenters/ dealers, offline branded players, and furniture e-commerce companies. It has been estimated that the home furniture market in India will expand from INR ~ million in FY'2016 to INR ~ million in FY'2020 at a CAGR of ~%.
India Children Furniture Market
Children's furniture has slowly gained its share in the Indian furniture market. The overall children's furniture market in India has been observed to grow at a CAGR of ~% during FY'2010-FY'2015 and reached INR ~ million in FY'2015. Beds and wardrobes have been the major products sold in the India Children's furniture market. The share of the children's furniture market in the overall furniture industry has been expected to grow gradually in the coming five years. Preferences towards minimalistic design and non-theme based furniture, which will provide more flexibility in terms of usage are likely to generate higher demand in the coming years.
India Mattresses Market
The mattress market of India has been dominated by small and unorganized players which cater to nearly ~% of the overall requirement of mattresses in the country. The revenues generated by retail sales of mattresses in India amounted to INR ~ million in the year FY'2015. The market has been dominated by domestic brands such as Kurlon, Sleepwell, Springfit and Nilkamal. However, the gradual influx of foreign mattress brands such as Tempur and King Koil.
In the year 2015, it was estimated that coir mattresses garnered the highest share in terms of revenues at ~%. South India has been considered as a production hub of coir mattresses, particularly rubberized coir mattresses. The customers in this region have been early adopters of good quality products and have been shifting towards spring mattresses. On the basis of organized and unorganized players, the mattress market has been largely unorganized with the presence of several small scale manufacturers and retailers in the market. Moreover, with the expansion of purchasing power, the demand for mattresses in India is expected to surge in the coming years.
India Online Furniture Market
The trend of purchase of small furniture items such as bean bags and coffee tables through online portals has gradually changed to higher volume sales of heavy furniture products. The average ticket size of the online purchase of furniture products was observed between INR 15,000 - INR 20,000 in FY'2015. Despite the growth in the purchase of heavy furniture products, small furniture items comprised ~% of the GMV in FY'2015. In FY'2015, Pepperfry was observed to be the major player in the India online furniture market, with a percentage share of ~% in terms of GMV.
Key Topics Covered in the Report:
- The market size of the India Furniture market.
- Market Segmentation by organized & unorganized sector and end-users
- The market size of the Home furniture market.
- Market segmentation of the Home market on the basis of product category, utility, demand from major cities, Distribution channel and customer preferences
- Trade scenario of furniture in India
- Competitive Analysis of Major Players in India Home Furniture Market
- Business Case Studies Of Major Players In India Organized Home Furniture Market
- Trends And Developments In India Home Furniture Market
- Entry Barriers In India Home Furniture Market
- Investment Model To Setup A Furniture Manufacturing Unit In India
- Government Regulations In India Furniture Market
- Snapshot On India Children's Furniture Market
- Snapshot On India Online Furniture Market
- Snapshot On India Mattress Market
- India Home Furniture Market Future Projections And Outlook
- Analyst Recommendations
Products
King Size Beds, Queen Size, Single Bed, Bed with storage, without storage, Modular Wardrobe, Regular Wardrobe, Dressing Table, Dressors and Mirrors, Sofa, Sofa Bed, Center Table, Glass Top Dining, Wooden Top Dining, Modular Kitchen, Bunk Beds
Companies
Godrej Interio, Nilkamal, Durian, Damro, Home Town, Home Centre, Style Spa, Stitch Wood, Houzz, Timbor Wood, Pepper Fry, Fab Furnish, Snapdeal, Urban Ladder
Table of Contents
Executive Summary
India Furniture Market
India Home Furniture Market
Trade Scenario of Furniture in India
Children's Furniture Market
India Mattress Market
India Online Furniture Market
Strategy of Major Players
Future Analysis for Home Furniture Market
Analyst Recommendations
1. Research Methodology
1.1. Market Definitions
1.2. Abbreviations
1.3. Exchange Rates
1.4. Market Size and Modeling
General Approach - Market Sizing
Variables (Dependent and Independent)
Multi Factor Based Sensitivity Model
Final Conclusion
2. India Furniture Market Introduction and Size, FY'2010-FY'2015
2.1. Organized and Unorganized Furniture Market
2.2. By End Users, FY'2015
Office Furniture
Hotel Furniture
Industrial Furniture
3. India Home Furniture Market Introduction
3.1. Value Chain Analysis
Major Problems in Value Chain
Stock Keeping Units
Impact of Human Resources at Retail Stores
4. India Home Furniture Market Size, FY'2010-FY'2015
4.1. By Revenues, FY'2010-FY'2015
5. India Home Furniture Market Segmentation, FY'2010-FY'2015
5.1. By Product Categories, FY'2015
5.1.1. Bedroom Furniture, FY'2015
Organized Bed Market, FY'2015
Wardrobe Market, FY'2015
5.1.2. Living Room Furniture, FY'2015
Material Used in Sofas, FY'2015
Types of Sofa by Seating Capacity, FY'2015
Types of Sofa/ Center Table, FY'2015
5.1.3. Dining Room Furniture, FY'2015
Seating Capacity of Dining Table, FY'2015
Material of Dining Table Top, FY'2015
5.1.4. Kitchen Furniture, FY'2015
5.1.4.1. India Modular Kitchen Market
India Modular Kitchen Introduction and Market Size FY'2010-FY'2015
5.1.4.2. India Modular Kitchen Market Segmentation
By Organized and Unorganized Market, FY'2010-FY'2015
By Major Cities, FY'2015
By Organized Retail and Project Sales, FY'2015
By Place of Origin, FY'2015
By Origin of Imported Product, FY'2015
5.1.4.3. Trends and Developments in India Modular Kitchen
Establishment of Exclusive Showrooms
Expansion to E-commerce Channels
Strategic Alliances
Continuous Influx of Foreign Brands
5.1.4.4. India Modular Kitchen Future Outlook and Projections, FY'2016-FY'2020
5.2. Regional Sales, FY'2015
Western Region
Southern Region
Northern Region
Eastern Region
5.3. By Target Group, FY'2015
5.4. By Age Group, FY'2015
5.5. By Type of Cities, FY'2015
5.6. By Distribution Channel, FY'2015
5.7. By Material Used in Wood, FY'2015
6. Customer Preference and Paradigm in India Home Furniture Market
Case 1 - Married Couples - 28% (Leading Choice Makers) - 140 Respondents
Case 2 - Young Adults - 25% (Leading Choice makers) - 125 Respondents
Case 3 - Grand Parents - 27% (Influencers)
Case 4 - Architects, Construction Managers, Interior Designers and Others - 20% (Informed Customers)
6.1. By Region - Coimbatore, Kochi, Nagpur and Bhopal
7. India Furniture Market Trade Scenario, FY'2010-FY'2015
7.1. By Imports (Value, Volume, Major Destination), FY'2010-FY'2015
Import Duty
7.2. Snapshot on Trade with Malaysia
Trade
Pre-requisite to Set up a Foreigner Owned Business in Malaysia
Rating of Doing Business (DB)
7.3. Snapshot on Trade with China
Pre-requisite to Set up a Foreigner Owned Business in China
Rating of Doing Business (DB)
7.4. Snapshot on Trade with Turkey
Pre-requisite to Set up a Foreigner Owned Business in Turkey
Rating of Doing Business (DB)
7.5. Snapshot on Trade with Indonesia
Pre-requisite to Set up a Foreigner Owned Business in Indonesia
Rating of Doing Business (DB)
7.6. By Exports (Value, Volume, Major Destination), FY'2010-FY'2015
8. Competitive Analysis of Major Players in India Home Furniture Market, FY'2015
8.1. Competitive Landscape of Major Players in India Home Furniture Market
Product Portfolio and Pricing
Analysis of Retail Stores (Average Walk-ins, Conversion Rate, Average Margins and Others)
8.2. Snapshot of Major Players in India Home Furniture Market
8.3. Market Share of Major Players in India Organized Home Furniture Market, FY'2015
8.3.1. Godrej Interio
Company Overview
Investments/ Alliance
Business Strategies
Strengths and Weaknesses
Franchising Scenario
8.3.2. Nilkamal
Company Overview
Business Strategies
Strengths and Weaknesses
8.3.3. Durian
Company Overview
Strengths and Weaknesses
8.3.4. Damro
Company Overview
Business Strategy
Strengths and Weaknesses
8.3.5. Home Town
Company Overview
Business Strategies
Strengths and Weaknesses
8.3.6. Style Spa
Company Overview
Business Strategies
Franchising Scenario
Strengths and Weaknesses
8.3.7. Pepperfry
Company Overview
Business Strategies
Strengths and Weaknesses
Financial Performance, FY'2013-FY'2015
Key Performance Indicators for Pepperfry
8.3.8. Urban Ladder
Company Overview
Business Strategies
Strengths and Weaknesses
Financial Performance, FY'2013-FY'2015
Key Performance Indicators for Urban Ladder
8.3.9. Snapdeal
Company Overview
Business Strategies
Strengths and Weaknesses
8.3.10. Stitchwood
Company Overview
Business Strategies
8.3.11. Home Center
Company Overview
Business Strategies
8.3.12. Timbor Home Ltd.
Company Overview
Business Strategies
8.4. Landscape of Major International Players in India Furniture Market
8.4.1. Houzz
Company Overview
Business Strategies
8.4.2. The IKEA Story
Unique Selling Point
Challenges Faced
9. Trends and Developments in India Home Furniture Market
Shift in Consumer Perception
Reforms Made by Brands
Advent of Online Furniture Retailing
Elevation in Customer Knowledge about Wood Materials
Influx of Foreign Brands
10. Entry Barriers in India Home Furniture Market
10.1. Offline Retailers
Competition from Different Format Stores
High Marketing/ Promotion Costs
Supply Chain Inefficiency
10.2. Online Retailers
Soaring Competition amongst E-commerce Players
Escalation in Cost of Operation
Low Internet Connectivity in Rural Areas
Significant Presence of Offline Retailers
11. Business and Working Model in India Furniture Market
11.1. In-house Manufacturing Model
11.2. Import Based Model
11.3. Online Model
Marketplace Model
B2B2C Model
12. Investment Model to Setup a Furniture Manufacturing Unit in India
Assumptions
Plant and Machinery
Office Furniture and Equipment
Human Resources
Raw Materials Required for Bed set
Raw Materials Required for Dining set
Raw Materials Required for Sofa set
Raw Materials Required for Almirah
Raw Materials Required for Kitchen Cabinet
Financing
Expected Sales
13. SWOT Analysis
14. Government Regulations in India Furniture Market
14.1. National Retail Pricing Policy
14.2. Impact of GST on Retail
Without GST
Under GST
Advantages of GST
15. Supplier Selection Criteria
16. Snapshot on India Children's Furniture Market
Introduction and Market Size, FY'2010-FY'2015
Market Segmentation, FY'2015
Future Outlook and Projections, FY'2016-FY'2020
17. Snapshot on India Online Furniture Market
17.1. Market Share of Major Players in India Online Furniture Market, FY'2015
18. Snapshot on India Mattress Market
18.1. India Mattress Market Segmentation
Type of Mattress
Regional Demand
Organized and Unorganized Market
18.2. Competitive Landscape of Major Players in India Mattress market
18.3. Opportunities in India mattress market
Rise in the Purchasing Power of Households
Organized Retail Sector
Rising Demand of Hybrid Mattresses
18.4. India Mattress Market Future Outlook
19. India Home Furniture Market Future Projections and Outlook, FY'2016-FY'2020
19.1. Cause and Effect Relationship Analysis of India Organized Home Furniture Market
20. Analyst Recommendations
Suggestion 1: Integrated Business Model
Suggestion 2: Source of Raw Materials
Suggestion 3: Automated Manufacturing
Suggestion 4: Focused Marketing and Distribution Strategies
Suggestion 5: Online + Mobile Product Portfolio
Suggestion 6: Addition of Furnishing Products
Suggestion 7: Efficient Training for Sales Representatives
Suggestion 8: Combination of Retail and Project Sales
Suggestion 9: Assist Customer in Decision Making Process
Suggestion 10: After Sales Services
Suggestion 11: Store Layout
Suggestion 12: Strategic Alliance
Suggestion 13: Sound Logistics Network
Opportunities
Entry Barriers
Observed Failures in the Market
Prospective Product Category
Price Points
Phase-Wise Growth Plan
Disclaimer
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