India Furniture Market Outlook to 2020 - Surging Popularity of Online Marketplace and Preferences towards Organized Furniture Brands to Fuel Growth

India Furniture Market Outlook to 2020 - Surging Popularity of Online Marketplace and Preferences towards Organized Furniture Brands to Fuel Growth

  • April 2016 •
  • 310 pages •
  • Report ID: 4068876
Executive Summary
The report titled “India Furniture Market Outlook to 2020 – Advent of E-Commerce Retailers and Preferences towards Organized Furniture Brands to Fuel Growth” provides a comprehensive analysis of the Furniture market in organized residential and non residential market. The report covers aspects such as 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 on customer preferences in India home furniture market, along with the trade scenario of furniture in India. The publication extensively covers competitive landscape of major organized furniture manufacturers and retailer 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 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 furniture manufacturing plant 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.

India Furniture Market
The furniture market in the country has been immensely driven by a 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 a 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 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 home furniture market in India. The living room furniture was the second most important choice as it garnered ~% 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 of furniture products in the organized home furniture industry of India have 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 of home furniture products from the organized companies has 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 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 centre, Godrej Interio 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 is 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 mattress 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 online purchase of furniture products was observed between INR 15,000 – INR 20,000 in FY’2015. Despite of the growth in 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 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