Advent of E Commerce Retailers and Preferences towards Organized Furniture Brands to Fuel Growth

April 2016  

The explosion of e-commerce market in India has provided a sound platform for the growth of online retailing of home furniture products. With a significant increase in digitalization in the country, sale of furniture through internet facilities has gained traction in the past five years. Increased convenience of shopping, large variety of products and customer confidence through product reviews have resulted in more number of people opting for online mode for purchasing furniture products. Companies such as Urban Ladder, Fab furnish and Pepper fry provide distinctive features such as shadow sizing of the furniture product to match the physical characteristics of the customer. Such types of versatility have prompted customers to endeavor in online retailing of furniture products.

Customers on the other hand have started to become more style conscious and want to be assured of the quality and sturdiness of their furniture. A wide majority of Indian citizens have developed a mindset which equates high quality with branded products. Moreover, with the rise in both industrial and services sectors in India, customers have showcased a gradual shift in preference to purchase branded furniture products instead of utilizing the services of a carpenter. Ready to use and imported furniture which are produced by branded companies, which are budget sensitive, have gained popularity over the years in the Indian market. These types of furniture products have gained higher acceptance mainly due to two factors i.e. rise in disposable incomes and the lack of time with customers to select designs, wood, finishing and other factors.

The organized furniture market has been observed to grow from ~% in FY’2010 to ~% in FY’2015. The increasing organized retail establishments in the country along with the surging demand for branded products due to rising income levels has led to many brands foraying into the furniture market, thus catering to the rising demand of the masses. The urban working professionals who have preferred to spend less time and effort on the preparation of an appropriate design for their products have favored to visit branded retail stores to purchase the products. The rising disposable income has also played a keen role towards enhancing the growth of organized market, with disposable income rising from INR 51,984.5 billion to INR 127,880 billion in FY’2015.

Additionally, to further boost the sales through organized channels, various foreign brands have been planning to mark their entry in the organized furniture space. Players such as Thai furniture retailer Index Living Mall and Swedish brand IKEA have recognized the fast growing Indian home furniture market and have planned their inception in the coming years.

“Rise in personal disposable income, booming hospitality sector in the country will trigger the demand of furniture in Malaysia in upcoming years. The after sale service to the customer, reliable and efficient source of raw materials, retail store layout, sound logistics networks and strategic alliances in the furniture market are anticipated to push the overall industry to a higher growth trajectory”, according to the Research Analyst, Ken Research.

The report titled “India Furniture Market Outlook to 2020” provides detailed overview on the Furniture market, especially the organized furniture market. This report helps reader to identify the ongoing trends in the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report is useful for Furniture exporter, retailer, Manufacturer, online furniture portals and other stakeholders to align their market centric strategies according to ongoing and expected trends in the future. 

 

Source : https://www.kenresearch.com/consumer-products-and-retail/home-and-office-furnishings/india-furniture-market-research-report/8520-95.html