This is related to the furniture industry of India where all the analysis is made for the furniture market, and about the type of furniture market and as well as comparison with different competitors of the same.
3. MARKET OVERVIEW
The Furniture industry is witnessing a strong growth the reason for
this is increase in the disposable income, the burgeoning middle
class, and the growing number of urban households.
In addition, the projected increase in the tourism and hospitality
sectors is also expected to spur the demand for furniture in the
country.
Growing employment opportunities, the purchasing power of Indian
consumers is increasing, which is consequently expected to
continue and boost the demand for the designer as well as
standardized furniture
4. MARKET OVERVIEW
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. Based on cities, most of the demand for
furniture products from the organized companies has
originated from tier-1 cities.
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 of global furniture
imports, with beds being imported the highest in the
country.
In terms of import destination, China is a leading importing
country for furniture products in India for almost every
product category.
5. 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 increased the competition among local
carpenters, offline branded players, and furniture e-commerce
companies.
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 and INR 20,000 in the past few years.
The Delhi and NCR region is expected to grow by 40% in the home
furniture segment this fiscal year.
6. ONLINE PLAYERS
• As of 2018, two online channel-based players,
Pepperfry and Urban Ladder, were growing
aggressively through online-channel offerings.
Pepperfry observed a revenue CAGR of 83% over
the past 5 years.
• These players have attacked the market
differently on the supply side, with Pepperfry
focusing on creating a managed marketplace
supported by private labels, while Urban Ladder
is a wholly private label platform focusing on
premium curated offerings.
9. MARKET DRIVERS – GROWTH
The Indian residential real estate market has been witnessing
growth, owing to the increasing population and growing demand
for affordable housing accommodation. Major metropolitan cities,
such as Delhi, Mumbai, Kolkata, and others, also observed a rising
demand for luxury housing complex, such as villas, penthouses, and
apartments, in the past few years.
This has augmented the need for furniture, such as sofa sets, dining
sets, beds, and chairs, which may witness growth in the upcoming
years as well.
Even though the Indian furniture segment is highly unorganized,
companies, such as Godrej Interio, Zuari furniture, and others, have
been eyeing to cater to the mounting demand for the branded
home furniture in the country
10. MARKET DRIVERS – GROWTH
• Apart from this, 100% FDI policy for township and settlement
development projects are attracting more foreign investors in the
real estate sector, which increases the quality of residential
apartments.
• The growth in the residential real estate industry over the last few
decades has given an impetus to the home decor market. Increased
consciousness among homeowners for stylish interiors and
beautiful indoors is driving the growth of this section.
• Traditionally, the Indian consumer’s focus on fancy furniture and
furnishings was restricted to the living room, a room where guests
were entertained. However, growing aspirations and incomes have
changed the spending patterns, and these changes are spilling over
into other living areas, including the kitchen, the dining room, and
even the bedroom
12. PORTERS 5 FORCE ANALYSIS
• The Porter’s five forces model studies the five identified
competitive forces that shape every industry and market, in
order to determine the intensity of the competition, and
thus, the profitability and attractiveness of the industry.
• The objective of the growth strategy should be to adapt to
these competitive forces in a manner that may improve the
position of the organization.
• In the study, Porter’s five forces are analyzed, considering
the factors influencing each force and quantifying the
factors through primaries and quantitative analysis.
• The quantified factors are further mapped out to derive
the impact of each force on the competitive dynamics.