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The furniture sector in India only makes a marginal contribution to the formation of GDP,
representing just a small percent (about 0.5%), which indicates a huge potential for growth. It is
estimated that the furniture industry comprises 25% of the construction industry and hardware
comprises 40% of total furniture industry, out of this 20% is replacement and 20% is new.

Wood and wooden products, furniture and fixtures carry a weight of 27.01% in the total
manufacturing sector.

The furniture industry employs a total of around 30,000 workers. The future on the furniture
sector in India seems positive. Talking about production, several agreements have been signed
between local producers looking for technology and European and Asian companies trying to
reach a potential opportunity in costs.

From the commercial point of view, India shows good perspective to sell furniture in the
following years. First of all, because its size and secondly due to the newly acquired taste as a
result of exposure to western furniture style.

India is one of the largest consumers of wood in South East Asia. Until a few years ago the
county had considerable quantities of available tropical woods. The most common species in
Indian forests are teak, rosewood, ebony, laurel, pine, cedar and rubber trees. Supply of these
³ready to uses´ species became scarcer due to unconditional and inappropriate exploitation and
also due to growing concern about the environment.

In India, natural rubber plantations covers 520,000 hectares with another 6,000 hectares
replanted almost every year since 1994. Kerala state (South India) produces 95% of the total
supply of rubber wood in India.

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India imports wood (logs) especially from Malaysia, Indonesia, Myanmar, Ivory Cost,
Cameroon, Nigeria, Ghana, South Africa and New Zealand and to some extend from South
America.

Most soft and hard woods are imported from Russia, Scandinavia and other South East Asian
counties. MDF is imported from Europe, and there is also a small local production. Veneered
panel are becoming more popular in India and are imported from the European Union and the
USA.

The total size of Indian furniture industry is estimated at Rs. 350 thousand million but almost
85% of this is unorganized. The remaining 15% is organized and is believed to be growing at a
steady pace of 12% to 15% per annum.

The share of the wooden furniture market is estimated at Rs. 600 million. Woodworking industry
of India is one of the fastest growing in the county¶s economy. Much of this growth has been
fuelled by the increasing access to modern machinery and technology through easier import
policies as a result of India¶s entry into the WTO in the year 1990s. There is a noticeable shift in
the preference towards mechanized mass production and the up gradation of technology.

The upcoming Commonwealth Games in 2010 will also support growth of the housing and
construction sectors in India. Imports constitute 20 percent of total annual consumption of wood
in India, while plantations and forestry contribute 58 and 22 percent respectively.

Ô
 
 
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As with the global market, home furniture is the largest segment in the Indian furniture market,
accounting for about 65 per cent of furniture sales. This is followed by, the office furniture
segment with a 20 per cent share and the contract segment, accounting for the remaining 15 per
cent.

 
 

Home furniture in India is available in a wide range, to cater to different customer needs. A
typical middle class urban Indian home has five rooms (including kitchen and bathroom). About
25 per cent of the urban population lives in homes with five rooms or more, while 45 per cent
live in houses with three rooms or less. About 16 per cent is estimated to live in single-room
homes. The type of furniture used depends on the customer¶s affluence and taste. The rich and
upper middle class is typically very attentive to design and quality, so price is rarely a
determining factor. In general, European style furniture is only found in homes of the urban
upper class. Demand for furniture of international standards is limited to the larger cities. It is
also estimated that the wealthier classes do not change furniture very frequently; the average life
of a piece of furniture is about 20 years and some craftsmen¶s pieces are used for as long as 50-
70 years. Colonial furniture is still very common in India, but the trend seems to be declining
slowly.

 
 

The office furniture segment caters to the commercial and office space. This segment has
witnessed rapid growth in recent years, in line with the growth in the Indian economy and
subsequent demand for office space. The thrust on real estate and office construction is expected
to sustain in the near future, indicating continued growth for the furniture industry.


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The contract segment caters primarily to hotels and its growth is consequently linked to growth
in tourism and development of new hotels.There is around 1,200 hotels in India in the organized
sector. More than 10 per cent of these are in the 5-star and above categories

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The Indian furniture industry is estimated at around Rs 35,000 crore (Rs 350 billion). Eighty-five
per cent of this falls into the unorganized sector.

The share of the wooden furniture market is around Rs 60 crore (Rs 600 million).

The world home furniture market is worth Rs 20,000 crore (Rs 200 billion). During the past three
years, it grew by 20 per cent a year.

According to a World Bank study, the organized furniture industry is expected to grow by 20 per
cent a year and India, Russia and Brazil will witness a boom.

The range of indigenous furniture available in India includes both residential and contract system
furniture, with an increased concentration in office and kitchen furniture.

Manufacturers in India generally use a three-tier selling and distribution structure, comprising
the distributor, wholesaler and retailer.

India was the biggest furniture importer in 2004-05, with a 17 per cent share in furniture imports
worldwide. A total of 10,476 importers shipped furniture to India during this period.

The current imports are mainly from Italy, Germany, Spain, China, Korea, Malaysia, Indonesia,
the Philippines and Japan.

The furniture market in India is mainly concentrated in A, B and C cities (the top 589 cities).

It has been estimated that the top 784 urban centres contribute 41 per cent to the total consumer
furniture market. A and B type cities together contribute 33 per cent of the total market.

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Though technology has made inroads in the industry with increasing stress on the use of
machines, overall scenario reveals that almost 80% of the products supplied in local markets by
indigenous manufacturers are labor intensive and handmade.

Residential or household furniture accounts for over 60% of the overall domestic and leading
manufacturers have begun to realize the necessity of proper distribution system in this area.

Among other sectors where the demand is spiraling upwards is office furniture. Growth of IT an
IT- enabled sector such as BPO¶s has created a huge demand in metros and Class II cities all
over India. The old economy businesses are also undergoing a makeover and this is reflected
through changing looks of the offices.

Metal and plastic furniture production is gaining wider prominence but wood still remains to be
the most favored medium.


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Interio is a brand the Godrej group uses for its home furniture business and hence the group has
decided to extend this to the retail chain as well because it will be sharply re-focussed on the
furniture retail business of the group.

The focused on the furniture business of the group, which has been identified as a key thrust area
and a µhero¶ business. The decision will allow the company to display a wider selection of its
furniture particularly its new range of designer home furniture at the Godrej Interio stores
because the entire space in the store will be available exclusively for displaying the growing
furniture collection.

Unlike other home solutions focused retail formats run by the Future Group and Shoppers Stop,
which have recently seen a double-digit decline in same-store sales Godrej¶s furniture retail
business, has in fact seen a 25-30 per cent rise in same-store sales. Building on the success, the
group expects to expand its retail chain network to 200 stores over the next three years using a
mix of company-owned and operated outlets to franchisees. At present, all of the chains¶ stores
are company owned and operated. Godrej says ³that in difficult times, customers tend to
patronize brands, which are known for their reliability and durability´.

The group¶s wide sales network in B and C class towns too it said, has helped it side step the
effect of the slowdown because furniture sales in these towns were impacted less than those in
the metros. In addition to its own retail chain, Godrej also sells its furniture range through its
wide network of dealers and franchisees. Along with expanding its own retail chain, Godrej &
Boyce continues to appoint new franchisees to further grow its sales network pan-India.

In keeping with its focus on µBrighter Living¶, the group is now trying to connect more closely
with its consumers and is engaging in more one-to-one research and customer emotion studies to
help uncover what its target consumers want. The input is fed this back into its marketing and
new product development initiatives.

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Godrej Interio is India¶s largest furniture brand. From manufacturing the humble Storwel cupboard 80
years back to being a vibrant, innovative brand with a diverse.
They are present across India through our 50 exclusive showrooms in 18 cities and through 800 dealer
outlets.


l‘ They love bringing alive your dream space.
l‘ They emphasize on comfort and aesthetics while delivering well designed fun and functional
furniture solutions to you.
l‘ True to the Godrej mission to conserve the environment, they design products, set up processes
and use raw materials that are eco-friendly to do their bit to preserve natural resources.
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l‘ Home furniture
l‘ Office furniture
l‘ Special solutions for laboratories, hospitals and healthcare establishments, education and training
institutes, shipyards and navy, auditoriums and stadiums.
l‘ Carpets
l‘ Interiors

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From plywood to furniture Durian integral part of the lives of millions of Indians, Durian has set
new trends in lifestyle with quality benchmark products, redefining the word ³piece of furniture´
to a lifestyle product which dictates pride of possessing it. Enriching lives across boundaries they
are today one of the largest interior infrastructural household names in India with a network
extending to every nook and corner of the nation.

It has most prominent ISO 9001 and 14001 certifications for our quality standards and
contribution in the industry.

Durian is a yarn of how two generation of a close knit business family built a conglomerate that
is a household name in the country today. The journey has been eventful marked by numerous
pioneering achievements in the building material industry.

Durian is the pioneer of natural veneer in the building material industry in India. Their products
have met the most stringent of international quality standards, resulting in our constant supply
not only in the domestic market but the international market also.

Durian has also introduced readymade doors in this industry to make life trouble-free for all the
users with a range of designs and colors to suit every eye.

Durian has imported home and office furniture range which is sourced from all over the world
which is the talk of the nation in terms of world class designs be it classic or contemporary. The
furniture pieces which are sourced from across the world to meet the new changing taste of the
Indian market.

For the first time in India, with the help of overseas research and technical team Durian
introduces Laminates which are guarded to resist borer, fungus and termite. It¶s the proprietary
know-how which Durian has developed in collaboration with highly techno-savvy foreign
research laboratory.

The ideas and products have resulted in intensive transformation of technology for chairs and
workstations to give corporate look to offices meeting international standards. To fulfill the
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demand of the ever changing market in office furniture they have built state-of-the-art factories
with the most advanced technology, with BIFMA standard guidelines.

They have also started offering services for turnkey projects to provide a complete package to
our clients. In concise Durian offers lifestyle products related to interior design of office, home
under one roof.


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l‘ Durian now specializes in the full scope turnkey fit - out and furnishing of corporate and
residential spaces all over the nation.
l‘ Durian's superior portfolio of projects illustrates its skills in uniting aesthetic and
operational requirements to craft the harmonious and complete results our clients expect.
l‘ House state of the art manufacturing facilities along with which are recognized and are
known for importing from the finest international suppliers and manufacturers world
over.
l‘ Headquartered from Mumbai the company is broadened to every nook and corner of the
nation.
l‘ Focus of quality within planned budgets, improving cost performance, accelerating
project delivery and design intent.


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Indian Furniture Products Limited (IFPL) is a part of the KK Birla Group, one of the most
respected business houses in India. The KK Birla Group has under its mantle, a diverse range of
industries ranging from agrochemicals to fertilizers, financial services to media. And in
anticipation of increasing global demands, furniture is the latest addition to the corporate
portfolio. Deploying sophisticated technology from europe that gives it unique manufacturing
capabilities, IFPL also has the distinction of having created the largest furniture retail chain in
india.

Zuari, the flagship brand Indian Furniture Products Limited (IFPL), a part of the K K Birla
Group and an ISO 9001:2000 certified company, have changed the perception of people about
furniture. Zuari¶s wide and affordable range of offerings like bedroom furniture, TV trolleys,
computer tables, utility furniture etc have not only added to the convenience, but have become
style statements owing to their sleek designs and trendy looks. And the beauty of the furniture is
not just skin deep. They are manufactured with the most sophisticated European RTA (Ready To
Assemble) technology, in a state-of-the-art plant near Chennai, Tamilnadu. The product range
offered is made from raw materials imported from France, Belgium, Germany and UK. The
furniture is grafted on CNC controlled automated machinery imported from Germany, Italy and
Spain. The technology set up is the largest of its kind in the entire Asia and a substantial portion
of the company's production is being exported to developed countries of Europe, viz France,
Germany, UK and Belgium.

The success of Zuari lies in their understanding of the Indian Consumers, who have been long
craving for stylish and easy to assemble furniture at affordable costs. A strong distribution
network of 21 distributors, 14 Wholesalers and more than 450 dealers has helped Zuari to reach
its customers through the length and breadth of the country with readily available goods and
excellent after sales service.

With the mantra of offering more style and utility at reasonable prices, it seems Zuari is clearly
emerging as the most popular choice of the discerning consumers.
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With investments over $ 15 million, IFP's manufacturing base is located in Chennai, southern India. This
unit is one of the largest in Asia and has the capabilities to produce more than 200,000 units of particle
board and MDF based panel furniture every year. With state-of-the-art machines from Germany, Italy and
Spain, the facility is fully equipped to handle all aspects of furniture production-from concept and design
to the finished product. The systems and processes at IFPL are completely streamlined and the unit
adheres to the DIN quality standards for manufacturing. In addition, the plant has semi-automatic and
CNC controlled machines.

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Tangent is a chain of sprawling showrooms that put together everything an office or a home
needs. The furniture is gathered from all over the world. Spain, Italy, Malaysia, France, Hong
Kong with a firm grip on the international furniture pulse, when we feel that you might like some
furnishing, we bring it down for you. Furniture designs at Tangent are renowned for their
elegance, international appeal, durability and affordability.

Bedrooms and living rooms, cozy nooks and comfortable dens- our furniture will fit right into
your lifestyle. Sets for bedrooms and living rooms. Recliners, couches, sofas and settees,
loveseats, beds, dressers, dining tables« the list is endless.

For your office needs, Tangent offers ergonomically designed contemporary seating, spacious
desks, open plan office systems, and much more. All of these are designed to utilize space in an
optimum manner and promote productivity. Comfort and durability are the trademarks of our
business furniture line.

At Tangent your every space requirement will be met. We invite you to help us make your
dreams come true.

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IKEA furniture¶s, privately held; international, low-cost home products are an inevitable part of
interior furnishings at many houses in the world. IKEA furniture¶s are marked for its modern
utilitarian design. The company has 250 retail outlets in 34 European countries while 24 new
stores are on the line to be opened in 2007 including India. At this moment of this house
product's successful expenditure, its history will enable you to understand how this furniture will
add charm to your house interiors.

IKEA was founded in 1943 by a 17-year-old Ingvar Kamprad in Småland, south of Sweden.
IKEA formed its name from the founder's initials (I.K.) plus the first letters of Elmtaryd and
Agunnaryd, the farm and village where he grew up from a farmer to a businessman. Ingvar sold
whatever he found could fill with a product at a reduced price under the brand name of IKEA.
When Ingvar Kamprad outgrew his ability to make individual sales calls in 1947, furniture was
introduced into the IKEA product range. Local manufacturers in the forests close to Ingvar
Kamprad's home produced the furniture. The founder of IKEA soon saw the opportunity of
becoming a furniture provider on a larger scale and discontinued all the other products to focus
directly on low-priced furniture. The result is the IKEA that we know today.

In 1953 the first IKEA furniture showroom was opened in Älmhult. In1955 IKEA began
designing its own furniture. Much of IKEA's furniture was designed to be assembled by the
consumer rather than being sold pre-assembled. IKEA made a revolutionary change in the
interior furnishings by reducing the price of quality furniture¶s to a minimum amount. The
successful saga took a new turn as the first IKEA store in Norway opened outside Oslo in
1963.IKEA store opened at Stockholm in 1965, in 1969 at Denmark, in 1973 at Zurich,
Switzerland, in 1974 at Munich, Germany and the store opening continued as a new store opened
in each succeeding years at a new country.
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IKEA products vary from upholstered furniture, coffee tables, beds, carpets, lightings, and
garden furniture¶s to a variety of household furniture¶s. Most of the names are Swedish, Danish,
Finnish or Norwegian in origin. Although there are some notable exceptions, most product
names are based on a special naming system developed by IKEA. For example, î
 (good,
well-behaved) is a line of children's toys,  is a name of a bed, 


(a Swedish
masculine name) is a popular desk, DINERA for tableware,
  for media storage. A
range of office furniture is named 
 ; ÄRPT (sharpened in Swedish) is a line of kitchen
knives.

IKEA has initiated its activities in India in 2000.Together with UNICEF; IKEA initiated a broad
community program in the north of India in August 2000. The aim is to prevent child labor by
creating awareness and addressing the root causes. The project focuses on 200 rural
communities, involving the villagers in strategies for preventing child labor.

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Headquartered in Chennai, India - Style Spa Furniture Limited (SSFL), a company owned by
Mr. S. K. Poddar Group and Zuari Industries Limited of the K. K. Birla Conglomerate was
established in 1997 to manufacture and retail furniture.

The manufacturing facility located near Chennai is a fully automated sophisticated plant
equipped to manufacture exquisite pieces of furniture of impeccable quality. The plant is also
one of Asia¶s most modern and largest manufacturing facility.

The products - elegant and contemporary furniture for homes and offices, mattresses and pillows
± are retailed in exclusive Style Spa showrooms spread across the country.

Style Spa is the largest retailer of furniture in India with over 90 exclusive showrooms spanning
the length and breadth of the country.

Style Spa¶s competitive edge lies in its elegant range of products which are difficult to replicate,
its State of the Art manufacturing facility that ensures consistent quality, a large retail network,
experienced, and qualified personnel that make up the Style Spa team and not to mention the tens
and thousands of homes that revel in the Style Spa brand of Good Living.










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Style Spa Furniture Ltd has been in the business of Furniture retailing for more than a decade and is head
quartered in Chennai. Style Spa is probably the only product brand to be available through their own
exclusive outlets in more than 65 cities of the country. With a chain of 100 stores managed by a team of
qualified and trained professionals, !%!


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l‘ Style Spa is backed by one of South Asia¶s largest factories specializing in producing panel
based furniture. Every piece of Style Spa furniture is built to exacting technical and aesthetic
specifications. Matching such standards demands a factory that is equally flawless.
l‘ wide network of Showrooms across the country.
l‘ value Customer¶s experience 

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Current Scenario of Branded Furniture in India

The Indian furniture industry is estimated at around Rs 35,000 crore (Rs 350 billion).
Eighty-five per cent of this falls into the unorganized sector.
The share of the wooden furniture market is around Rs 60 crore (Rs 600 million).
The world home furniture market is worth Rs 20,000 crore (Rs 200 billion). During the past
three years, it grew by 20 per cent a year. According to a World Bank study, the organized
furniture industry is expected to grow by 20 per cent a year and India, Russia and Brazi will witness a
boom. The range of indigenous furniture available in India includes both
residential and contract system furniture, with an increased concentration in office and
kitchen furniture.
Manufacturers in India generally use a three-tier selling and distribution structure,
comprising the distributor, wholesaler and retailer. India was the biggest furniture importer
in 2004-05, with a17 per cent share in furniture imports worldwide. A total of10,476
importers shipped furniture to India during this period. The current imports are mainly from
Italy, Germany, Spain, China, Korea, Malaysia, Indonesia, the Philippines and Japan.The
furniture market in India is mainly concentrated in A, B and C cities (the top589 cities).It
has been estimated that the top 784 urban centres contribute 41 per cent to the total
consumer furniture market. A and B type cities together contribute 33 per cent of the total
market.

Trends in Branded Furniture Market

Though technology has made inroads in the industry with increasing stress on the use of
machines, overall scenario reveals that almost 80% of the products supplied in local
markets by indigenous manufacturers are labor intensive and handmade.
Residential or household furniture accounts for over 60% of the overall domestic and
leading manufacturers have begun to realize the necessity of proper distribution system in
this area.

ÔG
Among other sectors where the demand is spiraling upwards is office furniture. Growth of IT
an IT- enabled sector such as BPO s has created a huge demand in metros and Class II
cities all over India. The old economy businesses are also undergoing a makeover and this
is reflected through changing looks of the offices. Metal and plastic furniture production is

gaining wider prominence but wood still remains to be the most favored medium


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The Indian furniture industry covers the entire gamut of activities, from sourcing, manufacturing
and distribution, to sales and after sales. In the Indian context, players are actively engaged in
each of these activities. Various types of raw materials are used for furniture making in India.
The key raw materials include wood, metal and plastic, with bamboo and cane also being used in
some cases. Wood accounts for nearly 65 per cent of all furniture made in India. This includes
several types of indigenous wood, as well as imported wood. India imports wood from various
South East Asian countries such as Indonesia, Malaysia and Myanmar. It also imports MDF
(Medium Density Fiberboard) boards from Europe.



India abounds in several tree species whose wood is used for furniture making. Apart from
indigenous material available in India, some types of wood are also imported, in case the
domestic supply is inadequate. Popular wood types used in India include Walnut, Sandalwood,
Teak, Sheesham,Deodar, Ebony, Redwood, Rosewood, Red Cedar and Sal. Teak accounts for
almost 50 per cent of the total wooden furniture produced, Sal and Deodar account for about 20
per cent and the balance includes Mahogany, Cedar and other tree types. Bamboo Material
Boards (BMB) are increasingly being used in place of plywood. India also has abundant rubber
wood supply. Natural rubber plantations cover 520,000 hectares with an additional 6,000
hectares being replanted almost every year since 1994. The southern state of Kerala produces 95
per cent of the total supply of rubber wood in India. Although furniture making as an activity is
spread across the length and breadth of India, a few centers have become famous for their
exquisite carving, inlaying, turning and lacquering. Indian states well known for woodwork
include Gujarat, Jammu & Kashmir, Punjab, Uttar Pradesh and Kerala. India is one of the largest
consumers of wood in South East Asia. The country has sufficient availability of tropical wood,
however, in recent years, growing concerns about the environment and the need for conservation
of forests have led to reduction in the supply of wood. India imports wood from various
countries like Malaysia, Indonesia, Myanmar, and Ivory Coast, etc. MDF boards are

Ôx
imported from Europe, soft and hard wood are imported from Russia and other South East Asian
countries. Veneered panels are becoming increasingly popular in India and are imported from the
European Union and USA.

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Furniture manufacturing is driven by the designs chosen, the inputs which come from in-house
designers and market feedback. Manufacturers consider several aspects related to the customer
(demography, lifestyle, motivation and aspiration, needs and preferences), raw material(type,
quantity and availability) and internal capability (expertise, quantity and availability of labor,
production process complexity and delivery time) for developing different designs, which in
turn, determine the furniture¶s functionality, look and feel and value. Furniture produced in India
falls into two broad categories, depending on the end user; domestic furniture meant for home
use and commercial furniture meant for the office and hospitality sectors. Domestic furniture
represents almost two-thirds of the total output. The key success factors for each category vary.
Manufacturers in the domestic sector typically try to differentiate on the basis of design variety
and price, while in the commercial space, having a strong and reliable brand is important.



Furniture imports in India have been growing at nearly 64 per cent CAGR; over the 5-year
period from 2001 to 2006.A key driver is the increasing demand for furniture, fuelled by the
boom in housing and commercial construction. Increasing income levels and influence of global
lifestyle trends have also led to many urban, affluent Indians, moving towards imported
furniture. European furniture manufacturing companies have been the first entrants, with their
premium products (mainly veneered) in India. They were led by the K K Birla joint venture,
Gautier, with Groupe Seribo of France. Furniture imports from other Asian countries have come
in much later. Barring a few, such as, Renaissance Home, Interior Espania, Pinnacle Saporiti and
Gautier, most of the imported furniture dealers sell their products either under their own brand
name or without any branding. In recent times, import of cheaper furniture from South East
Asian countries has been increasing.


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Indian furniture companies operate both, through direct selling in the market and distributors.
Companies with a large local customer base normally sell directly, without involving
distributors. The larger companies typically have their own commercial offices and showrooms
in all the larger cities in India. Many organisations prefer, however, to operate via organized
outlets. For projects of large volume, companies typically sell directly to the customer - the
primary customer is often the µspecifier¶ (architects, builders or project managers) or building
owners/lessees who are responsible for fitting out buildings and offices. Armed with the choice
of local and imported products, these purchasers exert significant influence on the sector.

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There are a large number of furniture retailers and franchises spread across the country. While
the majority of retailers are small in size and scale, large retailers usually operate in urban
markets. One-stop shopping chains for home building solutions have come up in large cities,
such as Arcus in Gurgaon and KSS Home Pro in Bangalore. Another development has been the
emergence of specialty furniture chains, such as, Usha Shriram Furniture Industries, OCL, Pace
Furniture, Indoors and Renaissance Home. With the rapidly growing and transforming retail
sector, it is expected that the large retailers will continue to expand their presence, leading to
consolidation in furniture retailing in urban markets.

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Although, furniture is manufactured in many different parts of the country, a few centers have
become well known for their exquisite carving, inlaying, turning and lacquering.

These are:

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Besides carved chests and almirahs, Gujarat is synonymous with the wooden swing. The
different varieties of swings are made using a range of wood from unvarnished hewn wood to
rich lacquer. Sankheda village, in Gujarat, has a unique tradition of engraving indigenously
developed silver, gold and bronze colors on wood. Surat, has a tradition of parquetry-work,
which is locally called .

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In Kashmir, extensive wood-work has been used for structures since ancient times. Houses are
lined with wood ceilings worked in geometrical patterns and windows in lattice work. The
Kashmiri houseboat made entirely of a specially seasoned wood that does not warp in water, is a
visual delight.

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Wood workers here specialize in inlaying ivory, now more or less replaced by plastic due to its
low cost. Intricate designs have received royal patronage some generation¶s ago. Wooden
furniture, trays and mirror frames repeat certain basic motifs and ornamentation derived from
nature.

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This is the most flourishing commercial centre for woodcarving. Sheesham and Teak are used
for the small-scale manufacturing of traditional, as well as modern products, such as, screens,
cigarette boxes, tables, trivets, bookends, etc. Saharanpur now also concentrates on wood

Seasoning or the preparation of wood before it is crafted, by mellowing it and making it proof
resistant against cracking and splitting.

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Woodcrafts in the state of Kerala, µGod¶s Own Country,¶ vary from household furniture to
animal figures, which is a major economic and cultural activity. Carvings from Kerala represent
its tradition and borrow strongly from spiritual values and thoughts.

&* 



West Bengal has its own tradition of strong folk carving. Carved figures, furniture, cabinets,
jewellery boxes, chests and lamp stands produced in Bihar, are noted for their elegant designs.
Orissa excels in making beautiful dowry chests of painted wood, in addition to carved figures of
Lord Jagannath and the temple at Puri. Andhra Pradesh is known for its colorful Kondapalli toys.

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India is the fourth largest economy in the world and it¶s the largest democracy with second
largest GDP among emerging economies. World Bank¶s President James D. Wolfensohn
confirmed that India is not the world¶s 4th largest economy after USA, China and Japan in PPP
(Purchasing Power Parity). It is also one of the ten fastest growing economies in the world.

With 1 billion populations, India remains on the fastest growing economies and even in the
present worldwide economic slowdown, has maintained GDP Growth rate of nearly 6%.

India today is 7th most attractive destination for foreign direct investments, after US, China,
Brazil, Mexico and Germany. Besides, India offers higher rate of returns and profitability than
anywhere else in the world.

Out of 1 billion population the upper and middle class constitutes 20% or 200 million people (or
30 to 40 million houses). By rent per capita:

{‘ 2 percent of Indian has a per capita income in excess of 14,500 Euros, which means 20
million people.

{‘ 8 percent of Indians have a per capita income of more than 3,900 Euros, which means 80
million people.

{‘ 10 percent of Indians have a per capita income in excess of 3,200 Euros, this is about 100
million people


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1.‘ The Indian market has been enormous with a large base.

2.‘ Levels of affluence are high- with the number of individuals in the ³high: income
demographic group doubling each year, according to NCAER statistics.

3.‘ The actual ³disposable´ income at the disposal of the affluent Indian is as high as three to
five times higher as the official statistics, on account of the very large proportion of
unaccounted (³black´) money income.

4.‘ The market has, due to exposure to overseas products and lifestyles, displayed the
willingness and ability to purchase overseas brands and products at high prices.

5.‘ Customs duties and tariffs have been drastically reduced, in keeping with government policy
to open up the economy ± a policy which has stayed constant despite changes in
government. All the products in the INDEX product range are now permitted for import into
India under OGL or the Open General License, which implies that no special import license
is required for import.

6.‘ Despite the cut in duties, the rate of customs duties is fairly substantial which makes the
prices of products higher in India. There is a huge demand for furniture, hardware and
fittings, DIY equipment, lighting and consumer non-durable and appliances.

7.‘ While the Indian middle class still does not have as high a rate of obsolescence as the US,
and tend to use their furniture for several years before changing or upgrading, the actual size
of this segment makes investment in this market more than worthwhile. The affluent classes
however, do have high rate of obsolescence of interior decoration products and redecorate
constantly.

8.‘ All the above factors put together make manufacturers and retailers of a wide range of
consumer durables. Several overseas companies have already entered the market and have
been extremely well received by the market.

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Many tools can be used to accomplish sales promotion objectives. Descriptions of the main
promotional tools are as follows;

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The main consumer promotion tools are as follows;

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They are offers of a trial amount of a product. It consists of inviting prospective

purchasers to try the product without cost or at a lower cost in the hope that they will buy
the product. Samples may be free or discounted.

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Coupons are certificates that give buyers a saving when they purchase a specified
product. Coupons can be mailed, placed in advertisements or included with other
products.

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Rebate is also known as cash refund offers. Rebates are offers to refund part of the
purchase price of a product to its customers who send a proof of purchase to the
manufacturer. These are like coupons except that the price reduction occurs after
the purchase and not at the point of sale.

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Cents-off deals or price packs offer consumers savings by way of reducing prices
that are marked by the producer directly on the package.

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These are the goods offered either free or at a low cost as an incentive to buy a
product. Premiums may be in-pack or on-pack (outside the pack).

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They are offers of chance to win something such as cash, trips or goods ± by luck or through
extra efforts. Contests of talent and sweepstakes or draws the most popular prize offering
promotions.

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Tie-in promotions involve two or more brands or companies that team up on coupons,
refunds or contests to increase their pulling powers.

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Cross promotions involve using one brand to advertise non-competing brand.

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These are useful articles imprinted with an advertiser¶s name, given as gifts to consumers.

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They are cash or other awards for the regular use of company¶s products or services. They
are values (in cash otherwise) that are proportional to one¶s patronage of a certain vendor or a
group of vendors. They aim at building brand loyalty.

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Point of purchase (POP) includes displays and demonstrations that take place at the point of
purchase or sale.

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More money is spent by companies on trade promotion (58%) than on consumer promotions
(42%). The major trade promotion tools are as follows;

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It is also known as price-off or off-invoice or off-list. Discounts price cut off the list price on
a particular quantity purchased during a stated time.

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They are the amount offered in return for an agreement by the retailer to feature the
manufacturer¶s products in some way; displays, advertising or otherwise.

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Free goods are the extra merchandise offered to middlemen who buy a specific amount of a
product.

Companies also offer push money and specialty advertising items to the middlemen.

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Companies spend huge amount on promotions focused on industrial consumers. The major
business promotion tools are as follows;

{‘ Trade Shows and Conventions.

{‘ Sales Contests.

Clearly, sales promotions play an important role in the total promotion mix. To use it well, the
marketer must define the sales promotion objectives, select the best tools, design the sales
promotion program, pretest and implement the program and evaluate its result

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There has been an increase in sales of Branded furniture in India. The branded furniture industry
is growing at 30% per annum. Growth in this sector is being propelled by increase in disposable
income, reduction in import duties, growth in real estate sector, growth in organized retail, rising
quality consciousness amongst Indian consumers, growth in IT & ITES Sector and growth in
tourism.

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This study is to analyze what are the most important attributes while purchasing a Branded
Furniture. This study will be majorly done on the basis of questionnaire. The study then goes on
to evaluate and analyze the findings.

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{‘ To identify the factors which leads to sales of Branded Furniture In India.

{‘ To study the preferences and needs of the customer when they purchase a Branded
Furniture.
{‘ To find out the Consumers Perception towards Branded Furniture in India.
{‘ To analyze the reasons for the popularity of a Particular brand.

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Indian wooden furniture is appreciated worldwide for its graceful looks and durability. Fortunately for
India, the popularity of Indian furniture is growing with leaps and bounds in today's date. The furniture
industry output by the end of the current fiscal year is estimated at US $ 8 billion.

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The timber producing sector of India comprises of hundreds of small and medium scale wood companies
which account for around 85% of the total output. Though, the bigger enterprises and exporters tactfully
strike a decent balance with the smaller firms. The boom in the Indian furniture industry has got a lot to
do with the growing housing and tourism sector. So much so, that for the next five years, furniture sector
output is expected to grow by 15% per year!

The numerous Indian wood furniture manufacturers source the raw material from the local agro forestry
plantations. These plantations mainly consist of the following wood type-

Babul/Kikar (Acacia Arabica), Sissoo (Dalbergia Sissoo), Neem (Melia Azadirachta) and Mango
(Mangifera Indica).

These woods are most often used to make antique style furniture pieces. Apart from the major furniture
articles like sofa sets, dining table etc., smaller pieces of furniture such as wooden stools for household
purposes, or wooden desks for schools etc. are also quite favored items.

Going by the booming trends of the Indian wood industry, the government of the country too has taken
worthy steps for promoting the signature Indian wood work, wooden industries and plantation farmers in
this particular sector. Currently the agro-forestry plantations are able to provide a sustainable harvest of
approximately half a million cubic meters per year. Owing to the improvement trends in the wood
industry, more than 150 sawmills have been reopened which has effectively generated business as well as
employment in the sawmill sector. Together with this, a number of new industrial licenses for medium
and large scale wood working units are lying pending for approval.

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{‘ Target middle- to high-end consumers, as people who prefer branded furniture are
middle- to high-end consumers who have a rather strong spending power, and prices have
to be set within a certain range. Since there is a certain correlation between the launch
price of a new product introduced into the market and the consumers¶ awareness of it,
high price normally means high quality to the general consumer.

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{‘ Branded furniture manufacturers are in a better position to play the role of a trendy and
high quality product producer. Hence, ³trendiness´ and ³high quality´ can be used as
selling points.

{‘ ³High quality´ can be substantiated by the materials used, product quality and service
offered. Branded furniture companies should strike a balance between trendiness and
durability. How to win the confidence of consumers in the quality of the products is an
important market strategy.

{‘ Target the new home market, as its purchasing power is stronger. Position at the middle-
to high-end of the market. Second-time home buyers are less sensitive to price and place
more emphasis on the quality, material and grade of the product. This market offers great
opportunity to Branded furniture companies which excel in high quality.

{‘ Distribution channels play an important role in the sale of home furnishing product,
especially furniture. Branded furniture companies should choose to establish a presence
in stores which are positioned at the middle- to high-end of the market, have a good
image, and match the middle- to high-end image of Indian home furnishing products.

{‘ Middle-class consumers are attaching increasing importance to home furnishing. 53% of

the respondents indicate that they agree or strongly agree that they are more willing than
before to spend money on buying or replacing home furnishing products.
{‘ Based on the consumption of household furniture, respondents moving into new homes
tend to ³buy all furniture anew´. The mention rates of sofa and bed among all furniture
items purchased by respondents in the past year are the highest. Sofa and bed are the
most popular furniture items purchased by people in the preceding year and are also items
which respondents are most willing to pay more for higher grade or better quality.

{‘ Price is not an important consideration factor, as long as the ³style´ and ³quality´ of the
furniture meet their requirements. As consumers are most concerned about quality and
style, in cases where price is an indicator of quality and style, they do not mind paying
more.

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 {‘ Most of the respondents have purchased their Branded furniture within two years it
means that the disposable income of people are increasing and people are now more of
Branded Furniture.

{‘ Offering value-added services can also attract consumers and make the products stand out
from the crowd.‘ For instance, over 90% of the respondents are interested in ³after-sale
repair and maintenance service´ and ³using green, eco materials´. Consumers would
choose the product which uses green materials and are willing to pay a premium of 14%
on average.

Respondents who prefer furniture brands have higher income. They are more influenced by
trends in their purchase of home furnishing products. They believe that ³you get what you pay
for´ and are more demanding where quality is concerned. Their interest in the various kinds of
value-added products and services is also higher.





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To conclude, the vast development and growth of the industry, it can be well quoted that it has in
fact become a great pride for the nation to hold a magnificent impact for its fine art and
marvelous work in furniture all over the world. The future is with too many bright colors of
growth miles and miles ahead in terms of unique furniture of all trends to occupy every thought
of decorating or renovating the era for decades and decades. Three cheers for the excellent
growth of Indian Furniture Industry

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www.indianfoline.com

www.furniture.co.in

www.tangent.co.in

www.ikea.com

www.godrejinterio.com

www.durian.in

www.zuari-furniture.com

www.stylespafurniture.com

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