The readymade furniture demand is rapidly growing in the country, thanks to growing awareness for quality and finishing and scarcity of time among users. The imports of furniture or related items are significant for India based material manufacturing companies. After Covid 19 happening in India, the importance of speed of execution, economy and hygiene has become key points for any customer and there comes Readymade Furniture making business importance.
The changing business scenario, growing number of furniture manufacturers, increasing availability of very profound machinery set ups in the country to support the increasing demand for domestic manufacturers. A few events of 2019, are bound to shape up way forward for domestic furniture makers and hence also for raw material manufacturers. After Covid spread in 2020 in India, the behavioural shift among household is certainly pushing towards higher acceptance of readymade furniture in the country.
Here onwards, India will inch forward to a new decade where adoptability, acceptability and affordability for readymade furniture will accelerate and grow very fast. Since every retail counter in India is having decent knowledge of materials and designer items, they can be very important stakeholders in India’s forthcoming readymade furniture demand in next decade.
Since India has been making efforts to rectify the trade deficit gap, leading to which various new measures are considered and being policy framed. The widening differences between China and India and emerging demands from other nations in furniture segment is one of the key defining points for future of Indian panel trade and furniture demand. At The Ply Reporter, the research team has continuously following the furniture makers in the country and measuring their demand-supply pattern with respect to previous years. The change is visible though it is not strong enough to be claimed as immediate but the change has accelerated.
To cater the Indian furniture demands from self production, the Indian Commerce Ministry has started creating policies for ease of making furniture products in India and there is a growing positive feeling in manufacturing segment in this regard. Even Indian customers have started buying more of indigenous furniture and supporting Make in India. Post Covid, Indian panel trade has a new stakeholder that will have vital role by 2025, and that is furniture makers in every city and town.
Year 2019 saw the country withdrawing from the Free Trade Agreement RECP, and strong trade talks with Korea, Japan, Malaysia, etc. According to news reports emerging from Commerce Ministry, before covid spread, India was also in the process of renegotiating free trade agreements with Asian and other nations, as the country was staring at trade deficits within the Asian as well as the Asia-Pacific bloc. India government has already implemented some checks and shown its commitment to introduce quality standards for imports as well as creating stricter funnels mainly keeping China bound imports in view. This situation is fast enabling a level playing field for domestic manufacturers and more is expected in coming future for Indian furniture making segment.
The Click and Mortar model for selling furniture through companies like Pepper fry, livspace, home lane and giants like Ikea and Amazon at play, the Indian furniture manufacturers’ demands will further grow. Buoyed by the policy support, need of more commercial and industrial space in growing markets, rise in co-working complexes in every key city will continue to support the demand for machine-friendly raw material makers as well as readymade furniture and solution providers. 2021 onwards will be a journey of a new decade, when India is anticipated to add, 1500 new machining driven workshops to produce readymade furniture and contacting furniture.
Organized surface décor brands such as decorative veneer, decorative laminates, wall paper, wooden flooring, façade, pre-hung doors, highlighters along with architectural hardware are planning to reach influencers and customers with more knowledge based method to improve their sales and brand awareness. They feel that the customers should know the every aspect of products knowledge, its right applications, proper technical knowhow, does and don’t during application, innovation in colors and designs, ideas to décor their interior etc with proper presentation, that will help them in selection and buying of products.
Understanding the need of influencers and customers, the many brands related to surface décor interior and exterior sector have been opening their own showrooms, galleries’, experience centers to cater them. After Covid 19, the new decade is set to witness will see more number of companies having own showrooms in different market along with their own e-commerce platforms and hence Panel product Retailers must be ready to take a market pie by entering themselves with furniture processing units next to their showrooms or in nearest vicinity. A customer can either buy materials or can buy readymade hence the leading retailers shall act and reserve their berth before a newcomer move your cheese.
We all have enough indication that there would be great boost to demand of plywood, doors, ACP, Tiles, Faucets, Laminates, WPC, MDF, Particle Boards, Timber in their different projects but all products should be eco-friendly, fire rated properties and Guarantee as per RERA laws.
In laminates and even wood veneers, the brands experience that the selection of laminates will be easy and customers can understand better about the texture and look with full sheets display, that will help to convert in sale, especially if there is furniture, kitchen, wardrobe processing units are attached to it to execute the final product in tandem and in a defined time line. The Furniture design and Technology magazine team, believe that in India, the future may see more number of companies with own laminates galleries with a close coordination with furniture processing units locally to help them to provide ease of buying material with finished form in limited budget and time. That will also help to maintain the sale tally in highly competitive market scenario.
Economy and real estate both have been struggling after COVID 19, which has affected the demand of entire building material products along with wood panel and surface décor interior-exterior items. The slower demand has impacted the growth and profit margins of manufacturing establishments but there is good news from housing sales that has performed better than expected. The good news is also coming from all the OEMs and furniture makers who have reached to 80 to 90 percent of their Pre covid capacities. Since home-office and larger houses have gained importance after covid, that straight way provide a big opportunity for local furniture plants who can serve their local customers at ease with speed. Undoubtedly, the pioneer retailer in every city and town has the biggest advantage if they enter now.
The central government is trying to gather resources and spend in different infrastructural projects such as energy, road, railways, ports, urban development, rural infrastructure etc. Despite of Covid related problems, there are signals of continued government spending, which eventually will lead to good demand of building material products in government projects. The organised wood panel brands will catalyse the demand of this growth in 2021-22 by offering good quality products, specifications, approvals etc.
The reports from government related bodies such as NBCC, NFCC, Metro Railway, PWD, CPWD, Railways, Airport Authority of India, MIS, Road transport sectors, etc shows that there is a temporary delay due to covid but after all, there is going to be continuation for completion of many projects and return of bigger demand. The make in India movement, indirect restrictions and tightness on imports, we all have enough indication that there would be great boost to demand of plywood, doors, ACP, Tiles, Faucets, Laminates, WPC, MDF, Particle Boards, Timber in their different projects but all products should be eco-friendly, fire rated properties and Guarantee as per RERA laws. The manufacturing companies will be a beneficiary in these orders but the indirect demand for housing and furniture will be an open bid for every entrepreneur of wood panel trade.
The reports from organised wood panel, laminates, doors, MDF and ACP manufacturing confirm that they have recovered from COVID ill effects on their demand before time. Similarly the retailers shall also gear up to grab the opportunity, the covid has extended, enter in readymade furniture unit. 2021 onwards there shall be a spark in that category, better stay active to catch hold of the opportunity in this business which is primarily coming from your own.