With bumper demand coming from all over, Indian panel industry is currently in a bullish ride. Market is equally upbeat with positive sentiments. The mood is good and consumers have started coming back irrespective of the ongoing COVID led pandemic situation. Plenty of liquidity infused through banking system is driving the consumers towards significant purchases. THE PLY REPORTER consumers’ survey in 8 cities reflects one clear outcome i.e people are upgrading their homes and preparing it to be better-equipped to survive the future if any pandemic situation again.
That is why all tier-III cities and big towns are buying huge quantity of plywood, laminates, MDF and pre-laminated boards. The top priority among people is to have a good house, safe mode of transport and dependable reserve savings. As a matter of fact, there is a spurt in home improvement activities and automobile purchases. The agriculture-based economy is doing very well that has given further boost to smaller cities. Basically, the demand we are witnessing is actually driven by Rural and Semi urban regions.
Trade has started moving up gradually and dealers have begun visiting factories. But the suffocation is still visible in sub-premium products like veneers, 1.0 mm laminates, wood flooring etc. The project segment comprising consumption in Hotels, Retail stores, Malls, Offices, Restaurants, Banquets etc is still weak and not showing any spark as of now. The opening of commercial offices and travel will decide a lot about how things will shape up from here.
On the contrary, the tier-II cities are relatively slow compared to tier-III cities, as per PLY REPORTER’S gathered data. One may disagree but the tier-II cities are largely transit points for material distribution. Their own consumption is still missing and is awaited because the largest middle class section has big presence there. Some percentages of premium buyers have turned to become price-conscious purchasers in tier-II cities. This has led to supporting the mid-segment brands and cheaper products. Also, marriage related furniture and pent up demand is supporting the consumption but many of the retailers have to be patient to get back to old volumes and margins. In metros, premium furniture segment, work from home furniture, and industry segment interior work is the key driver for the demand of panel products.
As a whole, market is upbeat with demand pouring in from every segment. Branded and non-branded, both the segments have recovered remarkably well so far in plywood, laminate and PVC board segment. The demand patterns observed by Bigsea Market Research clearly hints to a very bullish market demand till mid of December. The price increase in every product segment is imminent and market will remain active till the inventories reach to stable points.
Trade has started moving up gradually and dealers have begun visiting factories. But the suffocation is still visible in sub-premium products like veneers, 1.0 mm laminates, wood flooring etc. The project segment comprising consumption in Hotels, Retail stores, Malls, Offices, Restaurants, Banquets etc is still weak and not showing any spark as of now. The opening of commercial offices and travel will decide a lot about how things will shape up from here. India-China tussle has given a cause to India’s manufacturing capabilities to bounce back and it is evident, Indian manufacturing is expanding, growing and aiming big. Volumes and market focus with pinch of branding will be the base for future winners.
I always believe, True Entrepreneurs do not fear or quit, and they keep on innovating and moving ahead in every situation, more so in crisis. Praying & hoping the positive momentum of market continues...
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