India - Furniture and Decor Market Study 2

Part
01
of two
Part
01

Furniture and Home Decor Market Overview - India

India's furniture market is currently worth $17.9 billion, and is set to be worth $27 billion by 2022. It is also currently experiencing a growth of 12.91% each year. Indian households spend an average of 5.6% of their total monthly expenditure for furniture. This amounts to $1,29 in rural areas, and $2,24 in urban areas. The average age of a typical furniture buyer in India decreased from 45 years to 37 years in the last half a decade.

OVERVIEW

India is the 14th-biggest furniture market in the world. Currently there are around 10,476 importers that are engaged in shipping furniture to India. The primary sources of furniture in India are Italy, Germany, Spain, China, Korea, Malaysia, Indonesia, the Philippines and Japan. There was approximately 75,930 tonnes of furniture imported to India in 2016. China is currently the biggest single source of imports of furniture, while Malaysia takes the second place and Italy takes third.
Overall, the imports are increasing, mostly because the consumers find the imports from China to be valuable because of their competitive pricing.

MARKET SIZE AND GROWTH

The Indian furniture market is currently worth $17.9 billion, and is set to be worth $27 billion by 2022. The market's current CAGR is 12.91% and it is expected to stay that way until 2023. Indian furniture market growth is currently driven by the increase of population that live in urban cities, growing urbanization, increase in demand for durable as well as hybrid seating furniture. Furthermore, the growth is boosted by an increase in investments in the retail sector that is coming from different national and international companies. The technological advancements are helping the rise of the e-retail sector, and consumers are more likely to buy furniture through online channels.

Modern retail is estimated at 19% of the total furniture market and is expected to grow at 24-27% per year. Retail expansion increased at the rate of 16-21% when it comes to the number of retail outlets and retail space, while revenue grew at around 15%.

When it comes to different segments of the market, the share of small furniture is 75%, while large furniture accounts for 25%.

AVERAGE SPEND PER PERSON

A report published by the Indian Government's Ministry of Statistics & Programme Implementation calculated the average spending per household which they split into separate reports for the rural and urban areas. The overall expenditure in terms of absolute values of monthly per capita expenditure (MPCE) for all durable goods per household amounts to ₹ 1468.69 for rural areas and ₹ 2601.54 for urban areas. Using this calculator we get the dollar amounts which are as follows:
$23 dollars of monthly per capita expenditure (MPCE) for all durable goods per household in rural areas.
$40 dollars of monthly per capita expenditure (MPCE) for all durable goods per household in urban areas.

The households spend an average of 5.6% of their total monthly expenditure for furniture. This amounts to the following:
$1,29 (0,056 x $23) per capita monthly expenditure (MPCE) for furniture per household in rural areas.
$2,24 (0,056 x $40) per capita monthly expenditure (MPCE) for furniture per household in urban areas.

DEMOGRAPHICS

The increase in demand when it comes to carpets, bed sheets, curtains and other different home furnishing is growing each year. This is known as a sub segment of home furnishing which is expected to grow at CAGR of 8%. At the same time, curtains, upholstery, rugs and carpets are expected to experience a CAGR of 8%.

When it comes to consumer profiles, the biggest growth is experienced in middle class families.
The average age of a typical furniture buyer in India decreased from 45 years to 37 years in the last half a decade.

Other demographic trends involve people in India starting to think of their homes as reflection of themselves which is prompting them to spend more on furniture and home decor.
Working women are spending increasingly more on home decor.
Millenials are driving the trend of hiring professional service providers when it comes to home decoration. The millenial generation is also looking to buy their furniture online. They are particularly aware of the new trends, especially those coming from the west.

KEY PLAYERS

The most notable players in the Indian furniture market are: Godrej Interio, Durian and Furniture Concepts. However, they have a very small share of the market in total. Their output accounts for only 15% of all domestic production in the sector. The remaining 85% falls under smaller companies as well as individual craftsmen.

CONCLUSION

India's furniture market is rapidly expanding, with the yearly growth rate of 12.91%. The key players in the market are Godrej Interio, Durian and Furniture Concepts. One of the main demographic trends involves people in India starting to think of their homes as reflection of themselves which is prompting them to spend more on furniture and home decor.
Part
02
of two
Part
02

Furniture and Home Decor Market Number of Stores - India

Overview

After exhaustive research we have established that there are no preexisting reports providing the total number of furniture and home decor retail stores are in India. This is because 85% of India's furniture and home decor market is unorganized and many companies are not registered in any official business directories. Despite this, we estimate there are at least 567 furniture stores and 441 home decor stores registered with Google My Business and 150 furniture stores registered with India's Association of Furniture Manufacturers & Traders.

Furniture and Home Decor Stores in India

The home decor and furniture market is a growing market in India. As of 2015, the furniture market was worth USD 17.9 million of which home furniture made 65% of the market, office furniture made 20% of the market, and contracting furniture made 15% of the market. Imports made up 50-60% of the market, making India the largest importer with a 19% share in the world's economy of imports. It is predicted that the market will triple in size becoming worth USD 1.3 billion in the next five years. However, 85% of the furniture market is unorganized, meaning that many stores are not registered with any official business directories or have an online presence. By researching the directories that do exist, we have estimated the number of furniture and home decor stores in India registered with a business directory.
The first directory we looked at was the Association of Furniture Manufacturers & Traders. It is the only official directory of furniture businesses currently existing in India and only 150 furniture stores have registered with it. Given the expanding furniture market, it is possible other stores may register with this organization, but as of now it provides a limited glimpse into the furniture market.
The second directory we looked at was Google My Business. Google My Business is a listing where businesses can register their information to improve their online presence. Please note that at the time of this writing, the results page seem to be experiencing technical difficulties. It may prompt the user to rerun the search. If it does, please use the search phrase "furniture stores in India" to find a full listing of the furniture stores in the directory and "home decor stores in India" to find a full listing of the home decor stores in the directory.

On Google My Business, we found 567 furniture stores registered and 441 home decor stores registered. Of the 150 stores registered with the Association of Furniture Manufacturers & Traders, only 11 stores were also registered with Google My Business.

Given this information, we are able to estimate 706 registered furniture stores and 441 registered home decor stores.

We have provided a review of how we reached this estimate below.

Calculations

When reviewing the furniture stores listed in Google My Business's directory, 27 pages came up with 21 stores listed on each page. We multiplied the number of stores per page by the number of pages and received our total number of furniture stores. So:

(number of pages) X (number of stores listed per page) = total

becomes

(27) X (21) = 567

When reviewing the home decor stores listed in Google My Business's directory, 21 pages came up with 21 stores listed on each page. We multiplied the number of stores per page by the number of pages and received our total number of home decor stores. So:

(number of pages) X (number of stores listed per page) = total

becomes

(21) X (21) = 441

To get the total number of furniture stores listed in either Google My Business or the Association of Furniture Manufacturers & Traders, we subtracted the 11 stores that were included in both directories from Google My Business's total and added the remaining totals together.

So:

(total number of stores in Google My Business directory)-(number of stores that are in both directories) = (new Google My Business total)

becomes:

(567 – 11) = 556

and

(New Google My Business total) = (Association total) = (total number of furniture stores registered)

becomes

(556 + 150) = 706

CONCLUSION

The furniture market in India is a growing market that is still organizing itself. While we could not provide a total number of furniture and home decor stores in India, we can estimate that there are at least 706 furniture stores and 441 home decor stores registered with a business directory.

Sources
Sources