India, the world’s eighth largest consumer base, boasts an organised furniture industry estimated at US$8b, growing fast. In this month’s instalment of the Global series exploring the world’s key furniture markets, Sylvia Khan, from leading Indian magazine IFJ, reveals the trends that are shaping India’s domestic and commercial interiors markets …
India’s interior industry is heading towards high-end, low maintenance, quickly installable products, with customisation options to cater for the specific needs of elite clients. With new products and designs being introduced every other day, the client today has an enormous range of options when designing a space, making the industry more consumer-centric.
Heavy, complex furniture has been relegated to the annals of history – the practical client today is looking at straight-lined, simple, contemporary designs. Srikanth Srinivasan, CEO – interiors division, Sobha Developers, Bengaluru, says: “People used to engage carpenters to come and furnish their houses, but that is changing now.
“People no longer wish to hand over the jobs to carpenters and chase them – instead they are looking at more professional options like Big Bazaar and Home Furniture to cater to these needs. However, what India now needs is a major furniture retailer like Ikea, where one can buy high quality furniture from.”
Raghunath, manager – projects, Innerspace, from Hyderabad, adds: “The way Indians used to associate themselves with teak wood furniture is not much in demand compared to 10 years ago. People are interested more in look and functionality. Plywood and MDF sell right now, and imported furniture has come very much into vogue.”
Furniture today is designed with a primary focus on functionality, and is preferably factory- or ready-made for a better finish and quicker delivery.
The segment of consumers with unique tastes in design and material have access to design-based offerings that are increasingly popular. Pooja Malhotra and Gopika Parekh, designers working for The Fuchsia Lane, Mumbai, believe that each Indian house has character and a story to tell, and find that people are open to ideas – like mixing different designs and patterns in their interiors, fusion in materials and design, and a blend of classical and contemporary.
Knowledge of the client in terms of preferences in new products and designs has urged the market to provide the latest and best-quality products, on par with international standards.
Harshal Shinde, owner, Wudcraft, Hyderabad, says: “Client awareness puts a reverse pressure on the seller to upgrade his products and meet the demands in the market in terms of quality, durability and finish. Initially it may result in a certain amount of monetary loss, but in the longer run we cannot forget that we are here to make good things and not just money.”
“Complex furniture has been relegated to the annals of history – the practical client today is looking at straight-lined, simple, contemporary designs”
Due to the current revolution in the working environment, the furniture in this segment has changed considerably. Most companies today are shifting to a modern organisation culture and looking at flexibility and comfort as two major factors when designing workstations.
Manohar Gopal, director, Featherlite Group, Bengaluru, says: “If you look at the trend earlier, it was more cubicle-based design. Today, people are looking for more openness in the office, and lowering wall heights. They want to go green, so partitions are made open from below for proper air circulation, and steel is being replaced by particleboard and MDF, as steel absorbs energy and air conditioning.”
Speaking of the current change in the working culture, Kartik Shethia, national sales manager, Herman Miller Furniture (India), Bengaluru, says: “The trend is moving towards the mobile office. Unlike earlier times, when every individual had their specific workstations, anybody can come into the office and work on any available workstation because the trend is towards a shared office scenario, where people are travelling or working from home. We have seen some large corporates moving in that direction, and it is definitely the future of office furniture.”
Anil Vakde, business development manager, Haworth India, Bengaluru, adds: “We are designing to cut down the use of space. Designated spaces such as workstations and closed office and recreation areas was the earlier trend – now the idea is to try and use all the areas for your work, so you have portability and flexibility.” This is the typical future trend – from big luxurious workstations to more functional and smaller spaces.
Fabrics
The design of a space is an expression of personality and style. Drapery and upholstery play an important role in uplifting the visual aesthetics of any given space. The use of fabrics changes with season, trends and customer preferences.
Monica Kamal, owner, Megamode International, New Delhi says: “Changes in the fabric industry are constant. Buyers are conscious when it comes to selecting for their homes – they want their selection to be the latest in terms of trends, while meeting the look that they desire at the same time.”
She adds that there has been a complete change in the thought process of the user – they are experimenting with new colour schemes and designs with a certain level of dynamism and uncertainty.
Demand for newer styles with colourful abstract and printed patterns has been observed nationwide. While deciding on the product, users consider factors such as durability of the fabric, comfort level and maintenance cost. Devesh Sharma, partner, Studio Zynna, Gurgaon, says: “Architects act as the main clients while deciding on fabrics, as the end-user is highly influenced by their recommendations. A major chunk of our business operates on the high net income segment of society, who regularly demand a change in their fabric needs over a period of approximately three years.”
Lighting
The importance of lighting in defining ambiance is uncontested. However, industry members say lighting is not usually a priority in the overall interiors budget. Ditul Mehta, director, Light Square, Bengaluru says: “Lighting comes last in any project, especially for residents, so it depends on how much money people have left to spend.”
Amith Mehta, CEO, Light Art, Chennai, adds: “We provide a few high-end brands for some key spaces, and balance it out by giving some budget brands for other spaces for people who have a limited budget. The more products you show them, the more they get exposed and open up to new ideas. People are still learning about the industry.”
The high cost of LEDs, when introduced, made them impossible to incorporate in budget-constrained projects. But today, as costs have subsided, people are showing significant interest in LEDs. Dilip Kumbhat, MD K-Lite Industries, Chennai, says: “LEDs are quickly taking over CFLs as they are energy-efficient, compact, better designed, and have come out for various applications. The architects also don’t want to use the same products in different projects – they would like to use new designs wherever possible.”
“For the next five years, furniture sector output is expected to grow by 15% per year”
According to a study by the World Bank, the organised international furniture industry is expected to grow by 20% each year, and India, Brazil and Russia will witness a boom. The branded furniture market, comprising residential and commercial furniture, was valued at US$1.3b in 2008, and was expected to reach US$3.7b in 2012, according to a report by KPMG.
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. Currently there are only 10,500 furniture importers in the organised sector, and they mainly import from Italy, Germany, Spain and Malaysia, according to Economy Watch.
India today
According to India Now! More Than Ever, a report by Index Media Consulting: “India is ranked eighth in terms of consumption in the world. The organised furniture industry is estimated at around US$8b and is expected to grow at a Compound Annual Growth Rate (CAGR) of about 25-30% annually. The modular furniture market in India, estimated at about US$160m, is dominated by bigger players such as Godrej and BP Ergo.
“The market size of the international range of premium furniture is estimated to be worth about US$20m, and is serviced by foreign players. The current imports are mainly from Italy, Germany, Spain, China, Korea, Malaysia, Indonesia, Philippines and Japan.
“The furniture market in India is mainly concentrated in A-, B- and C-class cities. It is estimated that the top 784 urban centres contribute 41% to the total consumer furniture market. A- and B-type cities together contribute 33% of the total market.
“There are about 5000 firms in the domestic organised sector, and nearly 10,500 importers of furniture. India imports around US$150m worth of furniture, growing rapidly and catering to urban, affluent households.”
India’s major players include furniture retailing giants Pantaloon, Shoppers’ Stop, Trent, RPG, Vishal Retail, Reliance and Tata Group. Industry names to watch include Godrej & Boyce Manufacturing Co, BP Ergo, Featherlite, Haworth, Style Spa, Renaissance, Millenium Lifestyles, Durian, Kian, Tangent, Furniture Concepts, Furniturewalla, Zuari, N R Jasani & Company and PSL Modular Furniture.
“In terms of furnishings, the Indian home furnishings market is estimated at $3.5b and is expected to reach $5.6b by 2015,” the report continues. “The luxury furnishings market comprises 3% of the market and is growing at 25-30% per annum.
“Who’s buying? India has seen a shift in consumer profile for luxury furniture and furnishings. Earlier, the main clientele were the usual suspects – industrialists, Bollywood celebrities or luxury hotels. But now, CEOs of multinational corporations and banks, real estate barons and well-heeled socialites are the new consumers of luxury.”
Key Indian brands include Roseby’s, D’decor Home, Dicitex, Maishaa, Address Home, Onset, Ishatvam and Zaza Home. The key international players in India include Pottery Barn, Macy’s, Ethan Allen, Zara Home, Bloomingdales, Brun de Vian-Tiran, Versace, Corneliani and Fendi Casa.
Events
UBM Index Tradefairs (Mumbai) takes place between 14-17th November
Indian Handicrafts & Gifts Fair (EPCH), held between 15-18th October at Greater Noida, New Delhi
Key associations
Association of Furniture Manufacturers & Traders (AFMT)
Association of Furniture Manufacturers of India (AFMI)
Indian Society of Lighting Engineers (ISLE)
Indian Exhibition Industry Association (IEIA)
Indo-Turkish Business Association
ANIEME India
Federation of Rajasthan Handicraft Exporters (FORHEX)
Sylvia Khan is the editor and creative head of IFJ (Index Furniture Journal), The Indian Review of World Interiors & Design, and a director of UBM-Index Fairs India. The bulk of this article is from the IFJ Trend Survey, an authoritative study of the Indian interiors market.
