The Hindu Business Line : Furniture imports surge on growing demand

Mumbai, Nov. 11 A bottle opener that costs Rs 12,000, a 100 cm-high 30 cm-wide mirror which is priced Rs 46,125 and a dining table that is worth Rs 3 lakh; all belonging to the superior international furniture brands. Seems unaffordable?

These are the best-loved items of the globally rich upper segment of the Indian consumers, whose refined aesthetics and upmarket demands have pushed a 63 per cent rise in the furniture import to India.

According to the Commerce Ministry figures, furniture import to India rose to Rs 1,801.27 crore in 2006-07 from Rs 1,103.46 crore in the previous year, an increase of 63.24 per cent against India’s total import growth of 27.27 during this period.

Buoyant sales

Dealers say that sales are buoyant and will go beyond all past records in the current financial year, thanks to the growing demand from the upper middle class, the segment which is fast expanding. “Five years ago when we set up shop, there were hardly any foreign brands selling in India. Now we see a 70-80 per cent leap in annual sales figures,” says Mr Cyrus Merchant, Manager of Yantra Birla Lifestyles, Mumbai, dealers of Italian furniture brands such as B & B Italia, Kartell and Fiam.

As many as 60 foreign furniture brands took part in the recently concluded B2B Index International Furniture Trade Fair in Mumbai. Of these, 54 were from Italy, four from China, three from Taiwan and one from Malaysia.

Italian brands dominate the scene, while South East Asian furniture maintain their traditional popularity. “We feel there is a big market and a new-found demand for imported modular furniture,” says Ms Namrata Dugar, Managing Director of Chennai-based Ikian Furniture. Ikian, which sources furniture from South East Asian countries, has presence in Chennai, Bangalore and Mumbai.

In response to the growing demand, they are setting up a retail shop in Hyderabad. Even the high import duty does not dampen the consumer spirit, according to Ms Dugar.

When the 35 per cent import duty and overhead expenses are added, the selling price is often double the original cost of furniture from abroad. “For highly expensive items our margins are nominal since we have to keep the prices attractive. We make it up by bulk selling,” says Mr Merchant.

“Indians now travel a lot overseas and have better exposure to foreign goods. They have a penchant for brands and don’t bother about cost,” says Ms Pragati Gupta, Director of Aamore Per La Casa, Mumbai. Aamore sells Italian brands such as Bonaldo, Vismara and Ipecavalli. “International furniture brands have become familiar for the upper segment of Indian customers just as the cloth brands. We get lots of clients from Pune, Ahmedabad and even Kolkata, ” says Mr Merchant.

More Stories on : Interiors & Homes | Exports & Imports | Lifestyle

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
D1 Oils targets 3.5 lakh hectares jatropha plantations

Furniture imports surge on growing demand

Anil Ambani writes to PM, slams GSM operators' claims on spectrum

A tale of two ‘low’ inflation episodes

Fine-print of RBI’s macroeconomic analysis

3-year scorecard: Tax-saving schemes post 48% return

Container handling rates — A new approach to tariff-setting

ONGC faces threat of delisting

Today's Pick: GMR Infrastructure (Rs 209.80)

Satyam plans Rs 800-cr investment in Tamil Nadu

Arun Bajoria raises stake in Accel Frontline to 10%

Inflation risks, fall in growth may support gold

Sentiment turns cautious

P-Notes: SEBI measures have some impact on FII investments