Profit Making Strategy of Furniture Industry

8/11/2019 Profit Making Strategy of Furniture Industry

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PROFIT MAKING STRATEGY OF FURNITURE INDUSTRY

(Assignment in the subject of Manager ial Economics submitted on 25.9.2014)

SUBMITTED BY: SUBMITTED TO:

Digvijay Singh (Roll no. 1058),

Kriti Gupta (Roll no. 1062),Madhurima Gadre (Roll no. 1063)

Semester III (Batch of 2018)- BBA. LLB

Dr. Rituparno Das,

Faculty of Management,NLU Jodhpur.

National Law University, Jodhpur

(Session of July-November 2014)


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OBJECTIVES:

1. To understand the various concepts relating to Profit Making Strategy of Industries.

2. To study the application of the concepts relating to Profit Making Strategy on the Furniture

Industry in India.

3. To analyze on a comparative basis the Profit Making Strategy in Indian Furniture Industry

with that of the Furniture Industry in other countries.

RESEARCH METHODOLOGY:

Primary sources for data required for the study of this topic include books, journals, reports etc.

These sources are available in the library and also on online databases. Secondary sources will

include articles, commentaries, & other information which is available on various websites on

the internet. Firstly, the various concepts relating to Profit Making Strategy are thoroughly

discussed. Then, the application of the concepts relating to Profit Making Strategy on the

Furniture Industry in India is studied in detail. The assignment is concluded by a comparative

analysis of the Profit Making Strategy in Indian Furniture Industry with that of the Furniture

Industry in other countries.


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INTRODUCTION

This assignment seeks to provide a detailed overview of the Furniture market in India in

comparison to the Furniture Industry in America and China with relevant facts and figures

regarding the structure and size, consumption, growth rates, key players, main challenges,

restraints, international trade as well as an indication of future outlook of the industry.

Key players in the Indian Furniture Industry are: Fabfurnish, sponsored by German start-up

incubator Rocket Internet; Pepperfry, funded by Norwest Venture Partners and Flipkart. The

Indian home and furnishing market is pegged at $20 billion (Rs 1.2 lakh crore), half of which is

expected to be in the furniture category. By 2017, the total expected to grow to $30 billion.

Profit margin is generally between 10-25%.

Product delivery strategy is as follows: Most companies in the furniture category promise

delivery between three and 20 days. On a general note, about 90 per cent of the orders are

prepaid and for orders of more than Rs 10,000 (on an average), one cannot avail of cash-on-

delivery. As the delivery mechanism is stretched (first, products are brought from vendors to the

warehouse; subsequently, these are transported to consumers, often through third party

suppliers), ensuring products aren't damaged becomes a challenge.

The Indian Furniture market accounts to about $20 billion (Rs 1.2 lakh crore), of which the

furniture segment accounts for about half. As about 90 per cent of the market is unorganized, it is

an attractive avenue for online players. At a time when Swedish furniture major IKEA is

planning to roll out its stores in India, online retailers are becoming increasingly active in this

segment. German Rocket Internet-sponsored FabFurnish and Norwest Venture Partners-funded

Pepperfry are among those who have entered the furniture segment. From Maharaja Beds to

wardrobes, these websites allow one to buy all furniture online. It is expected leading e-

commerce player Flipkart will step into the furniture category later this year.


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CHAPTER 1:

INDIAN FURNITURE INDUSTRY

A. OVERVIEW OF THE FURNITURE MARKET:

The furniture industry in India is estimated to be worth Euro 5 Billion. Within this, the wooden

furniture accounts for Euro 750 million. Of this the imported furniture market is currently worth Euro

75 million and is growing at 50 - 60% each year. The furniture sector in India only makes a marginal

contribution to the GDP, representing about 0.5 per cent of the total GDP. The major part of this

industry is in the informal sector which is, about 85%. The remaining 15% is in the formal sector and

is made up of manufactures and importers catering to the various segment of the industry.

Size of the

Industry

The Indian furniture industry is estimated at around Rs 35,000

crore (Rs 350 billion). Eighty-five per cent of this falls into the

unorganized sector

Geographical

distribution

All the metropolitan cities

Output per

annum

The market of wooden furniture solely owns the share of

nearly Rs. 60 crore

Percentage in

world market

India was the biggest furniture importer in 2004-05, with

a 17 % share in furniture imports worldwide.


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Some of the major segments in furniture industry are Residential, Office, Contract and Institutional.

There are other segments also based on the application (Kitchen, Bathroom, Bedroom, etc.) or on the

raw material (wooden, plastic, metal, bamboo, etc). These industry segments include big payers from

the formal sector such as Godrej & Boyce Manufacturing Co. Ltd., BP Ergo, Featherlite, Haworth,

Style Spa, Yantra, Renaissance, Millenium Lifestyles, Durian, Kian, Tangent, Furniture Concepts,

Furniturewala, Zuari, Truzo, N R Jasani & Company, V3 Engineers, PSL Modular Furniture, etc.

According to one market survey, home improvements (38%) and leisure holidays (37%) as the two

pursuits Indian consumers are willing to indulge in. Many of the world's leading home fashion brands

are available in India through domestic retail outlets.

Imports of

Furniture in

India In Euro

Millions \Year

2001-2002 2002-2003 2003-2004 2004-2005 2005-2006

Total Imports of

furniture

15.67 24.66 43.44 69.49 114.17

B.

FACTORS INFLUENCING THE BUYING TRENDS:

While upwardly mobile Indians are increasingly buying differently styled foreign furniture, they

need to guard against poor stuff. Interior design for homes is no longer the preserve of the rich

and wealthy. The concept of good living is catching up with the middle class Indians. They do

not mind spending an extra buck in decorating their new homes. This has resulted in a boom in

the dcor market. Imported and designer seem to be the key words when it comes to buying

furniture at home. It's hardly surprising, considering that more and more foreign furniture

manufacturers and traders have been finding their way into the country of late. Consumer

strategy can be briefed as follows:

While decorating a new residence: Buying Decision is left to a Builder/Architect/Interior

Decorator or the owner.


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While renovating a Residence: Buying Decision is made by an Interior Designer or by the

owner.

While furnishing a commercial complex: Buying Decision is made by the

Builder/Architect/Interior Designer.

The major reason that has propelled the growth of the imported furniture market is the exposure

that the Indian people have received thanks to globalization. The media too has played a very

vital role in exposing the people to good living. Exposure coupled with easy availability of funds

have made more and more urban middle class couples to look for interior decorators while doing

up their houses.

In conclusion, it is important to target the following: Architects, Builders, Interior Designers and

Participation in Furniture / Interiors Trade Fairs for good exposure.

C. TARIFFS AND IMPORT POLICY:

In recognition of the significance of the continued supply of imported logs to its wood-

processing industry and following court-ordered restrictions on domestic logging in 1994-95, the

Government of India began liberalizing wood product imports in 1995.

Since then, there has been a gradual decrease in import duties on wood and wood products. For

example, until 1995, logs were the only wood product item freely-importable to India with a duty

of 15%. Imports of other wood products were only against advanced licenses or special import

licenses. Since 1996, import licensing requirements (quantitative restrictions) have been

progressively removed on round wood, sawn lumber and several value-added products. By April

2000, there were no quantitative restrictions on any import tariff line in the entire forestry sector,

with the sole exception of newsprint.

Today, the situation is that logs are subject to a duty of around 5%, while the ad valorem duty

payable on lumber is 20% and the duty on veneer and wood-based panels is 40%. The duties

were reduced in February/March, 2004 and further cuts are planned, as part of an on-going

commitment to WTO. However, market commentators suggest that the duties on lumber and

veneer will never be dropped completely and may even rest at around 15% for the long-term.


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CHAPTER 2:

PROFIT MAKING STRATEGY OF THE INDIAN FURNITURE INDUSTRY

Profit maximization refers to the sales level where profits are highest. It is the process

that companies undergo to determine the best output and price levels in order to maximize

its return. The company will usually adjust influential factors such as production costs, sale

prices, and output levels as a way of reaching its profit goal. Profit maximization is a good thing

for a company, but can be a bad thing for consumers if the company starts to use

cheaper products or decides to raise prices.

Basic profit maximization strategy used by all firms can be summarized as follows:

I. Increasing Revenue [selling more]:

There are several ways to increase revenues. To apply this profit maximization option, here are

four things that a firm can do-

Firstly, increase the quantity of sales, for example by better marketing the product or

improving quality. Analyze where money is majorly coming in from and focus on making

more sales in those product/service categories. Secondly, up-sell to existing customers, for example by persuading them to buy enhanced

services or accessories.

Thirdly, diversify into selling a wider range of products.

Fourthly, revise pricing to produce a more efficient balance of the number of sales and the

revenue from each sale.

II. Decreasing Expenses [cutting costs]:

There are also several ways to cut costs. To apply this profit maximization option, here are four

things that a firm can do-

Firstly, analyze where money is being spent. Overhead is one of the biggest categories of

expenses that business owners face.


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is to find a way to differentiate the firms offering (product/service i.e. in this case, furniture)

with that of other firms. If a competitor is excelling with customer engagement, the firm needs

to mimic it. If it is using different technology, look into it.

E. EDUCATING POTENTIAL CUSTOMERS:

If people are not aware of the existence of a particular firms product, then there may be a

problem increasing profits. In the age of digital media, its just silly not to have anonline

presence. Create a website, join Facebook and blog about your industry. It is crucial to let

everyone know about your company and how great your product is.

The firm can also take it one step further by creating advertisements for the company. Choose

mediums that an ideal customer would be using. TV, radio, print and online are just a few of the

many platforms on which a Company can advertise. Once sufficient attention has been gained,

work on engaging the customers. The firm has to create relationships that will keep them coming

back for more.

The above methods are exhaustive in nature and form a part of the Profit Maximization Strategy

which is employed by the Furniture Industry in India. As stated earlier, the weightage given to

these methods may differ from firm to firm but basically, all firms in the Indian Furniture

Industry use only the above strategies.


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CHAPTER 3:

COUNTRY-WISE COMPARATIVE ANALYSIS

The furniture industry in America and China has been analyzed in this chapter. The furniture

industries in both these countries have been analyzed individually so that the conditions and

market circumstances in both these countries and its effect on the furniture industry can be

brought out properly.

A. ANALYSIS OF THE AMERICAN FURNITURE INDUSTRY

a.

I ntroduction to the Ameri can Furni ture Industry:

While the first decade of the 21stcentury was a dark and bleak time for the American Furniture

Industry- a deadly combination of the domestic economic meltdown, the competitive onslaught

of offshore manufacturing and shrinking demand, there now seems to be a glimmer of hope for

the Furniture Industry. Although not yet effusive about the future, economists and furniture

insiders have begun to loosen the death grip on projections and forecasts. Unfortunately, this

optimism comes too late for the legions of manufacturers and retailers who couldnt weather the

economic storm and were forced into bankruptcy and liquidation.

In August, 2013, Furniture Brands International, one of the largest residential furniture makers in

the United States, representing the Broyhill, Thomasville, Drexel Heritage, Lane, Hickory, La

Barge, Lane Venture, Maitland-Smith, Pearson and Henredon brands- voluntarily delisted its

stock from the New York Stock Exchange because its market capitalization had fallen below the

New York Stock Exchanges listing requirement. In early September, the Company filed for

Chapter 11 i.e. bankruptcy protection. The future of the Company, including opportunities for

restructuring, will remain to be seen. The sale of the business seems inevitable, although the

possibility that not all individual brands represented by Furniture Brands will be purchased by

the same suitor is a real one. One thing is for sure- this situation will create competitive

advantages for other industry players, at least in the short term.

Following are the significant findings about the American Furniture Industry:


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With labor costs on the rise, manufacturing in China may not be the most cost-effective

option for U.S. furniture manufacturers.

Momentum in the U.S. housing market will continue to impact furniture manufacturing- both

positively and negatively.

Consumer preferences are changing dramatically as the Baby Boomers exit and a younger

generation enters the market.

Consumers control retail distribution channels, even as manufacturers try to dictate how

furniture buying is done.

While quality is critical, it is no longer the most important variable in the manufacturing

process. Technology, logistical efficiencies and agility are growing in importance.

For those willing to invest the time and effort, export markets may be opening up.

Inadequate marketing and branding continues to plague the industry, especially in the areas

of new media.

b. Overview of American Furn itur e I ndustry:

In many respects, the Furniture Industry is much stronger in 2013 than it was in 2009. Although

most manufacturing has remained overseas, many furniture companies have seen consistent

increases in sales and profits during this period. In 2012, furniture imports rose 9%. This is a

trend that is expected to continue as Russia, India and Eastern Europe enter the Import Market.

The industry as a whole has seen great improvements over the past few years. After a 13% drop

in sales in 2009, new orders have increased 4-6% every year. As of 2012, orders were up 16.5%

from 2009 and up 1.38% from 2008. This steady increase is expected to continue in the coming

years.


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c. Manufactur ing aspect:

Although overseas manufacturing has provided significant cost benefits, manufacturers are

rethinking whether to stay. There are several emerging problems with manufacturing in China

and other Far East countries. First, labor costs are rising, with wages increasing 15-20% a year.

Second, trans-Atlantic shipping rates are going up. Furniture has always been expensive to ship

due to its size and weight, but rising oil prices and a slowdown in shipbuilding have pushed

shipping costs up by 71% in the past four years. Third, currency challenges exist when dealing

with the Thai Baht, Vietnamese Dong, Chinese Yuan, and others. The appreciation of the Yuan

continues to cut into profits, further decreasing the benefits realized in the past. Lastly, a supplychain that reaches half way around the world is fraught with challenges, including quality

control, supply disruptions, language barriers and many others.

One example is Lincolnton Furniture. After making the move to overseas production, Lincolnton

found that their customers preferred to buy USA goods. This led them to complete a $5 million

renovation on the old family plant in Lincolnton, NC and hire 130 workers- many of whom had


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worked for the company before their move offshore. Lincolnton Furniture produces mid- to high-

end furniture.

With its wages lower than China and its proximity to the U.S., Mexico has the potential to

become a major source for U.S. furniture manufacturing for less-expensive home furnishings.

Goods can reach the U.S. in a fraction of the time needed to ship furniture from China, and they

can enter the U.S. duty-free, thanks to the North American Free Trade Agreement. However, due

to quality concerns, high-end products will likely continue to be manufactured in the U.S.

d. Exporting- A New Frontier:

Historically, American furniture producers have considered the export market to be a waste of

time, and made only token attempts to develop international sales. They had enough domestic

business to keep their plants running, and the export business was tricky. American

manufacturers were not comfortable dealing with currency fluctuations, style and size

differences, language issues, oceangoing freight procedures and cultural idiosyncrasies. They

lacked the patience required to build export sales. Likewise, when it came to importing

component parts and finished goods, the same indifference was in evidence. They paid lip

service to the need to be a global organization and looked for reasons to justify the lack of

imports. The easiest culprits were quality and delivery reliability, but in truth, the American

factories had their own problems with these issues. This hesitation has decreased in the past few

years. Several emerging markets have made the export business more appealing. The rising

middle classes in China, India and Brazil have created a market for more high-end furniture,

offering new markets to those manufacturers willing to spend the time and energy to address the

challenges. In addition, Canada, Mexico, Japan and the UK represent growing export markets for

the furniture industry.

e.

Conclusion:

With so much transformation happening in the furniture industry, there will be endless

opportunities for companies to increase market shareIF they approach the task with ingenuity,


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vision, creativity and patience. As difficult as the last decade has been for furniture, the long-

awaited recovery may not be any easier, but it certainly will be exciting.

Automation will offer opportunities for manufacturers to increase efficiency, and therefore their

profit margins. However, not every process can be automated. For example, short runs and

automation dont mix. Also, mass producing case goods opens the door to problems with

consistency, while many consumer preferencesparticularly in upholsterychange too

frequently for manufacturers to create efficiencies.

Further opportunities will exist for acquisition and consolidation in the market, affording new

opportunities to affect market share. Only the players who can be nimble and are willing to

embrace change- not something the industry is historically known for- will reap the rewards.

B. ANALYSIS OF THE CHINESE FURNITURE INDUSTRY

a. I ntroduction to the Chinese Furni ture I ndustry:

China's Furniture Industry and the Chinese consumer marketplace have been experiencing

dramatic changes over the last 10 years. These changes impose intense pressure on the United

States and other furniture manufacturers; but, they may also provide opportunities to tap into the

Chinese consumer furniture market.

After almost 30 years of economic reform, China has become not only "the world's factory" but

also the second largest marketplace. The Chinese have purchasing power equivalent to US$7,592

billion (IMF, 2005). This amount is almost double Japan's purchasing power according to the

International Monetary Fund (IMF, 2005). Many reports point out that China is not only a

potential marketplace for international vendors but that it is also an increasingly realistic market

for foreign manufacturers. As Ray Allegrezza, chief editor of Furniture Today, in 2003, reported,

Chinese automobile sales spiked to an incredible 56 per cent over the previous year. This trend

was maintained through 2004 and only slowed down in 2005 because of high gasoline prices.

Meanwhile, David Lynch (2006) reported that U.S. companies, from hardwood lumber suppliers

to manufacturers of sophisticated mining equipment, were prospering by exporting to China.


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This is in spite of the high trade deficit. Meanwhile, China's retail sales have increased at a rate

of more than 12 per cent per year over the last 2 years. This rate is projected not to drop under

the 12 per cent level until 2009 (IMF 2005).

With the increasing influence of China's furniture industry and the growing Chinese consumer

marketplace, more and more foreign interests are attracted to selling in China. Further, economic

reforms during the period 2001 through 2005 have reached a new level and have caused

profound changes in China's economic life. However, separated by language, culture, business,

and political differences, it is hard for Western decision makers to fully understand China's

furniture industry and the Chinese consumer market.

b.

Competiti on Framework in China:

In the current global economy, competition is not only intense but also coming from all aspects

of worldwide businesses. This is evident in China where the Chinese markets are seeing

competition growing from both the Far East and the West.

The large number of existing companies definitely shaped the landscape of the Chinese market

competition. As China's furniture production reached high levels, globalization made China a

most desirable place for investment. However, competition for resources, from raw materials to

basic labor within the Chinese furniture industry has escalated. This intense internal competition

force for resources among the large number of manufacturers pushed the bargaining power of the

Chinese furniture industry suppliers to the number one competitive factor position when using

the Porter Method.

The number two competitive factor determining China's furniture industry competition is the

relatively low-level entry barrier that allows potential new Chinese and other manufacturing

entrant access into the industry. Since the China furniture industry has a low entry barrier; it is

relatively easy for new entrants to penetrate the industry.

The threat of potential new entrants is ranked as the third competition factor. The bargaining

power of the domestic and international customers is the fourth competition factor. China's

furniture industry customers can be classified as either domestic or international. The bargaining

power of domestic consumers did show a clear influence on the Chinese furniture industry (DRC

Net, 2006). Moreover, some international manufacturers have made legislative efforts to prevent


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the importation of Chinese furniture. The results have not been very successful. Regardless of

foreign importation resistance, China's furniture export still has grown at a steady, albeit slower,

pace (DRC Net 2006). Therefore, consumer bargaining power is ranked as the fourth

competition factor.

Furniture has been used for thousands of years and built mostly of wood. There is little evidence

indicating that wood furniture will be replaced by some other material in the foreseeable future.

Thus, potential substitute material is ranked as the least important competition factor effecting

China's furniture industry. Therefore, this force is not effective in this study and is ignored.

c.

Rivalr y among existing fi rms:

The Chinese Furniture Market's complex competition is due primarily to the large number of

furniture companies, coupled with the rivalry generated among the large number of furniture

factories competing for resources is the number one competition force. In 2005, there were more

than 30,000 furniture companies in China. The change in the number of China's furniture

companies from 2001 to 2005 is listed in Table 1. During this 5-year period, the total number of

furniture companies increased 81 per cent.

2001 2002 2003 2004 2005

No. % No. % No. % No. % No. %

Large-

sized

285 1.7 278 1.7 217 1.0 69 0.3 168 0.6

Medium-

sized

484 2.9 621 3.7` 726 3.5 1996 8.2 2436 8.0

Small-

sized

16029 95.0 15797 94.6 20047 95.5 22290 91.5 27812 91.4

Total 16798 16696 20990 24355 30416


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d. Thr eat of Potential Entrants:

The small productivity difference between small-sized companies and medium-sized companies

showed that technology and management systems may not make a significant difference in

average output (DRC Net 2006). This makes it easier for newly entering small companies to gain

a foothold in China's furniture industry.

Therefore, the second highest competition factor is competition among existing Chinese furniture

manufacturing firms. In the Chinese furniture industry, the capital required to enter the furniture

industry is considerably low. Furthermore, the productivity difference between the small-sized

companies and the large-sized companies is not large. The combination of all this evidence

indicates that the entrant barrier into China's furniture industry is relatively low.

e. Supplier Bargaini ng power:

Chinese furniture exports have experienced significant increases during the 2001-2005, which

has led to increased investment being made in the Chinese furniture industry. This investment, a

portion of it in State-of-the-Art manufacturing machinery and equipment, has increased

production significantly. The Chinese furniture industry's wood supply depends heavily on

imported lumber and other wood products. Thus, the dramatic rise in production of the Chinese

furniture industry has precipitated a huge wood products demand. This increase in demand is

fulfilled by imports. Concurrently, this demand spike has generated fear among China's neighbor

countries that the increased demand for wood would encourage illegal logging activities. This

situation could lead to widespread deforestation; thus, some of these nations have begun to limit

their hardwood log exports to China. However, the point here is that lumber demand by the

Chinese has driven up furniture manufacturers' costs. Low labor cost is the most important

advantage of the Chinese furniture industry. However, there is evidence showing that there may

be a labor shortage in qualified workers in heavily industrialized areas. In responding to the

shortage of qualified workers, some provinces are considering increasing the minimum wages to

attract more workers.


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The newly established domestic market and low entrance barriers provide good opportunities for

the mature as well as new furniture manufacturers. Concurrently, the wise furniture manufacturer

should be fully aware of the fact that the marketplace is partitioned or even isolated. Thus,

choosing the appropriate target market is the key to success. A low entrant barrier makes China a

perfect place for furniture outsourcing, but increasing raw material prices, along with rising

energy and labor costs, will be considered as potential risks in the near future.

Therefore, as the Chinese consumers' incomes increase, the domestic market will attract more

and more attention from both domestic and international investors. The fast-growing export of

China's furniture verifies that China's furniture industry is a growing industry. However, there

are inherent risks such as antidumping legislation from major markets, low spending rate of the

Chinese consumers, and many competition forces.


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LIMITATIONS

The study of profit maximization strategies of Furniture Industry in various countries undertaken

by the authors has come across the following limitations:

1. Difficulty to gain access to primary & secondary data without which the research could not

proceed further.

2. However, this was addressed by availability of material on online sources which was very

limited but anyways, proved useful.

3. The large size of the Furniture Industry in various countries hindered an extremely detailed

analysis of its various aspects relation to profit maximization strategy, but a broad outline of

their profit maximization strategies has been provided.

4. The global presence of the Furniture Industry could not be dealt with adequately due to the

size of the industry and lack of data pertaining to the same.


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CONCLUSION

The Indian wooden furniture industry is able to generate approximately a turnover of Rs 3,500

crore annually. The market of wooden furniture solely owns the share of nearly Rs 60 crore. And

as per one of the surveys done recently, the industry is expected to grow by 20 percent in coming

times. The Indian furniture business has been witnessing a virtually exponential expansion in the

recent years. The business demands the utilization and tapping of various unutilized resources in

large proportions. The furniture market resources include wood, leather-based, wooden

foundation panel, metals, textiles, plastics and several other elements in large quantities. The

Indian furniture sector has been producing and exporting substantially good quality furniture

products on a global scale. The industry is dominated by unorganized sector, which constitutes

90% of the total Indian market. The organized furniture market is at 10% and growing at about

35% CAGR. Furniture industry comprises 65% of the home market & 35% of small scale

institutions. The entire Home Decor category furniture accounts for about 68% of the share while

remaining 32% comprises of furnishings and home improvement. Imported furniture constitutes

to 85% of the total organized furniture industry in the country. India imports furniture from Italy,

Germany, Spain, China, Korea, Malaysia, Indonesia and Philippines. Indian share of the wooden

furniture market is around Rs 60 crore (Rs 600 million).

The world home furniture market is worth Rs 20,000 crore (Rs 200 billion). During the past three

years, it grew by 20 % a year. According to a World Bank study, the organized furniture industry

is expected to grow by 20 % a year and India, Russia and Brazil will witness a boom. Indian

range of indigenous furniture includes both residential and contract system furniture, with an

increased concentration in office and kitchen furniture. Indian manufacturers generally use a

three-tier selling and distribution structure, comprising the distributor, wholesaler and retailer.

Also, India was the biggest furniture importer in 2004-05, with a 17 % share in furniture imports

worldwide. A total of 10,476 importers shipped furniture to India during this period. The current

imports are mainly from Italy, Germany, Spain, China, Korea, Malaysia, Indonesia, the

Philippines and Japan.


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Simply put, over the years, Indian Furniture Industry has created a market for itself and found a

spot in the houses of royals and commoners both. Also, profit margins stand at 10-25 per cent,

making it competitive and on a par with the apparel space. In relatively developed markets such

as China and Brazil, the share of the home-and-furniture category in the overall e-commerce

space is estimated at 15-20 per cent, encouraging numbers for Indian online retailers.


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BIBLIOGRAPHY

LITERATURE REVIEW:

G.S. Gupta,Managerial Economics(Tata McGraw Hill Publishing).

Thomas J. Webster,Managerial Economics(Emerald Group Publishing).

REFERENCES:

www. business-standard.com

scholar.google.com

www.furnishingsindia.com

www.furniture.co.in

finance.yahoo.com

www.worldfurnitureonline.com

www.afmi.co.in

www.tradeindia.com

www.furnituretoday.com

www.reasearchandmarkets.com

www.economywatch.com

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Profit Making Strategy of Furniture Industry