Today, home furnishing market is one of the most competitive industries across the globe that carries a very promising future for those companies that have the wherewithal to deliver products as per various market demands. According to a market research report released by Allied Market Research, home products are a growing segment increasing rapidly at the current CAGR rate of 4.2 per cent, expected to touch US $ 664.0 billion by 2020. This significant growth is attributed to the effect of globalization on companies which is providing them multiple options to meet their consumers’ needs in the shortest possible time. Even the rise in income level which has triggered a distinct demand for lavishing home furnishing collections and changing interests of the new generation, have given a new boost to this industry.
Dynamic Market Demands Fresh Approach
USA and Europe constitute the largest consumer market for this booming sector, while countries like India, China and Pakistan feature among its key manufacturers and suppliers. Yet, despite reports of a continuously growing segment, it is surprising to know that some medium-level exporters of Delhi-NCR involved in the home furnishings business are facing difficulties in matching changing market conditions and have been compelled to re-work their strategies for survival. Apparel Online discusses with few of these exporters to understand their experiences.
Niche products are the survival tools…
Products play an important role in being a preferred supplier, but just having a niche product is not enough. Woodson Impex, a Delhi based manufacturing and export company, provides a niche range of home furnishing products like curtains, bedspreads, covers, cushions, quilts, floor coverings endowed with the unique crewel hand embroidery, yet the company has seen some challenging times. “The market is definitely going through uncertain times and everyone is facing loss in some way or the other, whether in the form of losing market hold or decrease in turnover, we have also faced such situations, but we are still in the industry because of our niche products and our regular clientele base which has helped us survive this upheaval,” shares Arif Kamal, Co-founder, Woodson Impex.
The company’s primary clients are boutique buyers who are in constant need of such customized products. With craftsmanship in the age-old handwork from Kashmir which is in high demand in UK and US market, the company supplies this rare art form in various types of fabrics such as silk, cotton, wool and using many different types of threads as per client’s requirements. However, this embroidery form alone was not sufficient to guarantee success to Woodson Impex which had to face depreciating annual turnover and loss as well. Subsequently, it delved into more value addition to revive from this downfall.
The company has undergone further segmentation of the already classified niche products to remain at par with the unpredictable consumer expectations. The endeavour now is to make a blend of modern, contemporary, traditional and economical product range which helps them capture a larger market.
Exploring domestic market to support capacities…
There are some exporters who were earlier dealing only with the international market but are now trying to make a strong presence in the domestic arena to support their capacities. ‘The Bedding Theme’, a Noida-based home furnishing company which majorly deals in bedding range and quilts, is a typical example of this category of exporters who are shifting focus to domestic market, armed with every possible tool to survive. Reduced demands in the international market for large volumes and economic sluggishness of the overseas industry have pushed the company to take this step.
Woodson Impex: Bedding range in crewel embroidery
Company provides a niche range of home furnishing products like curtains, bedspreads, covers, cushions, quilts, floor coverings endowed with the unique crewel hand embroidery, yet the company has seen some challenging times.
Harish Madan, a textile designer by profession and the President of The Bedding Theme, states that the purchasing power of the overseas buyers is shrinking and they have stopped buying bulk quantities. They are currently receiving demands for lesser quantities, and with its in-house manufacturing unit it is becoming tough to manufacture small quantities in a big unit. The company has therefore now added bedding themed garments to its kitty, apart from home furnishings, to make products which are value for money because the market is demanding lower prices.
With its footprints in EU, Middle East, US, Australia and New Zealand, the 18 years old company is now looking for growth opportunities in the domestic market, and is also trying to be a helping hand in Government’s ‘National Skill Development Initiative’. It is even going to establish a skill development centre in Noida to impart skills to the naive people in order to generate assets for the industry.
“We are going to open a skill development institute at our Noida office building only to improve the skills of the youth for their own as well as our better future. We all know that our industry is going through scarcity of skilled labour. In order to fill this gap, our organization will teach people from the neighbourhood, so that they can earn their livelihood and live a dignified life in the society,” said Harish optimistically.
The training school which is going to open soon will enrol students who are above the age of 18 years with little or no education. The courses offered are stitching, measurement checking, pattern making, finishing and packing.
Shifting focus to other products…
While some companies have remodelled their product categories and created manifold product options to match the industry’s competitiveness, there are others who have moved to complete closure of the home furnishing segment due to the very thin margins that do not justify the high efforts and investments being put into the sector for survival. One such company is Prabhakar Overseas Group that shut their home furnishing segment two years ago and diversified their business into the apparel unit as a survival plan, post the joining of new generation into the business.
Explaining their stand, Yogeeta Prabhakar, Managing Director, Prabhakar Overseas Group said, “We had a strong home furnishing segment, especially for bedspreads and covers but we closed it due to the low profit margins. Without reasonable profit, it was not possible to keep investing and run the unit properly. So, my late father Sanjeev Prabhakar decided to discontinue it. After that our company has shifted its entire focus to the clothing section.” The company is currently catering to the US with 90 per cent of its production for the American market and is also aiming to collaborate with some Pakistani designers to enter into the ethnic wear segment to fulfil its clients’ demands.
