EXECUTIVE SUMMARY

Furniture industry of Bangladesh has proved to be one of the most promising sectors with a
high export potential. The upholstered furniture and beds market are estimated to be worth
around 400 billion dollar. Both markets grew substantially during the boom period of the late
1!0"s and suffered significant decline during the prolonged recession of the early 10"s.
For the production or manufacturing of furniture# Bangladesh has available amount of land
and a huge amount of surplus labor. $ince labor is abundant in Bangladesh# it is relatively
cheap in comparison to that of developed countries% this is a ma&or strength of this industry.
'oreover there is also abundant availability of raw materials in this industry but it lags
behind in terms of automated production process unlike developed countries which are the
market leaders of global furniture industry.
(lassic styling is still very popular# although modern designs are gaining greater acceptance.
)owever# traditional finishes such as leather and show wood are gaining share although both
are now offered in more modern designs and colors to appeal to the younger generation.
$hares of cane and rattan furniture are beginning to move up in the market after experiencing
some problems in terms of *uality.
+t present a good amount of furniture is being produced locally in Bangladesh. ,n
Bangladesh although some renowned brand companies dominate the market with their high
market shares# non brand owners are also growing their share due to the adoption of labor
intensive technology. ,n terms of distribution# furniture independents-specialists dominate
with ./ percent of the market share# followed by multiples# department-variety stores# mail
order and others.
,mports and exports have become increasingly significant# with imports having grown to
around 10 percent of the 12 market. ,mports are sourced mainly from within the 3(
including ,taly# Belgium# 4uxembourg# $weden and France. 3xports are estimated to be
worth percent of 12 production of upholstered furniture. +ction furniture continues to
grow as consumers seek more benefits and features from their products. There are a growing
proportion of older consumers and these products are also becoming more acceptable to
younger age groups.
5ith a population of 1.6/ billion# (hina has more consumers than the 1$ and 3urope
combined. )owever# $wedish furniture is perceived as expensive in (hina7a store for the
middle class. $ince its launch# $wedish furniture has endeavored to cut prices by using more
and more local suppliers. ,ts prices have dropped by ten percent since launch and (hinese
sales rose accordingly by ./ percent in 600..
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8lobally# $wedish furniture expects to source about 6. percent of its products from (hina in
600/. 9espite this# $wedish furniture has made little attempt to ad&ust its range to local tastes.
,n a range of around 0#000 to !#000 articles# only three have been added for the (hinese
market7chop sticks# a wok with a lid# and a cleaver. )owever# there are some other tweaks
to the $wedish template. +s many (hinese apartments have balconies# there is a special
balcony section in the stores. $wedish furniture also offers an assembly service for (hinese
shoppers.
This comprehensive report represents a detailed assessment of the market# reviewing ma&or
trends# key factors influencing developments and future prospects for the sector. +nalysis is
both *uantitative and *ualitative# based on our substantial experience of the building and
home improvement markets.
The comparative advantages of suppliers from all over the world are especially the high
*uality of the final products and their ability to supply re*uired *uantities of products at a
given time. This is due to the existing modern manufacturing capacities of the furniture
industry. $o after making an analysis we have found that
The furniture industry in Bangladesh has a high potential to grow since it can avail
cheap labor intensive technology.
The furniture industry has both branded and non:branded segments in Bangladesh.
1tili;ation of skilled and unskilled workers.
$ource of employment for rural workers.
3mployment is spread across many sectors showing the diverse nature of the industry
and a broad product range.
(onsumer expectations and purchasing behaviors have marked regional variations.
<ossibility of getting the advantages of being a 49( =least developed country> and
may get some ade*uate trading facility.
$o if Bangladesh carefully utili;es those opportunities then it?s *uite possible for Bangladesh
to get a good position in the world market as being a furniture manufacturer as well as an
exporting country.
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