Global Spotlight on Indian Furnishings

Home furnishing industry in India is doing better in spite of its bottleneck faced in different areas, says Dr MS Mathivanan.

Indian textile industry is a prominent global player. It has a rich cultural heritage and ancient history.  It is a significant employment provider in the country as the second largest industry next to agriculture, everything from traditional handloom textiles to modern capital intensive with sophisticated machineries to produce fibre to finished garments.

Textile industry in India is the major contributor for the GDP of our country, and it is a employment provider and major foreign exchange earner. Indian textile industry is comprised of various sectors and all the sectors are in existence in our country. right from the cultivation of cotton, ginning, spinning, preparatory like warping, sizing,  yarn dyeing, weaving, bleaching, dyeing printing, garmenting and home furnishing. Indian Home furnishing industry plays a major role in the textile sectors as a prominent industry in the international textile Arena. .

Home furnishing products have generated a revenue of 45,000 million US dollar in the year 2024 and expected to grow up to 81,000 million dollar in the year 2030.

All over the world, there is a growing interest among people to dress their home with appealing and contemporary furnishing. In the last decade, The international trend in home textiles have been rapidly adapted by India in terms of design, trends, products mix, innovation, technology, and retailing. Be in traditional cotton, hand looms or embroidery or the very contemporary jacquard, prints, yarn dyed, velvets or fashion ranges. India today is the leading country supplying the finest of Home fabrics to the important International buyers.

Domestic market of home furnishing is also improving day by day. The domestic consumption is large and growing quite fast because of change in the lifestyle of people and also because of housing boom which is driving up demand for home textiles. Transformation of India as a source of home textiles has happened across all the fibre groups – cotton, polyester, viscose, acrylic, silk, wool, and the blends.

Home furnishing textile products are also called as linens and domestics as well as household textiles. Wherever people furnish a living environment, one finds home furnishing textiles at home, in hotels, motels, hospitals, colleges, dormitories, and in a host of other places. India is emerging as an important source for a wide range of home textiles products to market around the globe. Buyers of Indian home textile products are impressed with the product range that is traditionally crafted in contemporary designs, colours and endowed with touch of human originality. It is a fact that this sector is aiming to enhance its export as well as the domestic market. India as a developing country is competitive enough to prove itself as a leading supplier after China.

Description of the products of home furnishing fabrics

Home textiles consist of a large number of texture materials intended for various specific uses. The segment has not been clearly classified so far. Few logical approaches that could be considered or based on;

• HS code classification based on exports
• Type of manufacturing technology used (nonwoven, knitted, etc.)
• Utility or usage (floor coverings, bath, linen, kitchen, linen, etc.)

The major categories of home textiles are linens and domestic products, towels, shower curtains, bathrobes table linen, bedspreads are categories under linens. Products such as sheets, pillow, cases, mattresses, pads, blankets, and blanket covers, comforters and quilt embroidery and laces or coming under domestic products. However, based on exports and HS courts, home textiles can broadly be classified into following categories.

• Bed linen
• Bath linen
• Table and kitchen linen
• Curtains, drapers and furnishing fabrics
• Blankets
• Carpets and floor coverings
• Made ups

SWOT analysis 

A SWOT analysis of the home furnishing industry reveals both internal strengths and weaknesses, as well as external opportunities and threats. Strengths include a wide range of product offerings, established brands, and strong distribution networks. Weaknesses can include high competition, price volatility, and supply chain disruptions. Opportunities exist in emerging markets, online sales growth, and sustainable practices. Threats include changing consumer preferences, economic down.

Strengths: 

• Diverse product offerings: The industry provides a wide variety of furniture styles, materials, and price points to cater to diverse consumer tastes.
• Established brands: Many well-known brands in the home furnishing industry have strong brand recognition and loyalty.
• Strong distribution networks: Established companies have extensive distribution networks, including brick-and-mortar stores and online platforms.
• Customer service: Some companies offer personalized design services and exceptional customer service. 
• Strong community ties: Some businesses focus on local sourcing and partnerships, building strong community relationships and driving customer loyalty.
• Sustainable practices: Growing demand for eco-friendly products presents an opportunity for manufacturers to emphasize sustainable sourcing and manufacturing practices.

Weaknesses: 

• Price sensitivity of consumers: Customers may be price-sensitive, particularly for non-essential items like furniture, potentially impacting sales and profitability. 
• Lack of innovation: The industry can struggle to stay ahead of changing trends and may need to invest in R&D to offer new and innovative products. 
• Seasonal demand: Furniture sales can be affected by seasonal factors, requiring careful planning and inventory management. 
• High costs of raw materials: Fluctuations in the prices of wood, fabric, and other raw materials can impact profitability and pricing strategies.
• High labour costs: Manufacturing costs can be significantly impacted by labor rates, especially in certain regions.
• Price sensitivity of consumers: Customers may be price-sensitive, particularly for non-essential items like furniture, potentially impacting sales and profitability.
• Lack of innovation: The industry can struggle to stay ahead of changing trends and may need to invest in R&D to offer new and innovative products.
• Seasonal demand: Furniture sales can be affected by seasonal factors, requiring careful planning and inventory management.

Opportunities:

• Emerging markets: Expanding into new geographic markets, particularly in developing economies, can drive significant growth.
• Online sales: Online platforms offer a wider reach and accessibility, allowing businesses to connect with a larger customer base and offer a diverse range of products.
• Personalised design services: Offering customized design consultations and product customization can enhance customer satisfaction and drive sales.
• Sustainability focus: Emphasizing eco-friendly materials and production processes can attract environmentally conscious consumers and differentiate a brand.
• Partnerships with interior designers: Collaborating with interior designers can help businesses leverage their expertise and expand their customer base.

Threats: 

Intense competition: The market is highly competitive, with both established brands and emerging players vying for customer attention.

Changing consumer preferences: Rapidly evolving trends and styles can make it challenging to stay ahead of the curve and ensure product relevance.

Economic downturns: Economic instability can impact consumer spending and reduce demand for furniture and home décor items.

Supply chain disruptions: Disruptions in the global supply chain can lead to delays, increased costs, and potential shortages.

Digital disruption: E-commerce and online marketplaces can pose a threat to traditional brick-and-mortar stores and require retailers to adapt to the changing landscape.

Export of home textiles

Indian Textile industry has been the lifeline of Indian economy with reference to the significant contribution to the GDP, foreign exchange earner and provider of employment. Home textiles products export is the major contributor of the export of textiles in our country. India is emerging as the major source for the wide range of home textile products all over the world. Traditional touch in design is inspiring international buyers to a greater extent. Hence India as a developing country is competitive enough to prove itself as a leading supplier of Home textile products. It gives the feeling That India is becoming one of the leaders in international market for home textile products. India is a major exporter of home textiles, with the market valued at USD 6 billion in FY24. The US is the top destination for Indian home textile exports, followed by countries like the UK, Germany, and other EU nations. Major home textile products exported from India include beddings, towels, curtains, and carpets.

The Indian home textile industry is substantial, with a market size of $9.60 billion in 2024, projected to reach $15.16 billion by 2029.

India’s home furniture industry is undergoing a significant transformation, driven by robust economic growth and increasing urbanization. The country has emerged as the world’s fifth-largest exporter and fourth-largest consumer of furniture, showcasing its growing prominence in the global market. 

The manufacturing landscape is notably fragmented, with the unorganized sector constituting approximately 80 per cent of manufacturers, presenting both challenges and opportunities for market consolidation.

Home furnishing fabrics are mostly woven by handlooms and power looms in the unorganised sector. Modernisation is needed to improve the productivity and the quality of the products so that the value addition will improve and thus the improvement in the gross national products and foreign exchange earnings for the country. 

The government’s strategic focus on establishing furniture manufacturing hubs, including the International Furniture Park in Tamil Nadu and upcoming clusters in Karnataka, Madhya Pradesh, Uttar Pradesh, and Andhra Pradesh, demonstrates a committed approach to industry development. Government should also take steps in establishing modernised weaving parks with the upgraded looms and processing facilities. India is prominent in the home tax industry compared to other countries like China based on its skilled labour.

Home furnishing industry in India is doing better in spite of its bottleneck faced in different areas. Increase and uncontrollable price in the yarn, lack of infra facilities like power, transport, water, communications, port operations, et cetera, lack of processing facilities, lack of modernisation, labour turnover, lack of skilled employment, lack of proper information about world market et cetera or the bottle X faced by the industry, this can be rectified both by industry and the government so that the Home industry will strive well in the Indian market and also in the international market. Implementation of various measures that are to be taken for the purpose of solving problems and help the smooth production and marketing of home textile products.

Support initiatives

There are several organisations which can provide support services and business development services to the home textile industries. This can broadly be grouped into the following categories.

• Central/state/local government agencies

• R&D /educational institutions

• Industry Association entrepreneurial groups

• Financial institutions like banks infrastructure/financial development agencies

About the author:

Cavalier Dr MS Mathivanan is a Chairman at SSM Group of Institution, Komarapalayam, Namakkal District, Tamil Nadu. He has been a successful entrepreneur, industrialist and a visionary who has worked for the welfare and uplift of the weaver’s community. He is a multifaceted personality with versatile skills and has authored many books on revolutionary topics, held coveted positions like President of Textile Association of India, and recipient of many prestigious awards and recognitions.

SSM College of Engineering and College of Arts and Science have been started in 1998 with a vision to offer education to the children of the weaver’s community in and around the neighbourhood. The institute besides offering a number of engineering courses also offers the following courses

• B Tech in Textile Technology – 4 years duration
• B Tech in Textile Chemistry – 4 years duration
• M Tech in Textile Chemistry – 2 years duration
• BSc in Textile and Fashion  – 3 years

Interested students can contact the following number. Dr N Gokarneshan on his number 9677756622.