Home of the Taj Mahal, spices, Holi and Bollywood, to name just a few. India has always been a fascinating place to do business, but until a few years ago it was not a priority market especially for SMEs exporting furniture, because it was considered a market with limited spending power. However, the Indian market deserves to be carefully analysed for several reasons, like its size and growth rate: India is the third largest economy in the world (after China and the USA), as well as the second most populous state in the world with its 1.39 billion inhabitants, 30% of whom are between 10 and 24 years old.
India’s steady growth
It is estimated that by 2050 it will become the world’s second largest economy in terms of purchasing power. In fact, there is an increasing number of middle and upper class families living in urban settings such as New Delhi and Mumbai, who are increasingly demanding even high-end furniture.
In more detail, India is the fifth largest producer and fourth largest consumer of furniture globally. The main countries from which it imports are Malaysia, China and Italy (6% of India’s total imports), with exports to Italy accounting for around 1% of total exports worldwide. These data seem unpromising, however, they only refer to an organised market (regulated by special regulations and with registered and often for-profit companies), while the Indian market is mostly unorganised. There are a lot of forecast on this – for example Statista analysts predict that the organised market
will grow by almost 11% per annum in the four-year period 2022/2026, with living room furniture as the standard-bearer. In addition, the Indian furniture market has been valued at around USD 17 billion in 2021, suggesting big growth prospects for companies in the sector.
Why are Indian consumers changing their buying habits?
According to the GJWWR (Global Journal of Marketing Management and Research), this behaviour is largely influenced by the West, and the Indian consumer is more inclined to buy foreign brands than before, thanks in part to the Internet and the increasing penetration of social media in all levels of society, even in rural areas, changing people’s buying habits.
Luxury furniture is increasingly gaining ground in India and the future is believed to be bright and the Indian market has a lot to offer. However, it is important to bear in mind that India is a very large market and the spread of business across all the country certainly requires detailed and constant planning over time.
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✅ Edited by Shanice from the UK office of Pangea Studio Associato
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