HEADLINES

Home furnishings grows by 11% to reach Rs703.3 billion in 2014

Internet retailing gains in popularity in 2014, as it provides a wider choice, competitive pricing and

after-sale service
Light-emitting diode lamps (LED) is the most dynamic category in 2014 with current value growth of
42%

Godrej & Boyce Mfg Co Ltd remains the leading player in a highly fragmented and competitive
landscape with a 2% value share in 2014
Home furnishings is expected to increase at a constant 2014 value CAGR of 4% over the forecast
period to reach Rs866.7 billion by 2019

TRENDS

Home furnishings witnessed current value growth of 11% in 2014. An increase in disposable incomes
encouraged consumers to opt for branded products. The growing popularity of purchasing
indoorfurniture through internet retailing also enticed consumers with a wider choice and hassle-free

delivery, thus helping drive growth in this category within India.

Home furnishing grew at a slightly lower current value rate than the review period CAGR of 12%.
However, this was partially attributed to a slowdown in residential real estate, as the majority of sales of
home furnishings in India is accounted for by new purchases as opposed to the replacement of
existingfurniture. In contrast, replacements account for a huge share of home furnishings in developed

countries.
Lighting accounted for a 7% share of value sales within home furnishings in 2014 and it achieved
healthy current value growth of 15%. Light-emitting diode lamps (LED) displayed substantial current value
growth of 42% in 2014. This is attributed to the growing popularity of low energy and longer lifetime LEDs

and also real estate growth, wherein newly built houses mainly had LED fittings.
Incandescent lamps grew by 4% in current value terms in 2014, which was lower than the 5%
growth achieved in 2013; however, there remains a declining but still substantial demand, especially from

rural areas.
The transition from traditional to more efficient lighting has led to the growing popularity for LED
light sources in India. In 2014, light-emitting diode lamps (LED) accounted for 4% of total lighting value sales,
compared to 3% in 2013. To further boost domestic LED manufacturing, the Indian Government has offered
lucrative incentive schemes, including subsidies and tax reimbursements on duties incurred during

production. Most newly built houses in 2014, especially in urban areas, had LED as their lighting source.
Retail sales of barbeques are negligible in India, as the majority of sales are still to restaurants.
Weber and Coleman were the leading brands for barbecues in India, but retail sales of these barbeques were

limited in 2014 and seasonal in nature.

Blinds witnessed current value growth of 18% in 2014. This was mainly due to an increased demand

for modern window covering alternatives to drapes and curtains.

Homewares and home furnishing stores retained its dominance within home furnishings distribution
with an 86% value share in 2014. However, its share fell from 87% in 2013. This is attributed to the
increasing acceptance of modern retail channels such as hypermarkets and internet retailing, which provide
a wide variety of designs and also the convenience of delivery compared to traditional homewares and home
furnishing stores.

COMPETITIVE LANDSCAPE

Godrej & Boyce Mfg Co Ltd remained the leader within home furnishings with a 2% value share in
2014. Home furnishings is highly fragmented with many small independent furnishing stores. These
homewares and furnishing stores remain the dominant distribution channel for home furnishings, with an

86% value share in 2014. Most of these players have independent retail stores and small manufacturing

units, where production is mainly carried out by manual labour.

Domestic players continued to lead the category in 2014, including Godrej & Boyce Mfg Co Ltd,
Bombay Dyeing & Mfg Co Ltd, Welspun India Ltd and Durian Industries Pvt Ltd. Philips Electronics IndiaLtd
and Osram India Pvt Ltd, which are subsidiaries of multinational corporations, are among the leading

international brands.
Home furnishings is flooded with unbranded products with unorganised players making up the
biggest contribution. Other than the major brands in home furnishings, there is a lack of brand awareness.
The form and the functional aspects of these unbranded home furnishings products meet most of the
consumers needs and therefore there is limited demand for branded products. However, the increasing
awareness of product quality, after sales service and warranties, which branded products provide over

unbranded ones, were the key growth drivers for branded products during the review period.
After the successful launch of LED bulbs, the sixth largest player in home furnishings, Surya Roshni
Ltd, planned to introduce more than 50 new LED lighting solutions to its existing portfolio by the end of
2014/beginning of 2015. This new launch will include products for indoor, outdoor and industrial applications,

and also help reduce per unit prices due to the increase in the scale of production.
IKEA, the leading Swedish furniture retailer, with an investment of Rs105 billion, plans to set up 25
stores in India by 2025. The company plans to set up its first store in Hyderabad, Telangana under 100%
foreign direct investment and further expand to 25 stores across the country. IKEA has also ramped up its
sourcing from India and laid various initiatives such as Make more in India, in line with the Prime Minister

Narendra Modis Make in India campaign, to spur indigenous manufacturing within the country.
Taking advantage of the low brand awareness within home furnishings, online retailers launched
various private label indoor furniture brands, which are also manufactured in-house. These private label
brands are expected to gain in popularity during the forecast period considering the limited consumer loyalty
within the furniture industry. Urban Ladder and Fab Furnish are the leading players that focus on private label
in-house brands, whereas Pepperfry and Mebel Kart act as sellers.

PROSPECTS

Rapid growth in smartphone penetration and wider internet coverage should provide the impetus for
sales of home furnishings through internet retailing. Online stores boast a wider choice of designs, after-sales

service and hassle-free delivery across the country.

Home furnishings is expected to increase at a constant 2014 value CAGR of 4% to reach Rs866.7
billion in 2019. This revival will be driven by factors such as increased disposable incomes, urbanisation and
accessibility to quality international products. The advent of online home furnishings stores will also open the
door to a wider choice of designs, after-sales service and hassle free delivery across the country. These
factors will encourage manufacturers to introduce branded indoor furniture, with these players previously

facing tough competition from their unbranded counterparts.

Light-emitting diode lamps (LED) is expected to witness the highest growth, increasing at a constant
2014 value CAGR of 30% over the forecast period. Growing awareness about energy conservation coupled
with declining unit prices of LED lights will promote growth for light-emitting diode lamps (LED) over forecast
period. With LED being a comparatively new concept in India, Philips Electronics India Ltd has attracted

various celebrities such as Shruthi Hassan and Ranbir Kapoor to promote its LED range of products.
Though there was no immediate ban on incandescent lamps by the Government during the review
period, manufacturers are expected to switch production to power efficient sources such as compact
florescent lamps (CFL) and light-emitting diode lamps (LED). This will also lead to a phasing out of high-

wattage incandescent lamps by manufacturers over the forecast period.

During the forecast period, home furnishings is expected to become more competitive, with branded
goods expected to increase in popularity at the expense of unbranded ones. Online home furnishings stores
are expected to display tremendous growth in forecast period. These stores will not only save on the
enormous maintenance costs that are incurred by having a physical store, but they will be able to pass on

the benefit to consumers in the form of discounts. This will also widen the reach of home furnishings to

smaller cities, which are not familiar with the wide range of products and designs available.
Changing consumer tastes, work related relocations and the growing number of expats, is expected
to help drive an increase in the popularity of renting indoor furniture in India. This concept has not only
caught the attention of various start-ups in this industry, but has also pulled in significant investments.

CATEGORY DATA
Table 1 Sales of Home Furnishings by Category: Value 2009-2014

INR bn

2009 2010 2011 2012 2013 2014

Bedroom Furniture
Dining Furniture
Home Office Furniture
Kitchen Furniture
Living Room Furniture

375.
5
104.
3
18.0
61.6
5.4
17.6
1.7
259.
5
129.
1
30.8
3.5
17.5
8.8

423.
7
112.
8
19.3
66.8
5.8
18.9
1.9
297.
9
147.
8
35.7
4.1
19.9
9.8

474.
0
120.
9
20.7
71.7
6.2
20.2
2.0
338.
8
167.
6
41.0
4.7
22.5
11.0

525.
0
129.
9
22.2
77.4
6.7
21.3
2.3
379.
6
187.
5
46.5
5.3
24.8
12.1

587.
6
140.
6
24.1
84.0
7.2
22.7
2.6
429.
9
210.
9
53.3
6.1
27.9
13.6

-- Sitting Furniture
-- Storage Furniture
-- Other Indoor Furniture
- Window Covering
-- Blinds
-- Curtains
Outdoor Living
- Barbecues
-- Charcoal Barbecues
-- Electric Barbecues
-- Gas Barbecues

57.9
9.4
2.5
11.8
0.3
11.5
1.3
-

66.7
10.9
2.9
13.0
0.4
12.6
1.5
-

76.2
12.6
3.3
14.2
0.4
13.8
1.7
-

85.5
14.2
3.6
15.5
0.5
15.0
1.8
-

97.7
16.3
4.1
17.0
0.6
16.4
2.0
-

Indoor Living
- Home Textiles
-- Bath Textiles
-- Bed Textiles
-- Kitchen and Dining Textiles
-- Living Room Textiles
-- Rugs
- Indoor Furniture
------

653.
4
152.
4
26.1
91.4
7.8
24.3
2.8
482.
0
234.
9
60.4
6.9
30.9
15.0
111.
0
18.3
4.5
19.1
0.7
18.4
2.2
-

INR bn
- Garden Sheds
- Outdoor Furniture
Lighting
- Light Sources
-- Incandescent Lamps
-- Halogen Lamps
-- Linear Fluorescent Lamps (LFL)
-- Compact Fluorescent Lamps
(CFL)
-- Light-Emitting Diode Lamps
(LED)
- Lighting Fixtures
Home Furnishings

2009
1.3
22.7
20.2
2.9
0.5
3.4

2010
1.5
26.2
23.3
3.2
0.6
3.8

2011
1.7
30.5
27.0
3.4
0.7
4.3

2012
1.8
35.5
31.5
3.7
0.7
4.6

2013
2.0
41.6
37.0
3.9
0.8
4.9

2014
2.2
47.7
42.4
4.0
0.8
5.2

13.2 15.4 18.2 21.8 26.2 30.6

0.1
2.6
399.
6

0.2
3.0
451.
4

0.5
3.4
506.
2

0.8
4.0
562.
4

1.2
4.7
631.
2

1.7
5.3
703.
3

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks,
trade interviews, trade sources

Table 2 Sales of Home Furnishings by Category: % Value Growth 2009-2014

% current value growth

2013/1 2009-14
4
CAGR

2009/14
Total

Indoor Living
- Home Textiles
-- Bath Textiles
-- Bed Textiles
-- Kitchen and Dining Textiles
-- Living Room Textiles
-- Rugs
- Indoor Furniture
-- Bedroom Furniture
-- Dining Furniture
-- Home Office Furniture
-- Kitchen Furniture
-- Living Room Furniture
-- Sitting Furniture
-- Storage Furniture
-- Other Indoor Furniture
- Window Covering

11.2
8.4
8.3
8.7
8.3
7.2
7.1
12.1
11.4
13.3
13.2
10.6
10.5
13.6
12.3
9.5
12.2

74.0
46.1
45.2
48.4
45.1
38.2
60.4
85.7
82.0
96.2
98.1
76.3
71.2
91.7
94.9
76.7
62.0

11.7
7.9
7.7
8.2
7.7
6.7
9.9
13.2
12.7
14.4
14.6
12.0
11.4
13.9
14.3
12.1
10.1

% current value growth

-- Blinds
-- Curtains
Outdoor Living
- Barbecues
-- Charcoal Barbecues
-- Electric Barbecues
-- Gas Barbecues
- Garden Sheds
- Outdoor Furniture
Lighting
- Light Sources
-- Incandescent Lamps
-- Halogen Lamps
-- Linear Fluorescent Lamps (LFL)
-- Compact Fluorescent Lamps
(CFL)
-- Light-Emitting Diode Lamps
(LED)
- Lighting Fixtures
Home Furnishings

2013/1
4
18.2
12.0
9.5
9.5
14.5
14.7
4.1
4.0
5.9

2009-14
CAGR
17.4
9.9
10.5
10.5
16.0
16.0
6.8
7.9
8.8

2009/14
Total
123.4
60.3
64.6
64.6
109.7
110.2
38.9
46.2
52.2

16.9

18.4

132.2

41.5
12.9
11.4

73.9
15.5
12.0

1,491.9
105.6
76.0

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks,
trade interviews, trade sources

Table 3 NBO Company Shares of Home Furnishings: % Value 2010-2014

% retail value rsp

2010

2011

2012

2013

2014

Godrej & Boyce Mfg Co Ltd

Durian Industries Pvt Ltd
Bombay Dyeing & Mfg Co Ltd
Welspun India Ltd
Philips Electronics India Ltd
Surya Roshni Ltd
Nilkamal Ltd
Bajaj Electricals Ltd
Kurlon Pvt Ltd
Creative Portico India Pvt Ltd

1.1
0.9
1.2
1.0
0.7
0.5
0.5
0.5
0.3
0.4

1.2
1.1
1.2
0.9
0.8
0.6
0.6
0.6
0.4
0.4

1.5
1.2
1.2
0.9
0.8
0.6
0.7
0.6
0.4
0.4

1.7
1.2
1.2
0.9
0.8
0.7
0.7
0.6
0.5
0.5

1.8
1.2
1.1
1.0
0.8
0.7
0.7
0.6
0.6
0.5

% retail value rsp

Osram India Pvt Ltd
Sheela Foam Pvt Ltd
Havells India Ltd
Crompton Greaves Ltd
Furniturewalla Ltd
Fabindia Overseas Pvt Ltd
Style Spa Furniture Ltd
Others
Total

2010
0.4
0.2
0.3
0.3
0.2
0.2
0.6
90.6
100.0

2011
0.4
0.2
0.3
0.3
0.2
0.2
0.8
89.9
100.0

2012
0.4
0.3
0.3
0.3
0.2
0.2
0.9
89.1
100.0

2013
0.4
0.3
0.3
0.3
0.2
0.2
1.0
88.5
100.0

2014
0.4
0.3
0.3
0.3
0.2
0.2
0.1
89.1
100.0

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks,
trade interviews, trade sources

Table 4 LBN Brand Shares of Home Furnishings: % Value 2011-2014

% retail value
rsp

Company

2011 2012 2013 2014

Godrej Interio
Durian
Bombay
Dyeing
Welspun
Philips
Surya
@Home
Bajaj
Kurl On
Portico
Osram
Sleepwell
Havells
Crompton
Furniturewalla
Fabindia
Style Spa
Others

Godrej & Boyce Mfg Co Ltd

Durian Industries Pvt Ltd
Bombay Dyeing & Mfg Co
Ltd
Welspun India Ltd
Philips Electronics India Ltd
Surya Roshni Ltd
Nilkamal Ltd
Bajaj Electricals Ltd
Kurlon Pvt Ltd
Creative Portico India Pvt Ltd
Osram India Pvt Ltd
Sheela Foam Pvt Ltd
Havells India Ltd
Crompton Greaves Ltd
Furniturewalla Ltd
Fabindia Overseas Pvt Ltd
Style Spa Furniture Ltd
Others

1.2
1.1

1.5
1.2

1.7
1.2

1.8
1.2

Total

Total

1.2
0.9
0.8
0.6
0.6
0.6
0.4
0.4
0.4
0.2
0.3
0.3
0.2
0.2
0.8
89.9
100.
0

1.2
0.9
0.8
0.6
0.7
0.6
0.4
0.4
0.4
0.3
0.3
0.3
0.2
0.2
0.9
89.1
100.
0

1.2
0.9
0.8
0.7
0.7
0.6
0.5
0.5
0.4
0.3
0.3
0.3
0.2
0.2
1.0
88.5
100.
0

1.1
1.0
0.8
0.7
0.7
0.6
0.6
0.5
0.4
0.3
0.3
0.3
0.2
0.2
0.1
89.1
100.
0

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks,
trade interviews, trade sources

Table 5 Distribution of Home Furnishings by Format: % Value 2009-2014

200 201 201 201 201 201

9
0
1
2
3
4

% retail value rsp

Store-Based Retailing
- Grocery Retailers
-- Supermarkets
-- Hypermarkets
-- Discounters
-- Other Grocery Retailers
- Mixed Retailers
-- Department Stores
-- Mass Merchandisers
-- Variety Stores
-- Warehouse Clubs
- Non-Grocery Specialists
-- Home and Garden Specialist
Retailers
--- Home Improvement and Gardening
Stores
--- Homewares and Home Furnishing
Stores
-- Other Home and Garden Nongrocery Specialists
Non-Store Retailing
- Homeshopping
- Internet Retailing
- Direct Selling
Total

100.
0
6.4
4.3
2.1
2.3
2.3
91.3

100.
0
6.9
4.8
2.2
2.4
2.4
90.6

100.
0
7.9
5.7
2.2
2.5
2.5
89.6

100.
0
8.6
6.2
2.4
2.7
2.7
88.8

100.
0
9.8
7.4
2.5
3.0
3.0
87.2

99.6
10.4
7.8
2.6
3.0
3.0
86.3

91.3 90.6 89.6 88.8 87.2 86.3

-

91.3 90.6 89.6 88.8 87.2 86.3

100.
0

100.
0

100.
0

0.0
0.0
100.
0

0.0
0.0
100.
0

0.0
0.4
0.0
0.4
100.
0

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks,
trade interviews, trade sources

Table 6 Forecast Sales of Home Furnishings by Category: Value 2014-2019

INR bn

2014 2015 2016 2017 2018 2019

Indoor Living

653. 676. 701. 729. 759. 791.

INR bn

- Home Textiles
-- Bath Textiles
-- Bed Textiles
-- Kitchen and Dining Textiles
-- Living Room Textiles
-- Rugs
- Indoor Furniture
------

Bedroom Furniture
Dining Furniture
Home Office Furniture
Kitchen Furniture
Living Room Furniture

-- Sitting Furniture
-- Storage Furniture
-- Other Indoor Furniture
- Window Covering
-- Blinds
-- Curtains
Outdoor Living
- Barbecues
-- Charcoal Barbecues
-- Electric Barbecues
-- Gas Barbecues
- Garden Sheds
- Outdoor Furniture
Lighting
- Light Sources
-- Incandescent Lamps
-- Halogen Lamps
-- Linear Fluorescent Lamps (LFL)
-- Compact Fluorescent Lamps

2014
4
152.
4
26.1
91.4
7.8
24.3
2.8
482.
0
234.
9
60.4
6.9
30.9
15.0
111.
0
18.3
4.5
19.1
0.7
18.4
2.2
2.2
47.7
42.4
4.0
0.8
5.2
30.6

2015
8
153.
6
26.3
92.3
7.9
24.3
2.8
503.
9
244.
2
64.1
7.2
32.0
15.6
117.
1
19.3
4.6
19.3
0.8
18.6
2.3
2.3
51.1
45.6
3.9
0.8
5.2
33.5

2016
3
154.
4
26.4
93.1
7.9
24.1
2.9
526.
9
253.
9
68.1
7.5
33.4
16.1
122.
8
20.3
4.7
19.9
0.9
19.1
2.3
2.3
55.3
49.5
3.7
0.7
5.1
36.9

2017
5
155.
4
26.5
93.9
8.0
24.1
2.9
553.
3
265.
4
72.8
7.9
35.2
16.8
128.
8
21.5
4.9
20.9
1.0
19.9
2.4
2.4
60.3
54.3
3.5
0.7
5.0
41.0

2018
8
156.
1
26.6
94.5
8.0
23.9
3.0
581.
7
277.
9
78.2
8.4
37.4
17.5
134.
5
22.8
5.1
22.0
1.1
21.0
2.4
2.4
66.2
59.9
3.3
0.7
4.9
45.8

2019
3
156.
4
26.6
94.8
8.0
23.8
3.1
611.
5
291.
1
84.1
9.0
39.8
18.2
139.
7
24.3
5.4
23.4
1.2
22.2
2.5
2.5
73.0
66.5
3.1
0.7
4.9
51.4

INR bn
(CFL)
-- Light-Emitting Diode Lamps
(LED)
- Lighting Fixtures
Home Furnishings

2014 2015 2016 2017 2018 2019

2.3
1.7
5.3
5.5
703. 730.
3
2

3.1

4.1

5.2

6.4

5.8
6.0
6.3
6.5
758. 792. 828. 866.
9
2
5
7

Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Table 7 Forecast Sales of Home Furnishings by Category: % Value Growth 2014-2019

% constant value growth

2014/20
15

2014-19
CAGR

2014/19
TOTAL

Indoor Living
- Home Textiles
-- Bath Textiles
-- Bed Textiles
-- Kitchen and Dining Textiles
-- Living Room Textiles
-- Rugs
- Indoor Furniture
-- Bedroom Furniture
-- Dining Furniture
-- Home Office Furniture
-- Kitchen Furniture
-- Living Room Furniture
-- Sitting Furniture
-- Storage Furniture
-- Other Indoor Furniture
- Window Covering
-- Blinds
-- Curtains
Outdoor Living
- Barbecues
-- Charcoal Barbecues
-- Electric Barbecues
-- Gas Barbecues
- Garden Sheds

4.1
0.2
0.1
0.3
0.1
-0.7
3.9
5.1
4.7
7.5
6.6
6.6
4.2
3.9
6.5
5.0
6.0
12.3
5.7
2.3
-

3.9
0.5
0.4
0.8
0.4
-0.5
2.5
4.9
4.4
6.8
5.3
5.2
3.9
4.7
5.8
3.8
4.1
11.3
3.8
2.4
-

21.1
2.7
2.2
3.8
2.2
-2.3
13.2
26.9
23.9
39.1
29.2
29.0
21.3
25.8
32.6
20.6
22.5
70.5
20.6
12.4
-

% constant value growth

- Outdoor Furniture
Lighting
- Light Sources
-- Incandescent Lamps
-- Halogen Lamps
-- Linear Fluorescent Lamps
(LFL)
-- Compact Fluorescent Lamps
(CFL)
-- Light-Emitting Diode Lamps
(LED)
- Lighting Fixtures
Home Furnishings

2014/20
15
2.3
10.2
10.9
-6.0
-4.6

2014-19
CAGR
2.4
8.9
9.4
-5.0
-4.1

2014/19
TOTAL
12.4
53.1
56.7
-22.7
-18.9

-1.5

-1.4

-6.7

12.3

10.9

67.9

23.7
3.6
4.6

30.0
4.3
4.3

271.0
23.6
23.2