Economic recession of 2008 and dynamic conditions of market have hit the furniture industry strongly in the past. It negatively impacted the power of Indian consumers to spend money on furniture but after few years from the year 2011, start-up environment started gaining momentum in the industry and brought a wave of new trends and changes. Since then, several start-ups have been launched in this arena and have worked significantly better than the previous trend of locally manufactured products. Many companies have also entered the market with their branded products which have gained quite a lot of popularity.
Craft Driven Market Research has made a study of 14 start-ups with core service in furniture and home furnishings. It has been observed by the firm that there are several emerging trends in the sector which includes rental services, home designing and do it yourself. These start-ups have collaborated information from different sectors and have combined it into furniture industry giving more options to the customers. This has revealed options of buying furniture through e-commerce which was earlier considered to be non-feasible option. Major findings of the study are;
- There are 29% furniture start-ups in rental service, 57% in home designing and e-commerce and only 14% in do it yourself segment.
- Bangalore has attracted maximum share of furniture start-ups with 55% of them in the city which is followed by Delhi (NCR) and Mumbai.
- States of Karnataka and Haryana have maximum penetration of furniture start-ups which is not surprising due to high demand in Bangalore (Karnataka) and Gurugram (Haryana).
Aakanksha Aggarwal, founder of Craft Driven Market Research says that start-ups in furniture industry are going to witness incredible growth in coming years. Currently, 80% of the industry is unorganized, however, these start-ups with their usage of technology and e-commerce are rapidly working to organize the whole industry. Recent trends for certain big players such as Pepperfry and Urban Ladder have not been very promising yet the industry is expected to witness a growth of more than 49% within a span of two years. The industry is witnessing incredible growth in recent years due to various factors that include real estate development, industrialization and increasing young population.
Currently there are very few start-ups in this domain. Craft Driven Market Research has identified certain start-ups which are operating successfully only in the furniture industry. Some of these start-ups such as Urban Ladder, Pepperfry and Furlenco are market leaders and giving a boost to the economy. Many new start-ups such as Get My Couch, Ubyld, City furnish are also working in the domain and gaining market share. Mayank Srivastava, Co-founder of Get My Couch says that the major market for their start-up is people of age group 22-40 who live in rental homes and move cities frequently due to changing career opportunities. Similar is the market for other start-ups where young population is increasingly becoming the dominant buyer.