ISLAMABAD: South Asian furniture market has vast scope for expansion and if all tangible steps are taken by the SAARC member countries to explore furniture industry on modern line and furniture luxury market would reach to colossal figure of $5.4 billion by 2020.
These views were expressed by Pakistan Furniture Council (PFC) Chief Executive Mian Kashif Ashfaq while talking to a delegation of traders from SAARC countries,” says a press release issued here on Monday.
He said increased regional economic connectivity within South Asia, as well as with other parts of Asia, can bolster economic growth, reduce poverty and enhance regional stability and security.
He said the rising disposable incomes, improving consumer lifestyles and a significant increase in the GDPs largely supplement the growth of the market in the South Asian region. Further, the growth is also supplemented by the ongoing developments in the real estate sector in the region, which largely boost the adoption of luxury furniture by both domestic as well as commercial users.
Replying to a question, he admitted that lack of connectivity is a major reason behind low inter-regional trade in South Asia. However, he said South Asia has a trade opportunity of $80 billion as against the actual trade of $28 billion. “Remedial measures may push the regional trade to as high as $170 billion by 2020,” he added.
Highlighting the positive trend in furniture market in South Asia, Mian Kashif said Luxury furniture made from wood is estimated to dominate the market while the luxury furniture made from glass would witness the highest growth rate, registering a CAGR of 8% during 2015-2020.
“Metal is the second most popular material for luxury furniture, constituting about 1/5th of the market. Other prominent materials include leather, plastic, glass and others (rattan or wicker, fabric, fibre, stone, marble, granite, poly urethane and acrylic). Amongst all the above mentioned materials, the market for glass is expected to grow at the highest CAGR of 8%, owing to its increasing use in modern furniture designs,” he elaborated.
Answering yet another question about Pakistan’s share in furniture global market, he said Pakistan is still lagging behind in this sector even compared to its neighbouring countries India and China.
He further said Pakistan’s share in the world market for furniture is negligible, despite the fact that it has a valuable record of craftsmanship and innovation in this sector. Pointing out the factors behind decline in furniture export, he said there are many other reasons for this decline too.
The most important of them all is the lack of availability of Sheesham or rosewood. More than 80 percent of Pakistan’s furniture is dependent on it and on the other hand, the reserves of Sheesham have decreased by 50 percent. “Due to its shortage in the market, its prices are increasing every day. Importing this type of wood costs four times the cost of wood procured locally,” he added.
Talking about remedy, he said there is a dire need of shifting from wooden furniture to metal and other relevant material. He further said we should grow sheesham forest on large scale to land to meet the demand of the furniture industry.
PFC chief Mian Kashif further said this calls for policymakers’ attention to provide fiscal incentives to this baby to nourish it to its true potential. Easy access of credit, tax holidays on expansion, frequent road shows and visits to international exhibitions, along with assistance from government officials for marketing furniture in Europe are some of the initiatives that can benefit the industry.
