The furniture business in India will probably reach $61 million by 2024. The key driving forces are high living standards, increasing infrastructure needs, more hotels and resorts, and demand for various styles. Online sales have risen due to increased broadband, smartphones, and the digital economy. Indian online retail will lead the market growth driven by millennial consumers.
Tips for selling furniture online:
- Engage wisely with furniture wholesalers to manage inventory
- Offer free shipping or bundled pricing
- Use high-quality images and detailed descriptions
- Provide excellent customer service
- Share home decor inspiration on social media
Essential steps to succeed:
- Research the market and identify your niche
- Choose the right business model
- Select products and secure reliable suppliers
- Create an efficient inventory management system
- Build an appealing, easy-to-navigate online store
- Focus on marketing and search engine optimization
The furniture category has high margins, around 40-60%, with the industry average profit margin at 48%. Costs to start depend on store size and inventory expenses.
Market demand is increasing due to higher domestic spending and new designs. The market is projected to grow at 4% CAGR until 2025. Furniture businesses can be highly profitable in India due to labor, materials, and growing online sales.
Popular materials include wood, metal, plastic, and bamboo. Online retailers are innovating with detailed product listings, AR, VR to offer superior experiences. India has a rich heritage of furniture craftsmanship.
Most profitable ideas include:
- Wooden furniture
- Rattan and bamboo furniture
- Office furniture
- Customized furniture
- Used and antique furniture
- Painting and design services
The best quality sofa brands in India are Godrej Interio and Featherlite.
Is an online furniture store profitable? Yes, especially with the current trends and infrastructure supporting e-commerce growth.
Online retailers are innovating with features like AR and VR to offer superior shopping experiences and personalized solutions based on consumer preferences. Pepperfry, for example, leads online furniture in India and is worth $500 million as of 2020.
Hari Rajagopalan’s example highlights that buying furniture online can be cheaper and offer a better selection, making it a popular choice for urban professionals.
If your profit margin is lower than the average, you can improve it by reducing costs, focusing on higher-margin items, and testing pricing strategies.
An eCommerce marketplace allows retailers to sell products to a large base, earning commission and money from featured listings. This is crucial in the unorganized furniture market in India.
The furniture business in India is lucrative due to the necessity in various sectors. India has established promotion councils to facilitate the export process. Registering with these councils is beneficial for expanding the business.
The demand presents a huge opportunity for Indian exporters to export ‘Made in India’ items overseas and for UK importers to source high-quality handmade furniture from India.
According to India’s Ministry of Commerce and Industry, ‘Made in India’ furniture exports increased sharply from INR 1952 crore (about USD 26 million) in FY 2013-2014 to INR 6790 crore (USD 820 million) in FY 2022-2023, a 248% increase.