Indian economy growth rates (+7% in 2016) and the rapid development of social conditions characterize India as a reference for the Asian market, in every product category.
Furniture sector doesn’t back out of this consideration and its huge hike – according to the World Bank – will worth a compound annual growth rate (CAGR) of 50,42% in the period 2014-2019. Including the substantial increase of luxury furniture which is expected in 27,01 billion dollars by the year 2020.
That’s probably why Ikea decided to direct significant resources towards the Indian market, not only relocating part of its production intended for domestic needs, but also considering the opening of 25 stores by the 2025 in India.
However, the latest market researches (TechSci Research) provide a furniture demand in India which goes beyond 27 billion dollars in the next 5 years. A greatest demand will come from residential construction increase, helped today by the Housing-for-All plan, finalizing by Government for the controlled development of 100 smart cities by 2022 and intended for growing middle class’ housing needs. Nowadays 784 urban areas absorb by themselves 41% furniture consumption, indeed.
Offices, seats of power and tourism accommodation sectors (23% of new construction hotels on the Pacific coast will rise in India), retail (according to Indiaretailing.com, today it covers 19% of market) and hospital (new developments are planned) complete the overview of the demand.
It should be noted that during last year the scene had a standstill because of the demonetization programme, finalized by the Government with the purpose of control tax evasion. The withdrawal of most common Indian banknotes generated a sharp consumption contraction and PIL growth went backwards to 6,1% in the first trimester of 2017 and to 5,7% in the second.
For this reason, this monetary policy was just a serious contingency and India can regain the control as expected.
Indian market is a great opportunity for Italian furniture business and in 2015 10.500 companies exported in India, ahead of Germany, Spain, China, Korea, Malaysia, Indonesia, Philippines and Japan.
Through the experience gained in India by Gabriele Magliola we can recognize a close connection between Italian appeal and the consumer trends mutation of new Indian buyers who left classic and ethnic styles for linear and contemporary design.
And it is also because the average age of who buy a house in India has dropped from 40 to 27 years. This information figures a more conscious core consumer who is expert in technology and contemporary lifestyle. An orientation towards personalized, modular, balanced furniture, realized in wood, glass and metal according to sustainable production cycles.