Swot Analysis of the Indian Furniture industry

Swot analysis always help to take decision in critical situation and at this time furniture industry is growing so we can use this information for further use .

1 - Strength : 
  • Abundant cheap labour : India has fast population growth and most of the Indian are in working age and labor rate is less than US$ 1 /hour. so it is helpful to fulfill demand of local and export.
  • Low Capital Investment : Most of work of furniture done by hand or small tools used by artisan so very low capital required for furniture manufacturing.
  • Aesthetic and functional Qualities : Most of the furniture design made in classic rang with beautiful and functional with comfort
  • Handmade : most of the product are handmade so competition very less   
  • Low order Quantity : Most of supplier is ready to do small order quantity 
  • Product development and design ; Most of the suppler is ready to made new design.
2 - Opportunities:
  • Government support : Indian Government provide support via Make in India and SEZ
  • widespread novelty seeking : Furniture and Home decor industry always use new design and appreciate handmade product .
  • Growing disposal income of developed country and also Indian consumer are expanding more on furniture for normal VIP range.
  • Growing Brand store retail chain; Indian Top 10 Brand expanding brand and try to capture more business via retail chain or Franchise like Nilkaml and Godrej
  • Online Market portal : Sales of online market portal growing by 20% approx every year
  • Fasted growing market of world
3 - Threats : 
  • Better quality by competitor like Italy , China , Indonesia and other countries
  • Machinery used by competitor for better price
  • High quality packing
  • Better transport system
  • Consistent Quality
  • Better payment term
  • Product development 
  • Growing import
4 - Weakness : 
  • Inconsistent quality 
  • Inadequate market study and marketing strategy
  • Less qualified and trend staff 
  • Low Infrastructure of India
  • Capacity to handle limited Order
  • Daley in order
  • Lack of study of major palyer of world like IKEA and Restoration Hardware 
  • Poor packing quality
Conclusion ;

India have good chance to grow of it's furniture market for local and export demand and for this every supplier and government should do better work like India government should better transport system like China, and Supplier should do below
  • Focus on quality and use technical process of furniture quality control
  • Try to make consistence in production
  • Better Payment term
  • Seprate team for Team for New product development , Marketing and packing.
  • Follow scientific management production method for production
  • Market study
  • Better communication
  • Timely Delivery of order
  • Change thought process that we can't beat china cost
  • Use machinery to grow and rate cut 

1 comment:

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