Executive Summary....................................................................................................................................1 1.1 Objectives.........................................................................................................................................2 1.2 Mission.............................................................................................................................................2 1.3 Keys to Success................................................................................................................................2 Introduction to Furniture-makin ...........................................................................................................!

"#e $ortab%e Mac#ines and t#eir im&ortance.........................................................................................! Furniture Industry o' (an %ades# ........................................................................................................2) *#art+ ,i #%i #ts..............................................................................................................................33 ..........................................................................................................................................................33 2.- *om&any *#itta on Summary.........................................................................................................33 2.1 *#itta on O.ners#i&....................................................................................................................33 2.2 *#itta on ,istory..........................................................................................................................3/ *#art+ $er'ormance Ex&ectation.......................................................................................................30 2.3 *om&any *#itta on 1ocations and Faci%ities...............................................................................30 3.- $roducts..............................................................................................................................................3! So'a Set+....................................................................................................................................................3) ................................................................................................................................................................../................................................................................................................................................................../1 (eds+........................................................................................................................................................./1 3.1 *om&etitive *om&arison..................................................................................................................../3 3.2 Sourcin ..............................................................................................................................................// /.- Market 2na%ysis Summary................................................................................................................./3 /.1 Market Se mentation........................................................................................................................../3 *#art+ Market 2na%ysis 4$ie5............................................................................................................/0 "ab%e+ Market 2na%ysis...................................................................................................................../0 ............................................................................................................................................................../0 /.2 "ar et Market Se ment Strate y......................................................................................................../! /.2.1 Market 6eeds.................................................................................................................................../! /.3 Industry 2na%ysis................................................................................................................................/! /.3.1 Industry $artici&ants......................................................................................................................../7 /.3.2 8istribution $atterns......................................................................................................................../7 /.3.3 *om&etition and (uyin $atterns..................................................................................................../7 /.3./ Main *om&etitors............................................................................................................................/7 3.- Strate y and Im&%ementation Summary............................................................................................./) 3.1 *om&etitive Ed e.............................................................................................................................../) 3.2 Marketin Strate y............................................................................................................................./) 3.2.1 $ricin Strate y.............................................................................................................................../) 3.2.2 $romotion Strate y........................................................................................................................../) 3.2.3 8istribution Strate y........................................................................................................................33.3 Sa%es Strate y......................................................................................................................................33.3.1 Sa%es Forecast..................................................................................................................................3*#art+ Sa%es by 9ear.....................................................................................................................31 0.- Mana ement Summary.......................................................................................................................31 0.1 Mana ement "eam :a&s....................................................................................................................32 0.2 $ersonne% $%an....................................................................................................................................32 "ab%e+ $ersonne%...............................................................................................................................32

!.- Financia% $%an.....................................................................................................................................32 !.1 Im&ortant 2ssum&tions.......................................................................................................................32 ..............................................................................................................................................................33 ;e'erence 1inks+......................................................................................................................................3/ /.#tt&+<<....t#e %oba%journa%s.com<ijar<'i%e.&#&=va%>MjIyM.>>.........................................................3/ 3.#tt&+<<....ibe'.or <do.n%oad<Furniture?1!-!-7.&d'..........................................................................3/ 0.#tt&+<<....s%ides#are.net<mani ar 211<ikea-invades-india.................................................................3/ !.#tt&+<<....s%ides#are.net<;esearc#OnIndia<market-researc#-india-branded-'urniture-market-in-india2--)=@id>b7!-!'0a-d3!3-/)0!-7/71-)7)bd37b1320Av>@'1Ab>A'rom?searc#>1.............................3/ 7.#tt&+<<....ibe'.or <do.n%oad<Furniture?-1-7-).&d'..........................................................................3/ ).#tt&+<<....s%ides#are.net<s#aonerme #<business-&%an-sam&%e-on-'urniture........................................3/ 1-.#tt&+<<....&n.camcom.it<u&%oads<media<Furniture?re&ort?dicembre?2--0.&d'...............................3/ 11.#tt&+<<....unido.or <'i%eadmin<user?media<$ub%ications<$ub?'ree<B& radin ?strate ies?in? %oba%? 'urniture?va%ue?c#ains.&d'.......................................................................................................................3/ 12.#tt&+<<....&n.camcom.it<u&%oads<media<Furniture?re&ort?dicembre?2--0.&d'#tt&+<<....&n.camco m.it<u&%oads<media<Furniture?re&ort?dicembre?2--0.&d'.......................................................................3/ 13.#tt&+<<.....iki#o..com<Start-9our-O.n-*ustom-8esi n-Furniture-(usiness...............................3/ 1/.#tt&+<<.....ebcosmo'orums.com< enera%-business<1!3!2-#o.-start-'urniture-business.#tm%........3/ 13.#tt&+<<....startu&biC#ub.com<startin -a-'urniture-makin -com&any.#tm%.......................................3/ 21.#tt&+<<....adbi.or <'i%es<d&!7.india.ban %ades#.economic.coo&eration.&d'.....................................33 22.#tt&+<<c&d.or .bd<&ub?attac#<O$)-.&d'...............................................................................................33 23.#tt&s+<<bdbanijjo..ord&ress.com<ta <'urniture-industry<.....................................................................33

Executive Summary
Fab'urnitures is an im&orter o' (an %ades#i 'urniture servin *#itta on . "#e business .as ori ina%%y incor&orated in *,I""2:O6: recent%y and #as under one various c#an es in business strate y. "#e re'ined mode% is to im&ort a .ide ran e o' (an %ades#i 'urniture and se%% &rimari%y to desi ners and un'inis#ed 'urniture retai% stores.

The Concept
;eco niCin t#at t#e market 'or ood 'urniture is @uite com&etitive usin t#e %ar er 'urniture retai%ersD Fab'urnitures .i%% minimiCe t#e com&etition by tar etin s&eci'ic nic#esD enera%%y 'ocusin on out-o'-t#e-.ay %ocations t#at are not served by t#e %ar er 'urniture su&erstores. (y %evera in %ocation and ex&ertise in (an %ades#D Fab'urnitures .i%% be ab%e to #ave contro% o' t#e entire im&ortation &rocess. In (an %ades#D 1uca .i%% serve as not on%y as a &rinci&a% o' Fab'urnituresD but a%so as t#e a ent. Fab'urnitures #as t#ree keys to success. "#e 'irst is estab%is#in a #i # @ua%ityD #i # va%ue re%ations#i& .it# its vendors and customers. "#e second key is to ensure re%iab%e and time%y de%ivery o' t#eir &roducts. "#e %ast key to success is re%iab%e administration o' t#e or aniCation. Fab'urnitures is set u& as a #ome-based business .it# additiona% .are#ouse s&ace. "#is .i%% be t#e most cost e''ective arran ement yet &rovide t#e re@uisite amount o' service and su&&ort.

The Market
Fab'urnitures .i%% tar et t#ree market se ments. "#e 'irstD t#at current%y com&rises 7-E o' t#eir businessD is s&ecia%ty retai%ers. "#is se ment is ro.in at 2E and t#ere are 10 &otentia% customers. "#is is a more com&etitive nic#e and t#rou # tar eted marketin D Fab'urnitures .i%% be in to reduce t#eir de&endence on t#is se ment. "#e second se ment is desi nersD t#at a%so #ave a 2E annua% ro.t#D .it# // &otentia% customers. "#e %ast tar eted nic#e is un'inis#ed 'urniture retai%ers ro.in at 2E .it# a &otentia% market o' 3- &artici&ants. "#e market is based %ess on brand e@uity o' t#e manu'acturer and more on t#e actua% &roduct and t#e service &rovider. It is very im&ortant to t#e customer to touc# and 'ee% t#e &roduct. "#e sa%es&erson is a%so instrumenta% in t#e transaction. "#ese rea%ities are bene'icia% to Fab'urnitures as t#ey can &ick and c#oose 'rom a variety o' manu'acturers instead o' bein ab%e to se%% &roducts 'rom on%y kno.n com&anies.

The Sales Strategy

Key to t#e sa%es strate y is direct sa%es ca%%s on a%% market se ments tar eted in t#is &%an .it# t#e exce&tion o' interior desi ners. Fab'urnituresD t#rou # its .e%%-'ocused business strate y .i%% ac#ieve &ro'itabi%ity by mont# t.o. *onservative 'orecasts indicate t#at sa%es .i%% be a%most doub%e 'rom year one to year t#ree. 6et &ro'its .i%% be commensurate.

1.1 Objectives
"#e objectives o' Fab'urnitures are+ 1. "o &ut in &%ace ade@uateD and re%iab%eD administrative mac#ineryD a%%o.in t#e o.ner to s&end #er time se%%in and maintainin major accounts. 2. "o concentrate Fab'urnituresFs e''orts on severa% se%ected market sectors t#at #ave been researc#ed and 'ound &romisin . 3. "o im&rove t#e re%iabi%ity and time%iness o' s#i&ments 'rom (an %ades#.

1.2 Mission
Fab'urnituresFs mission is to su&&%y certain market nic#es 'or 8inni tab%es and ot#er 'urniture items .#ic# areD 'or a variety o' reasonsD not .e%% served by t#e %ar e domestic manu'acturers. "#e o.ner o' Fab'urnitures uti%iCes #er interior desi n back roundD #er ex&erience in t#e 'urniture retai% marketD as .e%% as #er contacts in (an %ades# to tai%or #er &roducts to t#e needs o' t#ese market nic#es.

1.3 Keys to Success

"#e keys to success in Fab'urnituresF business are+ 1. O''erin items o' a #i # @ua%ity-va%ue re%ations#i& .#ic# are not avai%ab%e every.#ere. "#is is essentia% 'or maintainin t#e nic#e market sectors mentioned in t#e mission statement. 2. ;e%iab%e and time%y de%iveries. Fab'urnitures must make ood on its de%ivery &romises. (ecause o' t#e nature o' doin business in (an %ades#D t#is re@uires %on ran e &%annin in sc#edu%in ordersD takin into account (an %ades#i #o%idays and business &ractices. 3. 2 re%iab%e administration t#at is ready to serve customersD &re&are accurate bi%%in D 'o%%o.-u& on orders and ot#er documentationD and maintain a c%ose .atc# on ex&enses and co%%ection o' accounts receivab%e. 1.3.1 KEY SUCCESS !CT"#S

$uality o% ra& material

"#e 'urniture industry in $akistan is de&endent on t#e @ua%ity o' t#e ra. materia% avai%ab%e. "#e #i # @ua%ity .ood is scarce in $akistan and customer com&%aints arise due to t#e use o' c#ea& and %o. @ua%ity .ood by t#e manu'acturers. It #as to be ensured t#at 'urniture dis&%ayed in t#e s#o.room and manu'actured on orders must be o' #i # @ua%ity ra. materia%.

!ttractive 'esign an( $uality inishing

"#e %i'e sty%e o' t#e &eo&%e is im&rovin and t#ey are ettin more @ua%ity conscious. *ontem&orary and c#ic desi ns are better %iked by &eo&%e t#ese days. S&ecia% attention s#ou%d be iven to &resent %atest desi ns accordin to t#e current market demands and re@uirements. "aste'u%%y desi ned and knockdo.n 'urniture itemsD made o' su&erior @ua%ity .ood and %i #t .ei #ted are more suitab%e 'or sa%e &ur&oses.

6e. desi ns and sty%es .it# durabi%ity can bui%d brand e@uity 'or t#e business. 2s t#ere is #i # com&etition in marketD creation o' u&-to-date desi ns and sty%esD and introducin ne. trends is vita%. 2s t#is &ro&osed s#o.room business is ex&ected to tar et midd%e to u&&er midd%e c%assD t#e 'urniture s#ou%d be ab%e to 'u%'i% t#eir s&ecia% re@uirements. It is t#ere'ore more im&ortant t#at 'urniture s#ou%d be aimin to cater t#e traditions .it# modern 'unctiona% demandsD cou&%ed .it# @ua%ity o' t#e materia% and aest#etic sense. It is o' utmost im&ortance t#at 'urniture s#ou%d be durab%e and o' t#e %atest sty%e and 'as#ion at an economica% cost so as to attract t#e re%evant c%ass o' t#e society.

Sales promotion
2not#er critica% success 'actor o' t#is &ro&osed &re-'easibi%ity is t#e Marketin and $romotion o' t#e Furniture. Sa%es &romotion activity is necessary 'or market &enetration. "#is invo%ves dedication and #ard .ork 'rom t#e marketin &ersonne% and advertisement t#rou # &rint media a%on .it# t#e use o' ot#er marketin tec#ni@ues.

"ther Success actors

1. 2dvance orders 'or sa%e can ensure t#e success o' t#e business. 2. 2ssurance to customers t#at 'urniture is made o' seasoned 4dry5 .ood. $ro&er%y seasoned 4dry5 .ood uarantees #i # @ua%ity as it minimiCes de'ormation o' .ood due to dam&ness. 3. 6e. desi ns and sty%es can bui%d brand e@uity 'or business. 2s t#ere is #i # com&etition in marketD to make t#e &roject commercia%%y viab%eD creation o' ne. desi ns and sty%es and settin ne. trends is vita% /. "#e %ocation o' t#e s#o.room is an im&ortant 'actor 'or success. "#e s#o.room s#ou%d be %ocated in #eavi%y &o&u%ated or deve%o&ed cities and its %ocation .it#in t#e city s#ou%d be decided kee&in t#e tar et market in mind. 3. ;es&onsiveness to customersF demands and re@uirements is very im&ortant to stay in market and retain market s#are. 0. (etter customer service and a'ter sa%e service to &romote business ood.i%%. !. *om&etitive &rices s#ou%d be o''ered

1.3.) Steps %or starting a %urniture *usiness

Startin a 'urniture renta% business can be a very %ucrative venture. ,o.everD be'ore you initiate t#e &rocessD you .i%% #ave to conduct a business 'easibi%ity studyD com&etition ana%ysisD and market researc#. "#is .i%% te%% you #o. viab%e t#e &ros&ects o' your 'urniture renta% business are. Ensure t#at you #ave a 'oo%&roo' business &%an in &%aceD .#ic# .i%% not on%y act as a uide to set oa%s but .i%% a%so be re@uired 'or avai%in %oans. ,ave &o%icies in &%ace re ardin &ayment termsD ratesD etc.D to avoid any con'%icts %ater. *#eck .it# t#e %oca%D stateD and 'edera% aut#orities to kno. about t#e necessary &ermitsD %icensesD and taxation re@uired by you to start t#is business. "o kee& your business '%oatin D you cannot %et your &rices 'a%% be%o. a certain %eve%. ,enceD ca&ita%iCe on your key se%%in &oints %ike @ua%ityD varietyD de%iveryD '%exibi%ity in &aymentD etc. ,ere are a 'e. more &oints t#at .i%% te%% you #o. to start a 'urniture renta% business. Select a +iche It is essentia% t#at you estab%is# an identity 'or your business. "#ere are many ty&es o' 'urniture renta% businessesG #enceD you .i%% #ave to se%ect a nic#e .#ic# you intend to se%%. It can be anyt#in 'rom baby 'urnitureD cor&orate 'urnitureD %uxury 'urnitureD to basic #ome 'urniture. ,ome 'urniture cou%d a%so be divided 'urt#er into %ivin roomD kitc#enD or bedroom 'urniture. "#is .i%% not on%y #e%& set u& an identity 'or yourse%' but it .i%% a%so ive you a 'ocused tar et market. 9ou can t#en &%an your o&erationsD marketin D and &romotions around t#at &articu%ar tar et market. ,ocate a #etail Store H#i%e you can o&erate t#is business 'rom your #omeD ettin a &ro&er o''ice s&ace is recommended. "ry to %ease a retai% s&ace in a commercia% area. :ettin an o''ice near t#e s#o&s o' #ome su&&%iesD o''ices o' rea% estate a entD etc.D can #e%& you et better visibi%ity and customers. I' you #ave renta% 'urniture .#ic# can be used by studentsD ensure t#at you #ave an out%et near t#eir co%%e e<university dorms or #oste%s. I' you are &%annin to %ease out o''ice 'urnitureD try to #ave a store .#ere o''ices are taken on rent. ,egal Contract 9ou .i%% #ave to take #e%& o' your attorney to make a renta% contract t#at .i%% %ay do.n t#e terms o' %easin out t#e 'urniture. It .i%% inc%ude t#e %easin dateD tota% &eriodD return dateD be'ore due date return &o%icyD re&air &o%icyD com&ensation 'or dama e &o%icyD &ayment termsD %ate &aymentD etc. (ot# t#e &arties .i%% #ave to a ree to t#e terms and si n on it. "#is is an im&ortant ste& because a %e a% contract is a &roo' o' t#e arran ement t#at #as taken &%ace bet.een you and t#e renter. Sourcing a inance 9ou .i%% re@uire a considerab%e amount o' money 'or buyin various ty&es o' 'urnitureD storin it in a .are#ouseD and 'or #irin a com&any to %ook a'ter t#e trans&ort. I' you do not #ave t#e necessary savin sD you can o 'or an S(2 %oan or a bank %oan. 9ou can a%so c#eck i' any business incubators are avai%ab%e in your area. "#ey .i%% #e%& save a %ot o' cost and

&rovide su&&ort. 2%soD you can avai% a credit union %oan i' you are a member o' one. "#is .i%% enab%e you to et 'inance at %o.er interest rates. -et a .are house 9ou .i%% #ave to et a .are#ouse s&ace to store your 'urnitureD ti%% t#e time someone #ires it. Ensure t#at t#e .are#ouse is s&acious enou # to accommodate a%% t#e 'urnitureD and you donFt end u& stackin it one above t#e ot#er. 8oin t#is can o'ten dama e t#e 'urniture and increase your cost o' maintenance and re&air. 2%soD ensure t#at t#ere are no rodents in t#e .are#ouse .#ic# can eat a.ay t#e 'oam. 2s a cautionary measureD et a &est contro% done 'or your s&ace. 2%soD %ook 'or mo%ds on .a%%s .#ic# can et trans'erred to your 'urniture and s&oi% it. 2&art 'rom t#isD it is essentia% t#at you &ut u& your 'urniture in a &%ace .#ic# #as t#e necessary security arran ements 'or your oods. I' you t#ink t#is is ex&ensiveD you can a%so uti%iCe a ara e s&aceD but security o' t#e 'urniture .i%% become a major issue. 2%soD donFt 'or et to c#eck t#e .are#ouse insurance re@uirement. /ire or 0uy Moving Trucks 9ou .i%% #ave to send t#e 'urniture to t#e customerFs doorste& and even set it u& 'or #im. For t#isD you .i%% re@uire to #ire movin trucks and #e%&in #ands. In t#e initia% daysD it is advisab%e t#at you #ire t#is service. ,o.everD it .i%% &rove to be very ex&ensive in t#e %on run. Once your business &icks u&D buy your o.n movin truck and add one more .#en it ex&ands 'urt#er. 9ou can a%so #ire &eo&%e .#o .i%% #e%& to move t#e 'urniture around. "nline Sho&room In order to attract t#e attention o' customersD try to #ave an interactive .ebsite .#ic# .i%% s#o.case t#e various 'urniture o&tions t#at .i%% be avai%ab%e .it# you. 2s it .i%% not be &ossib%e to take a%% t#e customers to t#e .are#ouse to dis&%ay t#e 'urnitureD t#is can rea%%y .ork .e%% 'or your business. 9ou can a%so dis&%ay t#e &#otos o' a variety o' 'urnitureD @uantities avai%ab%eD simi%ar o&tions 'or t#eir se%ectionD co%orsD c#ar es 'or #ire as &er durationD etc. ,ave a rent ca%cu%ator .#ic# .i%% estimate t#e amount a customer .i%% #ave to &ay 'or a certain &iece o' 'urniture. I' you .antD you can acce&t on%ine bookin and &ayment as .e%%. "#is .i%% #e%& you et many c%ients. Sourcing the %urniture It is advisab%e t#at you et ood @ua%ity 'urniture 'or your business. For t#isD you can o&en an .#o%esa%e account .it# a .#o%esa%er to save cost as retai% out%ets .i%% c#ar e you #i #er. 9ou can a%so o 'or c#ea& 'urniture avai%ab%e on on%ine .ebsites. ,o.everD i' you are &%annin to et second#and 'urnitureD ensure t#at it %ooks ood and is in a &ro&er condition. 9ou can a%so &o%is# it at #ome so t#at it %ooks ne.. ,o.everD donFt s&end on somet#in t#at %ooks usedD tatteredD and #as stains on it. $eo&%e .i%% never &ay you a ood amount i' you o''er 'urniture t#at is be%o. &ar in @ua%ity. Check the urniture Once t#e 'urniture comes back in your &ossession a'ter you #ad %et it out 'or a &eriod o' timeD conduct a t#orou # c#eck. I' you 'ind t#at t#e renterFs cat #as c%a.ed on t#e %eat#er so'a or i' t#e c#airs #ave bevera e stains on t#emD do c#ar e t#e renter 'or a%% t#is dama e. 2%soD c#eck

a%% t#e .ood and meta%%ic .orks o' t#e 'urniture as &eo&%e tend to stick t#e broken %e s o' c#airs to et#er .it# ad#esives. Scan your 'urniture t#orou #%y to s&ot any kind o' &rob%ems. I' you 'ind anyt#in is amissD s&oi%edD or dama edD &rom&t%y add it to t#e renterFs bi%%. 1acking 2t Once t#e 'urniture arrives backD you .i%% #ave to c%ean itD sanitiCe itD and .ra& it &ro&er%y 'or stora e. I' t#ere are any so'a covers t#at need %aundryD do not #esitate to s&end on t#em. 2 customer .i%% be im&ressed i' t#e 'urniture sme%%s ood and #as a Fjust out o' t#e storeF %ook. SoD do not 'or et to &acka e it accordin %y. I' you 'ind t#at any kind o' re&airs are re@uired 'or t#e 'urnitureD undertake t#em be'ore %easin it out a ain. Ensure t#at t#e 'urniture is s@ueaky c%ean be'ore you rent it out a ain. 0usiness expansion "#ere are many 'urniture renta% businesses t#at ado&t a rent-to-o.n mode% 'or rakin u& t#e &ro'it and are success'u% at it. 2'ter you enerate enou # revenueD &%an t#is transition &ro&er%y and venture in it to book more &ro'it. "#is a%so a%%o.s t#e renter to use t#e 'urniture and buy it .#en #e can a''ord it. ,o.everD ensure t#at &eo&%e .#o o&t 'or t#is sc#eme do buy t#e 'urniture a'ter rentin it 'or a substantia% &eriod. "#ere are many &eo&%e .#o &ick u& used 'urniture 'rom t#e side streets. ,o.everD t#ey are more cautious about ettin t#in s %ike 'utonsD couc#esD mattressesD etc.D 'rom random &%aces. ,enceD ensure t#at you a%so add t#ese to your business 'or increasin &ro'it. Cost Calculations 1et us su&&ose you #ave s&ent I3D--- buyin a so'a and you are c#ar in I3-- &er year 'or %easin it out. It .i%% mean t#at your initia% investment .i%% take 1- %on years 'or recoveryD so 'or et t#e &ro'it attac#ed .it# it. ,enceD in t#is caseD increase t#e c#ar es suc# t#at you .i%% book a ood amount o' &ro'it as .e%% as recover your investment amount @uicker. 2%soD i' you are ivin doorste& de%iveryD do not 'or et to add t#e %o istics c#ar es as .e%%. Bn%ike a cas# %oanD you cannot run a credit c#eck on a customer. SoD you are takin a #i #er amount o' risk. ,enceD &roactive%y try to et a certain #i #er amount as de&osit as it .i%% secure your 'urniture. 2%soD in case o' any dama e to t#e 'urniture by t#e customerD you can reduce t#ese c#ar es 'rom t#e de&osit. 1romoting Your 0usiness For &romotin t#e businessD re ister .it# various on%ine directories. 9ou can a%so advertise in ne.s&a&ersD directoriesD ma aCinesD etc. "ry to become a ((( member and et a ood rade. 2%soD uti%iCe your movin trucks 'or brandin . 2&art 'rom t#atD you can a%so take your business t#e socia% media .ay and &romote it.

1.3.3 Technical %easi*ility

2ntro(uction to urniture3making
"o t#ose .#o #ave eyes 'or venturin into t#is enjoyab%e activity o' 'urniture-makin D %et me s#are .it# you my vast ex&erience in t#is 'ie%d. I #ave been makin 'urniture 'or // years a%readyD #avin started .ay back in 1)0!. I #ad mana ed a 'urniture com&any in t#e Su%tanate o' Oman in 1)73. I am sti%% connected at &resent .it# a bi 'urniture 'irm #ere in Mani%aD $#i%i&&ines as a :enera% Mana er. I kno. everyt#in about t#is tradeD 'rom desi nin u& to servicin at t#e c%ientJs #ome. I started .it# t#is trade as an a&&renticeD t#en mac#ine o&eratorD t#en car&enterD t#en mana er. "o et started in 'urniture-makin D you s#ou%d #ave a very keen interest in it. It is not easy to make an e%e ant 'urniture &iece. It re@uires a ood car&entry ski%%. 8o not re%y on t#e mac#ines because t#ey are on%y t#ere to assist you. Mac#ines are on%y ood su&&ortersD but .it#out your exce%%ent ski%% in car&entry .orksD you cannot &roduce a very 'ine 'urniture &iece. O' courseD not a%% 'urniture items do re@uire s&%endid cra'tsmans#i&. H#at I am tryin to say are t#ose items .#ic# an ordinary morta% cannot &er'ect%y make. "#ese items inc%ude .ooden c#airs suc# as Kueen 2nneD Frenc# $rovincia%D ScandinavianD and ot#er #i #-end desi ns. Sim&%e 'urniture items %ike 'u%%y u&#o%stered so'aD books#e%vesD co''ee tab%esD are t#e best items to start .it# as t#ey do not ca%% 'or a very #i # ex&ertise. 2t any rateD you need t#e 'o%%o.in mac#ines to et started+

The 1orta*le Machines an( their importance

1orta*le Circular Sa&4 I cannot ima ine #o. a 'urniture item cou%d be created .it#out t#is mac#ine. *an you s&%it a .ood stock o'D sayD 17L %on by a #and sa.= 9esD .#y not= (ut #o. many #ours are you oin to do it= I' at a%%D is your cut &er'ect= It can be &er'ectedD .#y not= 9ou use #and &%ane to do t#atD but t#enD a ainD #o. muc# stren t# and time .i%% t#e .ork ca%%s 'or= "#is mac#ine is not very ex&ensive. "#e %ast &urc#ase I made .as .#en I su&ervised an interior 'inis#in .orks o' a mu%ti-nationa% cor&orate o''ice in a business district #ere in Mani%a. I ot it 'or $#&/D3-- on%yD (%ack A 8ecker brand. I donJt kno. its &rice in ot#er countries. I can on%y s&eak 'or my country. "#is mac#ine is very basic in enera% .ood.orkin . "#e muc# ex&ensive version o' t#is ty&e is t#e "ab%e Sa.D but you cannot easi%y trans'er it 'rom one &%ace to anot#erD un%ike t#e &ortab%e sa.. O' courseD t#ere is a bi di''erence bet.een t#e t.o inso'ar as t#e overa%% uses are concernedD but &rinci&a%%yD t#ey are o' t#e same im&ortance. "#is mac#ine comes in a variety o' mode%s and s&eci'ications. 9ou can c#oose t#e one t#at 'its your bud et. (utD remember t#is .#en you buy t#is mac#ine. 6ever o 'or an ordinary cuttin b%ade. 9ou MUST use a car*i(e3tippe( b%ade because it yie%ds a smoot# cut and you donJt #ave to s#ar&en it every time. S#ar&enin o' t#is kind o' b%ade is done "+,Y by a s#ar&enin mac#ine a%so. The 1orta*le 'rill+ "#is mac#ine is im&ortant not on%y in .ood.orksD but a%so in meta% .orks and %aCin .orks. I' you #ave t#is kind o' mac#ineD you can make com'ortab%y any .ood.ork or meta% .ork &rojects. "#e stationary version o' t#is ty&e o' mac#ine #as a t#ousand and one usesD aside 'rom its main &ur&ose o' dri%%in or borin #o%es. 8ri%% bits come in &%enty o' siCes t#at

you can c#oose 'rom. 2ny.ayD .#en you buy t#is mac#ineD various ty&es o' bits are inc%uded in t#e &acka e. Hit#out t#is mac#ine you cannot make &er'ect #o%es 'or scre.in &ur&osesD 'or exam&%e. 9ou can a%so use t#is mac#ine 'or makin mortises. 2%t#ou # you cannot make a &er'ect%y-s#a&ed mortise .it# t#is mac#ineD your .ork can be com&%emented by a c#ise% 'or t#e corners. "#is mac#ine is as versati%e a%so as t#e &ortab%e sa.. "#is is not a%so an ex&ensive mac#ine. It is c#ea&er t#an t#e &ortab%e sa. by as #i # as 3-E. 6ever make a 'urniture &iece i' you donJt #ave t#is mac#ine. The 1orta*le #outer+ "#is is t#e most ex&ensive mac#ine amon t#e &ortab%e mac#ines in 'urniture-makin . 2%t#ou # it is not as versati%e as t#e &ortab%e sa.D 'urniture-makin re@uires t#is mac#ine 'or ex@uisite resu%ts. One o' its many uses are mo%din .orks. I' you .ant to make a &er'ect dado or &er'ect rabbetD you s#ou%d #ave t#is kind o' mac#ine. "#e resu%t is veryD very c%ean and smoot#D .#at .it# its 2-D--- r&m. "#is is ex&ensive t#an t#e circu%ar sa. by as #i # as /--ED but you .i%% be #a&&y by its &er'ormance. I' your bud et is a %itt%e bit enerousD I advise you to e@ui& yourse%' .it# t#is mac#ine. 2 ainD remember t#is+ a%.ays use carbideti&&ed bits and b%ades.

1) tools to start *uil(ing up goo( %urniture

,and too%s are ex&ensive and t#e &ros&ect o' buyin everyt#in you need to start bui%din 'ine 'urniture can be over.#e%min . "#e ood ne.s is t#at you donJt need every too% youJve been to%d you needD and you donJt #ave to &ay as muc# as you mi #t t#ink. (y 'o%%o.in t#is %istD and a 'e. uidin &rinci&%esD you can #ave a%% t#e essentia% too%s on a reasonab%e bud etD and in t#e endD youJ%% be a better .ood.orker. H#en I decided to bui%d 'ine 'urnitureD I o.ned a 'ramin #ammerD a ta&e measure and some misce%%aneous too%s 'rom t#e t.o summers I s&ent bui%din #omes. ,avin just raduated 'rom universityD 'inances .ere ti #t. I kne. I #ad to nicke%-and-dime my .ay to an ade@uate too% kitD and no. t#at IJve done itD IJm #a&&y I did. It ensured t#at I bou #t on%y .#at I needed and s&endin more time .it# 'e.er too%s #e%&ed me deve%o& my #and-too% ski%%s. I bou #t used too%s .#en I cou%dD 'orcin me to s&end a reat dea% o' time restorin D tunin D %a&&in D and s#ar&enin . "#e more time I s&ent .it# eac# too%D t#e more com'ortab%e I become usin itD and t#e better my resu%ts .ere at t#e benc#. I made sure t#at I on%y &urc#ased a %o.er @ua%ity too% i'D t#rou # a %itt%e extra e''ort or some minor adjustmentsD it cou%d ac#ieve t#e same resu%ts as a #i #er @ua%ity too%. In a 'e. s#ort mont#s I #ad amassed t#e #and too%s I needed. H#i%e my kit #as ex&andedD I sti%% turn to t#ese too%s 'or t#e majority o' my .ork.

0evel3up5 ,o&3!ngle 6ack 1lane

2s its name su estsD t#is &%ane is extreme%y versati%eD so t#ere is no need to rus# out and buy a bunc# o' &%anes. Hit# a cou&%e o' extra b%adesD it becomes even more versati%e. $ut in a #i #-an %e b%ade to '%atten and smoot# boards .it# unru%y rain. $ut in a %o.-an %e b%ade and &air it .it# a s#ootin board to take &er'ect end- rain s#avin s.

0lock 1lane

I su est buyin a %ess ex&ensive &%ane and s.a&&in t#e stock b%ade 'or a t#icker re&%acement. "#e t#icker b%ade .i%% reduce c#atter and t#e #i #er @ua%ity stee% .i%% maintain a better ed e. 2 %ess ex&ensive &%ane .i%% re@uire more time to '%atten t#e so%eD but youJ%% #ave a #i # &er'ormance too% 'or #a%' t#e &rice. IJve been usin a 'u%%y adjustab%e %o.-an %e Stan%ey b%ock &%ane .it# a ,ock re&%acement b%ade 'or t#e %ast year. "#e &%aneJs adjustment mec#anism re@uires a %itt%e more "1* t#an a Meritas or 1ie-6ie%senD but it can cut just as .e%%.

Small /ammer

2 sma%% ! oC or 7 oC Na&anese &%ane #ammer isnJt &er'ect 'or every jobD but itJs &retty ood at common tasks %ike c#o&&in dovetai%sD adjustin &%anes or drivin sma%% 'inis#in nai%s. Once youJve deve%o&ed your ski%%s and an understandin o' t#e ty&e o' .ork you %ike to doD you may be inc%ined to buy some more s&ecia%iCed #ammers. My on%y ot#er #ammer is a turned a&&%e.ood ma%%et iven to me by a 'riend.

0evel3E(ge Chisels

2 'u%% set o' beve%-ed e c#ise%s is ood to #ave andD i' you c#o& mortises by #andD mortisin c#ise%s are de'inite%y t#e best too% 'or t#e job. $ractica%%y s&eakin D most o' your mortise and tenons .i%% be cut .it# mac#ines. H#en 'ittin joinery by #andD most tasks can be done .it# a 1</OD 1<2OD or 1O c#ise%D and you can desi n your 'u%%y #and-cut joinery to use t#e too%s you #ave. "#ere is no need to make a 3<10O tenon .#ere a 1</O .i%% do. 2c@uirin c#ise%s is a reat o&&ortunity to buy used. 6ot on%y .i%% you save some moneyD but t#e @ua%ity o' stee%

.i%% be 'ar better t#an t#at o' your avera e #ome im&rovement brand. 9ou may a%so et %ucky %ike I did one co%d Sunday mornin at an estate auction .#en I &urc#ased a set o' o%d S.edis# (er c#ise%s 'or ;s.33-.

.ater Stones

(e'ore you set meta% to .ood you need to be ab%e to s#ar&en your too%s. "#ere is a reat debate about .#at ty&e o' s#ar&enin stones are bestD but i' you arenJt a&t at s#ar&enin D ettin cau #t u& in t#at ar ument .i%% on%y #inder your &ro ress. 2 combination 7--x</---x .ater stone is an e''ective and a''ordab%e o&tion to et your too%s u& and runnin .

37 Engineer8s S9uare

"#is is my too% o' c#oice 'or %ayin out joinery. 2 sma%% s@uare is more mana eab%e .#en markin a sma%% %ine on a sma%% &art. I' t#e s@uare is muc# bi er t#an t#e &art you are markin D it can become c#a%%en in to #o%d it in &%ace to mark a c%eanD accurate %ine. 9ou .ant to be con'ident in t#e accuracy o' your too%sD so buy t#e best you can a''ord and avoid buyin usedD as t#ere is a ood c#ance a used s@uare #as been dro&&ed.

1ocket S9uare

"#e &ocket s@uare is %ar e enou # 'or t#e measurements .e need most 're@uent%yD %ike c#eckin materia% t#ickness and sma%% enou # to 'it in your &ocket so youJre never .it#out it in t#e s#o&. ItJs a%so reat 'or settin u& mac#ines because you can c#eck 'or s@uare and de&t# o' cut .it#out c#an in too%s. H#i%e it may seem ex&ensive 'or suc# a sim&%e &iece o' meta%D itJs c#ea&er t#an a sma%% combination s@uare and it is made to t#e to%erances o' an en ineerJs s@uare. "#is too% .i%% save you %ots o' timeD ener y and 'rustration.

1)7 Com*ination S9uare

In rea%ityD t#is s@uare can do t#e job o' t#e en ineer s@uareD t#e &ocket s@uare and more. Its '%at cast iron #ead means it can act as a substitute 'or an en ineer s@uareD and t#e 12O ru%e means you can measure and mark .ork beyond t#e siCe o' a &ocket s@uare. F%i& t#e too% around to accurate%y 'ind a /3P an %e 'or mitre .orkD or use t#e strai #t ed e o' t#e ru%e to c#eck t#e '%atness o' a board. 2 ainD donJt try and save by buyin an inex&ensive or used s@uare as it .i%% cost you in t#e %on run.

.heel Marking -auge

2 standard .#ee% markin au e .i%% make c%eanD accurate re'erence marks. ItJs a%so reat 'or trans'errin measurements 4%ike t#e de&t# o' a mortise5. "#ey are not ex&ensive and t#ereJs no need to s#e%% out t#e extra cas# 'or one .it# a%% t#e be%%s and .#ist%es.

:7 Sli(ing 0evel -auge

I' you .ant to do any .ork .it# an %es 4and you do5D t#en you need a s%idin beve% au e. "#ey #e%& you %ayout dovetai%s and %et you trans'er an %es to and 'rom dra.in sD mac#inesD and &arts. 2 c#ea& beve% au e is #arder to set accurate%y and .i%% inevitab%y %oosen u& .#en you need it mostD so t#is is anot#er too% .ort# s&endin a %itt%e extra on.

Car( Scraper

Inex&ensive and inva%uab%eD t#is too% is a necessity .#en .orkin .it# curved &artsD tricky rainD and veneer. ItJs im&ortant to %earn #o. to &ut a consistent burr on t#e scra&erD and t#is can o'ten deter be inners 'rom usin itD but once you canD youJ%% save #ours o' sandin and o&en u& a .or%d o' ne. desi n &ossibi%ities. 6e.D usedD or #omemadeD t#ey arenJt oin to b%o. your bud et.

Mill30astar( ile

Fi%es are extreme%y use'u%D #e%&in to s#a&e &artsD s#ar&en scra&ersD and round over tenons. 9ou .i%% inevitab%y co%%ect a variety o' 'i%esD but t#e o#-so-avera e Qmi%%-bastardL is a ood &%ace to start. "#e Qmi%%L re'ers to its s#a&e and sin %e-cut &ara%%e% ro.s o' teet#D .#i%e t#e QbastardL means t#e cut is bet.een rou # and smoot#.

1ro(uct Manu%acturing 1rocess

Hood is cut into di''erent siCes o' b%ocks and s%abs. I' t#e .ood &urc#ased is not seasoned t#an t#ese b%ocks<s%ices are seasoned t#rou # di''erent &rocessesD name%y+ *ondensation (oi%er System Macuum System Seasonin t#rou # &uttin t#e .ood s%ices under norma% environmenta% tem&erature 'or considerab%e duration. (e'ore start o' manu'acturin o' any 'urniture &roduct a desired desi n is se%ected. Se%ection o' e%e ant desi n is im&ortant to ensure attractive 'inis#ed &roduct. "#e seasoned .ood b%ocks are cut into desired s#a&e and s%ices accordin to t#e re@uirement o' desi n. "#e s%ices o' .ood are mo%ded into t#e desired s#a&e accordin to t#e desi n. *arvin means di''erent e%e ant &attern carved in t#e .ood. Kua%ity o' carvin de&ends on t#e ski%%s o' t#e %abor. Once t#e di''erent &ieces are carved A mo%ded t#an t#ese &arts<&ieces are assemb%ed or 'ixed to et#er to ive t#e s#a&e to t#e 'ina% &roduct. 2ssemb%ed &roduct is rind to make t#e sur'ace smoot#. Once t#e sur'ace is smoot#D 'inis#in materia% is a&&%ied to make t#e sur'ace ready 'or &aint or &o%is#. 2'ter t#e base is &re&ared 'ina% 'inis#in is a&&%ied de&endin on re@uirement in term o' &aint<&o%is#. B&#o%stery o' 'abric is carried out accordin re@uirement o' desi n.

'istri*ution ; Marketing Channels "#ou # t#e demand 'or .ooden 'urniture in domestic market is &ersistent t#rou #out t#e yearD but it si ni'icant%y increases durin t#e &eriod o' October to Marc# because o' t#e .eddin season. "#e demand 'or t#e 'urniture a%most doub%es durin t#is &eriod. ,enceD t#e &rimetime to enter into market is start o' 2u ust. (i%%boardsD ;adioD F.M *#anne%sD and 6e.s&a&ers are t#e conventiona% mediumsD .#ic# #ave been &o.er'u%%y used 'or t#e &romotion o' &roducts

1.< S."T !nalysis4

Hood is t#e main ra. materia% used in 'urniture makin and t#e entire 'inis#ed &roduct de&ends on @ua%ity o' .ood. "#e in'ormation and tec#nica% kno. #o. about t#e @ua%ity o' .ood and use o' seasoned 4dry5 .ood &%ays a vita% ro%e in t#e manu'acturin o' ood @ua%ity 'urnitureD .#ic# .i%% u%timate%y re'%ect on t#e re&utation o' t#e 'urniture s#o. room. Stron com&etition exists in t#e internationa% and domestic market. Manu'acturin and sa%e o' #i # @ua%ity trendy desi ns and ood marketin is essentia% to et a &ermanent &%ace in t#e market. ;ea% .ood 'urniture is t#e most &o&u%ar 'urniture in existenceG itFs been around 'or #undreds o' years. (e'ore makin t#e decisionD .#et#er to invest in settin u& t#e Furniture S#o. ;oom or notD one s#ou%d care'u%%y ana%yCe t#e associated risk 'actors. 2 SHO" ana%ysis can #e%& in ana%yCin t#ese 'actorsD .#ic# can &%ay an im&ortant ro%e in makin t#e decision. 1.<.1 Strengths 1. 2vai%abi%ity o' #i # @ua%ity 'urniture to customers 2. Mariety o' traditiona% and modern desi ns o' %oca%%y manu'actured 'urniture .i%% be avai%ab%e in t#e s#o.room. 3. 2 number o' su&&%iers avai%ab%e in t#e %oca% marketD 'or instance t#e *#iniot and :ujrat 'urniture market. /. $ro'it mar ins can be as #i # as 1--E 3. *entra% %ocation o' t#e s#o.room in a bi cityD easi%y accessib%e to t#e tar et market. 0. "#e s#o.room is &ro&osed to be o&en 11 #ours a day. !. 2 &roduct mix t#at inc%udes 'urniture 'or bot# #ouse#o%d and o''icia% use. 1.<.) .eaknesses 1. 2 number o' com&etitors in t#e market. 2. Easy market entry 3. Seasona% sector 4es&ecia%%y #ouse#o%d 'urniture in t#e .eddin season R 6ovember to Marc#5. /. ,eavy investment in t#e .orkin ca&ita%. 3. Mery strict @ua%ity c#eck re@uired. 0. 8e&endency on t#e su&&%ier 'or time%y de%ivery o' orders. 1.<.3 "pportunities 1. ,i # @ua%ity 'urniture bein &roduced %oca%%y at com&etitive rates and in %ar e @uantities. 2. "#e %i'e sty%e o' t#e &eo&%e is im&rovin and t#ey are ettin more @ua%ity consciousD t#us &re'erence 'or t#e #i # @ua%ity &roducts is increasin . 3. Hit# an overa%% increase in income %eve%s &eo&%e are .i%%in to s&end more on #ouse renovation and decoration. /. *ontinuous increase in construction and renovation o' #ouses and o''ices create ne. o&&ortunities. 3. Market s#are can be ac@uired 'rom un-or aniCed sector t#rou # #i # @ua%ity &roduct and &romotiona% activity.

1.<.< Threats 1. 1ack o' tree &%antation resu%ted in %ack o' ra. materia% 4.ood.5 2. "#e &rices o' a%% ra. materia%s suc# as c#i&boardD timberD 'oamD &o%is# c#emica% materia%sD co%our &aints and #ard .are #ave increased 3. ,eavy im&orts o' 'urniture &articu%ar%y 'rom *#ina /. 1oca% 'urniture manu'acturers 'ace #i # costs and &oor out&ut due to obso%ete mac#ineryD inade@uate too%s and manua% %abour. 3. Furniture trends and desi ns c#an e ra&id%y. 0. Severa% estab%is#ed com&etitors enjoy a ood market s#are.

1.= /2ST"#2C!, 'E>E,"1ME+T " #E,!T2"+S

0!+-,!'ES/32+'2! T#!'E

(an %ades# and India si ned t#e Q"reaty o' Friends#i&D *oo&eration and $eaceL on Marc#1)D1)!2 in 8#aka 'or 23 years. O.in to t#is treatyD bot# countries si ned t#e 'irst one-year trade a reement on Marc# 27D 1)!2. In t#e a reementD 'is#D ra. juteD ne.s&rint and na&#t#a .ere identi'ied as t#e &rinci&%e ex&orts o' (an %ades# to India. IndiaJs major ex&ort items to (an %ades#D on t#e ot#er #andD .ere cementD coa%D mac#inery and unmanu'actured tobacco. "#e trade bet.een t#e nations .as %imited to overnment %eve% 4MadaanD 1))05. "#is a reement a%so &rovided border trade bet.een (an %ades# and 6ei #borin Indian statesG and .it#in 10 ki%ometers o' bot# countriesJ borderD 'ree trade .as a%%o.ed 'or certain commodities. "#e ex&ected %eve% o' trade .as not ac#ieved under t#e 'irst trade a reement. 2%so 'ree border trade bet.een (an %ades# and India %ed to some i%%e a% trade and #ence .as abo%is#ed in October 1)!2 by mutua% consent o' t#e bot# overnments. ,o.everD to attain t#e desired %eve% o' tradeD t#e 'irst trade a reement .as 'urt#er extended u& to Se&tember 2!D 1)!3 4MadaanD 1))05. "#e 'irst trade a reement o' 1)!2 .as re&%aced by anot#er trade a reement 'or t#ree years. "#is a reement .as si ned on 3 Nu%y 1)!3 and became e''ective 'rom 27 Se&tember 1)!3. ;a. juteD 'is#D ne.s&rintD etc .ere identi'ied as major ex&ortab%e items o' (an %ades# to India. On t#e ot#er #andD major ex&orts o' India to (an %ades# .ere unmanu'actured tobaccoD cementD coa%D ra. cottonD cotton yarnD cotton texti%es and books. "#is a reement &rovided 'or a system o' (a%anced "rade and $ayment 2rran ement 4("$25 and Smost 'avored nations treatmentJ to eac# ot#er 4MadaanD1))0G ,assanD 2--25. "#e desired %eve% o' trade bet.een t#e t.o nations .as not ac#ieved by t#e a reement o' 1)!3D and trade imba%ance increased in t#e very 'irst year. ;u&ee trade .as 'ound to be a barrier in t#e bi%atera% tradeD and t#us abo%is#ed ru&ee trade 'rom 1 Nanuary 1)!3 by a $rotoco% si ned on 1! 8ecember 1)!/. It .as decided t#at trade .ou%d be conducted in 'ree convertib%e currency. India and (an %ades# si ned anot#er trade $rotoco% on 12 Nanuary 1)!0 'or #i #er vo%ume o' trade and %on -term arran ements 'or trade o' coa% and ne.s&rint. ("$2 bet.een (an %ades# and India .as extended 'or anot#er t#ree years ti%% 2! Se&tember 1)!) on 3 October 1)!0. On / October 1)7-D t#e t#ird trade a reement .as si ned bet.een t#ese t.o nations initia%%y 'or t#ree years. (y mutua% consentD t#is a reement .as extendab%e 'or anot#er 3 years. On 7 6ovember 1)73D (an %ades# and India rene.ed a $rotoco% on trade o' 1)7- 'or 'urt#er t#ree years. In May 1)70D t#e trade a reement o' 1)73 .as extended 'or anot#er t#ree years ti%% 3 October 1)7). Subse@uent%y t#is a reement .as rene.ed a number o' times. (ased on avai%ab%e in'ormationD t#is a reement .as va%id u& to 3 October 2--1.

1.=.1 T#E+'5 ST#UCTU#E !+' CU##E+T 12CTU#E " 0!+-,!'ES/3 2+'2! T#!'E One o' t#e im&ortant 'eatures o' (an %ades#- India bi%atera% trade to be mentioned is t#at a %ar e vo%ume o' in'orma% or unrecorded tradeD bot# in commodities and servicesD occurs every yearD and it is ro.in des&ite uni%atera% or re iona% or mu%ti%atera% trade %ibera%iCation in t#ese t.o countries 4$o#it and "anejaD 2--3G Eusu'CaiD 2---5. "#e o''icia% data on trade in services bet.een t#ese nations areD in 'actD not avai%ab%e at a%%. Bnder t#is situation o' data &aucity .it# re ard to i%%e a% trade and trade in servicesD our current ana%ysis .i%% de&end on most%y on t#e o''icia% trade data in commodities. In t#is sectionD data on trendD structure and current state o' (an %ades#-India trade are &resented. 2ttention is &aid on overa%% trade re%ations#i&G s&ecia% re'erence is to be made to examine t#e im&ortance o' (an %ades# - India trade in t#e context o' S22;* as .e%% as individua% country. (an %ades#Js #istorica% trade de'icit .it# India and t#e commodity com&osition o' (an %ades#-India trade over time are a%so examined. 0angla(esh32n(ia Tra(e in S!!#C 1erspective "#e combined s#are o' (an %ades# and India in t#e S22;* trade demonstrates t#eir im&ortance and #i # in'%uence in t#e re iona% trade. "ab%e 1 s#o.s t#at t#e trade s#are o' bot# countries .as 30.23 &ercent o' t#e intra-S22;* trade in 1))-. "#is s#are increased to 0).!1 &ercent in 1))3 and 0/.3 &ercent in 2--2. IndiaJs s#are isD more or %essD doub%e o' (an %ades#Js s#are in intra- S22;* trade .it# %imited exce&tions 'or some years. ,o.everD IndiaJs ex&ort s#are is muc# #i #er t#an im&ort s#are in t#e re iona% trade. On t#e ot#er #andD (an %ades#Js &osition is o&&ositeG its im&orts s#are is muc# #i #er t#an ex&ort s#are in t#e S22;* re ion

1.=.) The 2mportance o% 2n(ia in 0angla(esh8s Tra(e

India &%ays an im&ortant ro%e in (an %ades#Js trade since t#e inde&endenceD and recent%yD es&ecia%%y in 1))-sD (an %ades#Js trade .it# India increased tremendous%y. "#e "ab%e / com&ares t#e ro.t# rates o' (an %ades#Js trade .it# IndiaD S22;* countries and .or%d 'or se%ected years 'rom 1)7-. It is observed 'rom t#e tab%e t#at t#e avera e annua% ro.t# rates o' (an %ades#Js trade .it# IndiaD durin 1)7- to 1))3D .ere muc# #i #er t#an t#ose .it# t#e S22;* and t#e .or%d. For exam&%eD durin 1)7-- 73D .#i%e avera e annua% ro.t# rates o' (an %ades#Js trade .it# t#e Hor%d and S22;* countriesD .ere 2./0 &er cent and R-.11 &er cent res&ective%yD t#is 'i ure .as ).!2 &er cent .it# India. 8urin 1)73)- t#e ro.t# rates .it# t#e .or%dD S22;* countries and India .ere !.)/D 17.07 and 2-.03 &er cent res&ective%y. "#e ro.t# rate o' trade .it# India increased very si ni'icant%y durin 1))--)3. H#i%e t#e ro.t# rates .it# t#e .or%d and S22;* countries .ere 10.!- and 3!.73 &ercent res&ective%yD t#e ro.t# rate .it# India .as 7!.2) &er cent. "#ou # t#e ro.t# rates .it# S22;* countries and India .ere s%i #t%y ne ative durin 1))3-2---D t#ose 'i ures turns into convincin %y &ositive in 2--1. "#e overa%% ro.t# &er'ormance .as ne ative in 2--2 'o%%o.in t#e Se&tember 11 incident in 2--1 in t#e BS2. ,o.everD (an %ades#Js trade ot momentum in 2--3 .it# a%% noted destinations. In t#e context o' (an %ades#Js %oba% trade t#ou # IndiaJs s#are is not convincin %y #i #D it may be mentioned t#at t#e in'%uence o' India on (an %ades#Js trade #as been increasin

over t#e years. From t#e "ab%e 3D it is observed t#at IndiaJs s#are in (an %ades#Js %oba% trade #as increased to 1-.! &ercent in 1))3 'rom 3.0 &ercent in 1))-. "#ou # t#is s#are #as s%i #t%y decreased in recent yearsD it is sti%% a%most 1- &ercent. "#e im&ortant 'eature is t#at t#ou # IndiaJs s#are in (an %ades#Js %oba% im&ort #as been increasin over t#e yearsD IndiaJs contribution in (an %ades#Js %oba% ex&orts #as been s#rinkin . For exam&%eD IndiaJs s#are in (an %ades#Js %oba% im&ort increased to 13.3 &ercent in 2--3 'rom /.! &ercent in 1))-. On t#e ot#er #andD .it# re ard to ex&ortsD t#is s#are decreased to -.! &ercent 'rom 1.3 &ercent durin t#e same &eriod. 2s &er as (an %ades#Js trade .it# t#e S22;* countries is concernedD India certain%y #o%ds an im&ortant &ositionD and over t#e years its dominance #as been increasin . India &rovided .it# t#e )/.1 &ercent o' (an %ades#Js im&orts 'rom t#e S22;* countries in 2--3. IndiaJs contribution to (an %ades#Js ex&orts to S22;* countries increased to 33.3 &ercent in 2--3 'rom 30.0 &ercent in 1))-. IndiaJs s#are in (an %ades#Js tota% trade .it# t#e S22;* countries increased 'rom 0-.0 &ercent to )1.! &ercent durin t#e same &eriod o' time. "#e im&ortance o' India as t#e source o' (an %ades#Js im&orts can be .e%% understood by t#e "ab%e 0. (ased on o''icia% trade data on%yD India .as t#e 'ourt# %ar est im&ortin source 'or (an %ades# in 1))- just a'ter Na&anD Sin a&ore and t#e BS2. I' uno''icia% trade .ere taken into accountD IndiaJs &osition .ou%d be #i #er. "#e tab%e a%so revea%s t#at India to&&ed t#e %ist 'or (an %ades#Js im&orts in 1))3D and since t#en India continued to maintain t#e %ar est im&ortin source 'or (an %ades#.

1.=.3 The 2mportance o% 0angla(esh in 2n(ia8s Tra(e

"#e im&ortance o' (an %ades# to IndiaJs trade can a%so be examined. (an %ades#Js contribution to IndiaJs %oba% trade .as -.!/E in 1))-. In 1))3D t#is s#are rose to 1.3) &ercent. 2'ter t#atD t#ou # t#is 'i ure decreased mar ina%%yD it .as sti%% 1.13 &ercent in 2--3. "#is is t#e o''icia% record o' tradeG i' uno''icia% trade .ere a%so consideredD t#is ratio .ou%d be doub%e or even more. Hit# re ard to ex&ortsD (an %ades#Js contribution to IndiaJs %oba% ex&orts is si ni'icant. In 1))-D IndiaJs ex&orts to (an %ades# .as 2)! mi%%ion i.e. 1.0! &ercent o' IndiaJs %oba% ex&orts. Hit#in 3 years o' timeD i.e. in 1))3D t#is ratio increased to 3.1/ &ercent. In 2--2 and 2--3D (an %ades#Js s#are in IndiaJs %oba% ex&orts .as 2.11 and 2./2 &ercent res&ective%y. 2s &er as im&ort o' India is concernedD India im&orted 'rom (an %ades# on%y -.-0 &ercent o' its %oba% im&orts in 1))-. "#is ratio .as more or %ess t#e same over t#e years exce&t in 1))3 and 2--1 .#en it rose to -.23 &ercent and -.13 &ercent res&ective%y. In t#e context o' IndiaJs trade .it# t#e S22;* countriesD (an %ades#Js contribution is si ni'icant. (an %ades# constituted /-.)1 &ercent o' IndiaJs tota% trade .it# t#e S22;* countries in 2--3. In 1))- and 1))3D t#is ratio .as 33./2 and 3).0/ &ercent res&ective%y. (an %ades#Js s#are o' IndiaJs ex&orts to S22;* countries .as /).0/ &er cent in 2--3. In

2--2D it .as 32.3! &ercent. In 1))- and 1))3D t#is ratio .as even #i #erD 0-.)7 and 02.1! &ercent res&ective%y. ,o.everD (an %ades#Js s#are o' IndiaJs im&orts 'rom S22;* countries .as not convincin G it .as on%y 7./2 &ercent in 2--3. "#e im&ortance o' (an %ades# 'or IndiaJs ex&ort market can 'urt#er be rea%iCed 'rom t#e "ab%e 7. It is observed t#at IndiaJs %ar est ex&ort market in t#e S22;* re ion is (an %ades# at a%% t#e time. The 0alance o% Tra(e o% 0angla(esh &ith 2n(ia "#e bi%atera% trade situation bet.een (an %ades# and India 'or 31 yearsD 1)!3-2--3. "#ese 'i ures c%ear%y indicate t#e un'avorab%e trade ba%ance o' (an %ades# .it# India. In 1))-sD es&ecia%%y in t#e 2nd #a%' o' t#e decadeD trade de'icit o' (an %ades# increased very s#ar&%y. In 2--3D t#e trade de'icit reac#ed to BSI 1D /33.) mi%%ionD .#ic# is about / times #i #erD com&ared to 1))3D and more t#an /0 times #i #er com&ared to 1)73. "#e va%ue o' ex&orts com&ared to t#at o' im&orts is a%.ays @uite %o.D and in 2--2 and 2--3D it .as 3./ and 3.0 &ercent res&ective%y. "#is is rea%%y a disa&&ointin &icture 'or (an %ades#Js bi%atera% trade 'inancin asD accordin to economic t#eoryD countryJs ex&orts are to be used to &ay 'or its im&orts. "#ou # t#e ex&ort-im&ort re%ations#i& s#ou%d be %ooked at t#e .or%d trade %eve% rat#er t#an bi%atera% %eve%D yet t#is trade imba%ance sti%% #as some economic and &o%itica% im&%ications 'or (an %ades#. Tra(e Structure o% 0angla(esh &ith 2n(ia (an %ades#Js ex&orts to India are #i #%y concentrated to a 'e. items. "ab%e 1demonstrates t#at t#e countryJs major countab%e ex&ort items .ere on%y six in F9 1))/F91))0. In 'actD in F9 1))0 on%y 3 items- c#emica% 'erti%iCerD ra. jute and 'roCen 'is#constituted about )- &ercent o' (an %ades#Js ex&orts to India. ,o.everD 'erti%iCer and ne.s&rint are sometimes ex&ort items and sometimes im&ort items de&endin on domestic &roduction 4Eusu'CaiD 2---5. On t#e ot#er #andD IndiaJs ex&orts to (an %ades# are more diversi'iedD and ex&ort-base is si ni'icant%y .ide. It is observed 'rom "ab%e 11 t#at (an %ades# c%assi'ied a tota% number o' 3)73 items 'or im&orts in t#e First Im&ort Sc#edu%e at 7-di it ,.S. *ode %eve%. Out o' 3)73 itemsD in F9 1))0D (an %ades#Js im&orts 'rom t#e .or%d .ere /0-1 items o' .#ic# 212) items .ere 'rom India a%one. In terms o' number o' commodities im&orted 'rom IndiaD IndiaJs contribution to (an %ades#Js %oba% im&orts .as /!.7D /3.7 and /0.3 &ercent res&ective%y in F9)/D F9 )3 and F9 )0. "#e data on t#e im&orts com&osition o' (an %ades# 'rom India 'or se%ected years durin F9 1)7- to F9 1))0. It is evident 'rom t#e tab%e t#at (an %ades#Js major im&orts items 'rom India are ve etab%e &roductsD texti%e and texti%e artic%esD mac#inery and trans&ort e@ui&mentsD c#emica% and a%%ied &roductsD minera% &roductsD and base meta%s. Examinin t#e data o' F9 1))0 .e see t#at ve etab%e &roducts constituted 30.0/ &ercent o' tota% im&orts o' .#ic# cerea%s a%one accounted 'or 33.2/ &ercent. "#e second %ar est im&ort cate ory .as t#e texti%e and texti%e artic%esD .#ic# constituted 2!./3 &ercent o' tota% im&orts. "#is cate oryJs rank .as t#e 'irst in F9 1))1D F9 1))/ and F9 1))3. More t#an 3- &ercent o' tota% im&orts 'rom India .ere under t#is cate ory in F9 1))1. Observin data 'or %ast t#ree years it is revea%ed t#at texti%e and texti%e re%ated artic%es &%us t#e mac#inery and trans&ort re%ated e@ui&ment constituted 'or rou #%y /) &ercent o' tota%

im&orts 'rom India. "#us (an %ades#Js tota% o''icia% im&orts consist o' si ni'icant &ortion SintermediateJ in&uts.

1.=.< 1#"0,EMS 2M0!,!+CE

C!US2+-

2+'"30!+-,!'ES/

T#!'E

2%t#ou # t#e trade de'icit .it# a &articu%ar country is not bad i' t#e over a%% trade ba%ance is satis'actoryD yet 'rom t#e distribution as&ect o' trade &o%icies 4t#e distribution o' bene'its and costs amon rou&s o' &roducers and rou&s o' consumers5 t#e ro.in trade de'icit .it# India is a reat concern 'or (an %ades#. (an %ades#Js 'ear is t#at i' t#is de'icit continuesD (an %ades# .i%% be de&endent on%y on a 'e. &roducts 'or its ex&ortsD and im&orts 'rom India dis&%ace domestic &roduction to suc# an extent as to de-industria%iCe (an %ades#. 2s a resu%tD it is ar uedD a severe &o%ariCation in (an %ades# and #i # %eve%s o' unem&%oyment .i%% occur. "#ere'oreD increasin trade de'icit .it# India is a &rob%emD and attem&ts are made #ere to 'ind out t#e causes o' t#is &rob%em. 0ilateral Exchange #ate (i%atera% exc#an e rates bet.een (an %ades# and India durin 1)70 to 1))) #ave been &resented in "ab%e 13 in order to ex&%ore t#e dynamics under%yin t#is ex&ansion o' trade imba%ance bet.een t#ese t.o countries. 2vai%ab%e data ex#ibit t#at t#e nomina% and rea% va%ues o' t#e (an %ades#Js "aka vis-T-vis t#e Indian ;u&ee #ave been a&&reciatin D .it# ne %i ib%e exce&tionsD over t#e years. "#is a&&reciation o' "akaD due to com&etitive de&reciation undertaken by t#e Indian monetary aut#oritiesD may #ave a si ni'icant &ositive e''ect on t#e increased trade de'icit o' (an %ades# .it# India. It is evident 'rom t#e tab%e t#at t#e nomina% exc#an e rateD "aka &er ;u&eeD #ad been continuous%y dec%inin ri #t 'rom 1)70 to 1))0. In 1))!D t#ou # it increased s%i #t%yD it started to dec%ine a ain 'rom 1))7. "#is dec%inin trend o' t#e exc#an e rate im&%ies t#at "aka #ad been a&&reciatin . In nomina% termD t#e exc#an e rate decreased to 1.1/- in 1))) 'rom 2./11 in 1)70 indicatin a 32.!1 &ercent a&&reciation o' (an %ades#Js "aka a ainst Indian ;u&ee durin 13 years o' time. "#e do.n.ard trend o' rea% exc#an e rate .as a%so observed 'rom t#e "ab%e 13. In rea% termD "aka a&&reciated 31.!2 &ercent a ainst Indian ;u&ee in 1))) com&ared to 1)70. 1ro(uctivity 2ssues an( Structural actors "#e &roductivity di''erences can a%so best ex&%ain trade &atterns bet.een countries. India #as &roductive advanta es bot# in a ricu%ture and industry com&ared to (an %ades# because o' sca%e economies 4Eusu'CaiD 2---5. Structura%%y Indian economy is muc# %ar erD more diversi'ied and tec#no%o ica%%y advanced. 2%so eo ra&#ica%%y India is very c%osed to (an %ades#D and (an %ades#Js im&orters are very 'ami%iar .it# Indian &roducts and &roduction ca&acities. 2%% t#ese 'actors #ave made Indian &roducts very com&etitiveD bot# in terms o' &rice and @ua%ityD in (an %ades#Js market 4,assan 2--25. 2s a resu%tD IndiaJs ex&orts to (an %ades# are more diversi'ied and consists o' #i # va%ue added manu'actured oods. On t#e ot#er #andD IndiaJs im&orts 'rom (an %ades# are %imited to a 'e. itemsD as (an %ades# does not #ave a %ar e su&&%y base to o''er a .ide variety o' &roducts to India. "#e obvious resu%t is an increase o' trade imba%ance bet.een t#e t.o nations.

Tari%% an( +on3Tari%% 0arriers It is enera%%y a reed t#at (an %ades# #as initiated t#e &ro ram o' tari'' %ibera%iCation ear%ier t#an India- in t#e mid 1)7-sD and t#e s&eed o' %ibera%iCation in (an %ades# is 'aster t#an t#at in India. (an %ades# #as continued t#is #i #er s&eed o' %ibera%iCation ti%% recent years 4;a#manD1))7G Eusu'CaiD 2---G 8as u&taD 2---5. "#is is evident 'rom t#e "ab%e 1/ and "ab%e 1/2D .#ic# s#o. a com&arison o' nomina% rates o' &rotection 4im&ort .ei #ted avera e and sim&%e avera e5 'or bot# countries. "#e tab%e s#o.s t#at (an %ades# s#ar&%y reduced its tari'' rates in a%% cate ories o' im&orts in 1))!-)7 com&ared to 1))--)13. (ot# un-.ei #ted and im&ort-.ei #ted tari'' rates #ave a%.ays been #i #er in India t#an in (an %ades#. 2%so si ni'icant @uantitative restrictions on consumer oods im&orts in India .ere in &%ace durin t#is &eriod. ;ecent%y Indian commoditiesD com&ared to t#e .or%dJs commoditiesD 'aces %o.er avera e tari'' restrictions in (an %ades#. "ab%e 13 com&ares t#e dynamics o' dec%ine in t#e avera e im&ort .ei #ted tari'' im&osed by (an %ades# on its im&orts 'rom t#e .or%d and India. It is observed t#at Indian im&orts 'aced a #i #er rate o' tari'' 431.10E5 com&ared to t#e .or%d avera e 42/.1/E5 in F9 1))2. ,o.everD im&ort .ei #ted tari''s on im&orts 'rom India .ere %o.er 412.-3E5 t#an t#at 'rom t#e .or%d 41!.33E5 by F9 1))0. "#is reverse scenario came because o' a%most 0- &er cent dec%ine o' im&ort .ei #ted tari'' rate bet.een F91))/ and F91))3 on im&orts 'rom India com&ared to 1/.!- &er cent dec%ine on im&orts 'rom t#e .or%d 4Eusu'CaiD 2---5. "#ere are many non-tari'' barriers 46"(s5 in India t#at (an %ades#i ex&orters are to 'ace to enter into Indian markets. In "ab%e 10D 'ive ty&es o' suc# 6"(s are mentioned t#at are im&osed on im&orts o' India. ;a#man 41))75 notes t#at t#ere are t#ousands o' items under t#ese 6"(sD and t#ere is %ack o' trans&arency and c%arity .it# re ard to a&&%ication o' t#ese 6"(s because customs aut#orities in India main%y a&&%y t#ese accordin to t#eir o.n discretion. "#ou # si ni'icant 'isca% re'orms took &%ace in t#e 1))-s in IndiaD trade &o%icy &ursued by t#e Indian overnment is sti%% considered as #i #%y com&%ex and restrictive. 2mon ot#er 6"(sD t#e ru%es o' ori in 4;OO5 issue and in'rastructura% bott%enecks deserve to be mentioned #ere 'or #u e trade de'icit o' (an %ades# .it# India. 2ccordin to S2$"2 a reementD %oca% content in t#e ex&orted oods #as to be at %east 3-E o' '.o.b. va%ue o' t#e &roduct in order to receive &re'erentia% treatment < tari'' concession 4;a#man 1))75. 2s t#e manu'acturin base o' (an %ades# is not stron enou # as IndiaD t#is ;OO criterion %imits t#e ex&ort ex&ansion o' (an %ades# to India. "#is is &articu%ar%y true 'or ex&orts o' some cosmetic oods and toi%etriesD .#ere (an %ades# #as ac#ieved notab%e ex&ertiseD and India #as a #u e market 'or t#is kind o' &roducts. Inade@uate in'rastructure in (an %ades# a%so im&oses sever %imitations on trade ex&ansion .it# India. "#ere is severe %ack o' 'aci%ities o' in'rastructure in a%% %and-routesD exce&t (ena&o%e. Severe %imitations a%so exist in stora e 'aci%ities. 2s a resu%tD en#ancin ex&orts 'rom (an %ades# to India is bein constrained.

1.=.= 1ro(uctive Capacity an( Economic E%%iciency

"#e &roduction ca&acity and economic e''iciency o' (an %ades# must increase in order to meet t#e countryJs ro.in demand 'or im&ortab%e oods and maximiCe t#e ex&ort earnin s. In t#e major economic sectorsD e''icient im&ort-substitutin activities must increase a%on .it# continuous im&rovement o' economic e''iciency and com&etitiveness .it#in an o&en economic environment. ,u e ex&ortab%e sur&%us are to be enerated and ex&orts must be diversi'ied takin Indian demand re@uirements into account. (an %ades# must earn re%ative e''iciency in t#e &roduction o' ex&ortab%e oods and services to reduce #er trade de'icit. "o ain 'rom bi%atera% tradeD t#ere is no a%ternative but to increase t#e &roductivity in a%% sectors as a %on run measure. For t#is &ur&oseD (an %ades#Js a ricu%ture sector ur ent%y needs a tec#no%o ica% s&urt. More researc# and deve%o&mentD trans'er o' tec#no%o iesD market based e''ective &rice system and a&&ro&riate incentive mec#anisms are very im&ortant to en#ance t#e countryJs a ricu%tura% &roductivity. "o increase t#e &roductivity in t#e industria% sectorD deve%o&ment o' t#e countryJs tec#nica% base and tec#no%o ica% ca&acity bui%din are crucia%. "o deve%o& t#e tec#no%o ica% ca&acity bui%din D #u e investmentD creative intervention o' t#e overnmentD a&&ro&riate incentive mec#anism to 'oster tec#nica% education must take &%ace in t#e country. 2s re ard t#e &roductivity increase in t#e service sectorD @ua%ity o' education must be increasedG @ua%ity medica% service .it#in reasonab%e cost must be ensured. ,u e &rivate investment in #ea%t# and education .it# creative overnment interventions .ou%d be very #e%&'u% 'or t#is &ur&ose.

urniture 2n(ustry o% 0angla(esh

"utlines o% urniture 2n(ustry "raditiona%%y 'urniture industry in (an %ades# deve%o&ed as cotta e based industry. It is in )-Js .#en t#e 'urniture industry in (an %ades# #as transited 'rom cotta e based industry to mec#aniCed mass &roduction oriented industries. Fo%%o.in t#at t#e 'urniture businesses be an to ro. accommodatin modern mac#ineriesD innovative desi ns and use o' diverse materia%s. Furniture industry o' (an %ades# is s#i'tin its 'ocuses 'rom de&endency on teak 'or ra. materia%s to &rocessed .ood . "#e main varieties o' &roducts are .oodD &rocessed .ood A Medium 8ensity Fibre board 4M8F5D %aminated boardD &artic%eboardD rattan<bamboo and .rou #t iron 'urniture. For a more &ersona% domain as oneJs #omeD t#e &re'erred ra. materia%s sti%% remains so%id .oodD but combination o' so%id .ood .it# ot#er materia%s %ike caneD rattanD %aminated boardsD &%y.ood and M8F are becomin very &o&u%ar. (ut 'or o''ices 'urniture desi ns are usua%%y

'ocused on t#e more contem&orary sty%e and t#e &re'erred use o' materia%s inc%ude &%asticD M8FD %aminated boards and .rou #t irons . 2round !-E &roduction o' 'urniture sector o' (an %ades# is #ome 'urniture and 3-E is o''ice 'urniture . One o' t#e key stren t#s o' t#e %oca% 'urniture industry is diversity in &roduct &ort'o%io . 2ccordin to *SI1 4*entre 'or Industria% Studies5D (an %ades# #as a stron &otentia% in %inkin #ome dUcor cra't items .it# t#e 'urniture industry. "#e ex&ort o' 'urniture &roducts 'rom (an %ades# started 'rom 1))3. It is estimated t#atD by 2-13 (an %ades# #as ex&ort &otentia% o' cra'ts 'urniture accessories .ort# o' BS8 1- mi%%ion a%on .it# 'urniture .ort# BS8 /- mi%%ion. "#e &otentia% can be materia%iCed t#rou # ex&%oitin %o. %abour cost .#ic# is a vita% 'actor in becomin com&etitive in t#e .or%d market. In .ood 'urniture manu'acturin D %abour accounts 'or u& to /-E o' t#e tota% costs. In (an %ades# %abour costs account 'or 2-E o' t#e &roduction. ,ereD t#e #our%y .a e rate in 'urniture is bet.een I -.-0-./-D %ess t#an in *#ina 4I-.3-- -.!35 .#ic# is t#e %ar est 'urniture ex&ortin country . 2t &resent t.o re%evant associations i.e.D (an %ades# Furniture Ex&ort 2ssociation and (an %ades# Furniture Industries O.ners 2ssociation 4(FIO25 are active%y .orkin on materia%iCin t#e &otentia% o' t#is sector. (an %ades# Furniture Ex&ort 2ssociation #as 1) members. 1ro%iles o% urniture 2n(ustry :overnment o' (an %ades# #as dec%ared t#e 'urniture industry as a S"#rust Sector S. "#e sectorJs contribution to :8$ 4 ross domestic &roduct5 is -.2) &ercent on avera eD .#i%e t#e industry is com&rised o' around /1D30- enter&rises and em&%oys near%y t.o %ak# ski%%ed and semi-ski%%ed &eo&%e . 2ccordin t#e o''icia%s o' (an %ades# Furniture Industries O.ners 2ssociation 4(FIO25"#ere are 27D--- 'urniture 'actories in (an %ades# 4inc%udin a%% SMEs5 amon t#em 1D)32 com&anies are re istered member o' 'urniture o.nerJs association. ,o.everD accordin to t#e base%ine survey o' 'urniture industry in (an %ades# by 8r. 2%i 6esar K#an 42-115D t#ere are a tota% o' )D)13 .ooden and 2D027 non .ooden 'urniture manu'acturers in (an %ades# em&%oyin around 1D1)D71- .orkers. 2%so t#ere are around !/D)20 car&entry #ouse#o%ds em&%oyin anot#er 1D3/D273 .orkers. 2ddin to t#isD t#ere are 1D2-D--cra'tsmen &roducin so't 'urniture and 2--D--- su&&%iers su&&%yin ra. and semi-&rocessed materia%s. Out o' t#is #u e em&%oymentD a%most 1D--D--- .orkers are .omen . 2mon t#e em&%oyees .orkin in 'urniture sectorsD 2-E are .orkin in %ar e industries and 7-E are .orkin in SMEs . "#ere are a number o' 'urniture c%usters in 8#aka .#ic# are %ocated at (addaD Sutra&urD Mir&ur area o' 8#aka. 2 number o' %ar e com&anies #ave t#eir 'actory in Savar and :aCi&ur area. 6umber o' %ar e com&anies is 'e. com&are to t#e tota% number o' 'urniture industry in (an %ades#. "#ere are 13 %ar e Furniture com&anies are doin t#eir business in t#e country .#ic# inc%udes OtobiD 6avanaD ,ati%D 2k#tarD $artexD (rot#ers etc .

Tren(s in urniture ?Supply chain %easi*ility@

In a%% 'urniture sty%es some si ni'icant trends are+ Individua% items o' 'urniture can be used 'or di''erent 'unctions+ '%exib%e seatin 'or sittin D rec%inin or s%ee&in G modu%ar .a%% systems and %ivin room systems. Furniture 'or o%der &eo&%e .it# a 'ocus on com'ort 4e. . #i #er seats5. $art o' t#e trend o' makin more use o' t#e #ome s&ace is to extend t#e #ome into t#e arden or onto a &atio or veranda. Many #ouse#o%ds are 'u%% o' 'urnitureD so rat#er t#an over%oadin t#eir #omesD consumers are %ookin 'or somet#in .it# a sim&%e e%e ance to ac#ieve Q%ess is moreL. *ombined .it# t#is sim&%e 'unctiona%ityD consumers .ant aest#etica%%y &%easin desi ns. For exam&%eD 1E8 i%%umination to en#ance sim&%e cabinetD invisib%e %ouds&eakers in interna% doorsD ne. coverin s on #and%es t#at 'ee% ood to touc#D '%at screen "Ms .#ic# a%most disa&&ear into surroundin s .#en not bein used.

Sma%% visib%e %e sD made o' meta% or .oodD are an im&ortant 'eature at t#e moment 'or %ivin room c#airsD couc#esD armc#airs and cu&boards and sma%% tab%es.

Tren(s in materials5 colours an( shapes

,ome 'urniture and 'urnis#in s are becomin more co%our'u%. "#e co%ours used in u&#o%stery 'urniture 'abricsD and cu&board and cabinet 'ronts are %oud and bo%d. "#e desi n and 'orm in u&#o%stered 'urniture remains vo%uminous. 2s 'ar as materia%s are concernedD t#ere is a decrease in t#e use o' c#erry in ne. %ines. ,o.everD c#erryD a%on .it# oak and .a%nutD are key materia%s 'or &roducts at t#e #i # end market. "#e vo ue is sti%% very muc# 'or t#e darkD exotic %ook .it# oak and ot#er .ood s&ecies &resented in a number o' uisesD stri&ed e''ect to emu%ate CebranoD #eavi%y %ac@uered and most &o&u%ar o' a%%D stained darkD a%most b%ack. Modern tec#no%o y is en#ancin &ieces .it# im&roved 'inis#es and #i #-tec# o&tions. .oo(s4 Interior &arts and &rimary and secondary 'rames o' most items are made 'rom %o.er @ua%ity .ood %ike birc#D &%y and %aminatesD .#i%e 'or ex&osed sur'aces 'ine timbers are used. 1i #ter #ard .oods suc# as oakD beec#D ma&%eD a%derD birc#D c#erry and #ickory #ave &roved more &o&u%ar t#an &ine. #attan4 Fine .icker.orkD bambooD #em&D abaca and sea rass continue to be im&ortant materia%sD .#ic# are increasin %y used in natura% interiors. Metals4 "#e meta%%icD #i-tec# or industria% %ook is &o&u%ar in 'urnitureD bein an eye catc#in e%ement. Meta%s in sim&%e 'orms are o'ten combined .it# .ood or %ass. Stain%ess stee%D c#romeD .rou #t ironD a%uminium and co&&er #ave become &o&u%ar in t#e &ast 'e. years. -lass4 Smoked %ass and ot#er o&a@ue 'inis#esD rat#er t#an c%ear 4co%d5 %ass is &o&u%ar. 6atura% and acry%ic %ass is increasin %y used in combination .it# ot#er materia%s in tab%esD cabinets etc. +e& materials+ Ex&eriments are done .it# ne. materia%s+ &o%ycarbonates in matt 'inis#D #i # %ossD trans&arent and in many co%ours. 2%soD recyc%ed &o%yester is increasin %y bein used in modern items. a*rics4 "#ese are so'ter in texture and a&&earanceD .it# sin %e %i #t natura% co%ours used as a basis. Sma%% moti'sD textured %ookG eometric or %ar e co%our'u% desi ns are a%so in 'as#ion. F%ora% desi nsD micro-'ibres are sti%% common and 4so't5 #i-tec# 'ibres are ainin im&ortance. inishes4 "#ere is a trend to.ards #i # %oss 'inis# in many co%ours 'or tab%es and c#ests. "#ere is a%so muc# use o' &o%is#edD %aminatesD satin-'inis#D acid-etc#edD &ainted %ass .it# neutra% or bri #t co%oursG o&a@ue %ac@uersG &ainted and ename%%ed stee%G anodiCedD &o%is#ed and mat a%uminium.

Chart: Highlights

Highlights
240,000 210,000 180,000 150,000 120,000 90,000 60,000 30,000 0 FY 2013 FY 2014 FY 2015

Sales Gross Margin Net Profit

).A Company Chittagong Summary

Fab'urnitures is a bare-bones im&orter o' 'urniture 'rom (an %ades#D .it# minima% over#eadD and a %imited number o' nic#e markets in India. 2'ter an attem&t in t#e ear%y )-Fs to com&ete .it# t#e O(i (oysDO .it# a s#o.room in ,i # $ointD 6ort# *aro%inaD Fab'urnitures #as sett%ed on a more %oca%iCed out-reac# to market se ments t#at 'or one reason or anot#er are not .e%%-served by eit#er t#e %ar e domestic manu'acturersD or t#e %ar e *#itta on im&ort #ouses. Fab'urnitures ca&ita%iCes on t#e o.nerFs back round in interior desi n 'or servin se ments .#ic# are more c%ose%y connected to desi ner c%iente%e t#an main stream 'urniture retai%ers.

).1 Chittagong "&nership

Fab'urnitures .as incor&orated in t#e state o' *#itta on . "#e com&any *#itta on Fs o.ners#i& is s#ared e@ua%%y bet.een Kate Nackson o' Hen#amD *#itta on and 1uca de

Febonio o'D (an %ades#. Kate #ad 2- years o' ex&erience in t#e desi n 'ie%d and kno.%ed e o' t#e B.S. market. Senor de Febonio #ad 23 years ex&erience in t#e manu'acturin o' 'urniture in (an %ades# and s#i&&in to t#e B.S. market. Ms. NacksonD as &residentD secretary and treasurerD is res&onsib%e 'or t#e dai%y mana ementD sa%esD and deve%o&ment o' t#e com&a*#itta on . Sr. de Febonio is res&onsib%e 'or t#e manu'acturin D @ua%ity contro%D and s#i&&in o' t#e oods 'rom (an %ades# unti% t#ey reac# t#e B.S.

).) Chittagong /istory

Ori ina%%y Fab'urnitures estab%is#ed a s#o.room in ,i # $ointD 6.*. .#ic# is t#e 'urniture buyin ca&ita% o' t#e B.S. "#ese s#o.rooms are o&ened on%y t.o times a yearD 'or t.o .eeks on%y. 2t t#ese timesD buyers attend t#e market to &urc#ase. 8ue to t#e economics o' t#e country at t#e timeD Fab'urnitures .as not success'u% in t#is venture. 2s t#e country reboundD t#e 'urniture business did not return to its o%d .ay o' doin business. It .as becomin a %oba% market .it# more com&etition. It became obvious t#at Fab'urnitures cou%d not continue .it# its &resent &%an and #ad to 'ind a nic#e o' its o.n in .#ic# to &romote its &roducts. "#e decisions .ere made to &u%% back its em&#asis on t#e nationa% market and 'ocus more on a sma%%er eo ra&#ic re ionD as .e%% as to concentrate on on%y certain se ments o' t#at re iona% market 4see Market Strate y5. 2 t#ird conc%usion reac#edD as a resu%t o' t#e ,i # $oint ex&erienceD .as t#e need to .are#ouse. *ustomers .ere becomin %ess and %ess .i%%in to .ait 'or &roduct. 1ast year Fab'urnitures be an .are#ousin D t#is became t#e turnin &oint o' t#e *#itta on + since t#en sa%es #ave steadi%y increased.

Chart: Performance Expectation

Perfor!an"e Fore"asting
120,000

100,000

80,000

Sales Gross Net

60,000

40,000

20,000

0 FY 2013 FY 2014 FY 2015

).3 Company Chittagong ,ocations an( acilities

Fab'urnitures .orks out o' t#e #ome o' its o.ner. Hare#ouse s&ace is s#ared .it# its &rimary 'inis#ers in 2#medabad .#ere a sma%% s#o.room is &rovided by t#e 'inis#ersD F%air Finis#ers.

3.A 1ro(ucts
Fab'urnituresF &roduct %ine is rat#er extensiveD amountin to over 2-- items inc%udin D 8inni tab%esD stoo%sD dressersD book s#e%vesD mirrorsD screensD side tab%esD dinin tab%esD %oun esD etc. (ecause o' t#e %ar e @uantity o' items and sty%esD it is not 'easib%e to stock a%% t#ese itemsD #o.everD o' t#ese items can be &urc#ased 'rom Fab'urnitures by s&ecia% order. (ecause o' t#e %on %ead time bet.een orderin and arriva% o' t#e oodsD Fab'urnitures #as 'ound t#at it must concentrate on a %imited number o' items .#ic# suit t#e tar eted market sectorsD and to try to kee& a stock in t#ese items ready 'or immediate de%ivery. 'ining Ta*les4

So%a Set4

0e(s4

3.1 Competitive Comparison

$robab%y t#e most notab%e com&etitor seen in retai% out%ets o' t#e ty&e tar eted by Fab'urnitures is 'rom *#a&man Internationa%. "#e *#a&man cata%o is exce%%ent and in co%or. 2%% items in t#e cata%o are avai%ab%e immediate%yD un'inis#edD 'rom stock in 8e%a.are. (e%o. is a &rice com&arison+

Data for competitors..which will be suited for our business..

Chapman Item Renaissance "A" Renaissance "S" Splat Side Celestial "S" Celestial "A" Raw $197 $1 5 $132 $127 $1 2 Finished $235 $195 $150 $1"5 $190 Premium Finish $270 $220 $175 $170 $225 Fabfurnitures Raw Item 15 ! 155# 152# 150# 151! $202 $177 $150 $191 $219 Finished $2 " $23" $20 $2"7 $2$1

"#e 'inis#ed &rices %isted above 'or *#a&man inc%ude t#eir standard 'inis# .#ic# is a&&%ied in (an %ades#. For a 'inis# .#ic# *#a&man ca%%s O$remiumO 4 ivin a distressed or anti@ue %ook5 an additiona% 123-- rs are c#ar ed. "#is additiona% c#ar e s#ou%d be considered .#en com&arin t#e %eve% o' Fab'urnitures 'inis# .ork. "akin t#is into considerationD Fab'urnituresFs &rices 'or t#e items mentioned above are #i #er t#an *#a&manFs. It s#ou%d be mentioned t#at on%y t#e ;enaissance a&&roac#es a c%ose com&arison. "#e ot#er t.o com&ared mode%s o' *#a&manD a%t#ou # rou #%y simi%ar .#en vie.ed 'rom a distanceD are 'ar %ess substantia% .#en examined u& c%ose. "#e *#a&man 8inni tab%es .ei # muc# %ess and #ave very %itt%e carvin .ork .#en com&ared to Fab'urnituresFs 8inni tab%es. *om&etitiveness 'rom &oint o' vie. o' &rice is an im&ortant 'actor and %ooms %ar er once t#e retai%erFs mar in #as been tacked on. "#e &rice di''erence in res&ect to *#a&man s#ou%d not be a &rob%em 'or Fab'urnituresD iven t#e #i #er @ua%ity o' Fab'urnituresFs 8inni tab%es. ,o.everD &ricin is on%y one as&ect o' com&etition. *#a&man #as an exce%%ent co%or cata%o and a%% items contained in it are readi%y avai%ab%e 'rom stock ke&t in 8e%a.are. Some market sectors mi #t be ex&ected to %ean in *#a&man direction i' Fab'urnitures #as &rob%ems de%iverin in a time%y manner. O"ime%y de%iveriesO #as been underscored in t#e OObjectivesO section o' t#is &%an. 2 &rice com&arison .as a%so &er'ormed 'or un'inis#ed 8inni tab%es tar eted 'or t#e desi ner market. "#e t.o major *#itta on 'urniture im&ort #ouses 4*o%umbia and 2t%antic5 .ere c#osen 'or com&arison &ur&oses. "#e item com&ared #ere is in a%% t#ree cases t#e identica% 8inni tab%eD most &robab%y &roduced in t#e same 'actory in (an %ades#+ *om&etitor 1Fs ItemV372S and 3722 ......... ;s. 12!3- and ;s. 10)7- res&ective%y 4ra.5 *om&etitor 2Fs ItemV!010S A 2 .................;s. 103-- and ;s. 1!!-- res&ective%y 4ra.5 Fab'urnituresF e@uiva%ent........................................;s. 13-2- and ;s. 13/-- 4ra.5 *om&arin &rices on a 'inis#ed basis is a bit more di''icu%t because o' t#e .ide ran e o' 'inis# o&tionsD but Fab'urnituresFs 'inis#edD u&#o%stered &rice o' 23-2- ;s and 2)/-- ;s 'or t#e side and arm 8inni tab%e res&ective%y com&ares .it# *om&etitor 1J &rices o' 2077- ;s and 27)2- ;s and *om&etitor 2Fs &rices o' 2)/-- rs-303-- rs 4de&endin on ty&e o' 'inis#5 'or t#e side and 2/----3---- 'or t#e arm 8inni tab%e.

3.2 Sourcin
Fab'urnituresF &roducts are im&orted 'rom (an %ades# t#rou # an a ent .#o receives a !E commission. "#is a entD 1uca de Febonio is a 3-E o.ner o' Fab'urnituresD and t#eir re%ations#i& is %on -standin . "#e a ent is res&onsib%e 'or arran in &roduction sc#edu%es .it# t#e various %oca% 'actories and #and%es a%% matters t#at arise unti% t#e &oint .#en oods are ready 'or s#i&ment. $ayment is made by Fab'urnitures direct%y to t#e &roducin 'actories at t#e &revai%in exc#an e rate 'or (an %ades#i 1ira.

/.- Market 2na%ysis Summary

Fab'urnitures #as %earned by ex&erience t#at it needs to tar et severa% market nic#es to be success'u%. Fab'urnitures #as identi'ied t#ree &romisin areas+ S&ecia%ty ;etai%D 8esi nersD and Bn'inis#ed Furniture ;etai%ers. "#e 'irst rou& accounts 'or near%y 7-E o' &resent sa%es. ;e%iance on t#is rou& .i%% decrease some.#at as a resu%t o' increased e''orts in marketin t#e ot#er t.o customer rou&s.

/.1 Market Se mentation

2ccordin to Indian overnment statistics t#ere are over 1!D--- out%ets se%%in 'urniture nation-.ide. (rie'%y statedD t#ese out%ets 'a%% into t#e 'o%%o.in cate ories+ 1. High end. ,i #-end 'urniture out%ets carry 'urniture &roduced by t#e to& manu'acturers #ome-based."#ese com&anies #ave a net.ork o' dea%ers t#rou #out t#e country .#o are c#osen based on t#e #i # ima e o' t#e out%et. Some out%ets re&resent t#e manu'acturer exc%usive%y. It is not unusua% to 'ind a dinin 8inni tab%e in t#ese out%ets &riced to se%% at !2--- rs. 2. !iddle Range. 2 ste& do.n 'rom t#e 'irst cate ory are 'urniture out%etsD suc# as Mera%umFs FurnitureD t#at se%% 'urniture .#ic# is tar eted to u&-market buyersD but not t#e to& run . 2 dinin 8inni tab%e 'rom one o' t#ese out%ets mi #t cost bet.een 30----/7--- rs. 3. !ass !erchandisers suc# as WW or WW must carry %ines .it# broad a&&ea%D and #i # vo%ume. "#is 'urniture is sti%% sourced 'rom %ar e 'actories most%y in t#e Hest &art o' ujaratD but @ua%ity is %o.er and so are t#e &rices. 2 dinin 8inni tab%e 'rom one o' t#ese out%ets .ou%d se%% in t#e 17--- rs ran e. /. "ow end. 8inni tab%es so%d 'rom t#ese out%ets .ou%d #ave virtua%%y no #and .ork. "#e 8inni tab%es are %ike%y to need re- %uin a 'e. years %aterD and muc# o' t#e 'urniture re@uires some assemb%y on t#e &art o' t#e &urc#aser. 2 8inni tab%e 'rom t#ese out%ets .ou%d se%% 'or under I2--. 3. #nfinished Furniture $utlets. "#ese are varied+ "#ese are manu'acturers .#o on%y se%% t#eir o.n &roductsD ot#ers take on items 'rom ot#er manu'acturers to round out t#e %ineD and ot#ers on%y se%% un'inis#ed 'urniture but o''er t#e o&tion to #ave t#e 'inis#in done by t#em. Kua%ity can vary. Some are very %o. endD ot#ers %ike to #ave a better &rice variety. 0. Specialt% Retailers. "#ese inc%ude certain s&ecia%ty retai%ers .#o combine anti@ues and re&roductions to obtain an unusua% o''erin .#ic# cannot be &rices#o&&ed. "#ese retai% out%ets are sma%% and must #ave #ea%t#y mark-u&s to survive. "#ey .ou%d avoid items t#at cou%d be readi%y 'ound at %ar er retai%ers .#o .ork on t#inner mar ins. "#is market sector re&resents Fab'urnituresFs bi est vo%ume. !. Designer !ar&et. 8esi ners #ave di''icu%ty makin money on 'urniture. "akin c%ients to &ick out 8inni tab%es 'rom retai%ers at t#e desi n center or e%se.#ere does not resu%t in bi commissions 'or t#e desi ner. H#at some desi ners do is to buy un'inis#ed 8inni tab%es 4o'ten via t#e major *#itta on im&ort #ouses5 and t#en #ave a re'inis#er and an u&#o%sterer com&%ete t#e .ork. In t#is manner t#e desi ner can insure a %ar er &ro'it 'or #imse%' and t#e customer ets a @ua%ity 8inni tab%e .#ic# cannot be &rice-s#o&&ed easi%y.

"#e %ast t#ree mentioned market sectors - Bn'inis#ed Furniture Out%etsD S&ecia%ty ;etai%ersD and 8esi ners - are t#e ones most attractive to Fab'urnituresFs &roducts.

Chart: %ar&et !nal'sis (Pie)

*a+le: %ar&et !nal'sis

Market Analysis 2013 Potential $%sto!ers )nfinishe* F%rnit%re (etailers S-e"ialt. (etailers /nterior 0esigners 1ther Total Gro&th 2+ 2+ 2+ 1+ 1,63+ 16 44 50 10 120 16 45 51 10 122 16 46 52 10 124 16 4# 53 10 126 16 48 54 10 128 2014 2015 2016 201# $'G( 0,00+ 2,20+ 1,94+ 0,00+ 1,63+

<.) Target Market Segment Strategy

(y s&eci'ica%%y 'ocusin its marketin e''orts on t#e underserved se ments o' 8esi ner and Bn'inis#ed Furniture marketsD Fab'urnitures .i%% diversi'y its customer base. "#is .i%% #e%& to reduce its current so%e re%iance on t#e S&ecia%ty ;etai% se ment. Estab%is#ed connections .it# t#e (an %ades#i manu'acturers o' #i # @ua%ity 'urniture .i%% #e%& to source rare%y avai%ab%e &roductsD .#ic# are in stron demand by t#e sou #t customer se ments.

<.).1 Market +ee(s

*ustomer needs across t#e t#ree se ments described in "ar et Market Se ment Strate y are simi%ar in t#e sense t#at eac# customer se ment seeks #i # @ua%ity 'urniture su&&%y sources t#at .i%% #e%& add va%ue to t#e retai% consumers. Bn'inis#ed 'urniture out%ets re@uire 'urniture t#at may be eit#er 'inis#ed by t#e Fdo-it-yourse%'ersF or by t#e storeFs on-site 'inis#ers. In bot# casesD t#e 'urniture .i%% #e%& se%% suc# retai%ers ot#er #i #-mar in &roducts and services. 8esi ner stores re@uire @ua%ity un'inis#ed 'urniture t#at can easi%y be 'inis#ed by t#e outsourced 'inis#ers or u&#o%sterers. 1ike .it# ma*#itta on ot#er &roductsD desi ner stores can t#en add #e'ty &remiums to %evera e t#eir brand identity t#rou # &erceived &roduct uni@ueness. Fina%%yD t#e S&ecia%ty ;etai%ers t#at are current%y t#e core customer se ment 'or Fab'urnituresD #ave s#o.n t#e need 'or anti@ue-%ookin 'urniture t#at a&&ea%s 'or t#eir c%iente%e. "#is need can be met by a&&%yin s&ecia% 'inis#es to t#e Fab'urnituresFs &roducts.

<.3 2n(ustry !nalysis

2s mentioned in t#e Market Se mentation sectionD t#e market areas most attractive to Fab'urnitures are+
'. #nfinished Furniture $utlets

"#e out%ets %isted be%o. are a%% %ocated .it#in an #our or so drive 'rom Fab'urnituresFs o''ices. Fab'urnituresFs 8inni tab%es are norma%%y im&orted 'rom (an %ades# in un'inis#ed 'orm. "#is is because it is too cumbersome to maintain a stock o' a%% t#e &ossib%e 'inis#es t#at mi #t be desired. 2%soD s#i&&in is com&%icated i' t#e 8inni tab%es are s#i&&ed 'inis#edD as &acka in to &rotect t#e 'inis# .ou%d be needed and t#at reduces t#e @uantity t#at can be &%aced into t#e container. Since t#e %anded &roducts are un'inis#edD marketin certain se%ect se%%ers o' un'inis#ed 'urniture makes sense+
(. Specialt% Retailers

"#ese retai%ers usua%%y do not #ave very %ar e s#o.rooms. "#ey usua%%y combine an assortment o' anti@ues bou #t at auctions or estate sa%es .#ic# inc%ude cu&boardsD corner cabinetsD 'arm #ouse tab%esD #o&e c#estsD etc.D as .e%% as some re&roductions.

/.3.1 Industry $artici&ants

"#e major &%ayers in t#e 'urniture business are t#e %ar e manu'acturers #ead@uartered in ,i # $ointD 6ort# *aro%ina and e%se.#ereD &rimari%y in t#e Sout#. "#ere are a%so %oca% manu'acturers t#at are muc# sma%%er and usua%%y s&ecia%iCe in a &articu%ar .ood or a &articu%ar sty%e. "#e more im&ortant out%ets 'or Fab'urnituresFs &roducts do not usua%%y carry t#e domestic &roducts comin out o' t#e (an %ades#. "#is is because t#ese out%ets need to #ave %ar er mar ins to survive and t#us need to avoid &roducts t#at are 'ound every.#ere. For t#ese s&ecia%ty out%etsD sma%%er im&orters are o'ten &re'erred .#o can o''er a more uni@ue %ine. *#a&manD 'or exam&%eD is a maker o' 'urniture in (an %ades#. ;e%axFs ,erita e is anot#er su&&%ier t#at tar ets t#is same s&ecia%ty retai% se ment. Fab'urnituresFs &roducts are so%id &iecesD #eavier t#an mostD .it# more #and carvin .ork.

/.3.2 8istribution $atterns

For t#e vast majority o' 'urniture out%etsD 'urniture is not su&&%ied o'' t#e s#o.room '%oorD but instead must be ordered. "#e customer .i%% be s#o.n a c#art o' standard 'inis#esD make #is c#oiceD as .e%% as #is c#oice o' 'abricD make a do.n-&ayment and t#en .ait at %east ei #t .eeks to receive t#e ordered 'urniture. 1ar e institutiona% buyers suc# as #ote%s .ou%d ne otiate direct%y .it# t#e 'urniture manu'acturer. "#e %ar er manu'acturers #ave re iona% re&resentatives .#o .i%% ca%% on major out%ets and %ar e direct buyers. Fab'urnituresF distribution &%an is to se%% direct%y to t#e desi n trade D .#o &ay %ist &riceD as .e%% as o''er t.o tiers o' discounts .#en se%%in to sma%% and %ar e retai%ers. 2rran in t#e sa%e o' 'u%% container %oads direct%y to bi buyers is a%so considered.

/.3.3 *om&etition and (uyin $atterns

"#e key to t#e buyin decision on t#e &art o' t#e consumer is t#e sa%esman and t#e 8inni tab%e bein in 'ront o' t#e buyer. 2s #as been &ointed out in t#e *om&etitive 2na%ysis section t#ere are ot#er 8inni tab%es .it# simi%ar a&&earance as t#ose su&&%ied by Fab'urnitures .#ic# are %ess ex&ensive. It is essentia% t#at t#e sa%esman &oint out t#e sa%ient 'eatures and se%%in &oints 'avorin Fab'urnituresFs 8inni tab%es 4.ei #t--i.e. stabi%ityD stren t#D etc.5. "#e re- %uin o' a 8inni tab%e severa% years do.n t#e road can be a very cost%y exercise. Bn%ess a sa%esman mentions t#e %ike%i#ood o' t#is #a&&enin in t#e case o' a %i #ter 8inni tab%eD t#e consumer is not a&t to consider it. Most im&ortant%yD Fab'urnituresFs 8inni tab%es must be avai%ab%e in t#e retai% out%et. H#atever 8inni tab%es t#e out%et carries are oin to be so%d. Ma*#itta on o' t#e s&ecia%ty out%ets tar eted in t#e Market Strate y section carry 8inni tab%es 'rom on%y one su&&%ier.

/.3./ Main *om&etitors

"#e most 're@uent%y seen com&etitor se%%in to Fab'urnituresF &rime tar eted out%ets is *#a&man. 2s .as &ointed out e%se.#ere in t#e business &%anD *#a&man &roducts are &roduced in (an %ades#D .#ic# #as a better re&utation 'or de%ivery re%iabi%ity. "#e 8inni tab%es 4un%ike Fab'urnituresFs 8inni tab%es5 come 'rom one 'actory. "#ese &roducts are im&orted by a 'irm in 8e%a.are .#ic# enjoys a 'u%%-co%or cata%o o' exce%%ent @ua%ity &ub%is#ed by *#a&man. More im&ortant%y t#e im&orter carries every cata%o item in stock.

"#e *#a&man 8inni tab%es areD #o.everD in'erior in @ua%ity to t#ose o' Fab'urnituresFs su&&%iers in terms o' .ei #tD stren t# o' constructionD as .e%% as t#e de ree o' #and-carvin detai%.

3.- Strate y and Im&%ementation Summary

Fab'urnitures .i%% &ursue a di''erentiation strate y by o''erin a s&eci'ic %ine o' so%idD #andcarved 'urniture to t#e se%ected customer se ments in t#e %imited eo ra&#ic areas. Suc# sa%es o' bot# 'inis#ed and un'inis#ed #i #-@ua%ity and #i #-mar in 'urniture t#at a&&ea%s to t#e S&ecia%ty ;etai%D 8esi nerD and Bn'inis#ed Furniture customer se ments .i%% be most%y ac#ieved t#rou # t#e direct sa%es c#anne% #and%ed by Kate Nackson.

3.1 *om&etitive Ed e
"o 'urt#er entrenc# in its nic#e marketD Fab'urnitures .i%% uti%iCe its estab%is#ed connections .it# t#e (an %ades#i manu'acturers o' #i #-@ua%ity 'urnitureD .#ic# &rovide an o&&ortunity to o''er uni@ue &roducts in t#e se%ected B.S. markets. Furt#erD It .i%% uti%iCe uni@ue industry ex&erience and su&erb se%%in ski%%s o' it co-o.nerD Kate NacksonD to ac#ieve t#e desired sa%es &enetration.

3.2 Marketin Strate y

"#e 'o%%o.in sections i%%uminate t#e &ricin D &romotion and distribution strate ies 'or Fab'urnitures.

3.2.1 $ricin Strate y

"#e &resent &ricin structure 'or Fab'urnituresFs &roducts is to c#ar e %ist &rice to t#e desi ner se ment o' t#e market. "#e desi ner se ment o' t#e market is ty&ica%%y makin &urc#ases .#ic# are time-sensitive and in sma%% @uantities. He .i%% a%%o. a 12E discount to bot# o' t#e ;etai% se ment 4S&ecia%ty ;etai%ers and Bn'inis#ed Furniture ;etai%ers5. For a 'u%% containerD or very %ar e ordersD Fab'urnitures o''ers a 30E discount o'' o' t#e %ist &rice.

3.2.2 $romotion Strate y

(rand identity is not a key issue .it# consumers. 8irect mai% is &%anned in t#e 'orm o' &ost card-siCed mai%in s. 2 co&y o' one is inc%uded in t#e a&&endix. "#ese #ave &roved use'u% in identi'yin interested interior desi nersD as t#ese individua%s cannot economica%%y be ca%%ed u&on in &erson. Since ettin Fab'urnituresF 8inni tab%es into an out%et is t#e tou #est #urd%eD some &romotiona% strate y s#ou%d be devised to #e%& a%on t#e retai%erFs initia% decision to try carryin Fab'urnituresFs &roducts. For t#e 'irst 0- daysD t#e retai%er mi #t be iven an arm 8inni tab%e 'ree 'or every 'ive side 8inni tab%es &urc#ased. Once t#e out%et carries Fab'urnituresFs 8inni tab%esD and t#e sa%es &ersons #ave been &ro&er%y instructed concernin t#e 8inni tab%esF sa%es 'eaturesD re-orderin seems to &roceed a%on smoot#%y unassisted.

For t#e un'inis#ed 'urniture out%etsD attac#in a ta .it# a &#oto o' a su ested 'inis# mi #t be very use'u% to encoura e sa%es in t#is se ment. Ste&-by-ste& instructions to ac#ieve t#is 'inis#ed %ook in t#e &#oto by Odo-it-yourse%'ersO cou%d be made avai%ab%e. 6amin a %oca% re'inis#er .#o .i%% do t#e .ork at an a reed reasonab%e &rice mi #t be anot#er o&tion 'or t#e Odo-it-yourse%'erO .#o cou%dnFt et around to it.

3.2.3 8istribution Strate y

2t t#e &resent timeD Fab'urnitures &%ans on%y one %eve% bet.een itse%' and t#e consumer. In most cases t#is .i%% be t#e retai%er. Some t#ou #t #as been iven to se%%in direct%y to t#e consumer via c%assi'ied ads in mai%-order &ub%icationsD but t#is &ro&osa% re@uires 'urt#er study.

3.3 Sa%es Strate y

Key to t#e sa%es strate y is direct sa%es ca%%s on a%% market se ments tar eted in t#is &%an .it# t#e exce&tion o' interior desi ners. "#ese sa%es ca%%s need to be made by t#e o.nerD Ex&erience #as &roven t#at t#e more time s#e devotes to sa%esD t#e more sa%es resu%t. 2 'u%%time team member needs to be 'ound and added as soon as &ossib%e. Hit#out t#is &ersonD too muc# o' KateFs time is de'%ected a.ay 'rom #er major task o' se%%in . Forty-'our s&ecia%ty retai%ers #ave been identi'iedD as .e%% as 10 un'inis#ed 'urniture retai%ers. Hit# &ro&er eo ra&#ica% &%annin and a&&ointment sc#edu%in #and%ed by a com&etent team memberD t#ree or 'our sa%es ca%%s cou%d be ac#ieved in a day.

3.3.1 Sa%es Forecast

For &ur&oses o' &rojectionsD t#e most &o&u%ar 8inni tab%e 4V1335 .as used .it# a %anded cost o' /07- rs. Sa%es &rices used are recent sa%es &rices 'or t#is 8inni tab%e 4)/2- rs to retai%ersD 1-07- rs to t#e desi n tradeD and 07/- rs .#o%esa%e5. 2%t#ou # various 8inni tab%es and ot#er &ieces o' 'urniture .i%% be im&ortedD it is assumed t#at t#e &ro'it s&read rea%iCed .it# 8inni tab%e V133 .i%% be maintained. "#e .ei #ted avera e sa%es &rice is 1----. Sa%es are a%% assumed to be on an un'inis#ed basis. 2%t#ou # muc# o' sa%es are ex&ected to be on a 'inis#ed basisD .e #ave assumed t#at t#e added sa%es &rice 'or 'inis#in .i%% mere%y be &aid out to Fab'urnituresFs re'inis#ers .#o &er'orm t#e .ork. 2 simi%ar comment a&&%ies in res&ect to u&#o%stery. Sa%es &rojections re'%ect reasonab%e success 'rom Fab'urnituresFs marketin e''orts ex&%ained ear%ier. It is assumed t#at t#ese e''orts .i%% resu%t in unit sa%es o' 8inni tab%es o' )--D 12--D and 13-- in years 2-13D 2-1/D and 2-13 res&ective%y. Mont#%y unit sa%es in 2-1/ .i%% radua%%y ro. 'rom 03 mont#%y 42&ri%-Nu%y5 to )- units by Nanuary 2-13. It is 'urt#er assumed t#at sa%es .i%% continue to re'%ect #istorica% ex&erience in res&ect to discounts. Ei #ty &ercent o' sa%es .i%% o to retai%ersD .it# 1- &ercent eac# to .#o%esa%ers and t#e desi n trade.

Chart: #ales +' ,ear

Sales 4. Year

240,000 210,000 180,000 150,000 120,000 90,000 60,000 30,000 0 2013 2014 2015

(etailer Sales 0esigner Sales 2holesale 1ther

Sales Forecast 2013 Sales (etailer Sales 0esigner Sales 2holesale 1ther 3otal Sales 0ire"t $ost of Sales (etailer Sales 0esigner Sales 2holesale 1ther Subtotal Direct Cost of Sales 113,040 16,020 10,260 0 139,320 FY 1999 45,216 6,408 4,104 0 55,#28 150,#20 21,360 13,680 0 185,#60 FY 2000 60,288 8,544 5,4#2 0 #4,304 188,400 26,#00 1#,100 0 232,200 FY 2001 #5,360 10,680 6,840 0 92,880 2014 2015

0.- Mana ement Summary

"#e mana ement o' Fab'urnitures is made u& o' t#e o.ner and one ot#er member .#o sti%% needs to be added. "#is &%an ca%%s 'or t#e o.ner to concentrate e''orts 'irst%y on sa%es. "#e ma*#itta on administrative 'unctions o' Fab'urnitures .ou%d become t#e &rimary 'ocus o' t#e ot#er team member.

0.1 Mana ement "eam :a&s

2s mentioned ear%ier in t#is &%anD a team member needs to be 'ound and trained soon. "#is &ersonFs 'unctions %isted be%o. s#ou%d a%%o. Kate to concentrate on ne. sa%esD maintenance o' existin accountsD and devisin com&any *#itta on strate y and &o%icies. 6e. team member duties+ 1. Enterin and and maintainin day-to-day 'inancia% entries into t#e com&uteriCed accounts set u& by Fab'urnituresFs accountant. (a%ancin c#eckbook and reconci%in bank statements. 2. Invoicin D bi%%in D and ex&editin over t#e &#one &ast-due accounts. 3. Or aniCin a%% &a&er.ork re%ated to orders &%ace 'or s#i&ments 'rom (an %ades#. /. $re&arin t#e %anded coast 'or eac# im&orted item 'o%%o.in t#e 'ormat &rovided. 3. 2ns.erin &#ones 'rom customers and dea%in .it# in@uiries. *%ose contact .it# dea%ers and su&&%iers by &a er<ce%% &#one so t#at customers can 'ee% t#at t#ey .i%% be a%.ays reac#ab%e.

0.2 $ersonne% $%an

Fab'urnituresF sa%es tar ets can on%y be reac#ed i' t#e o.nerFs time is 'reed u& to s&end virtua%%y 1--E o' #er time se%%in to ne. customers and mana in t#e accounts s#e #as a%ready so%d to. "#is means t#at a ca&ab%e individua% must be added as soon as &ossib%e to #and%e t#e administration.
*a+le: Personnel

Personnel Plan 2013 Admin. Assist. !ner t"er Total #eo$le Total #a%roll $19,992 $24,000 $0 2 $43,992 2014 $24,000 $30,000 $0 2 $54,000 2015 $24,000 $35,000 $0 2 $59,000

!.- Financia% $%an

It is assumed t#at t#e o.nerFs &rivate resources .i%% be su''icient to 'inance a*#itta on mont#%y cas#-'%o. s#orta e. ,o.everD it .ou%d be advisab%e to estab%is# a bank re%ations#i& as soon as &ossib%e. Sa%es cou%d very .e%% increase at a muc# s#ar&er rate t#an assumed in t#ese conservative &rojections. S#ar&er sa%es .i%% resu%t in a reater need 'or 'unds in su&&ort o' inventory and receivab%es.

!.1 Im&ortant 2ssum&tions

$ayro%% burden is ca%cu%ated at 12.03E made u& o' !.03E socia% securityD 2E unem&%oymentD and 3E .orkerFs com&ensation. $ayab%es are assumed to reac# %eve%s e@ua%

to one mont#Fs o&eratin ex&enses. 2ccounts receivab%e are assumed to be /3 daysD a%t#ou # sa%es terms are net 3- and some sa%es re@uire some &ayment in advance. Inventory turnover re'%ects t#e 'act t#at containers carryin 2-- 8inni tab%es 4/-- i' a /- 't. container5 cause &eaks and va%%eys in inventory. Inventory %eve%s #ave been ca%cu%ated mont#%y by deductin t#at mont#Fs &rojected sa%es and addin inventory o' ne. stocks .#en sa%es &rojections indicate a ne. container 'i%%ed .it# 8inni tab%es s#ou%d arrive to &revent a stock-out.

-eference .in&s:

1. #tt&+<<....resource'urniture.com<node</27 2. #tt&+<<....startu&biC#ub.com<Startin -a-Furniture-Im&ort-(usiness.#tm

3. http://000.eho0.com/ho01 79$9721start2importe32f4rnit4re2+4siness.html ). http*++www.theglobal,ournals.com+i,ar+file.php-.al/!,I%!w 55 0. http*++www.ibef.org+download+Furniture1'23234.pdf 5. http*++www.slideshare.net+manigarg(''+i&ea in.ades india 2. http*++www.slideshare.net+Research$nIndia+mar&et research india branded furniture mar&et in india (336-7id/b4232f5a d028 )652 4)4' 646bd84b'8(59./7f'9b/9from1search/' 4. http*++www.ibef.org+download+Furniture13'3436.pdf 6. http*++www.slideshare.net+shaonermegh+business plan sample on furniture '3.http*++www.pn.camcom.it+uploads+media+Furniture1report1dicembre1 (335.pdf ''.http*++www.unido.org+fileadmin+user1media+Publications+Pub1free+# pgrading1strategies1in1global1furniture1.alue1chains.pdf '(.http*++www.pn.camcom.it+uploads+media+Furniture1report1dicembre1 (335.pdfhttp*++www.pn.camcom.it+uploads+media+Furniture1report1di cembre1(335.pdf '8.http*++www.wi&ihow.com+Start :our $wn Custom Design Furniture ;usiness ').http*++www.webcosmoforums.com+general business+'282( how start furniture business.html '0.http*++www.startupbi<hub.com+starting a furniture ma&ing compan%.html

10. #tt&+<<'urnitureman.#ub&a es.com<#ub<"#e-"#ree-Most-Im&ortant-Mac#ines-inFurniture-Makin 1!. #tt&s+<<....canadian.ood.orkin .com<too%s<12-too%s-start-bui%din -'ine-'urniture 17. #tt&+<<....unido.or <'i%eadmin<user?media<B6I8O?Hor%d.ide<O''ices<B6I8O?O ''ices<$akistan<Hooden?Furniture?Manu'acturin ?Bnit.&d' 1). #tt&+<<sanat-o-tijarat.or <Feasibi%ities<2)/FurnitureFeasibi%ity.&d' 2-. #tt&+<<....kata%yst.com.bd<docs<ibrie's<InterventionE2-(rie'?Furniture.&d'

('.http*++www.adbi.org+files+dp24.india.bangladesh.economic.cooperatio n.pdf ((.http*++cpd.org.bd+pub1attach+$P63.pdf (8.https*++bdbani,,o.wordpress.com+tag+furniture industr%+