HOME FURNISHINGS IN INDIA - ANALYSIS

Country Report | Jun 2019

HEADLINES Market Sizes

Home furnishings in India registers growth of 8% in current value terms in 2018 to Sales of Home Furnishings
reach sales of INR753.2 billion Retail Value RSP - INR million - Current - 2004-2023
Consumers’ desire to differentiate themselves and buy quality products promotes
healthy sales growth in home furnishings 753,151 Forecast
1,200,000
Light-emitting diode lamps (LED) posts the strongest current value sales growth in
2018 with a 31% increase
1,000,000
Value sales of home furnishings see continued upward growth in 2018
Philips Electronics India Ltd leads sales in 2018 with a 2% value share 800,000

Value sales are expected to rise at a 9% current value CAGR (4% 2018 constant value
CAGR) over 2018-2023 600,000

PROSPECTS 400,000

Increasing interest in home decoration and differentiation expected to 200,000

boost sales of home furnishings
There is a growing sense of individuality among today’s consumers, resulting from their 0
2004 2018 2023
increased exposure to the same global phenomenon and changing social dynamics. This
has led to buyers wanting to express themselves through material goods. A growing
number of consumers like to be distinct from others.
Sales Performance of Home Furnishings
Home décor is one such area to benefit from this trend. Growth in bed textiles, kitchen % Y-O-Y Retail Value RSP Growth 2004-2023
furniture, blinds and curtains results from consumers trying out and investing in
products which bring variety and change to the look of their homes. Interest in trying
new indoor looks based on the season is growing as consumers have started seeing the
8.0% Forecast
home as an abode where they unwind and entertain family and friends. Along with the 14%
convenience and affordable availability of products which are easy to buy and sell,
companies such as Furlenco are giving consumers the option to change their furniture 12%
when they tire of it. As a result, the interest in experimenting in home furnishings is
likely to increase further. 10%

The focus on health and premiumisation is set to drive the uptake of 8%

premium mattresses
6%
Mattresses in India has traditionally been unorganised as the usage of cotton, rugs and
locally-produced mattresses is high. These products are readily available at reasonable 4%
prices which have always been alluring features for buyers. However, with the
increased focus on health and quality of sleep, consumers have been paying attention 2%
to various options available in mattresses. Given consumers’ hectic lifestyle, especially
in urban India, having a mattress that is designed to help them sleep better and provide
0%
support for orthopaedic ailments is an attractive opportunity. As more manufacturers 2004 2018 2023
are investing in developing and making such mattresses available, consumers are
willing to buy and spend more on them.
Innovations in mattresses such as memory foam, temperature control and mattress in a Sales of Home Furnishings by Category
box support their premiumisation and pave the way for value growth. This has made Retail Value RSP - INR million - Current - 2018 Growth Performance
mattresses lucrative and many new brands, including SleepyCat, Durfi, and Cloud
(Urban Ladder), have entered offering good quality products at competitive prices. Indoor Living
Internet penetration and e-commerce have also helped in making consumers aware 670,112.4
about the benefits of better mattresses and making them available at the touch of the Outdoor Living
thumb. Such developments will continue to boost sales of mattresses. 2,046.3
Lighting
80,992.6
COMPETITIVE LANDSCAPE
0% 10% 15%
IKEA pushes organised sector sales in home furnishings HOME FURNISHINGS 753,151.3 CURRENT % CAGR % CAGR
YEAR % 2013-2018 2018-2023
Indian home furnishings is highly unorganised with branded players holding the GROWTH
minority share. Leading brand retailers include chains like Home Town (Future Group),
Home Centre (Landmark Group) and Home Stop (Shoppers Stop) which are still
struggling to gain the bigger share of consumer spending. The sweet spot in Indian
home furnishings is affordability; hence, unorganised sector manufacturers which offer
products at a lower cost tend to have the edge over branded names.

© Euromonitor Interna onal 2019 Page 1 of 2

However, with the entry of IKEA in 2018, the dynamics are expected to change. IKEA Competitive Landscape
offers products across segments such as furniture, textiles and mattresses at
competitive prices. Other branded players have therefore started changing their
offering and pricing in order to stay in the game. As more consumers realise that they Company Shares of Home Furnishings
can buy better products while being price-sensitive, they will most likely move towards % Share (NBO) - Retail Value RSP - 2018
brands. Thus, the entry of IKEA in India will help the organised sector in home
Philips Electronics Indi... 2.3%
furnishings to grow.
Godrej & Boyce Mfg Co Lt... 1.8%
Philips Electronics remains the leading player in home furnishings Surya Roshni Ltd 1.0%

Philips Electronics India Ltd retained the biggest value share of home furnishings in Kurlon Enterprise Ltd 1.0%
2018. Philips has significant presence in lighting and drives sales through its innovations Sheela Foam Pvt Ltd 0.8%
and competitive pricing. To create better capabilities for growth and strategic
decisions, Philips Electronics has demerged its lighting business and has created a Syska LED Lights Pvt Ltd 0.8%
separate unit, called “Signify Innovation India”. The company has grown due to the Nilkamal Ltd 0.8%
growth in its consumer Luminaires businesses, driven by aggressive LED penetration in
Havells India Ltd 0.8%
semiurban areas. It is further increasing its footprint through its retail Light Lounges and
Lights shops to display its products better. Philips is backing the growth of smart Eveready Industries Indi... 0.8%
lighting products and investing to introduce more products in this field. Bajaj Electricals Ltd 0.6%
Bombay Dyeing & Mfg Co L... 0.5%
Durian Industries Pvt Lt... 0.4%
Crompton Greaves Ltd 0.4%
Osram India Pvt Ltd 0.3%
Duroflex Pvt Ltd 0.3%
Creative Portico India P... 0.3%
Style Spa Furniture Ltd 0.2%
Welspun India Ltd 0.2%
Swayam Linen Design Co P... 0.1%
Others 86.6%

Brand Shares of Home Furnishings

% Share (LBN) - Retail Value RSP - 2018

Philips 2.3%
Godrej Interio 1.8%
Surya 1.0%
Kurl On 1.0%
Sleepwell 0.8%
Syska 0.8%
@Home 0.8%
Havells 0.8%
Eveready 0.8%
Bajaj 0.6%
Bombay Dyeing 0.5%
Durian 0.4%
Crompton 0.4%
Osram 0.3%
Duroflex 0.3%
Portico 0.3%
Style Spa 0.2%
Welspun 0.2%
Swayam India 0.1%
Others 86.6%

Increasing share Decreasing share No change

© Euromonitor Interna onal 2019 Page 2 of 2