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1 Brand Analysis for Export

Export Planning &
Forecast of Delta
Furnishers

Submitted to

K. M. Rifatuzzaman
Managing Director
Delta Furnishers

Submitted by

Md. Mahbub Alam

(Badsha)
Manager-Export
Delta Furnishers
CHAPTER-O1
 

Introduction
 We Make & Trade
IT’S A DAY TO SHARE &
INSPIRE

• Akhtar Furnishers Ltd.

• Delta Furnishers Ltd.
• Akhtar Foam Industries Ltd..
• Akhtar Mattress Industries Ltd.Ltd.
• Akhtar Polymer Industries Ltd.
• Akhtar Plywood Industries Ltd..
• JAT Holdings BD (Pvt) Ltd.
• Thai Bangla tools Ltd.
• Sanafir Fashions Ltd.
• Flight Deals Ltd.
• Bangla Tv Ltd.
• Akhtar Furniture Academy
• Akhtar skill training Ins.
• Akhtar Constructions Ltd.
• Akhtar Real Estate Ltd.
• Akhtar Multimedia Ltd.
 About AKHTAR GROUP
Since 1976
Our Founder Chairman
K.M.Akhtaruzzaman
&
Managing Director Dato’
K.M.Rifatuzzaman
“Akhtar Group in one of the leading conglomerates in Bangladesh. The philosophy of the group is to
nurture and promote good ideas and growth to provide highest level of satisfaction to customers to
innovate and go beyond accepted standards of doing business. We are committed to develop the best
talent in the furnishing industry.
Board of Directors
Our Profile
 About DELTA Furnishers
Our brand has continued to evolve, including the addition of our Design Studio and an
increased emphasis on craftsmanship and high-quality materials. Today, we focus heavily
on three areas: innovating our designs, offering top-notch service to our customers and
creating enduring products. From our design floor to our stores, our end-goal remains the
same: To help our customers live a more functional, beautiful and comfortable life at
home.
Our Quality

Quality is the first thing which we consider. To serve you the best we always maintain
best quality by observing, studying & compromising. Our commitment to quality means
the years of experience that went into building your furniture will make that furniture last
for years to come
Our Product
(Wooden, MDF, PLY, LB &
Metal)
Home Furniture
Office Furniture
Hospital Furniture
Industrial Furniture
 Our Vision & Mission
AFL Vision:
We would like to enhance our capability in a competitive and globalizing environment delivering
superior and sustainable value. We also want to be the world class furniture and others household
product manufacturer in Bangladesh by ensuring intrinsic quality products and customer services with
state -of-the art technology and motivated employees.
 
AFL Mission:
We are passionately creating sustainable economic value for our country and stakeholder by
contributing to the industrial development of the nation and fundamental requirements of our
consumers.

DFL Vision:
Our vision is to be a leading international furniture manufacturer offering innovative and
superior quality products.
 
DFL Mission:
Our mission is to create Value for our customers through Reliability and Flexibility. We want our
customers to experience the warmth and comfort through Respect and Trust.
Objective
The broad objective of this report is to analyze the factors influencing the consumers to purchase
Delta furnishers in Bangladesh.
 
Specific objective: There are some specific objectives are mention here those are-

Got practical experience that has some critical factors impact on choosing furniture brand.
 An opportunity to see how the company really works.
An opportunity to relate theoretical knowledge about marketing strategies & mix Delta furnishers Ltd.
To know furniture product distribution & pricing strategies in Bangladesh .
 CHAPTER-O2
 

 Showroom Visit (Dhanmondi & Gulshan )

 Factory Visit (Plant-1 & 2)
 Furniture Industry in Bangladesh

As per authority instructions-

 Showroom Visit
Dhanmondi & Gulshan Showroom Visited.
Person: Mr. Mahbub Alam(Badsha) & Mr. Firoz
Alam.

Introduce with DFL DASR showroom employee:

Meet with Mr. Tofael Ahmed Tuhin (In-charge), Aparna Debnath & Prianka Nath & we have meted with all sales

people of this showroom.

Observation about Showroom

Wood Door of Dhanmondi SR

A) Overview PVC Door Metal Door
 we seen the Dhanmondi Showroom very sincerely & found total 4 floor (2nd to 5th) by total 8
function/side. One side/function for DELTA Furnishers showroom out of 8 side/function. One
side/function for AKHTAR Signature, Four side/function for AKHTAR regular furnishers showroom
out of 8 side/function
One side/function for SANAFIR Fashions & one of the side used for customer entertainment.
 Showroom Visit
B)  What about decoration (interior & exterior), signboard, housekeeping, product
display & SR space Utilization-
 Showroom decoration is good in interior side but exterior decoration is not good (there have some
problem I found for Dhanmondi for BGB HQ & Gulshan for Police kallan Trust is the main problem
of those SR )
Housekeeping almost good but not up to the mark as SR desired because I found was including some
dust & mini cockroach on the displayed furniture.
Product display is good according the SR space (Bed, bed side table, dressing table, Almirah,
wardrobe, dining set, sofa set with center table.

C)  Customer feedback, observation & suggestions:

Customer feedback is different (price, design, color, product defect, delivery & after sales service)
some customer want new design or production variation with color & without defect. We found some
furniture drawer are creating extra noise which is not acceptable from customer side & some lacquer
problem we found in Almirah. I think we have to identify actual problem & need to solve it ASAP.
 Some Problems

Others are good

Good
 DFL Product Category

Living
Sofa
 Divan
 Corner Table
 Mini Cabinet
 Tea Trolley
 Wooden File
Cabinet Dining
Dining Set
Chair
Showcase
Dinner Wagon
 Dining

Miscellaneous
 Chair
Coffee Table
Dressing Table
Multipurpose Shelf
Wardrobes
Reading Table
Shoe Rack
Rocking Chair
Bedroom
Bed
Bed Room Sofa
Bed Side Table

Office
 Swivel Chair
 Visitor Chair
 Reading Table
 Director Table
 Auditorium
Chair

I believe if anybody looking for different styles, finishes and variety of home, office, hospital,
industrial furniture than Delta furnishers is the company to do business with them.
 
To achieve competitive pricing and cater to wider customer base, our manufacturing facilities are
strategically location in Dhaka capital city of Bangladesh (which is world largest garments
manufacturing place). It has strong network of business contacts to meet increasing global
demand.
D) Opportunity of DELTA FURNISHERS
The rapid growth in consumption of medium density fiberboard (MDF) in the globe has been
majorly driven by the ample developments in the residential and commercial construction sectors.
So DFL are producing maximum this type of product & I am very much hopeful about DFL, the
company will grow in Bangladesh & as well as Export market all over the globe.
Growing customer base
Exploring International market, a large export market can be tapped
Factories Backward linkage are growing day by day
Government has listed Furniture sector as a thrust sector for high export potentials, which may
enable the sector to enjoy duty exemption on raw material import of exporting furniture.

Challenges

 Political instability
 Unfavorable tax and import duty policy
 Extreme competition
 Downward pricing pressure
 Industry is overtaking carpentry which may result in the loss of hand carving skills
E) Target Vs achievement statues from SR
 
Last eight months target & Achievement Statues from DSR & same as GSR condition, I informed
about fast moving sales as like

Last Eight Months Target Vs Achievement

 Plant-1Visit
Plant-1 Visit report as below
Person: Myself Mahbub alam (Badsha) along with Mr. Firoz Alam.

Introduce with Plant-1 employees:

We have met with Mr. A. Motaleb (AGM-Production)
Mrs. Nahar (Sr. Executive, Admin )
Mr. Jahid (Jr. Executive, Customer Care) & others employee

we have visited the Plant-1 in every where & I have to try to understand every
single process of production
 
A) Row material Processing
B) Cutting section
C) Treatment process of the plant
D) Seasoning process of the plant
E) Row material selection process after cutting
F) Production Section visit (with design & without design)
G) Product finishing section &
H) Lacquer Section
I) Fabrication Unit
J) QC & packaging section
 Plant-2 Visit
Plant-1 Visit report as below
Person: Myself Mahbub alam (Badsha) along with Mr. Firoz Alam
Introduce with Plant-2 employees:
First of all, we have met with Mr. Liaquat Ali (AGM, Admin ) & Mr. Mahfuzul Islam (Manager-HR
& Admin). they help us to visit in factory by a HR representative Mr. Joydip Saha (AM)
Mr. Nasir Uddin (GM, Production)
we have completed a meeting with Wooden furniture production team about product support,
capacity & lead time of a consignment.
Mr. Monir Hossain (QA)
we have completed a meeting with QA team about product quality & packaging issue & he
very much interested to give support about export related issue.
Mr. Mizanur Rahman (AGM, Plywood)
we have completed a meeting with ply wood production team about product support, capacity
& lead time of a consignment.
Mr. Foyjul Haque (Head of Dist & Category Mgt)
we have completed a meeting with Distribution team about product arrangement & delivery
issue & they also very much interested to give support about export related issue.
Mr. Sohel Rana (Dy.M, Category Mgt)
we have completed a meeting with Category Management team about product arrangement
Mr. Selim Mahmud (Sr.M, Production)
we have completed a meeting with LB production team about product support, capacity & lead
Mr. Masudur Rahman (Sr.M & R&D plant-2)

we have completed a meeting for product line about export product arrangement & new
We have issue.
development visited the Plant-2 in every where & I have to try to
understand of all process of production & distribution
 
A) Row material (Wooden, LB, Ply wood, Foam, Mattress & rebounded
Foam)
B) Cutting section
C) Treatment process of plant
D) Seasoning process of plant
E) Row material selection process after cutting
F) Foam Production
G) Mattress Production
H) CNC Production Section (with design & without design)
I) Plywood Production
J) LB production
K) Metal Production
L) Product finishing section
M) Lacquer Section
N) QC & packaging section &
O) Product Distribution
Production flow chat
 FURNITURE INDUSTRY IN BANGLADESH

The furniture industry in Bangladesh has been experiencing healthy growth over the last 6 years.
The domestic market is exhibiting an upward trend and is currently worth BDT 73 Billion. (Source:
EU Technical Report, 2015) Also, within that time, exports of wooden furniture has increased
by 104% to USD 38.94 Million (source: EPB), while the total number of enterprises has grown by
68% to 71% (source: EU report).

FACTORS CONTRIBUTING TO GROWTH

Growing Domestic Demand: The Gross Domestic Product (GDP) per Capita in Bangladesh is equivalent to 8% of
the world's average. The GDP per capita in Bangladesh was last recorded at 1029.60 US dollars in 2016. For this
reason day by day increasing consumers growth. These emerging classes have growing disposable incomes which
are being spent on consumer durables, including furniture. 

Access to Credit: Currently, Bangladesh has 60+ banks competing to capture the retail banking segment. Many of
these banks offer credit cards and consumer loans. Preferential credit card terms make purchase decisions easier for
users planning to buy furniture. 

Improving Supply-side Capabilities: The country’s carpenters have recently begun incorporating styles from their
foreign counterparts, increasing the range of options available for consumers. For this reason, consumers regularly
changing their furniture.

Inexpensive Labor: Laborers in most countries where furniture is produced are paid more than $220 a month,
while Bangladeshi laborers are paid between $120-200 a month

Backward Linkage: According to the EU study, 40% of the raw materials used by the industry comes from
domestic sources. Forests in Chittagong Hills area and the Sundarbans are the largest provider of quality timber in
the country
TOP MARKET PLAYERS IN OUR COUNTRY
 CHAPTER-O3
 

 About Export of Delta Furnishers Ltd.

 Main Furniture Companies in India (competitors)
 About Export of Delta Furnishers Ltd.

Prospects of the industry

Furniture is not a luxurious product now. It is something everyone needs after having met other basic
needs. It is a labor-intensive industry like RMG sector. In many countries there is a shortage of
manpower but Bangladesh has enough workforce. It is a great advantage for the country to create
jobs, something we badly need to upgrade our status to a middle-income country. Its impact on
Bangladesh economy can be enormous. From industry insiders to experts, everyone thinks furniture
is an industry that has export potential and could help the government with export diversification. It
can be very close to RMG sector in terms of job creation and export earnings.

Challenges for furniture industry

The biggest challenge for the industry is higher import duty on raw materials. We have to import raw
materials due to supply shortage in the local market. Land prices are another challenge for our
industry, as we need more land to establish factories. Due to high prices of land, establishment cost of
new projects go up. In this regard, the government should
allocate land for the sector at an affordable price. Most of our raw materials are imported and the
industry has pay an average of 55-60% duty on them. As per the laws, an exporter is supposed to get
the duty back after completing the export process, but that process is all so mired in red tape that
exporters lose interest. An exporter has to be competitive in the global market with its quality
products and affordable price. The government should provide 25% incentive on export value instead
of returning the import duty to the exporters. The government is currently providing a 15% cash
incentive but it is not enough, as we are paying a much higher duty.
Advantage of this industry in tapping the export opportunity

Bangladesh’s basic advantage is its workforce and comparatively cheaper labour than other
competing countries. As the supply of workforce is available and they have good adaptability to
receive skill training, Bangladesh can execute larger work orders within short spans of time. If you
go through import-export data of furniture in the last five years, you will find that import has been
declining while export has increased substantially. This is because of the quality of our products.
Apart from above, DFL has an opportunity to do export operation to Thailand, India, Nepal,
Bhutan, Singapore, USA, EU & many others countries.

FOB & CNF Price clarification

FOB – Free on Board (or Freight on Board). This basically means that the cost of delivering
the goods to the nearest port is included, but
YOU, as the buyer, are responsible for the shipping from there and all other fees associated
with getting the goods to your country/address.
Example PI of FOB

The term CNF or CFR ( Cost net freight or Cost and Freight shipping terms) mean seller
pay for the freight and cost to the destinated port. It means that the seller pays for
transportation to the Port of Loading (POL), loading and freight

 Example PI of CNF/CFR
Product Value Chain for India Market
 Target Market
1st Target 2nd Target 3rd Target
India Market of Regal & It will be our 1’st Target Market
Organugram for Export sales
 Desk Mr.X

Commercial Mr.Y
Before Shipment
After Shipment
3 years Target Sales
3 years Cost Vs Target Sales
The points for which make us famous in the market are as follow:
 Cost effective
 Customization
 Timely delivery
 Maximum customer satisfaction
 State-of-the-art infrastructure
 Excellent packaging

Values
 Trust
 Integrity
 Respect
 Environment
 To Serve
 Furniture Target Market & 7 years Forecast Analysis
The India Furniture Market is anticipated to reach USD 32.61 Billion by 2018 by registering a
CAGR of 13.38% during the forecast period i.e. 2017-2023. Moreover, the market is expected to
garner USD 61.09 Billion by the end of 2023. Further, the India furniture market is anticipated to
achieve a Y-o-Y growth rate of 14.30% in 2023 as compared to the previous year.

India Furniture Market, By Type (Home, Office & Institutional), By Product Type (Sofa, Bed,
Wardrobe, Dining Table & Others), By Point of Sale, By Raw Material Type, By Organized Vs.
Unorganized & we have to consider Competition, Forecast & Opportunities,
Age wise Users of Furniture in India

???
Main Furniture Companies in India (Global-Competitors)
Import as CBU
 Future Business Plan

Next Target Business

 Delta Mattress
 Delta Foam
 Delta Plywood
Delta Door
 To Need
Product Catalogue of Delta Furnishers
Product wise FOB Price
Trade License
Export Registration Certificate (ERC) of DFL
DFL Membership Certificate from EPB for Export
Membership of Bangladesh Furniture Exporter Association
 MCCI/DCCI Registration Certificate
Transport Registration Certificate
Bank A/C with Swift code (Direct Foreign Exchange Branch)
Need to sit with C&F agent for agreement of shipment (according to BD
Port)
One Commercial person who will make before & after shipping
documents
One Dedicated person for Export Distribution at Factory
Visit Plan confirmation for every month (according to market size/area)
Foreign Tour expenses policy (TA,DA & Hotel Bill)
Overall Collaboration
Mr. Kamal Hossain
General Manager, Sales
Delta Furnishers Ltd.

Mr. Firoz Alam

Deputy Manager, Admin
Akhtar Group