Pakistan

How to Start Furniture Business in Pakistan

The proposed project is for setting up “Furniture Showroom”. This project is only concerned with Furniture Showroom and does not include manufacturing facility. The furniture is proposed to be outsourced from various local manufacturers. The showroom will provide its own designs as well as customized designs to its customers.

The products covered in this article are domestic or household furniture and office furniture in finished form. It specifically excludes the contract sector, which includes furniture for civil aviation, hospitals, schools, and other similar purposes. Antique, second-hand furniture and garden furniture has been excluded as well.

Furniture Showroom is a viable business if done properly on commercial basis. With the increase in the development of new housing schemes, increased demand of wooden furniture can be anticipated. Furniture is also given as part of the dowry which forms the major portion of sales of furniture in Pakistan. The demand for household furniture increases substantially in winter and spring season which is the wedding season in Pakistan. Domestic/office requirements and trend of dowry in the form of furniture considerably increases the need for quality furniture.

The demand for household furniture and accessories directly correlate with new residential construction, and office furniture follows trends in non-residential construction. A growing segment is the renovation, maintenance and improvement sector.

Some furniture manufacturers do not have their own showrooms and are dependent upon other sources for furniture sales. The medium sized and the small sized units have their showrooms. The micro sized manufacturers don’t have their own showrooms, so they are dependent on the other categories for their furniture sales. Around 10% of the total furniture manufactured in Gujrat is sold within the city. The rest 90% of the furniture is sold in the other cities like Lahore, Sialkot, Gujranwala, Rawalpindi, Islamabad, Peshawar, Karachi, Quetta etc.

Success Factors of Furniture Business in Pakistan

Wood is the main raw material used in furniture making and the entire finished product depends on quality of wood. The information and technical know how about the quality of wood and use of seasoned (dry) wood plays a vital role in the manufacturing of good quality furniture, which will ultimately reflect on the reputation of the furniture show room. Strong competition exists in the international and domestic market. Manufacturing and sale of high quality trendy designs and good marketing is essential to get a permanent place in the market. Real wood furniture is the most popular furniture in existence; it’s been around for hundreds of years.

Quality of Raw Material

The furniture industry in Pakistan is dependent on the quality of the raw material available. The high quality wood is scarce in Pakistan and customer complaints arise due to the use of cheap and low quality wood by the manufacturers. It has to be ensured that furniture displayed in the showroom and manufactured on orders must be of high quality raw material.

Attractive Design and Quality Finishing

The life style of the people is improving and they are getting more quality conscious. Contemporary and chic designs are better liked by people these days. Special attention should be given to present latest designs according to the current market demands and requirements.

Tastefully designed and knockdown furniture items, made of superior quality wood and light weighted are more suitable for sale purposes. New designs and styles with durability can build brand equity for the business. As there is high competition in market, creation of up-to-date designs and styles, and introducing new trends is vital.

As this proposed showroom business is expected to target middle to upper middle class, the furniture should be able to fulfill their special requirements. It is therefore more important that furniture should be aiming to cater the traditions with modern functional demands, coupled with quality of the material and aesthetic sense. It is of utmost importance that furniture should be durable and of the latest style and fashion at an economical cost so as to attract the relevant class of the society.

Sales & Promotion

Another critical success factor of this proposed study is the Marketing and Promotion of the Furniture. Sales promotion activity is necessary for market penetration. This involves dedication and hard work from the marketing personnel and advertisement through print media along with the use of other marketing techniques.

The target market proposed for this project is middle to upper middle class. Nowadays the demand is for quality furniture at a reasonable cost. Given the current situation of the market, the high income group also searches for good bargains. Therefore, the focus of this showroom will be to present good quality furniture at an economical price range.

Investment Required For Furniture Business in Pakistan

The total project cost for setting up the showroom is estimated at Rs. 9.19 million out of which Rs. 2.44 million is capital cost and Rs. 6.74 million as working capital. The details of these financials can be studied in the business plan of furniture showroom in Pakistan by SMEDA.

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