Home furnishings industry is one of the largest employment sectors in India providing means of income to weavers, craftsmen, skilled labors, hence adding on to country’s economy. It is majorly surrounded by unorganized sector. Only around 30% of the sector is organized and rest 70% is unorganized. Organized retail makes up just 3% of retail sector; expected to grow at CAGR of 25% till 2020
The home furnishings or soft furnishings industry is in the growth stage and further there is no stoppage to its velocity. By 2018, home furnishing market in India is expected to grow at CAGR of 8% by value to reach USD 5.29 Billion. China, India and USA, in that order,are the largest markets for home furnishings globally. With advent of real estate, the growth in this industry is unbeatable. The industry is also encountering good strategic partnerships and is expected to be more customer oriented through its offerings focusing on health & organic products to ultimately benefit the consumer.
The domestic market is also dominated with a good percentage of exports. About $30 billion worth of home textiles are imported by the US & EU.
Every day new players are entering in the market to give something extraordinary to the industry. Customers are today spoilt with choices and varieties that they can enjoy.
Talking about the customer, the perception of the young generation in the median of 25 year of age till 40 year has drastically changed. The focus has shifted from save to spend. Also they are becoming brand conscious. People today buy Brands because they can TRUST a brand. The needs for decorating the house have captured the people’s minds and in such a way that they have become fashion dominant and are willing to use collection of stylish and designer soft home furnishings. People have found a way to tackle the tiring work atmosphere by creating a comfortable ambiance around them. Hence, there is a strong indication that Indian home textile market will have large number of brands in near future in view of market expansion and increasing competition.
Although new trends keep coming in the industry in terms of color, fabrics, styles, product innovations, price, buying capacity, outlets, customer likings & preferences etc. We will be focusing on each one by one-
Color: Every year the pantones change ranging from soft to vibrant and subtle to expressive. This year the trend is going to be very offbeat describing the individual. It will be full of vibrant colors such as electric blues, yellows, purples etc. Vivid colors and distinctive patterns will rule this year to create a more varied, personalized and an environment that will inspire the individuals. Cushion covers and rugs in bold floral prints will prove to be an epitome of absolute opulence.
Fabrics: Cotton will stay as the favorite fabric. But polyester combined with cotton will also be an economical range for households. Although fancy fabrics like velvets, faux silk & leatherette will dominate the upholstery segment.
Product Innovations: More & more focus now will be on customers and comfort. For this, more organic products & health oriented products will see the limelight. Use of natural products such as lotus seed, buckwheat etc will be there creating a niche segment altogether.
Festive Collection: This year manufacturers are prepared for festive season taking it as a regular affair round the year and products & their packagings will be very much directed towards that feel & aura throughout.
Return Gifting: The concept of return gifting is going to be a major hit and traders & retailers should prepare for it in advance.
Customer preferences: Customers are going to go for quality & value of the product along with its durability for choosing the perfect piece
Price Points: Aspirational class will definitely take a step towards luxury products.
Online Shopping: Move towards online sector made life & shopping both easier. Shopping portals now will have to focus on the experience & ease of operations to pitch customers and to differentiate in this red ocean market.
Branding Strategy: The strategy will be very much integrated as more & more investments will be made in digital marketing & brand designing to make it presentable and create brand awareness, hence ultimately winning customer mind space, home space & love.
Concept: One of the biggest trends in India right now is the concept of mixing and matching different styles and traditions in an effort to create a stylish home or a feeling that is unique. Another common trend among experts and designers is an encouragement of finery in all things i.e. value added products.
So, we can see that this home furnishing industry is really growing faster. The Indian home textile industry has its own style which is flourishing with the combination of creative talents and cultural art heritage. And there is no stopping in another 10 years.