Furniture From Abroad Abounds

  7 min 24 sec to read

 
--By Suraksha Adhikari 
 
With changing lifestyle and higher spending ability, demand for finest furniture, that make social statement, is growing in Nepal among city dwellers. Certain segment of urban dwellers, are increasingly getting interested in designer furniture for interior decoration of their house. As designer furniture is becoming synonymous to status statement, higher standards and better comfort is sought. This has led to the rise in import of international designer furniture brands. 
 
 “Nepali market is gradually moving towards imported furniture as they are cheaper by almost 50 per cent in comparison to local wood furniture. Affordable pricing, attractive looks and suitability for interior design and adjustable fittings are reasons of growing preference for imported furniture,” Surendra Kumar Sharda, Senior Vice-President of Nepal Furniture and Furnishing Association (NFFA), said while elaborating current trend in the sector.  
 
Though demand for designer furniture is increasing, a lack of investment in producing such furnitures within the nation is seen. “Accepting the fact that furniture industry is moving towards greater dependency on import in the last five years, industrialists are not interested in taking risk by investing and establishing manufacturing units. For them imported readymade furniture trading is an easy and secured means of doing business,” Sharda said. 
 
Customer Preferences
Demand for imported furniture in the Kathmandu valley has been rising significantly with consumers getting more conscious about creating a unique look for their homes. The shift in preference can be measured by the fact that more than four dozen furniture stores dealing in imported products have been trading in the valley.
 
Furniture stores which started with a limited product range now are expanding their entire stock ranging from office furniture, to kid’s special furniture along with sofa sets, TV cabinets and bedroom sets, to name a few. Apart from wood, modern furniture use various materials like steel, plastic, tubular steel, leather straps, laminates, glasses, molded plywood and synthetic wood to give a stylish finish and light weight.
 
Both local and Chinese furniture, have their own separate markets with their individual advantages and disadvantages. Locally made furniture is preferred for its durability and quality of wood. But when it comes to design, decorative options, purpose-fulfillment and affordability the market swings to Chinese furniture. 
 
Responding to varied backgrounds and demands of customers, some furniture traders trade domestic and imported furniture. Their catch remains to retain customers by catering to their specific demands. Suresh Shrestha, Managing Director of Bira Furniture, informs that they include both local as well as imported furniture in their showroom, to fulfill demands of the varied customers.
 
Variety in Furniture
Furniture stores across the nation today offer variety in furniture depending on custom needs, demands and pocket. With an assorted variety of designer furniture available at various price range, they are making difference when designing a house. No matter how low the budget is, these furniture still provide an unique and stylish look. 
 
“Various factors including availability of numerous designs and superior finishing has helped in raising demand for imported furniture,” Shrestha said. Apart from this, competitive prices have played a crucial role in increasing sales of imported furniture, he added.    
 
“Demand for local furniture seems a little down since the last two years. Possible factors contributing in it are lower growth in land transactions and real estate development, gradual influx and growing popularity of Chinese furniture in the market,” Gobinda Timilsina, a Sales Representative at Varieties Traders, Kumaripati, said. “The government is not sensitive towards the problem faced by the furniture industry. Despite huge scope, lack of everything is hitting the domestic furniture industry.”
 
Domestic Furniture 
Nepali furniture industry uses saal, sisau, utis, and mango wood for the production of furniture. Other raw materials are imported from India, China and Malaysia. Size, quality and design determine the price. There are different varieties of furniture available in the market from sofas and beds to designate cupboards and office tables. The price range of local made sofa set starts from Rs 8,000 to Rs 46,000; cupboard starts from Rs 9,000. Prices differ depending upon length, height and style. 
 
Traders said that the country’s furniture market is worth around Rs 1 billion annually and that the industry is growing by around 25 percent. Most of the imported furniture available in the market comes from China. Traders said that Chinese furniture accounts for more than 80 percent of the imported furniture market. Furniture from places like India, Thailand, Indonesia and Malaysia too are popular in the domestic market. As for premium products, most are imported from Europe.
 
Imported Products 
Around 60 per cent of the furniture and furnishing products available in Nepal are imported. The imported goods include flooring, furnishing (except carpets), furniture and décor items. “While imports have swelled over the years, domestic production is declining consistently,” Kabindra Joshi, General Secretary of NFFA, said. 
 
While overpopulation, triggered due to excessive migration of people to different urban centres in Nepal, has resulted in increased demand for furniture, domestic manufacturers have not been able to meet it. “Decline in domestic production has not stopped people from buying furniture and hence, traders are increasingly depending on imported products to meet the market demand,” Joshi added.
 
Manufacturers allege that lack of skilled craftsmen, power cuts, non-availability of raw materials and absence of a favourable government policy are major reasons for the decline of domestic production. They stress on the need of a proper government mechanism to boost domestic furniture industry while pointing to nation’s volatile political environment as a crucial factor contributing to decline in their business. 
 
Problems and Challenges 
Lack of qualified labour and skilled manpower is another reason why the industry is diminishing here in Nepal. Traders said that the trend of youth going abroad has created labour scarcity. If the gap is not filled sooner, this will result in bigger problems. 
 
Similarly, lack of big factories which can produce furniture on large scaled and compete with products imported from China and other nations, in terms of production, price, and design has diminished market for domestic products. “We are manufacturing in small quantities using traditional methods and that is not really sufficient to survive the competition,” Sharda said. He feels that domestic furniture manufacturing industry needs technological improvement to survive the competition. 
 
Like other industries, this industry also has been hit power shortage. “We are also suffering from long hours of power cut. Power cut has hindered us to supply products on stipulated time. This has been a great set back for our business,” Shrestha complained. 
Mushrooming furniture trading shops and cut throat competition are a threat to the business.
 
Future Prospects
An investment of Rs 20 billion has already been made in the domestic furniture and furnishing industry, Joshi said while informing that they “are working on a strategy to approach the government and acquire its attention towards the welfare of the industry.” 
 
Apart from the cultural and historical significances, traditional furniture industry can also be a considerable boost to the economy of the country, if it is runs smoothly. Joshi said that the domestic manufacturers, if encouraged and treated properly, have the potential to export, while fulfilling local demand. 
 
“The furniture and furnishing industry can look for better days ahead as its products have positioned themselves as  people’s necessities rather than luxury,” claimed Joshi. He said that housing and real estate, residences, office complexes, hotels and restaurants, schools and colleges and development projects are booming market for the furniture and furnishing industry.
 
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