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UNITED INTERNATIONAL UNIVERSITY

AReport on Problems and Prospects of Furniture


Industry in Bangladesh
Course Title: Business Communication
Course Code: BUS 2112
Sec: E
Submitted To:
Md. KaiumHossain
Assistant Proffesor, School of Business and
Economis, UIU
Submitted By:
Name ID
JannatulFerdous 111 131 436
Shabbir Ahmed 111 131 525
Lamia Akter 111 131 438
ShemantaBanik 111 131 487
AbulNiamot 111 131 435
SalimaJahan 111 131 162

Date of Submission: 28-08-2014


Letter of transmittal

28 August, 2014
Md. KaiumHossain
Assistant Professor,School of Business and Economics
United International University.
Subject: Submission of Report.

Dear Sir,

We are pleased to submit the report that you asked for and gave us the authorization to
work on Problems and Prospects of Furniture Industry in Bangladesh. This report is an
essential part of our course; we tried our best to work on it carefully and sincerely to make
the report informative.

The study I conducted enhanced our knowledge to make an executive report. This report
has given us an exceptional experience that might have immense uses in the future
endeavors and I sincerely hope that it would be able to fulfill your expectations.

We have put our sincere effort to give this report a presentable shape and make it as
informative and precise as possible. We thank you for providing us with this unique
opportunity.

Sincerely yours,

All group members

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Executive summary

Akij Particle board mills Ltd, a sister concern of Akij Group. Basically it produce particle
boards, MDF boards, ply woods etc. These items are hugely used in furniture industry to
make furniture. Thats why its main target consumer is Furniture Company. Now a days
furniture companies use a vast amount of particle boards in their furniture items.
Because of technological advancement and a huge improvement of research &
development, furniture companies make more lucrative, easy, slim, smart and flexible
furniture items as well as at a economical price. So we can say that the scope of particle
and MDF board is increasing day by day. So to find the problems and prospects of
furniture industry in Bangladesh I collect data from all the outlet of furniture. The
furniture of Bangladesh can compete in international market. If our local companies want
to compete in global market then they have to be superior in some sector, these are
economical cost of local raw material, low labor cost, unique design and mass production
capacity. These are some major factor. Opportunities of AkijParticle Board Mills Ltd will
be boost up if it can cater all the needs of Bangladeshi Furniture Industry. To make this
report we have gathered news from internet.

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1. Introduction

Furniture! In this present era is it simply a movable items for seating and sleeping or it is for
comfort living? This question arises because now a days our need & want are changing day
by day. Because of technical progression we are commencing with new things. Standard of
living is shifting slowly but surely. Our life is affected by many micro and macro factors.
Thats why consumers becoming more conscious of images and impressions when it comes
to products.

Furniture is one of the rapidly growing sectors of Bangladesh constituting of more than
41,500enterprises all over the country. In Dhaka alone, there are 2000 enterprises
producing a wide varietyof furniture items and employing over 40,000workers. In 2007, the
total market size wasestimated at USD 1.6 billion, with an annual average growth rate of 15-
20% over the period of 2000-2005and a projected growth rate of 23% over the period 2007-
2012. Diversity in product portfolio is one of the key strengths of Bangladesh furniture
industry. The main varieties are wood, processed wood, laminated board, bamboo, wrought
iron and more.

The Bangladesh furniture industry is one of the most promising growth sectors with high
export potential. According to a Household Income and Expenditure Survey of 2005, the
domestic consumption growth rate is around 20% and export markets are almost entirely
untapped. There are approximately 40,000 furniture SMEs all over the country, employing
around 180,000 people ,turnover is in excess of BDT 100b (GBP 1b).Currently dominated by
thousands of small workshops, the furniture sector is in a transition phase towards
industrialization. Simultaneously, there is a small but growing segment of larger firms who
are gradually entering the export market. Nevertheless, the furniture sector is struggling to
reach its full potential due to various factors inhibiting its growth. Inadequate supply of
production technology and consultancy services, limited access to quality inputs, absence of
skilled workforce and limitations in local and international marketing are some of the main
problem areas. The biggest challenges for export include: government recognition as a
potential export sector, limited export order processing facilities, lack of credibility in
international markets, uncoordinated association activities and absence of effective
initiatives for facilitating foreign direct investment.

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At present about 41,560 enterprises and nearly two lakh skilled and semi-skilled people are
engaged in this sector. On average 60% of raw materials of furniture sector are imported
from different countries. Of those, timber, wood coating materials, hardware & accessories,
world class fabrics etc., are major importable items. This sector has some mentionable
problems such as high import duties of some raw materials like good fabrics,
finishing/coating materials, hardware & accessories, shortage of electricity/gas etc.

Scarcity of skilled manpower in handling modern equipment and machinery is limiting the
prospect of growth of this Industry, which can be addressed through setting up more
Technical Schools with a curriculum of short-term trade courses, where along with
government initiatives private sectors should also come forward.

1.1 Origin of the report:


This report is prepared as a requirement of the fulfillment of the course. Our topic is
Problem and the prospect of Furniture industry in Bangladesh and working on this we get a
proper knowledge of furniture industry in Bangladesh.

1.2 Methodology:
Weve collected secondary data in order to complete this report.
Secondary Data:
Newspaper, Journals, and Web browsing.

1.3 Objective of the report:


Preparing report is an essential part of our living. It enhances the creativity and helps to
acquire the knowledge in real life. It helps us to improve our knowledge and build up our
expertise in various sectors. The prime objective of this report is identifying the problems
and the prospect of furniture industry in Bangladesh.

Specific objective:
To understand furniture industry.
To identify the problems in this industry
To highlight the brand furniture companies
To provide some recommendations to improve furniture industry
Furniture hold shinning future
1.4 Limitations of the report:
Actually doing the report, weve faced many limitations but all of them the main limitation
seems to us the time limitation.

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2. Different category/segment of furniture in Bangladesh
context:
Solid wood furniture: Majority of the Micro and Small-scale furniture manufacturers use
solid wood to produce furniture for home usage. Due to the absence of timber seasoning
facilities, they have to rely on traditional sun drying methods. Majority of the wood is
imported from Myanmar, Ghana, Ivory Coast, Malaysia, USA, Canada and from few
European countries. The import duty on wood is 10.72%.

Processed wood furniture:Medium-scale manufacturers who have access to better


lacquer/coating facilities, uses processed wood such as Medium density fibre board (MDF),
plywood, melamine laminated board, veneered particleboard etc. Furthermore, to
manufacture office furniture (tables, cabinets etc.), processed wood is mostly used. Except
particleboard and melamine laminated board, all other processed wood is imported from
different sources like, China, Malaysia and India. The import duty on processed wood is
92.30%.

Metal furniture: The market size of metal furniture is also significant where imported
steel pipes are mostly used. Besides, metal is significantly used in producing chairs for office
use.

Cane & Rattan furniture: Cane and rattan furniture is also holding a small market share
where cane is obtained from both the local sources and imported sources (Myanmar and
Indonesia).

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3. Types of Furniture Used

Home furniture:Home furniture produced by the SMEs in Bangladesh can be defined in


following segments:

Bed:Bed as a single item holds the majority of the market share among all home furniture.
Solid wood is the main raw material used to produce bed frames. Among other alternative
materials, processed wood, metal and cane are also used.

Sofa:The major raw materials used to produce sofas are solid wood (sometimes processed
wood, cane or metal), upholstery fabrics and sponge-foams.

Cabinet:There are different types of cabinets used in a home scenario like, kitchen cabinet,
show cabinet, dinner cabinet, cabinet for clothes, storage cabinet etc. The major raw
materials used to produce cabinets are processed wood (sometimes solid wood), glass etc.

Table:In a home scenario, there are different types of tables like, dining tables, side tables,
centre tables, study tables, dressing tables etc. The major raw materials used in table
production are solid wood (sometimes processed wood), glass, mirrors, metal pipes etc.

Chair: Chairs used in home scenario are mostly to use along with the dining table and study
table. The major raw materials used to produce chairs are solid wood (sometimes processed
wood and metal pipes), padding materials (sponge-foams etc.), upholstery fabrics etc.

Accessories:There is hundreds of furniture accessories used in home scenario like stools,


hangers, wall shelves, shoe racks, mirror frames, bowls, showpieces etc. Solid and processed
wood, metal pipes, mirrors, glasses etc. are the main raw materials for production of such
items.

Office furniture:Office furniture produced in Bangladesh by SMEs can be outlined as


follows:

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Tables:Office tables can be defined as different types like executive tables,
working tables, work stations, conference tables, Computer tables etc. which are
mostly produced using processed wood (sometimes solid wood), glass, locks etc.
Chairs:Office chairs are mostly made out of metal pipes (sometimes solid and
processed wood), padding materials (sponge-foams etc.), plastic, and upholstery
fabric.
Shelves and cabinets:Shelves and cabinets used in office space are produced out of
processed wood (rarely solid wood and metal pipes), glass etc.

Waiting lounge Sofas: Office sofas are made out of processed wood (sometimes solid
wood and metal pipes), upholstery fabric or PU etc.

Hotel and restaurant furniture:Furniture for Hotel and restaurants can be again
outlined as the ones used in home scenario and dining tables and chairs. The materials use
to produce these is identical to those mentioned under home furniture.

Hospital furniture: Hospital furniture manufactured by the SMEs of Bangladesh can be


named as hospital beds and trolleys, which requires mostly imported metal pipes to get
manufactured.

School furniture: School furniture is limited to student benches and desk and chairs,
production of which involves solid wood and metal pipes.

Factory furniture:In Bangladesh scenario, majority of factory furniture consists of


working tables, trolleys and adjustable high stools. The tops of the tables are produced out
of processed wood while the framing of trolleys and tables are done using metal bars or
pipes. High stools are made out of metal and padding for seats and upholstery PU materials.

Outdoor furniture:Outdoor furniture is holding a very nominal market share in the local
context and they are made out of metal mostly.

Children furniture:Children furniture used in home scenario are also very identical to
those listed under home furniture segment.

Ship furniture:Recently the ship building industry has been growing in Bangladesh which
will also require huge supply of furniture and this can be in the formed of deemed export.
With the present momentum, entrepreneurs believe that Bangladesh could easily export

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USD 4.00 billion worth of ships, which is 1% of present global demand of almost USD 400
billion, by 2014. In an average ship usually 0.15-0.20% of the cost goes in to furniture and
therefore we are looking at an existing market of over USD 25 million and a potential
deemed export market of around USD 80 million annually by 2014. So, this could be another
potential area of export market.

4. Export of Furniture

Bangladeshs recent export to US, Japan, Europe, India and other South East Asian
Countries demonstrated the potential of its expanding export market. Recently ship builders
Like Western Marine and Ananda have established trade linkages with Bangladeshi furniture
Manufacturers to receive furniture supply and furnishing materials to meet their export
Orders. Considering the growth, the furniture sector has been included as a thrust sector in
The Bangladesh Industrial Policy 2009 and the Government has extended support to assist
And promote this industry through the Export Promotion Bureau of Bangladesh. However,
absence of a comprehensive export strategy and lack of ownership from key public and
private sector stakeholders has been deterring the export of furniture from Bangladesh. The
Isolated work of the potential exporters from the Export Promotion Bureau-EPB, Ministry of
Commerce has led to little incentive from the government to promote furniture export from
Bangladesh. Furthermore, there were little focus to the supply chain management and
relevant support industries such as training institutes, certifying agencies and buying
houses. In order to address these constraints, Katalyst in collaboration with EPB and the
Bangladesh Furniture
Exporters Association is working on developing a roadmap to boost furniture exports from
Bangladesh.

Trade fairs have been an effective tool in entering the export market. However, it is also
important to have an effective promotion strategy and good branding to gain the
international attention to Bangladesh furniture. The quality of furniture with proper
certification is also very important for export. In order to increase export, following are
some of the areas that need to be addressed:

Improving quality, particularly related to finishing and packaging.

Improving the image of Bangladesh on the social and environmental issues.

Increasing the design capacity in the country.

Branding of Bangladeshi furniture.

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5. Furniture Hold Shining Future
Bangladeshs share in the global wooden furniture market is quite insignificant, despite the
fact that the people of the country have a long history of carving wood. But the scenario
started changing rapidly since the mid-Nineties, when the country began furniture exports.
Bangladesh exported furniture worth USD 31.41 million in fiscal 2012-13, up 15.73 per cent
from the previous year. Sources said the demand for furniture from Bangladesh has been
rising in the international markets, especially in the US and the EU.
Exports of wooden furniture from Bangladesh has jumped by 253 per cent during the last
five years, rising from a modest USD 8.89 million during 2008-09 to USD 31.41 million in the
last fiscal (2012-13). This phenomenal rise in furniture exports is being attributed to the
effective marketing drive by the countrys exporters in recent years.
Though the value of furniture exports is rather nominal, but a beginning has been made,
and with an aggressive marketing strategy, the value of exports can be increased. The total
world trade in furniture is estimated at USD 130 billion, with the US being the leading
importer while China is the major exporter. Bangladeshs share in the total world market is
quite negligible. Industry sources said the soft furniture exporters in Bangladesh are
experiencing steady growth in sales to Japan, the EU and the US. As China, the Philippines
and Vietnam are shifting to more industrialized methods of production; it has created huge
opportunities for Bangladesh. The labor cost, which is comparatively low.But the country
has failed to reap the benefits as there is a dearth of educated, certified and professionally
trained workers, the sources added. The shortage of manpower skilled in handling modern
equipment and machinery is limiting the growth prospects of this industry, which should be
addressed by setting up more technical schools with a curriculum of short-term trade
courses, for which, along with government initiatives, the private sector should also come
forward.

Exporters are also suffering from multifarious problems while local manufacturers are facing
challenges resulting from furniture imports. Imported foreign furniture, especially from
China, Korea, Thailand and Malaysia, has hit the local industry and sales of locally
manufactured household furniture have gone down. At the same time, the high cost of the
furniture business threatens the sector as a whole. The prices of all raw materials used in
making furniture, including chipboard, timber, foam, polish, chemicals, color paints and
hardware, have increased. Around 60 per cent of raw materials, including hardware,
accessories and fabrics, are imported from countries such as Myanmar, Nigeria and Ivory
Cost. One of the leading companies, HATIL, imports 100 per cent of its raw materials from
North America. Despite its huge potential, Bangladesh faces a difficult challenge from other
manufacturing countries as the industry was fully dependent on imported raw materials.

In Bangladesh, wooden furniture is manufactured by a large number of cottage industries,


spread over villages, small towns and cities. Traditionally, furniture has developed as a
cottage industry in Bangladesh. In the early Nineties, the furniture industry in Bangladesh
was transformed from a cottage industry to a mechanized mass production-oriented
industry. Since then, furniture businesses have begun to grow, with modern machinery,
innovative designs and the use of diverse materials. The main varieties of furniture are now
produced from wood, processed wood, melamine board, medium density fiber board (MDF)

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Exports of furniture and allied products from Bangladesh started in 1995. There are now
41,560 wooden furniture units in the country and nearly two lakh skilled and semi-skilled
people are engaged in this sector. Among the employees working in the furniture sector, 20
per cent are working in large industries and 80 per cent are working in small and medium
industries (SMEs). The sector accounts for around 0.29 per cent of the gross domestic
product (GDP), according to the Bangladesh Furniture Export Association (BFEA).
Apart from the large export-oriented enterprises, there is a number of furniture clusters in
Dhaka at Badda, Sutrapur and Mirpur areas. A number of large companies has factories in
Savar and related area.

At present two associations the BFEA and the BFIOA are closely working to realise the
potential of this sector. At present, several members of BFEA are involved in furniture
exports: Otobi, Akhtar, Hatil, Brothers, Partex, Navana and Furnitec, as well as others.
The furniture market can expand further, both at home and abroad, by blending
technology, skilled manpower, good raw materials and quality designs, said HATILs head of
marketing Md. Firoz-Al-Mamun. HATIL very recently opened a showroom in Australia.

Considering the immense potential of this sector, the government plans to establish a
separate furniture exhibition zone at Purbachal at a cost of Tk. 1.75 billion. The construction
of the exhibition zone is expected to be completed within the next two years. The works
ministry has already allocated 10 acres of land at Purbachal for developing the exhibition
zone on the instructions of Prime Minister Sheikh Hasina. The establishment of a separate
furniture zone, explained the EPB vice-chairman, will help in expanding the sector in both
the local and international markets.

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Major Findings
Furniture manufacturers are spread across different regions of Bangladesh, but there are
certain clusters with sizeable number of manufacturers, which can be considered as industrial
clusters.

1. Main concentration of furniture manufacturing is mostly in the city centres of


different urban, semi urban and peri urban areas. Some of the areas with a sizeable
number of furniture companies are: Dhaka, Chittagong, Sylhet, Comilla, Tangail,
Gazipur, Narayanganj, Jessore, Faridpur and Bogra. But, Dhaka and Chittagong
has the biggest concentration of industrial manufacturing in the whole country.

2. Except 3 or 4 manufacturers, all other furniture manufacturers of the country


actually fall under SME definition of the Ministry of Industries.

3. Four cluster/regional BIOs (Regional Committees of BFIOA) are active, organized


and more functional within the respective clusters namely, Sutrapur region-Dhaka,
Gulshan region-Dhaka, Mirpur region-Dhaka and Chittagong region-Dhaka. The
others are less active, not organized and hardly operational towards the
development of respective clusters namely, Rajshahi region, Sylhet region, Khulna
region, Bogra region, Barishal region, Noakhali region etc.

4. The main BIO (BFIOA) severely lacking in cooperation linkages with foreign trade
bodies, similar BIOs and relevant institutes, requires formulating efficient action
plans for the development of export business.

5. The financial ability of the members is very low. The regional cluster BIOs are also
dependent on the income of the membership fees from its region. This hinders the
BIO to grow with the effective BDS service portfolio demanded by the regional
BIOs as well as the members.

6. Domestic market is quite big (Estimated 67 Billion BDT sales yearly) and growing
at a rate of 19% yearly.

7. Countrys total furniture export was only 4.3 Million USD in the last fiscal year
(2011-2012), which is very insignificant.

8. There is a significant knowledge lacking on the export market demand and trend,
among the manufacturers.

9. Most raw materials required for this sector is imported hence, the availability of
desired raw materials is not ensured.

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10. Import duties for raw materials are quite high ranging from 10.72 to 92.30%,
which makes product price high.

11. Properly seasoned timber/wood is not available for furniture manufacturers as there
is no existence of service provider for seasoning, which resulted in poor

12. There is no sustainable supply of skilled manpower to the sector and most are
trained on job, as there is no efficient training facility in operation, which increases
production lead-time, reduce product quality and increase the cost of training.

13. Working conditions in manufacturing plants are poor, which stimulates a


permanent drain of skilled workers.

14. Labor cost in furniture manufacturing is comparatively low than those of


competitor countries exporting furniture.

15. Most furniture manufacturers are lacking with adequate knowledge on up to date
technologies needed for high productivity and quality.

16. Woodcarving is the prime unique technique of the local carpenters working in the
micro and small-scale factories/workshops.

17. Most of the factories are lacking in efficient layout and material flow, which affect
productivity, lead-time and overall quality. Due to lack of well-integrated
production process furniture manufacturers are not capable of achieving optimum
production efficiency.

18. Overall quality of produced furniture by micro and small-scale manufacturers are
far behind than the requirements of the export market.

19. Almost all manufacturers are severely lacking with Accounting, Management and
marketing skills.

20. Awareness and application of Environment and Safety compliances are absolutely
absent in majority of the manufacturers.

21. All the furniture producers of Bangladesh produce very wide range of products in
their production facilities, which is a big hindrance in achieving high productivity
and optimum quality.

22. Micro and small-scale manufacturers do not have the access to the formal sources
of finance at all.

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23. Due to high duties of imported raw materials and low productivity resulted from
low labor skills, inability of affording machineries, the most small-scale
manufacturers are finding difficulties to survive in the business

24. There is a visible future demand of ship furniture as Shipbuilding Industry in


Bangladesh is growing rapidly but no linkages have been tried to establish to tap
this market.

25. There are no capable design professionals available to provide design solutions to
the manufacturers, as there is no design training centre or formal education on
design operational in the country. The manufacturers dont undertake RND
activities at any form.

26. There are no visible effective export marketing initiatives in the sector

27. Most of the enterprises are lacking with branding and marketing activities as well
as the tools like PR materials required creating customers attention. Most SMEs do
not have a website, which is an effective tool through which international buyers
can know about the product line they can offer.

28. A month-long event namely Dhaka International Trade Fair (DITF) is organized
every year in the center of Dhaka city by Export Promotion Bureau, which attracts
nearly 4 million local visitors. This is likely to be the most important event to
promote product in the national market but no presentation of the micro and small-
scale manufacturers are seen here due to the financial constraints of the SMEs in
participation.

Brand Furniture Industry of Bangladesh


Traditionally furniture industry in Bangladesh developed as cottage based industry. It
is in 90s when the furniture industry in Bangladesh has transited from cottage based
industry to mechanized mass production oriented industries. Following that the
furniture businesses began to grow accommodating modern machineries, innovative
designs and use of diverse materials. Furniture industry of Bangladesh is shifting its
focuses from dependency on teak for raw materials to processed wood.

The main varieties of products are wood, processed wood & Medium Density Fibre board
(MDF), and laminated board, particleboard, rattan/bamboo and wrought iron furniture. For
a more personal domain as ones home, the preferred raw materials still remains solid
wood, but combination of solid wood with other materials like cane, rattan, laminated
boards, plywood and MDF are becoming very popular. But for offices furniture designs are
usually focused on the more contemporary style and the preferred use of materials include

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plastic, MDF, laminated boards and wrought irons. Around 70% production of furniture
sector of Bangladesh is home furniture and 30% is office furniture.

One of the key strengths of the local furniture industry is diversity in product portfolio.
According to CSIL (Centre for Industrial Studies), Bangladesh has a strong potential in linking
home dcor craft items with the furniture industry. The export of furniture products from
Bangladesh started from 1995. It is estimated that, by 2015 Bangladesh has export potential
of crafts furniture accessories worth of USD 10 million along with furniture worth USD 40
million. The potential can be materialized through exploiting low labor cost which is a vital
factor in becoming competitive in the world market. In wood furniture manufacturing, labor
accounts for up to 40% of the total costs. In Bangladesh labor costs account for 20% of the
production. Here, the hourly wage rate in furniture is between $ 0.06- 0.40, less than in
China ($0.50- 0.75) which is the largest furniture exporting country.

At present two relevant associations i.e., Bangladesh Furniture Export Association and
Bangladesh Furniture Industries Owners Association (BFIOA) are actively working on
materializing the potential of this sector. Bangladesh Furniture Export Association has 19
members.

Profiles of Furniture Industry


Government of Bangladesh has declared the furniture industry as a Thrust Sector . The
sectors contribution to GDP (gross domestic product) is 0.29 percent on average, while the
industry is comprised of around 41,560 enterprises and employs nearly two lakh skilled and
semi-skilled people.

According the officials of Bangladesh Furniture Industries Owners Association (BFIOA)There


are 28,000 furniture factories in Bangladesh (including all SMEs) among them 1,952
companies are registered member of furniture owners association. However, according to
the baseline survey of furniture industry in Bangladesh by Dr. Ali Nesar Khan (2011), there
are a total of 9,913 wooden and 2,628 non wooden furniture manufacturers in Bangladesh
employing around 1,19,810 workers. Also there are around 74,926 carpentry households
employing another 1, 54,285 workers. Adding to this, there are 1, 20,000 craftsmen
producing soft furniture and 200,000 suppliers supplying raw and semi-processed materials.
Out of this huge employment, almost 1, 00,000 workers are women. Among the employees
working in furniture sectors, 20% are working in large industries and 80% are working in
SMEs. There are a number of furniture clusters in Dhaka which are located at Badda,
Sutrapur, Mirpur area of Dhaka. A number of large companies have their factory in Savar
and Gazipur area. Number of large companies is few compare to the total number of
furniture industry in Bangladesh. There are 15 large Furniture companies are doing their
business in the country which includes Otobi, Navana, Hatil, Akhtar, Partex, Brothers etc.

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Table 1: Average sales and profit among different classes of furniture manufacturer

Firm size Numbers of Average Annual Sales Gross Profit Net Profit (%)
Enterprise (BDT)
(%)
Micro 7,961 1,877,400 21.6 9.87
Small 1,676 5,118,333 25.74 12.41
MSM 2 276 8,571,429 29.67 14.67
MSM 1 40 19,350,000 32.10 15.1
Large 35 104,100,000 35.80 15.8

In both local and international market, the growth of Bangladesh furniture market is
evident. The booming real estate sector in Bangladesh and the rising demand of furniture
product in world market, lead the expansion of furniture sectors in Bangladesh. In fact, the
demand is so elevated that the demand supply gap is evident in Bangladesh. While the
industry is growing at a rate of 9.55%, the demand for furniture is increasing by 20%. Local
production for furniture of USD 958 million along with USD 16.84 million imports.
Bangladesh earned $19.26 million from exports of wooden furniture in fiscal 2009-10 . Local
manufacturers export to the US, Canada, Australia, UK, Middle East, Gulf countries, and
other Asian countries, like India, Japan, Taiwan, Singapore, Thailand and Vietnam .An
analysis of EPB data since FY2006-2007 indicating 53.55% decrease in the export of soft
furniture over a period of last four years and this decrease is due to the lack of design and
technology research, lack of initiatives to promote this industry and keep abreast with other
parts of the world. Nonetheless, according to Bangladesh Furniture Industries Owners
Association (BFIOA), real export is much higher than (20% higher) than the official figure.

About 60% of raw materials of furniture sector are imported from different countries.
Around 65% of wood comes through import. Most of the tic, gamar and hard wood come
from Africa; oke wood and barmatic wood come from Myanmar. Around 100% of Wood
coating and lock, 60% of ply board, 20% of particle board, 50% of adhesive is imported.

Table 2: Trend of export and import in furniture sector (soft furniture) of Bangladesh (Unit:
US$ million)

FY 2006-2007 2007-2008 2008-2009 2009-2010


Import
Export 8.16 5.49 4.44 3.79

According to Bangladesh Furniture Industries Owners Association (BFIOA) one of the


difficulties that the association (and government) currently faces is that maximum
companies do not declare their real amount of sell; and that is why the figure of real trade
volume is not available to the association or government for effective policy formulation. In
addition to such problem, industries of this sector are also facing shortage of land. In the
past, Furniture industry association demanded to have enough land so that an industrial
cluster can be established where at least fifty companies can be accommodated. Though

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specific land was allocated in Kachpur area of Narayangonj district, the amount of land was
quiet few (around 20 acre) compare to the Associations original demand. In the end, land
was not given to furniture association. However, a new location has been identified near
Faridpur area where amount of land is much higher than land area of Kachpur area.

Furniture associations of Bangladesh participated in several fairs in Japan. Recent fair in


Japan took place 2008; but the outcome of that fair is not as expected. One of the main
reasons is the weakness of design of furniture products manufactured in Bangladesh.
Therefore, this area needs much consideration for positive intervention. At the same time
more marketing development in outside Bangladesh is necessary .

At present, there are no rules and regulation addressing standard of products from furniture
sector is available. Hence, for effective export promotion of furniture product, it is necessary
to maintain certain standard. In this regard, Katalyst, a foreign donor agency, is working on
the development of furniture sector of Bangladesh. Moreover, the agency is also giving
support to the sector in terms of market exploration and development. But their assistance
is very short term and has no direct connection with the association.

Furniture industry is facing face shortage of wood supply from domestic forest. This is one
of the great threats to the industry. To confront the constraint, initiatives have been taken
both from government and from some private companies. In addition to that, Furniture
Associations regularly organize programs to encourage people for tree plantation. The
association also demanded to the government to lease certain amount land for tree
plantation. Another severe problem which the industry is facing is shortage of electric
supply which forced factories to maintain generator. As the cost of fuel of generator is
getting higher, the production cost is going up.

There is no tax incentive for export of furniture product at the moment. However, the
industry is discussing with EPB so that tax incentive can be applied to the sector. Under the
circumstances, EPB has given certain export target to this sector, which the association
expects to achieve by this year.

Akhtar Furniture Academy is the first and only private institute that provides education
exclusively on furniture. The institute commenced on January 2012 and at present the
institute has facility to train student on furniture manufacturing, marketing, general
education (like English course) and technical courses (like driving, electrical instrument
repairing, electronics, computer education etc). The institute has planned to expand its
branches in coming years (Targeted number of branches by year is: 6 branches within 2013,
64 branches within 2016 and finally 364 within 2020). Though the institute at present
concentrates on short length courses (three to six months), it has planned to start four
diploma courses also. The institute has applied for approval from Bangladesh Technical
Education Board and hope to have the approval within June 2012. The authority of the
institute has a plan to convert the institute into a well functioning polytechnic institute in
near future.

16
Major Furniture Industry
OTOBI LIMITED

Basic information of Otobi Limited


Established 1975

Wooden, Melamine Laminated Chip Board,


Product profile
MDF, Cane and Metal furniture.

Annual production volume BDT 6,600,000,000


Countries exported to India

Potential export destination Africa, Canada, Middle East, UK, USA.

Otobi is one of the pioneers in furniture industry in Bangladesh. At present, Otobi has the
widest distribution network all over the Bangladesh, including over 400 retail outlets,
exclusive dealers and franchises. Otobi has now franchise in Kolkata with distribution
centers in sic cities in India. With an opening capital of just Tk 5,000, NitunKundu, a graduate
of fine arts, starts the business Dhaka in 1975. At present, It has 300,000 sqft factory in
Mirpur, Dhaka. Otobi is the first Bangladeshi company to become global. Otobi builds its
flagship 42,000 sqft retail store in Gulshan, Dhaka .

At present, Otobi furniture can be considered as market leader due to their immense
market share of the branded market (80%). During last three years, Otobi is having double
digit growth in terms of annual sales .Otobis products range office, household, and hospital
furniture to specialized furniture like kitchen cabinets, built-in cabinets and workstations.
Otobi employs over 5,000 people in its corporate office and manufacturing plants.

17
PARTEX Furniture Industries Ltd

Basic information of PARTEX Furniture Industries Ltd.


Established 1991
Wooden furniture, Laminates Board
Product profile furniture, Upholstery (Tubular Metal)
furniture, Steels and Metal furniture.
Annual production volume BDT 1,500,000,000
Countries exported to India
Potential export destination Middle East, UK, USA.

PARTEX Furniture Industries Ltd. is a concern of Partex Star Group of Bangladesh. PARTEX
Furniture manufactures solid timber and timber-substitutes products. The industry offers a
combination of timber, special particleboard, and decorative plywood. Within a short span
of time the company has been able to claim a sizable portion of the market. At present, the
production area of the company is about 162,000 sft and the company is building a new
factory of area 3, 50,000sft. Around 1200 skilled manpower are currently employed in this
company. The company has strong backward integration for their furniture production as
their sister concerns produce Particle Board, MFC board, Filled / Flush Door, Plywood,
Veneered Board, PVC Sheet & Door etc .

18
NAVANA Furniture Limited

Basic information of NAVANA Furniture Limited


Established 2001
Home furniture, office
furniture, project furniture,
Product profile
doors, wardrobes, sawn
timber
Annual production volume BDT 1,200,000,000
Countries exported to India
European countries and
Potential export destination
Middle East

NAVANA Furniture Limited, a sister concern of Navana Group, was founded in 2002.
NAVANA Furniture has its factory in Savar, operating in more than 12,000 sq.m area. It sells
Office solutions, Home solutions, Medical and Lab solutions, Industrial solutions and Interior
Designing Furniture.. The company has around 80 outlets across Bangladesh and also
expanding business internationally. At present, around thousands of people are employed in
corporate office and manufacturing plants of Navana furniture in Bangladesh.

Akhtar Furnishers Ltd (AFL)


Basic information of Akhtar Furnishers Ltd.
Established 1976
Product profile Wooden, Melamine Laminated Chip Board and MDF

Annual production
BDT 120,00,00,000
volume
Countries exported
Australia, UK, USA
to
Potential export
USA, UK, UAE
destination

Akhtar Furnishers Ltd (AFL) commenced its business in 1976. At present, around 800 people
are directly working under the shade of Akhtar Furnishers Ltd. The companies havetheir
own seasoning capacity of 2000 cft solid wood a month.

19
After analyzing this best furniture brand in Bangladesh is Akhter Furnishers
Limited.

Best Furniture Brand

9
8
7
partex
6
5 navana
4 akhter
3
otobi
2
1
0
otobi akhter navana partex

In case of price comparison Akhter furnishers Limited charge highest price.

10

0
otobi akhter navana partex

otobi akhter navana partex

Expensive Furniture

In Dhaka city maximum furniture show room are located at Mirpur, Kajipara, Shewrapara.
Some are in Panthopoth, Gulshan, Kuril, Uttora.

20
Furniture manufacturers in Bangladesh
A list of major furniture manufacturers in Bangladesh

In Bangladesh wooden furniture has a great appeal among the people. It represents the
culture of Bangladesh. Recently furniture from plywood has also become popular. Here is a
list of major furniture manufacturers in Bangladesh:

Otobi Furniture

53/1 Kaptan Bazar, Wari


Dhaka-1203
Phone: 02-7110529, 02-7120829

Navana Furniture

64 Gulshan Avenue, Gulshan-1 Dhaka


Phone: 02-9893148, 02-8850472

Hatil

8 Shewrapara, Begum RokeyaSharani


Mirpur, Dhaka-1216
Phone: 02-9002225, 02-9000073, 01713-441000
Fax : 02-8016593
E-mail : info@hatilbd.com
Web: www.hatilbd.com

HI FASHION GALLERY LTD

ShaSha Bari
House 56, Road 3
Satmasjid Road, Dhanmondi
Dhaka, Bangladesh.
Phone: 02-9667844

WOOD MARC

House CWN (A) 15/1, Road 35


Gulshan-2, Dhaka
Phone: (88-02) 883-3695

ZAHIR AND BROTHERS

Plot no CWS(C ) 7A, (Ground, 2nd & 3rd floor)


Biruttam A.K. Khandaker Road

21
Gulshan-1, Dhaka.
Phone: 02-9894823

AKHTAR FURNISHERS LTD

1298 Bhatara, Baridhara, Dhaka-1212,


Phone: 02-9896730
Fax: 02-8828756

Living plus furnishing

Block J, Baridhara, Dhaka


Phone: 01749362771, 01732812039
Fax: 02-8256374

Woody Region

70-A Green Road (2nd Floor)


Azmeri Complex, Panthopath, Dhaka
Phone: 01718-097903

A One Furnishing

R.M. Center
101 GulshanAvenue , Gulshan-2 , Dhaka
Phone: 02-9889217 , 02-8855527

A-Leef Furniture Complex

218/4B, Begum RokeyaSharani


West Kafrul, Taltala, Mirpur, Dhaka
Phone: 02-8127443

A. Salam Metal Industries

12 Elephant Road, MoghbazarWairless More, Dhaka


Phone: 02-9331936

Admiral Furniture

70/B, Green Road, Panthapath , Dhaka


Phone: 02-8622761

Al-Aksa Furniture

23/J/3, Panthapath , Dhaka


Phone: 02-9663947
22
Al-Amin Furniture

49, Begum RokeyaSarani, Shewrapara, Mirpur, Dhaka


Phone: 02-9008864

Al-Amin Wood Center & Sawmills

12/2, Aultinjong Lane, Farashgong, Dhaka


Phone: 02-7119161

Al-Farzana Furniture

1308/1, East Monipur, Begum RokeyaSharani, Mirpur, Dhaka


Phone: 02-8010514

Alam Metal Products

149/2, DIT Extension Road, Dhaka


Phone: 02-8350429

Alam Steel

869, Shewrapara Bus Stand, Mirpur, Dhaka


Telephone : 02-8315351

Partex Furniture Industries Limited

BaitusSharaf Mosque Complex (4th Floor)


149/A, Monipuri Para
BirUttamZiaurRahmanSarak
Dhaka 1215, Bangladesh
Phone. 02-8126666, 02-8127777, 02-8128888
Fax: 02-8129999
E-mail: furniture@partex.net
Web: www.partexgroup.com

Alams Furniture

Kha-214, Merulbadda, ProgotiSwarani, Dhaka


Phone: 02-7281706

Canton Furniture Ltd.

Plot #15, Road #7/D, Sector #9, Uttara, Dhaka


Phone: 02-8921127

23
Faruk Brothers Furniture Mart

278 Halishahar Road, Beparopara, Agrabad, Chittagong


Phone: 031-726130 (Req)

Akkas Steel and Wooden Furnishers

276/C, S. S. Khaled Road, Ashkerdighi, Chittagong


Phone: 031-617012, 031-618991

Al-AlifFurnitures Mart

264, Bapari Para, Agrabad, Chittagong


Phone: 031-815446

Al-Barek Furniture

77/6, S. S. Khaled Road, Ashkerdighi , Chittagong


Phone: 031-632096

Ahmed Furniture & Saw Mill

Electric Supply Road, Amborkhana, Sylhet


Phone: 0821-716974

Akhtar Furnishers Ltd.

UpashaharBishaw Road, Shahjalal Plaza, Sylhet


Phone: 0821-711634

24
Strengths and weakness of furniture:
SWOT analysis is a basic technique that is often used in strategic planning, improving
company success, organizational development and identifying competitive advantage. This
article explains the SWOT (Strengths, Weaknesses, Opportunities, and Threats in a straight-
forward way everyone can understand.)

Strengths:

1. Labor cost in furniture manufacturing is comparatively low than those of competitor


countries exporting furniture. In all the other contemporary Asian furniture exporting
nations (China, Vietnam, Thailand, Malaysia), the cost of labor is either equal to or
more than USD 120 per month whereas in Bangladesh it ranges from USD 37-120 per
month. This gives exporters an opportunity to produce at lower cost. Low labor cost will
keep the product cost low specially the ones, which are produced through labor-
intensive process. It is assumed that Bangladeshi hand carved furniture has more
potential in export market than other furniture and such products require high labor
hour involvement.

2. Bangladesh has a long-standing tradition of woodcarving; so skilled carving designers


are easily available all over the country. But in most other countries, this skill is very
scarce so producing this type of furniture is very expensive due to the high labor cost.
So, Bangladesh has the opportunity to offer hand carved furniture at a much lower
price compared to other countries. In the markets like USA, UK, Middle East hand
carved furniture has high demand. Therefore, if the quality and price can be matched,
Bangladeshi SMEs can boost the earnings through tapping the export markets.

3. Bangladesh has at present estimated 66.65 Billion BDT worth of domestic market with a
growth rate of 19% yearly. This does not shows only the large volume export potentials
for future but also contributes to the economy by saving lot of foreign currencies as an
import substitute.

4. Workers are easy to train. Even uneducated or little educated workers can produce
high quality products given necessary environment, facilities and incentive.

5. Textile as a backward linkage industry of Ready Made Garments (RMG) sector is quite
strong in Bangladesh. Even though the present scenario is Upholstery heavy-duty fabric
used by local furniture manufacturers are from imported sources, as the local textile
industries do not produce such fabric currently, but they are capable of and with the
increase of demand there is a high possibility that the textile industries will soon be into
this business.

6. Upholstery leather is used in high value added furniture in world market and
Bangladeshi leather industry is quite strong and regularly exporting to the world

25
market. Even though at present due to lack of demand, the industries do not produce
upholstery leather but they are capable of and with the possible increasing demand in
future it can be assumed that they would be into this business.

7. Bangladesh has a huge pool of unemployed and underemployed workforce so when


needed, furniture industry can easily avail the required workforce.

8. In Bangladesh, the range of furniture is widely varied both in terms of materials and
design. There is furniture from wood, bamboo, rattan, cane, metal and also
combination of these materials. Also in terms of design, there are Transitional, Amish,
Contemporary, Traditional, Eclectic, Art Deco and Colonial varieties. Due to this variety,
Bangladesh can cater to different buyer segment in a particular country and also
reduces risk of sole dependency on a single type of product.

9. In spite of various economic and political turbulences Bangladeshi entrepreneurs have


had huge success due to their persevering entrepreneurial skill and this is a notable
strength in growth potential and pursuing export market.

10. Compared to most other competing Asian economies, Bangladeshi people are known to
be better in communicating and understanding English. This is definitely an added
benefit in terms of ease of doing business.

Weakness

1. Majority of the raw materials used in furniture manufacturing are imported like
timber, processed wood, hardware, upholstery fabric, fixtures, finishing chemicals
etc. and the import duty other than the timber is quite high (10.72 92.30%). It is
expected that with the acknowledgement of furniture sector as export thrust sector,
Government would restructure its import duty policy; otherwise there is a high
scope that manufacturers would find their prices not very competitive in export
market despite of enjoying the Global Export Facilities as LDC.

2. Bangladeshi furniture factories are facing problem of layout and material flow, which
affect productivity, lead-time and overall quality. Due to lack of well-integrated
production process furniture industry of Bangladesh is not capable of achieving
maximum production efficiency.

3. Timber is a natural product and requires processing (often called as seasoning)


before it can be used to produce furniture. If the moisture and starch contents of the
timber is not limited to the acceptable level through seasoning process, there would
be insect attacks on the furniture and would cause contraction or expansion within
the furniture as a reaction of weather change. Surface finishing quality would be
poor if it is not seasoned properly. Therefore, proper seasoning of timber would be a
prerequisite of export for such commodities. There is no independent seasoning

26
plant provide such seasoning services to the furniture producers and the sawmills or
timber wholesalers also dont carry out the process before selling woods.

4. In Bangladesh capital cost is very high compared to other competitors, which


become the cause of high production cost.

5. Customer service quality, be it in the factory end or retail end, is generally very low
which hinders the growth in repeat sales. It is equally important in local and export
market to accommodate logical and efficient after sales service policy with the
trained group of people for implementation if a company want to be successful.

6. Marketing skill is generally low of Bangladeshi companies especially for export


market. Furniture is no exception. To be successful in export market, qualified and
efficient marketing force would be prerequisite.

7. Accounting and management skills are also very low within micro and small-scale
furniture manufacturers as the most are not educated at all. This is also a very
significant weakness of the sector, which requires be identifying and solving through
training programs.

8. Quality issues would be the main hindrance of enhancing export performance for the
overall sector. The whole sector is severely lacking with quality assurance issue. The
problem lies in skills of workers, production process management, and awareness on
quality parameters, technology and so forth. Without solving these, regular export
would be almost impossible.

9. Environment and safety related compliance issues are affecting even the growth of
export-successful sectors of Bangladesh. The recent RMG safety related occurrences
have brought this burning issue again on the limelight. However, the issues should
be identified properly giving utmost priority related to the furniture sector and
addressed. In certain markets the furniture wont be able to penetrate without
fulfilling environment related pre conditions like, use of FSC certified wood/material,
use of azo dye free finishing chemicals, and use of formaldehyde free adhesive
compound and so on. Considering the furniture sector, a lot needed to be done to
become compliant in different aspect.

10. All the furniture producers of Bangladesh produce very wide range of products in
their production facilities, which is a big hindrance in achieving high productivity and
optimum quality. World furniture market is a very competitive place and without
achieving high productivity and quality, it would be extremely difficult to become
successful for Bangladeshi furniture producers.

11. Most furniture manufacturers especially those fall under micro and small-scale
practices traditional methods of furniture manufacturing, as they are not aware of
the modern methods, which is not only affecting the quality of the end.

27
12. Surface finishing is an important quality aspect in furniture market. Apart from the
medium-scale manufacturers all others are using traditional hand polish technique,
which is affecting greatly the outcome. The proper knowledge on modern finishing
methods is simply absent in case of micro and small-scale manufacturers are
concerned.

13. Micro and small-scale manufacturers do not at all have the access to the formal
sources of finance. Even in many cases the medium-scale manufacturers also find
difficulties to get access to the finance. This is a big hindrance of the development of
whole sector as in this transition phase when the micro and small-scale
manufacturers need to upgrade production process by acquiring minimum
technologies; they cant due to the difficulties in availing the access to finance.

14. The biggest weakness of the sector is there is no supply of properly trained
manpower in furniture manufacturing, as there is no efficient training service
provider or training center. There are of course few training service providers
existing as per the studies and papers, but the fact is none have the effective
resources to train people for the overall sector. In most of the cases, the people are
trained on job, which often affect into the quality and the cost of training turns into
a big expenditure for the manufacturers.

15. There is a certain lack in awareness on technology and high volume production
machineries generally used in the efficient factories worldwide within Bangladeshi
micro and small-scale producers namely Planner machine, Molder machine, Panel &
Band Saw machine, Mortiser, Sanding machine, Boring machine, Router, Grinding
machine, Lathe, Edge bending machine etc. This is often because of lack of capital
and lack in awareness in available technology. This has adverse impact on quality as
well as the productivity.

16. BFIOA (Bangladesh Furniture Industries Owners Association), the prime association
for all the manufacturers of the country has limited capacity in terms of export
promotion, coordination and management and technical skills development.

17. There are no visible effective export marketing initiatives in the sector. No planned
participation has been noticed in the leading International trade fairs, except few
supported by EPB (Export Promotion Bureau) but not regularly

18. The world furniture buyers even dont recognize Bangladesh as a possible source for
their needs. With the initiative of Bangladesh Furniture Exporters Association and
Export Promotion Bureau, an event named Bangladesh Furniture & Interior Dcor
Expo has been organized in 2012 where naturally no turn out of foreign buyers was
noticed as the project was lacking with financial capacity to spend for the
promotional activities internationally required to promote such event.

28
19. Most of the enterprises are lacking with branding and marketing activities as well as
tools like PR materials and website requires creating customers attention. A month
long event namely Dhaka International Trade Fairs (DITF) is organized every year in
the center of the major market, Dhaka city by Export Promotion Bureau, which
attracts nearly 4 million local visitors is likely to be the most important event to
promote product in the national market, where no presentation is seen from the
micro and small-scale manufacturers due to the financial constraints in paying
participation fees.

20. Four cluster/regional BIOs (Regional Committees of BFIOA) are active, organized and
more functional within the respective clusters namely, Sutrapur region-Dhaka,
Gulshan region-Dhaka, Mirpur region-Dhaka and Chittagong region-Dhaka. The
others are found less active, not organized and hardly operational towards the
development of respective clusters namely, Rajshahi region, Sylhet region, Khulna
region, Bogra region, Barishal region, Noakhali region etc.

Opportunities and threats of furniture industry


1. Further expansion into developing and emerging economies
2. Growing online sales
3. Key destination for foreign furniture buyer
4. Growth through acquisitions
5. Full adaptation of its new practices
6. Changing customer habits and new customer group
7. Extend supplier range
8. Increase product offerings
9. Expansion of retail operations
10. Retail market growth in emerging markets
11. Rising acceptance of own label products
12. Trend toward unique feature
13. Growing consumption in emerging markets
14. Increasing demand for slim smart readymade furniture
15. Further expansion through acquisitions
16. Changing customer habits and new customer groups
17. Growth of entertainment industries in emerging market
18. Greater innovation
19. Looser regulations
20. New products and services
21. New acquisitions
22. Growing demand

29
The furniture industry faces many challenges which require it to change be innovative in
order to remain it to change and be innovative in order to remain companies are to
designers to deliver innovation, to establish and build brands and to improve production
systems and sales. In this day and age a companys greatest natural resource in the
ingenuity of its employees. Designers are being used more strategically across businesses to
help companies grow and compete more successfully in global market. The traditional law
of markets and competition for the furniture industrys are now being challenged by global
trends, environmental issues, growing economies and social sustainability to name a few.
Greater economic, educational and cultural objectives must be met if a company plans to
improve itscompetiveness. Example of these objectives includes the quality of designs, the
national image of the company and the social value of the products. With todays rapidly
evolving market, staying ahead of the game can bring a whole new serving of trends to the
table.

Problems of Production and Marketing of Furniture

The researchers have identified some problems faced the sampled enterprises and
entrepreneurs. The problems can be classified into production and marketing. The problems
are as follows:

Weakness remains due to the lack of financial and institutional support, instability of
market demand, a decline in the availability of quality raw materials, lack of skill and
managerial capability. Sometimes the owners cannot expand their business because
for the lack of capital.
In Bangladesh, furniture is made of woods. The price of wood, oil and other
chemicals used in production are gradually increasing day by day. For this reason
entrepreneurs are leaving their existing business.
It is difficult or impossible to run a business like this without having at least basic
education. The higher educated people are not interested in this business. As a
result they have become habituated in producing old and obsolete model
production.
The labors do their job in different level of production, making structure and giving
the finishing touch. At different levels the wages range from Tk 30-120 per day, on
an average. Due to this low wage, many labors are switching on to other job.
Other problems include lack in consistent supply of raw material, higher cost of raw
material collection and processing; and increasing utility payments.

30
Future Prospect of Furniture Industries of Bangladesh
Traditionally furniture industry in Bangladesh developed as cottage based industry. It is in
90s when the furniture industry in Bangladesh has transited from cottage based industry to
mechanized mass production oriented industries. Following that the furniture businesses
began to grow accommodating modern machineries, innovative designs and use of diverse
materials. Furniture industry of Bangladesh is shifting its focuses from dependency on teak
for raw materials to processed wood.

The main varieties of products are wood, processed wood & Medium Density Fiber board
(MDF), and laminated board, particleboard, rattan/bamboo and wrought iron furniture. For
a more personal domain as ones home, the preferred raw materials still remains solid
wood, but combination of solid wood with other materials like cane, rattan, laminated
boards, plywood and MDF are becoming very popular. But for offices furniture designs are
usually focused on the more contemporary style and the preferred use of materials include
plastic, MDF, laminated boards and wrought irons. Around 70% production of furniture
sector of Bangladesh is home furniture and 30% is office furniture.

One of the key strengths of the local furniture industry is diversity in product portfolio.
According to CSIL (Centre for Industrial Studies), Bangladesh has a strong potential in linking
home dcor craft items with the furniture industry. The export of furniture products from
Bangladesh started from 1995. It is estimated that, by 2015 Bangladesh has export potential
of crafts furniture accessories worth of USD 10 million along with furniture worth USD 40
million. The potential can be materialized through exploiting low labor cost which is a vital
factor in becoming competitive in the world market. In wood furniture manufacturing, labor
accounts for up to 40% of the total costs. In Bangladesh labor costs account for 20% of the
production. Here, the hourly wage rate in furniture is between $ 0.06- 0.40, less than in
China ($0.50- 0.75) which is the largest furniture exporting country.

At present two relevant associations i.e., Bangladesh Furniture Export Association and
Bangladesh Furniture Industries Owners Association (BFIOA) are actively working on
materializing the potential of this sector. Bangladesh Furniture Export Association has 19
members.

31
Recommendation:

1. Every brand furniture company should have a big showroom in a true sense. Not any
sell center/ outline.

2. To improve employee qualification by updating study/ training programs with regard


to the established skill needs. Also it is important to focus on the development of
teaching and learning skills in the system of education. The lack of teaching and
learning skills manifests at schools and the workplace when people need to learn new
things.

3. To reduce the challenge of immigration as well as annual employee turnover by


improving working condition, especially the payment for work.

4. With the aim to improve the admission planning to the VET and higher education
schools, it is necessary to establish data collection and storage system ambling
reliably assesses admission, graduation and future graduation career.

5. Supply chain need to be developed.

6. Reinventing furniture industry by marketing, innovation and maintaining relationship.

7. To improve the balance between the employee demand and supply by changing
admission requirement to the higher education school and providing for the tools
promoting the mobility between different education chains. Some study program
should be established with vocational education and training and work experience
requirements. Also, the wood sector compares could use opportunities of the amend
mend to the law on vocational education and training that establishes new
apprenticeship VET organization forms. This would help to solve the lack of
employees and their qualification problems.

8. All furniture manufacturers of the country should fall under SME definition of the
Ministry of Industries.

9. Financial ability of members should improve.

32
10. The biggest hindrance of the growth of the sector is scarcity of properly trained
workforce in furniture manufacturing, as there is no efficient training service
provider or training centre in operation.

11. If the planned furniture institute can be established and can run self-sustainably, this
would be surely the turning point of the furniture sector of Bangladesh.

12. The utmost importance should be given in self-sustainability of the centre through
developing a realistic business plan while designing the project, otherwise it may
become non functional.

13. For the viability sake, the institute can be given scope to run as a profitable furniture
manufacturer, offering job works for the small manufacturers.

14. It would be highly recommended to plan for a separate cell to deal the standard and
certification issues within the furniture institute cum training centre.

15. Establishing a proper well equipped and self-sustained furniture institute cum
training centre will not only solve the problem of scarcity of trained labor, but also
will stimulate and enhance the use of proper technology as well as the good and
efficient practices in the production units, enhance the understanding on quality
parameters, environment and safety compliance issues and so forth.

33
Conclusion
The modern furniture we see today being used in Bangladesh hasits roots to the original
rule of the past. While initially the local were not influence by the furniture with which the
settlers furnished their houses, things began to change with the spread of western
education, the rise of an educated middleclass and rapid urbanization. They began to follow
the trend and designs of the west in furnishing their homes and office, a practice very
common today. Modern furniture has now become predominant in all spheres of furnishing
including homes, offices, hospital and educational institution. However, now new designs
for these pieces develop is something hard to pin point as trends are at time overlapping.
Further, blending different styles and designs to create completely new ones is also another
practice common in these furniture industries. In a very short period of time the furniture
industry of Bangladesh has experienced an unprecedented growth. However the scope for
furthering this growth is ever bigger and one of the key factors that could be catalyst for this
expansion is the use of technology. While skilled manpower is still a key element in this
industrys success story but our furniture industry have no facilities. This positive step
towards mechanizing the industry and capacity building of its workers has without a doubt
set a successful trajectory for thefurniture manufacturers and exporters of Bangladesh.

34
References
1. https://www.academia.edu/2764803/Ecodesign_report_results_of_a_survey_amon
gst_Australian_industrial_design_consultancies
2. Gray, Channing. "Haute and cool: Fine Furnishings show branches out in 10th year
with a bigger spread of classic and cutting-edge pieces". The Providence Journal.
3. BS 5852: 2006 Methods of test for assessment of the ignitability of upholstered
seating by smoldering and flaming ignition sources
4. New Chine Standard for childrens furniture takes effect SGS SafeGuards, Retrieved
08/2012
5. Source: Booklet of Bangladesh Furniture St Interior Decor Exposition 2012; available
at http://www.bangladeshconsulatela.com/docs/Booklet_bfidexpo-2012.pdf
6. Source: Booklet of Bangladesh Furniture St Interior Decor Exposition 2012; available
at http://www.b Source: Booklet of Bangladesh Furniture St Interior Decor
Exposition 2012; available at
http://www.bangladeshconsulatela.com/docs/Booklet_bfidexpo-
2012.pdfangladeshconsulatela.com/docs/Booklet_bfidexpo-2012.pdf
7. Source:Export data has been compiled from
http://bfidexpo.com/furniture_association.php (accessed on 15 May 2012),
8. Board of Bangladesh Furniture Industries Owners Association (BFIOA)
9. Board of Bangladesh Furniture Exporters Association (BFEA)
10. Bangladesh Furniture Industries Owners Association- Mirpur (Regional Committee)
11. Bangladesh Furniture Industries Owners Association- Gulshan (Regional Committee)
12. Bangladesh Furniture Industries Owners Association- Sutrapur (Regional Committee)
13. Bangladesh Furniture Industries Owners Association- Chittagong (Regional
Committee)
14. Bangladesh Furniture Industries Owners Association- Bogra (Regional Committee)
15. Export Promotion Bureau (EPB), Bangladesh
16. Bangladesh-Sweden Polytechnic Institute (A training Institute under Ministry of
Education, GoB)
17. INDUSTRY & RURAL SECTORS GROUP, KATALYST Bangladesh.
18. Export Market Entry Strategy for Bangladeshi Furniture Manufacturers a study
conducted by CSIL (Centre for Industrial Studies), Milan, Italy.

35
19. Furniture Sector Base paper prepared jointly by Export Promotion Bureau,
Bangladesh Furniture Industries Owners Association & KATALYST.

36

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