With the current period vastly driven by three factors in the Furniture industry of India, the cover story of Furniture Design & Technology (FDT) is “3Cs: Customs Duty, Chinese Import, Coronavirus.” The team interacted with a lot of people recently, the status of companies could be categorized into three major types: the Decisive, the ones absorbed in Dilemma and others in Delusion.
Leaders who are clear with the strategies are forging ahead steadfastly with goal oriented plans. They are mostly the settled business houses of India who believe the market has seen the worst and it is time to rise. Companies who are majorly import dependent are in a state of dilemma about the next moves – how to re-negotiate prices, rework on the product, get associated with local players or put forward certain cost to the consumer and absorb some. While speaking to media, Peter Betzel, CEO of IKEA India expressed disappointment with the customs duty hike. FDT came to know some of the players have planned to neutralize the situation, while the team also met few who seem to be living under deep delusion. With many of their orders in queue with the Chinese factories while China is facing a crisis due to Coronavirus outbreak, it is probably not wise to expect the deliveries soon. An analyst suggested, it will be wise to invest and look for other alternatives so that if the deliveries from China are affected, work will not get impacted.
The Confederation of Indian Industry (CII) suggested the government to take steps to ensure Indian businesses are not hit hard by the Coronavirus outburst. India is highly dependent on imported Chinese goods for many of its production as well as finished products. Traders are also of the opinion that if investment is routed elsewhere what will happen when China opens up and dumps a large volume of material. Some are worried about price rise and requesting for easy paper work as their material is stuck at the port while Chinese factories could not furnish requisite documents. CII suggested, “The government may offer credit with a backstop facility of guarantee for companies which have the capability to start immediate production of items that can feed into domestic consumption.” Finance Minister Nirmala Sitharaman informed that disruptions are visible due to delay in shipments, however, there are no concerns about price rise so far due to Coronavirus scare.
This issue has inputs from various leaders and insiders of the furniture industry along with reports on Vasai industrial hub, NCR furniture markets, innovations, interviews, news, trends and a lot more. Keep reading Furniture Design & Technology!
Furniture Design & Technology (FDT Magazine)
This editorial was originally published in Furniture Design Technology (FDT Magazine) January-February 2020 print issue. If you want to read the full magazine, please subscribe Furniture Design Technology Magazine here:
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FDT is a B2B monthly bilingual magazine from India that shares the pulse of the furniture business in India and connects the manufacturers, OEMS, product designers, architects, showrooms, designers and dealers.Read More