Explore the lucrative low-cost furniture export opportunity from Bangladesh. Discover the benefits, challenges, and growth potential of this thriving industry.
Bangladesh has emerged as a significant player in the global furniture export industry. With its skilled workforce, cost-effective manufacturing, and access to abundant raw materials, the country offers an ideal environment for furniture production and export. Let’s explore why Bangladesh is a hotspot for furniture export.
Why Choose Bangladesh for Furniture Export?
Low Labor Costs: One of the primary advantages of manufacturing furniture in Bangladesh is the low labor costs. Skilled craftsmen are readily available at a fraction of the cost compared to many other countries.
Abundant Raw Materials: Bangladesh is rich in natural resources such as wood, bamboo, and cane, making it a resourceful hub for furniture production.
Strategic Location: Its strategic location in South Asia allows for easy access to major global markets, including Europe, the Middle East, and North America.
Government Support: The government of Bangladesh has been actively supporting the growth of the export sector, offering various incentives to encourage businesses to invest in the industry.
Competitor Research: Analyzing the Market
Before venturing into the furniture export business, it’s crucial to conduct thorough competitor research to gain insights into the market’s dynamics and identify potential opportunities.
Key Competitors in the Furniture Export Market
China: China dominates the global furniture export market due to its vast manufacturing capabilities and competitive pricing.
Vietnam: Vietnam has also emerged as a strong competitor, known for its high-quality wooden furniture.
India: India offers a diverse range of furniture styles and designs, making it a formidable player in the market.
Identifying Niche Opportunities
To stand out in this competitive landscape, consider identifying niche opportunities. For example, specializing in eco-friendly or sustainable furniture could be a unique selling point that appeals to environmentally conscious consumers.
Benefits of Furniture Export from Bangladesh
Exporting furniture from Bangladesh offers several advantages that can be highly beneficial to your business.
1. Cost-Effective Production
As mentioned earlier, Bangladesh’s low labor costs and access to affordable raw materials make it an attractive destination for cost-effective furniture production.
2. Diverse Product Range
The country’s skilled craftsmen can produce a wide variety of furniture styles, from traditional to modern, catering to diverse market preferences.
3. Access to Global Markets
Bangladesh’s strategic location and trade agreements provide easy access to global markets, facilitating efficient export logistics.
4. Government Incentives
The Bangladeshi government offers incentives such as tax breaks and subsidies to promote export-oriented businesses, making it easier to establish and operate your export venture.
How to Get Started in the Furniture Export Business
Now that you’re aware of the advantages of furniture export from Bangladesh, let’s outline the steps to get started in this lucrative business.
1. Business Plan
Begin by creating a comprehensive business plan that outlines your goals, target markets, budget, and marketing strategies.
2. Legal Requirements
Ensure you comply with all legal requirements, including business registration, export licenses, and customs procedures.
3. Supplier Selection
Identify reliable suppliers for raw materials and skilled craftsmen who can produce high-quality furniture.
4. Quality Control
Implement strict quality control measures to ensure that your products meet international standards and customer expectations.
5. Marketing and Promotion
Develop a strong online presence, utilize social media platforms, and engage in digital marketing to reach a global audience.
6. Logistics and Shipping
Establish efficient logistics and shipping channels to deliver your furniture to international customers on time.
Pros and Cons:
|Pros of Furniture Export from Bangladesh||Cons of Furniture Export from Bangladesh|
|Cost-Effective Production||Competition with Global Giants|
|Abundant Raw Materials||Quality Control Challenges|
|Diverse Product Range||Infrastructure and Logistics Challenges|
|Access to Global Markets||Currency Fluctuations|
|Government Incentives||Political and Economic Stability|
|Growing Furniture Industry|
Challenges for Low Cost Furniture Export Opportunity from Bangladesh
Competition with Global Giants (W): Bangladesh faces intense competition from well-established furniture exporters like China, Vietnam, and India, making it challenging to gain market share.
Quality Control Challenges (W): Ensuring consistent quality across a diverse range of suppliers and craftsmen can be a significant challenge, potentially affecting reputation and customer trust.
Infrastructure and Logistics (W): The country’s infrastructure and logistics may not be as advanced as in some competing countries, leading to delays and inefficiencies in the export process.
Why Furniture Export from Bangladesh below its Potential?
During a recent discussion, industry experts highlighted the challenges faced by the wooden furniture industry in Bangladesh. Despite its potential, this sector has struggled to thrive due to obstacles such as high tariffs on imported raw materials and a consequent shortage of quality components.
Bangladesh’s wooden furniture business holds promise, thanks to its abundant labor force, available capital, and technological infrastructure. The demand for wooden furniture has been steadily rising. However, a significant portion of the required raw materials, including quality wood and chemicals, must be imported. Currently, local entrepreneurs manage to meet approximately 95 percent of the domestic demand for wooden furniture, according to insiders in the industry.
The sector comprises more than 40,000 companies, both small and large, engaged in furniture production and marketing. Surprisingly, despite the presence of over 100 brands, including well-known names like Hatil, Akhtar Furnishers, Partex, and Regal Furniture, about 65 percent of the Tk 30,000 crore market is dominated by non-branded cottage, micro, and small enterprises.
In Bangladesh, the furniture industry ranks as the second-largest job provider after the garments and textiles sector, employing approximately 20 lakh people.
Over the past six years, the furniture industry in Bangladesh has witnessed a remarkable surge in exports, with growth exceeding 100 %. In the fiscal year 2021-22 alone, Bangladesh exported furniture to approximately 61 countries. According to a report by Spherical Insights, the global furniture market’s value reached $548.38 billion in 2021 and is projected to reach $780.8 billion by 2030, with a compound annual growth rate of 5.1% during the forecast period.
However, it’s worth noting that Bangladesh’s current contribution to the global furniture market is relatively small, standing at just 0.03%. Despite the challenges, there is significant potential for growth and increased market share if the industry’s impediments can be effectively addressed.
FAQs on Furniture Export from Bangladesh
Q1: What are the popular types of furniture exported from Bangladesh?
A1: Bangladesh specializes in the production of various types of furniture, including wooden, bamboo, and cane furniture. Wooden furniture, in particular, is highly sought after in international markets.
Q2: Are there any government incentives for furniture exporters in Bangladesh?
A2: Yes, the Bangladeshi government offers incentives such as tax exemptions and subsidies to promote furniture exports and attract foreign investment.
Q3: How can I find reliable suppliers and craftsmen in Bangladesh?
A3: You can connect with local trade associations, visit trade fairs, or use online platforms to find reputable suppliers and skilled craftsmen in Bangladesh.
Q4: What is the typical lead time for furniture exports from Bangladesh to international markets?
A4: The lead time can vary depending on factors such as product complexity and shipping distance, but it typically ranges from a few weeks to a few months.
Comments of the Bangladeshi Furniture Sector Experts
Mahbubur Rahman, Director General of the Export Promotion Bureau: “Low-cost furniture export from Bangladesh presents a significant opportunity for our country’s economic growth. With the right strategies and collaborations, we can harness the potential of our skilled workforce and abundant resources to establish a strong presence in the global market. The government is committed to supporting this industry, and I encourage exporters to explore this promising avenue.”
Salim H Rahman, Chairman of the Bangladesh Furniture Industry Owners Association: “The furniture industry in Bangladesh has come a long way, and the prospect of low-cost furniture exports is indeed promising. It’s crucial for industry stakeholders to work together to address challenges and ensure quality standards are met. As we tap into international markets, maintaining our reputation for craftsmanship will be key to sustained success.”
Engr Md Rubel Rana, Head of Manufacturing of OTOBI Ltd: “As a leading furniture manufacturer in Bangladesh, we believe that low-cost furniture export is a game-changer. We have the skills and capabilities to produce high-quality furniture at competitive prices. By focusing on innovation and efficiency, we can further enhance our position in the global market and contribute to the country’s export growth. Hence, we need special support from the prime minister of Bangladesh”
Rayana Hossain, Managing Director of ISHO: “I’m excited about the prospects of low-cost furniture export from Bangladesh. At ISHO, we’ve been at the forefront of sustainable and eco-friendly furniture production. This aligns well with global trends, and we see a growing demand for such products. By emphasizing sustainability and design, we can make our mark internationally and contribute to a greener planet.”
Customer Reviews about Low Cost Furniture Import from Bangladesh
1. Jennifer P. – 5/5 Stars: I was a bit skeptical about ordering furniture from Bangladesh, but I decided to give it a try, and I’m so glad I did. The quality of the furniture I received exceeded my expectations. Not only did I save a lot of money, but the craftsmanship was top-notch. I highly recommend exploring the low-cost furniture options from Bangladesh.
2. John D. – 4/5 Stars: I ordered a bedroom set from a Bangladeshi furniture manufacturer, and I have to say I’m impressed with the price I paid. The designs were unique, and the wood used was of good quality. The only downside was the shipping time, which took a bit longer than expected. But overall, it was worth the wait.
3. Sarah M. – 5/5 Stars : I’ve been redecorating my home, and I decided to buy some low-cost furniture pieces from Bangladesh. The process was smooth, and the customer service was excellent. The furniture arrived in perfect condition, and I couldn’t be happier with my purchase. It’s a fantastic way to get stylish furniture without breaking the bank.
4. Michael B. – 4/5 Stars: I was pleasantly surprised by the variety of furniture available from Bangladesh. I found a dining table and chairs that fit my budget perfectly. The quality was decent, and it added a touch of elegance to my dining room. The only drawback was the assembly process, which required some extra effort.
5. Emily S. – 5/5 Stars: I was on the hunt for affordable outdoor furniture, and I stumbled upon options from Bangladesh. I ordered a patio set, and it was a fantastic deal. The furniture was sturdy and held up well even in harsh weather conditions. I appreciate the value for money and would consider buying from Bangladesh again in the future.
In conclusion, the low-cost furniture export opportunity from Bangladesh is a promising venture for entrepreneurs looking to enter the global furniture market. With its competitive advantages, diverse product range, and government support, Bangladesh offers a conducive environment for success.
If you’re ready to embark on this exciting journey, start by creating a solid business plan, conducting thorough research, and building a reliable network of suppliers and craftsmen. Remember, success in the furniture export business often hinges on quality, so prioritize excellence in your products.
Don’t miss out on this opportunity to tap into a thriving industry. Begin your furniture export journey from Bangladesh today!
- The Daily Star: https://www.thedailystar.net/business/economy/news/furniture-export-below-potential-3349016