Non-brand furniture industry growing, eying huge exports

Md Shahid Ullah, owner of GS Furniture Mart at Chhagalnaiya Bus Stand Bazar, Feni, started his business in 1998 with only five carpenters, investing only Tk5 lakh. Currently, his business has 25 employees and its annual turnover is more than Tk3 crore.

"I came to this profession 24 years ago seeing the rising demand for wooden furniture. At present, my monthly sale is Tk12-15 lakh. I hope my business will expand further," he told The Business Standard.

Abdur Rahman, another furniture trader from the Paschimsheri area of Sherpur sadar, was once a carpenter. He set up a factory and shop in the local market with a small investment. Currently, his annual turnover is around Tk2 crore.

"Furniture from my factory is being sold in different districts, including Sherpur. The business has changed my life. I have bought land in the village with the income and built a two-storey building in the town," he said.

Like Shaid Ullah and Abdur Rahman, the non-brand wooden furniture industry has changed the lives of thousands of people as the demand for these products has increased along with the purchasing power of the people in recent years in the country.

Entrepreneurs say with government policy support this industry along with the branded furniture companies can be instrumental in earning foreign exchange as there has been a growing demand for eco-friendly products worldwide.

According to industry insiders, about 95% of the non-brand furniture in the country are manufactured by micro level factories. Excluding them, the number of small and medium level factories is around 6,500.

Of these, more than 4,000 are in Mirsarai, Chattogram, about 200 in Chhalavara village of Kazipur, Sirajganj, about 150 in Panchagarh sadar, 300 in Sherpur sadar, 400 in Pirojpur, 100 in Tangail's Ghatail, 300 in Nandigram, Bogra, 200 in Lakhsmipur, and 150 factories have been set up in Feni.

Besides, about 300 factories have been set up in Kushtia, 100 in Sonargaon, Narayanganj, and more than 100 factories in Ukhia, Chattogram.

According to Grand View Research, an international market research firm, the size of the global furniture market is $560 billion.

According to the SME Foundation, the size of the local furniture market is at least Tk25,000 crore and non-brand furniture accounts for more than 50% of the market.

More than four lakh people are employed in this sector, which has expanded the most since the 1990s, according to the SME Foundation.

However, according to entrepreneurs in the brand furniture sector, the furniture market in the country is now around Tk30,000 crore. Export growth in this sector is about 30% and in the last 10 years, the volume of export has increased almost 10 times.

They said the demand for wooden furniture is increasing day by day as it is eco-friendly and most of the buyers prefer readymade furniture.

Industry insiders said non-brand furniture entrepreneurs import timber from Nepal, India, Malaysia and some African countries, besides using local timber.

They said most of these entrepreneurs were carpenters before setting up factories and train their employees themselves. The employees later become skilled craftsmen in a few years.

Rafiqul Islam has been working as a carpenter in the non-brand furniture sector for eight years.

"My daily income is Tk500-600. If I work overtime at night, I earn Tk1,000 to Tk1,200 per day," he told TBS.

Traders say there has been a shortage of skilled workers in this sector as many of them go abroad where they get higher salaries.

Kamal Uddin, a furniture trader from Feni, said, "Many of the employees have moved to the Middle East, Malaysia and other countries after learning basic skills. Now it has become very hard to get skilled workers. It takes 4-5 years to become skilled in this work."

Tofail Ahmed, proprietor of Shaheen Furniture in Laxmipur, said, "The government should meet the demand of the industry by providing training to more workers through the SME Foundation. We also need easy bank loans, advanced technology. Then we will be able to export our furniture."

Statistics show that an opportunity for Bangladesh in the global furniture market is being opened as China, the largest supplier in this sector, is gradually reducing production.

Experts say branded and non-brand furniture could be our top export product like RMG if we can tap the potentials of this sector.

Dr Shariat Ullah, professor, Department of Organisation Strategy & Leadership, Dhaka University, has been working on the non-brand furniture industry for a long time. He told TBS, "About 90% of the furniture factories in the country are micro-level. These factories do not have owners' associations or these types of organisations and there are no official statistics. As a result, public and private support does not reach these factories. However, this environmentally friendly sector is very promising."

"If big furniture brands bring non-brand (medium, small, micro) factories under contract manufacturing, their exports will increase. It will also help expand the non-brand factories," he added.

Md Mofizur Rahman, managing director of the SME Foundation, said, "Most people now prefer eco-friendly products. Demand for wooden furniture will increase in the future even more."

"We have already conducted assessment studies in several of these spontaneously formed non-brand furniture clusters across the country. We have plans to give various kinds of training to the workers in this sector," he added.

He further said that he will recommend that the banks provide low interest loans to entrepreneurs on easy terms.