Home decor suppliers in India explore marketing venues to remain competitive

This report provides an analysis of the performance of the home decor industry in India. It is produced by the Hinrich Foundation, a development organization that aims to promote sustainable global trade by, among others, helping create jobs in emerging Asia.

Makers of home decor in India are undertaking measures to sustain growth and survive fierce industry competition.

Suppliers are bolstering their online presence to take advantage of the country’s booming e-commerce sector. More companies are creating their own websites to promote their latest offerings and reach new markets.

Manufacturers are also modernizing their assembly lines to boost efficiency and complement traditional processes. With the help of the government and related agencies, local enterprises are able to improve their designs and develop the technology skill sets of their workers.

Exports

Shipments of home decor, which is composed of home accessories, vases and pottery, and garden ornaments, have been on the upward trend for the past three years. Statistics from the Ministry of Commerce and Industry indicate that revenue in the 2013-14 fiscal year reached $557.2 million, up 13 percent YoY.

Sales of home accessories, which include sculptures, paintings and wall hangings, reached $554 million from April to December 2014. The figure is higher by 7 percent compared with that of the entire 2013-14 period.

The expansion is attributed to strong demand in traditional markets and increasing opportunities in emerging destinations, including the Middle East and Africa. The US and the UK are the top overseas markets, taking up 31 and 12 percent of shipments, respectively.

Product trends

Home decor suppliers from India continue to apply various design upgrades to keep selections fresh.

Combining traditional and modern styles is evident in motifs showcasing the country’s rich heritage, including Hindu and Buddhist arts and deities. Old-fashioned engravings often accentuate table lamps and candle holders.

The use of paisley, lotus and chakra patterns remains mainstream. Complex carvings, on the other hand, usually embellish brass vases and marble flowerpots. Metal pieces are fitted with intricate inlay artworks to boost aesthetics.

Aside from adopting conventional styles, manufacturers are launching novelty models such as clocks and photo frames, with some designs resembling animals, birds, fruits and flowers. In terms of colors, bright shades such as red, orange, yellow and green are prevalent.

With the increasing awareness on environment preservation, companies are releasing more models made of earth-friendly materials. Sustainable items include coconut shell planters, cane vases, bamboo lamps and banana paper lamp shades.

Competitive advantages

India’s deep labor pool is one of the sector’s strongest suits. It is estimated that there are more than six million people employed in the handicrafts industry. Local craft workers are known to have extensive experience in various ceramic and metalwork-related processes. As such, manufacturers leverage traditional designs to boost viability.

To further improve the skills of artisans, suppliers send their employees to various training institutions such as the Metal Handicrafts Service Center in Moradabad. Supported by the national government and the United Nations Development Program, the establishment provides courses on advanced tools and design process.

Another edge possessed by the line is easy access to raw materials such as metal, wood and stone. Marble can be easily bought from vendors in the cities of Jodhpur, Jaipur and Udaipur. Teak, mango, rosewood and other timber varieties are readily available in Uttar Pradesh and Karnataka states.

Challenges

One of the pressing concerns facing the line is the inability to keep up with the latest technology and industry trends. Since most manufacturers belong to the unorganized sector, they do not have the capacity to accept large orders due to lack of resources and absence of modern machinery.

The widening income gap in the country is another crucial roadblock. Since local governments have been empowered to adjust salary rates, wage disparities among states are common. Skilled workers in Delhi receive up to $168 monthly. Their counterparts in Haryana and Uttar Pradesh are paid between $95 and $100 per day.

Surging raw material outlay is likewise identified as a major difficulty. Prices of key components, particularly stainless steel and aluminum have increased over the past months. The former, which is mainly used in home accessories, have become more expensive by about 10 percent amid strong demand in the construction sector.

For more information about the Hinrich Foundation's industry-specific sourcing reports spanning seven different countries in Asia, visit Online Developing Country Sourcing.

Product gallery

The following is a selection of home decor made by India suppliers. For detailed industry and production information, and supplier outlook over the next 12 months, visit India Sourcing: Home decor. For information on related industries in India and other emerging economies in Asia, go to www.developingcountrysourcing.com.