RECORDER REPORT

LAHORE: South Asian furniture market has vast scope for expansion and if tangible steps are taken by the SAARC member countries to promote furniture industry on modern line, furniture luxury market would reach colossal figure of $5.4 billion by 2020.

Pakistan Furniture Council (PFC) chief executive Mian Kashif Ashfaq expressed these views while talking to a delegation from SAARC countries here on Monday. He said increased regional economic connectivity within South Asia, as well as with other parts of Asia, can bolster economic growth, reduce poverty and enhance regional stability and security.

He said the rising disposable incomes, improving consumer lifestyles and a significant increase in the GDPs largely supplement the growth of the market in the South Asian region. Further, the growth is also supplemented by the ongoing developments in the real estate sector in the region which largely boosts the adoption of luxury furniture by both domestic as well as commercial users, he added.

Responding to a question, he admitted that lack of connectivity is a major reason behind low inter-regional trade in South Asia. However, he said South Asia has a trade opportunity of $80 billion as against the actual trade of $28 billion. “Remedial measures may push the regional trade to as high as $170 billion by 2020,” he opined.

Highlighting the positive trend in furniture market in South Asia, Mian Kashif said luxury furniture made from wood is estimated to dominate the market while the luxury furniture made from glass would witness the highest growth rate, registering a compound annual growth rate (CAGR) of eight percent during 2015-2020.

“Metal is the second most popular material for luxury furniture, constituting about 1/5th of the market. Other prominent materials include leather, plastic, glass and others (rattan or wicker, fabric, fibre, stone, marble, granite, poly urethane and acrylic). Amongst all the above mentioned materials, the market for glass is expected to grow at the highest CAGR of 8 percent, owing to its increasing use in modern furniture designs,” he elaborated.

Answering yet another question about Pakistan’s share in furniture global market, he said Pakistan is still lagging behind in this sector even compared to its neighbouring countries India and China.

He further said Pakistan’s share in the world market for furniture is negligible, despite the fact that it has a valuable record of craftsmanship and innovation in this sector.