Bangladesh’s furniture industry is witnessing a downtrend, evident by a significant year-on-year decrease in both local and international sales in the first quarter of FY24.
Furniture exports fell by 32 per cent in the first three months (July-September) of the ongoing FY, show Export Promotion Bureau data. The country exported furniture worth $13.48 million during this period, compared to $17.74 million posted in FY23.
For the decline, industry insiders blamed the hike in USD price, which pushed up production costs and reduced Bangladesh’s competitiveness in the international market.
Moreover, overseas consumers have reduced their expenditure on luxury products such as furniture due to the global economic headwinds. These issues have decreased furniture sales in both the foreign and domestic markets.
Bangladesh currently exports furniture to India, the US, Japan, Spain, South Korea, Canada, Norway, France, Saudi Arabia, Qatar and the UK.
Otobi, Akhtar Furnishers, Hatil Furniture, Brothers Furniture, Partex Furniture and Navana Furniture are major players among 17 members of the Bangladesh Furniture Exporters Association (BFEA).
Bangladesh had recorded a decade-high $110.36 million in furniture exports in FY22. But the figure dropped to $90 million in FY23, show EPB data. Through furniture exports, the country had earned 74.89 million in FY19, and 76.41 million in FY20.
Commenting on the issue, Bangladesh Furniture Industry Owners Association Chairman Salim H Rahman said, “It is possible to achieve the yearly target of furniture exports by the end of this year.
“But for this, the import duty, SD, and RD on raw materials imports should be at a reasonable level.”
He added, “For example, the cost of importing a raw material used to be Tk 100, but due to the increase in USD price, the cost is now more than Tk 110. Due to the increase in production costs, the price of finished products has increased, which in turn has reduced sales.
“Besides, due to the global economic recession, people are buying less luxury products, and this has affected the market negatively. Furniture sales in the country have decreased by more than 10 per cent.”
Salim added that Bangladesh exported furniture worth $90 million last year, and this year’s sales are expected to exceed that figure. “We have organised a fair to boost sales,” he said.
Furniture Fair
The 18th National Furniture Fair is starting today. The objective of the fair is to further develop the domestic furniture industry and increase exports.
This fair will have 185 stalls belonging to 30 companies, including Hatil, Akhtar, Omega Furniture, Navana, Partex, Regal, Nadia, and Brothers Furniture. The biggest event of the domestic furniture industry will continue till October 21.
The fair will be held at the Bashundhara International Convention City of the capital.
