The size of India’s home textile market is around Rs 22,000 crore and organized sector’s share in this is just 10%
Leading exporters of home textiles and furnishing from India are reworking their strategies to expand their market and insulate themselves from global shocks. Looking inward, that is, domestic market is one of the strategies being worked out by the leading home textile makers of India. For example, Trident which entered the domestic market in 2014 aims to be the top 3 brands in home textiles in India in next three years. Trident is eyeing the premium segment where margins are higher. Similarly, Indo Count which exports to 56 countries world-wide entered Indian market last year with its “BOUTIQUE Living” brand. Similarly, Welspun India sells home textiles in India through “Spaces” brand. There are many reasons for home textile exporters looking at India as an important market.
Some of the recent policies of the government will have far reaching implications on demand for home-related products in the coming years. For example, the Government is committed to provide ‘Housing for All by 2022’, which will boost the demand for all home-related products, including home textiles.
The combination of GST and push towards digital transactions will accelerate the shift towards organized sector. The size of India’s home textile market is around Rs 22,000 crore and organized sector’s share in this is just 10%. So, there is huge opportunity for the players in organized sector to grab market share from unorganized sector.
Most of the leading players in home textiles industry have gone for substantial capacity expansion in recent years. At the same time demand from international clients is not on the same scale as was expected which has resulted in lower capacity utilization. For example, Indo Count Industries has expanded its capacity to 90 million meters while demand during the current year may not exceed 60 million meters thus leaving huge unutilized capacity. Using the unutilized capacity to cater to the domestic demand is one of the strategies adopted by these players.
Further, with the penetration of organized retail, increasing disposable income, rising consumerism and favourable demographics, the domestic market is becoming increasingly attractive for local players. This story is attracting many new players and brands into the market.