Traders worried about the festive Season as products are stuck at different customs
Himalayan News Service
Kathmandu
Be it domestic manufacturers or
importers of furniture, both are facing a tough time due to the unrest
in Tarai. Manufacturers are hassled by the lack of raw material, which
largely comes from the Tarai, while importers don’t have options other
than importing furniture through the border (Tarai). Moreover, furniture
traders are also worried about whether they will get to import products
for the festive season, which is the prime time for business. According
to traders, the sale of furniture will dip significantly if they do not
get products on time.
Citing that the furniture market
witnessed 15 per cent growth last year, President of Nepal Furniture and
Furnishing Association (NFFA), Kabindra Joshi said, “We doubt we can
retain the same growth this year due to the ongoing strike in Tarai.”
Informing that around 50 containers with furniture are stuck at
various custom offices in Tarai due to bandh, he said, “We were
compelled to postpone our annual Furnex Expo 2015 that slated for
October 1.” Stating that the furniture business was not affected by the
earthquake, he said, “If the Tarai bandhs continue, it is for sure the
industry will be hit hard. However, we are hopeful that the situation
will be back to normal soon.”
Citing that the furniture
industry is becoming dependent on imports, Joshi said, “Due to lack of
skilled manpower, electricity and other raw material, domestic
productions are gradually declining and traders are now attracted
towards importing readymade products.” According to him, China,
Thailand, Malaysia and America are prime countries from where furniture
is imported.
The Nepali furniture market is separated
into three segments — domestic, Chinese and branded products. Affordable
pricing, aesthetic look and fine design are reasons why customers are
gradually opting for imported furniture. However, the charm of domestic
products is still alive owing to its durability, quality and design.
According to him, 60 per cent of the furniture market is dominated by
imported furniture whereas domestic furniture enjoys 40 per cent market
share.
Marketing Director of Bira Furniture at Patan
Industrial Area, Sarju Shrestha said, “We have not been able to import
raw materials due to the bandh whereas the business was already affected
by the earthquake.” Informing that the demand for furniture dipped
during the earthquake, he said, “We are optimistic about the upcoming
festive season only if the Tarai unrest is resolved.”
According
to him, local, branded and Chinese furniture have their own separate
markets with their individual merits and demerits. “There will be price
hike in furniture products by 10 to 15 per cent for domestic products
owing to labour crisis and lack of raw material available due to the
present situation,” he added.
“The demand for branded
furniture was down for the last two months because of the earthquake,”
said Nikhil Tuladhar, Marketing Manager at Index Furniture, adding that
the business is hit hard due to the bandhs as products are stuck at
Birgunj Customs. Tuladhar further said, “Customers are aware about
branded products in furniture and value them for quality and design.”
Published on THT Property Plus, September 12
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