Penthouse Livings: Driving the luxury furniture trend in Bangladesh
Ashique Un Nabi, the Operations Director of Meghna Executive Holdings — the parent company of luxury furniture brand Penthouse Livings — speaks to The Business Standard about the current state of the country’s furniture industry and how the brand is helping meet the demand for high-end products
Bangladesh's economic development in recent decades has led to an increase in consumers' purchasing power. Customers today have a nuanced understanding of international markets, valuing quality and sustainability. This has resulted in visible growth in the luxury furniture market.
Penthouse Livings, a premium luxury furniture store in Dhaka located at Banani, is the Executive importer and retailer of premium international furniture brands from Italy, the US, and tableware brands from the US and Germany. As a subsidiary of Meghna Executive Holdings, the brand is helping meet the demand for high-end furniture in the country.
The Business Standard recently spoke with Ashique Un Nabi, the Operations Director of Meghna Executive Holdings, on the current state of the country's furniture market and the role Penthouse Livings is playing in driving its growth.
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What inspired Meghna Executive Holdings to move into the furniture business?
There are renowned showrooms for cars and watches in Bangladesh, but the same could not be said for furniture. Recognising this gap, Penthouse Livings emerged to fulfil the demand for internationally acclaimed furniture brands. By bringing these brands to Bangladesh, we not only provide customers with access to top-notch products but also inspire local entrepreneurs to elevate their own offerings. Our goal is to curate a collection of branded furniture, each with its unique story, theme, and philosophy. This, we believe, fosters a culture of innovation among local producers.
With the influx of international brands, the furniture sector in Bangladesh is experiencing unprecedented growth, reaching new heights and setting benchmarks every day.
Which brands are you offering to Bangladeshi customers at present?
Currently, we have Executive partnerships with approximately 50 brands. From furniture and bedroom cabinets to decorating items and kitchenware, our showroom boasts an extensive range of products. Renowned names such as Poliform, Calia, and Tonin Casa have found a home in our furniture shop. Our one-stop solution allows customers to explore and purchase products from multiple brands under one roof, simplifying the shopping experience.
How is the demand for luxury furniture increasing in the country?
Bangladesh's economic development has led to an increase in buyers' purchasing power. Customers today have a nuanced understanding of international markets, valuing quality and sustainability. This has resulted in visible market growth, with other companies following suit. The emergence of competitors indicates a growing demand in the market.
Currently, approximately 65% to 70% of the furniture demand in Bangladesh is fulfilled by non-branded products, while the remaining 30% to 35% consists of branded items, of which 5% to 7% are imported furniture.
How has Penthouse Livings' growth been in the past four years?
Our growth has been consistent, averaging around 25% each year. In the past four years, Penthouse Livings has expanded its sales centre from the ground floor to the sixth floor, which was up to the third floor when it started. This is just an indicator of our overall growth and market presence.
What kind of clientele does Penthouse Livings cater to?
Our clientele comprises corporate buyers, individuals with an eye for luxury, art enthusiasts, and those who appreciate the history behind beautifully crafted items.
Penthouse Livings' products are also sought after as exquisite gift items. We provide various services to our customers, including furniture maintenance guidance and after-sales support. Our goal is not just to sell furniture but to offer a comprehensive experience to our customers, including complementary interior design services.
Do you have any plans to partner with foreign companies for local production?
Collaborating with foreign brands allows us to learn their best practices, fostering research, innovation, and eventually leading to licensing manufacturing partnerships. Similar to how Samsung manufactures smartphones in Bangladesh, our aim is to engage in licensed manufacturing with foreign brands, contributing to the growth of the local industry.
Executive Woodworks Limited, a strategic business unit of Meghna Executive Holdings Limited, is establishing a factory in Gazipur dedicated to manufacturing export-oriented furniture. Similar to the garment industry model, where garments are produced in Bangladesh for export, Executive Woodworks Limited aims to manufacture furniture for the international market. However, the lack of clarity in the bonded warehouse policy hinders furniture export. Simplifying and expediting the bonded warehouse permission process is crucial to facilitating furniture exports.
What support is needed from the government to further develop the furniture industry?
To further develop the industry, we require support in establishing sophisticated product import facilities. Current challenges at Chittagong port, such as delays and time-consuming processes, need to be addressed.
Import taxes on luxury products are high, limiting accessibility for middle-class families. We propose customised VAT systems, offering discounts to encourage the use of sustainable products. Tax incentives and corporate tax concessions for importers could further stimulate growth, making sustainable products more affordable. Moreover, reducing import taxes could lower prices, fostering domestic production and increasing export opportunities, aligning with the sustainability standards necessary for international markets. It is crucial for the government to simplify these processes to promote a flourishing and environmentally conscious furniture sector in Bangladesh.
What are your plans for the next five years?
Over the next five years, our focus is on strengthening our collaboration with successful brands in the market. We intend to expand our portfolio by adding more brands, fostering international partnerships.
Our team, including architects, will be travelling abroad to contribute to the production of international brands. Strengthening relationships with the embassies of the brands we represent in Bangladesh is a priority, aiming to enhance customer service. We plan to increase the number of outlets, engage with prominent architects in the country, and actively contribute to sectoral development. Our overarching goal is to sustain and augment the growth of our business
