Rise of branded furniture in Bangladesh: From local roots to global ambitions

In 1975, Otobi Furniture laid the foundation for branded furniture in Bangladesh. Decades later, the industry has become a dynamic sector contributing significantly to the national economy, accounting for an estimated 1.2% of GDP and providing employment opportunities for around 2.5 million people.

What began as a modest venture is now a thriving industry, encompassing over 40,000 small and large enterprises and more than 100 brands, including Hatil, Navana, Partex, Akhtar, Regal, Brothers, Nadia, Isho, and Legacy Furniture.

A shift in consumer preferences

Once reliant on local carpenters for custom-made furniture, Bangladeshi consumers now prioritise branded furniture for its aesthetic design, superior quality, and reliable after-sales service. Branded furniture has evolved as a reflection of taste and sophistication, aligning with modern lifestyles.

According to the Bangladesh Investment Development Authority (BIDA), branded furniture accounts for approximately 35% of total market sales, demonstrating its growing dominance.

Industry insights 

Selim H Rahman, Chairman of HATIL and President of the Bangladesh Furniture Industry Owners Association, emphasised that brands have built trust through consistent efforts. "Customers are now willing to pay VAT, understanding their contribution to national development," he noted.

Additionally, branded furniture offers customers peace of mind through after-sales services and grievance mechanisms, such as filing complaints with the Directorate of National Consumer Rights Protection, a facility unavailable with non-branded products.

Innovations in design and materials

Furniture in Bangladesh has transcended traditional wooden designs. Modern manufacturing incorporates diverse materials such as board, metal, plastic, bamboo, and cane, complemented by fabrics, foam, leather, and glass. This variety caters to a wide array of needs, from residential to institutional use.

Rahman highlighted the role of in-house research teams in developing sustainable and innovative designs. "People now prefer a cohesive design theme for their home furniture," he said, underscoring the importance of customisation and quality.

Challenges and market dynamics

Despite its growth, the industry faces challenges. The demand for furniture has recently declined due to economic pressures and a slowdown in the real estate sector.

"Furniture isn't a daily necessity. Many consumers are postponing purchases," Rahman explained.

The high cost of raw materials, compounded by import duties exceeding 100%, also hampers competitiveness in the global market. Rahman emphasised that bonded warehouse facilities could significantly reduce production costs and boost exports.

Export potential

The export of Bangladeshi furniture has shown promise, with earnings rising from $52.53 million in FY 2016–17 to $110.36 million in FY 2021–22, though recent figures indicate a slight dip. Industry leaders believe policy support, such as a simplified VAT structure and dedicated furniture parks, could unlock the sector's export potential.

Global market projections by Statista estimate the furniture industry's revenue will reach $770.40 billion in 2024, highlighting opportunities for Bangladeshi brands to capture a larger share.

A vision for growth

At a recent National Furniture Fair, FBCCI Administrator Hafizur Rahman called the sector a "promising export domain" and urged manufacturers to keep prices accessible for middle-income consumers. He also stressed the need to address policy bottlenecks and enhance the industry's scale and skill base.

With strategic policy support, Bangladesh's furniture industry could emerge as a global powerhouse, combining local craftsmanship with modern innovation to redefine the art of furniture-making.