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8/6/2019 Furniture Business in Sme Sector
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FURNITURE BUSINESS IN
SME SECTOR
8/6/2019 Furniture Business in Sme Sector
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GROUP MEMBERS
ISHRAT JAHAN ID-26
MD. ABU JUBAIR ID-38
FARHAN HABIB ID-41
FARHA SULTANA ID-79
RUKSHANA IRIN ID-100
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PRESENTATION OUTLINE
1. HISTORY OF FURNITURE SECTOR
2. CURRENT SCENARIO OF SME SME
FURNITURE SECTOR
3. PROCESSING & FUNCTIONING
4. MARKETING PROCESS
5. FINDINGS BY KATALYST
6. PROBLEMS AND PROSPECTS
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OVERVIEW OF FURNITURE SECTOR
�The Bangladesh furniture industry is one of the mostpromising growth sectors with high export potential.
�The industry constitutes about 41,560 enterprises, which
employ around 1.8 lakh people unskilled and semi-skilled.
�There are 121 clusters of furniture companies across thecountry 93 micro and small, 17 medium and 11 large. Thebigger clusters are mostly located in Dhaka and Chittagong.
�According to a household income and Expendituresurvey, the domestic consumption growth rate isaround 20% and export markets are almost entirelyuntapped.
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Contd..
�Currently dominated by thousands of smallworkshops, the furniture sector is in a transition phasetowards industrialization.
�Simultaneously there are approximately 40,000
furniture SME s all over the country, employing around180,000 people.
�Turnover is in excess of BDT 100billion (GBP 1billion).
�There is a small but growing segment of larger firms
who are gradually entering the export market.
�The sectors contribution to the gross domesticproduct is 0.29 percent on an average, according toKatalyst.
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MDF (Medium-Density
Fiberboard)REPLACING
WOOD
CURRENT SCENARIO
RAW-MATERIALS AREIMPORTED FROM OTHER
COUNTRIES
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THE SECTOR IS GROWINGRAPIDLY
MANY ENTERPRISES ARETRYING TO ENTER INTO
FOREIGN MARKET
THE SECTOR IS
EMERGING AS ANINDUSTRY FROM SME
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Initially TK. 70,00,000-80,00,000 or 100,00,000 isrequired to start business.
Capital
Sole proprietorship orpartnership
Nature ofbusinessNature ofbusiness
Situated near theshowrooms.
WarehousesWarehouses
Showrooms No. of showrooms are 1/2 in thecity.
FURNITURE SME s
� Contract base workers.� 100-150 employees.
Workers
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PROCESSING & FUNCTIONING
MDF(Medium-Density
Fiberboard)
HARDWAREACCESSORIES
CHEMICAL-LACQUER
LAMI A EDOARD
MEHGO I,GORJO ,SEGU WOOD
FROMMALAYSIA
FROM CHI A
FROM I ALY
LOCAL
LOCAL
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0
0.2
0.4
0.6
0.8
1
1.2
Wood
MDF
DEMAND FOR RAW-MATERIALS
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COST OF PRODUCTION
MDF
Raw-material 10,000
Labor 10,000Other Cost 2,727
Total cost = 22,727
Profit (10%) = 2,273
Selling Price = 25,000
WOODRaw-material 20,000Labor 10,000Other Cost 2,000
Total cost = 32,000
Profit (25%) = 8,000
Selling Price = 40,000
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TARGET CUSTOMERS
CUSTOMERS
Higher Class50%
Upper MiddleClass 33%
Middle Class16%
Lower MiddleClass 01%
Lower Class 0%
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MARKETING
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Problems of Furniture Marketing
in Bangladesh