The Furniture Sector in Pakistan: Export performance and ... - TRTA i

oost from the lowering of tariffs in main markets, as this road has been almost completed. On
the other hand, its trade with regional markets may still be hampered by higher furniture import
tariffs of non-members of WTO.
Distribution channels
The flock of players in the distribution of furniture consists typically of export agents, import
agents, importing companies, buyers’ groups that represent the interests of a larger number of
collective importers, wholesalers, department stores and retail outlets of different kinds (Figure
2.4). The preferred flow of furniture is however from a manufacturer to importer or directly to
retailer’s warehouse or chain stores because furniture is not well suited to multiple handling.
Sometimes, it may be possible to sell directly to industries and institutions, and occasionally
through a local manufacturer if the products complement each other. Some manufacturers sell
direct to consumers through brand stores or factory outlets. Also, franchised stores by some
major furniture manufacturers have become more common. These are specialized
distributors, whose main business line is furniture.
As a contrast, there is also the non-specialist distribution, including department stores, Do –
It – Yourself (DIY) stores and mail order houses, to which furniture contributes a minor part of
their total merchandising. There are naturally country-specific differences in the importance of
distribution channel members.
There is a tendency to shorten the distribution structure by cutting the middlemen out of the
business. At the same time, the use of out-sourcing and contract manufacturing has become the
new standard operating mode for the large international furniture industries. Flat-pack or
knock-down (KD) furniture is a key transportation system to allow the expansion of such mass
or middle market furniture business. In general, the transportation of KD items reduces the
damage to furniture in comparison with assembled furniture. This has implications to
packaging solutions as well.
18 International Trade Centre