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

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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
Figure 2.4 Distribution structure for furniture in the European Union Manufacturers Buying agents Domestic manufacturers Selling agents Importers/Wholesalers Non-specialist distribution Specialist distribution Bedroom Kitchen Furniture Organized Large retailers Independent Buying groups Hypermarkets DIY-stores Mail order houses Department stores Contractors Franchised stores Chain stores Retail shops Consumers Main distribution flow Secondary distribution flow Source: CBI, 2001 2.1.2 Manufacturing process The production process of hand-carved furniture in Pakistan is believed not to differ much from similar products elsewhere. It is a consecutive chain of activities, comprising: • Raw material and operational supplies procurement (domestic or imported) • Pre-treatment (log grading, log trimming, cooking (for plywood and veneer peeling) • Primary processing (into planks, boards, veneer sheets) and their grading and drying • Dimensioning into suitable components • Transferring the designs of furniture parts into components, their cutting into shape • Preparation of joints (tongue and groove) and other structural design features into components • Hand-carving of components on visible surfaces International Trade Centre 19
Page 1 and 2: The Furniture Sector in Pakistan
Page 3 and 4: Acknowledgements The report was pre
Page 5 and 6: Abbreviations AFTA AHEC AKTRIN APFE
Page 7 and 8: Table of contents Acknowledgements
Page 9 and 10: Box 3.1 Multilateral discipline of
Page 11 and 12: Executive summary This study sets t
Page 13 and 14: the extent possible maintain or imp
Page 15 and 16: 1 Background and objectives 1.1 EC
Page 17 and 18: 2 Furniture sector in Pakistan 2.1
Page 19 and 20: On the buyer’s side, there are gl
Page 21 and 22: According to the websites of import
Page 23 and 24: Global demand for furniture in main
Page 25 and 26: suppliers, both domestic and other
Page 27: Table 2.3 Pakistani furniture expor
Page 31 and 32: freight rates have increased and do
Page 33 and 34: Price The prices of local machinery
Page 35 and 36: Indonesia has also announced a ban
Page 37 and 38: industry itself should support effo
Page 39 and 40: various counterparts, the supplier
Page 41 and 42: Box 2.7 UK Timber Trade Federation
Page 43 and 44: Figure 2.5 Simplified example on ch
Page 45 and 46: At least 70% of the wood used in ma
Page 47 and 48: Scope of joint ventures There exist
Page 49 and 50: • With FAO’s Forest Products an
Page 51 and 52: The contact information of many of
Page 53 and 54: Box 2.10 USAID initiative in the fu
Page 55 and 56: Opportunities Major opportunities m
Page 57 and 58: pressure on the price. There appear
Page 59 and 60: Pakistan does not export this furni
Page 61 and 62: 3.1.3 Functional scope The function
Page 63 and 64: Current status of efforts to libera
Page 65 and 66: 3.2.2 Information flow-upwards, i.e
Page 67 and 68: Commission (EC/EU) has established
Page 69 and 70: Figure 3.3 Relevant intensity of WT
Page 71 and 72: Box 3.2 Regional Trade Agreements (
Page 73 and 74: Trade Related Aspects of Intellectu
Page 75 and 76: Agreement on the application of san
Page 77 and 78: country or materially retards the e
Page 79 and 80:
Relevance of the furniture sector T
Page 81 and 82:
3.4.2 Other countries’ access to
Page 83 and 84:
Table 3.2 Top 10 buyers of the Paki
Page 85 and 86:
Arabian market. Here again, there i
Page 87 and 88:
• Material from China is being us
Page 89 and 90:
4.2 Obstacles and shortcomings - im
Page 91 and 92:
Raw material recovery Raw material
Page 93 and 94:
• Consistent policy for supportin
Page 95 and 96:
A short-term but maybe a costly mea
Page 97 and 98:
5 Export services in Pakistan 5.1 E
Page 99 and 100:
5.1.3 Federation of Pakistan Chambe
Page 101 and 102:
• Pakistan International Freight
Page 103 and 104:
The lessons learnt here could be re
Page 105 and 106:
6 Conclusion and recommendations 6.
Page 107 and 108:
6.2 Critical success factors • A
Page 109 and 110:
6.4 Global value chains 6.4.1 Poten
Page 111 and 112:
Benefits All timber tends to be air
Page 113 and 114:
• Optimise cutting; • Calculati
Page 115 and 116:
6.6.5 If we had US$100,000: A techn
Page 117 and 118:
• To modernise such a laboratory,
Page 119 and 120:
Annexes Annex A — Sources of info
Page 121 and 122:
• Federmobili information on the
Page 123 and 124:
• National Home Furnishings Assoc
Page 125 and 126:
International Trade Centre 115
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