The Furniture Sector in Pakistan: Export performance and ... - TRTA i
The Furniture Sector in Pakistan: Export performance and ... - TRTA i
The Furniture Sector in Pakistan: Export performance and ... - TRTA i
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Indonesia has also announced a ban on the use of natural trees for wood process<strong>in</strong>g by 2014.<br />
Additionally, the export ban on logs <strong>and</strong> rough sawn wood has brought about an additional<br />
level of bureaucracy that is h<strong>in</strong>der<strong>in</strong>g Indonesian exports.<br />
A stabilis<strong>in</strong>g factor is that buyers are <strong>in</strong>creas<strong>in</strong>gly seek<strong>in</strong>g cheaper alternative supply sources.<br />
(ITTO Market Information Service, 2006)<br />
Price structure <strong>in</strong> the last 5 years of export/local sales<br />
More than 50% of the exporters say that the prices of local sales have <strong>in</strong>creased. While 23%<br />
say they decreased <strong>and</strong> another 23% say they are stable. 43% of exporters say export sales<br />
<strong>in</strong>creased, whereas 36% say they stayed stable.<br />
<strong>Export</strong>s have <strong>in</strong>creased considerably <strong>in</strong> the last five years. <strong>The</strong> higher end products i.e.<br />
products with carv<strong>in</strong>gs, better quality of material used, etc. fetched better prices. Domestic<br />
home furniture is be<strong>in</strong>g exported more than office furniture. It is fetch<strong>in</strong>g better prices for it is<br />
be<strong>in</strong>g made accord<strong>in</strong>g to the requirements of the customer.<br />
2.1.8 Annual turnover<br />
Estimated annual turnover of <strong>in</strong>dustry is US$160 million<br />
Manufacturers account for 95% of the total market, while the rema<strong>in</strong><strong>in</strong>g 5% are manufacturerscum-exporters.<br />
Top 10 to 15 furniture companies account for 80% of exports.<br />
<strong>The</strong> ma<strong>in</strong> furniture regions of <strong>Pakistan</strong> are: Peshawar, Gujrat, Ch<strong>in</strong>iot, Lahore <strong>and</strong> Karachi.<br />
Accord<strong>in</strong>g to the order of exporters’ size, Karachi comes first followed by Lahore <strong>and</strong><br />
Peshawar, while Ch<strong>in</strong>iot <strong>and</strong> Gujrat have good concentration of manufacturers <strong>and</strong> traders.<br />
Large-sized companies are mostly located <strong>in</strong> Lahore <strong>and</strong> Gujrat, while small- to medium-sized<br />
companies are situated <strong>in</strong> Peshawar, Ch<strong>in</strong>iot <strong>and</strong> Gujrat.<br />
2.1.9 Rules <strong>and</strong> regulations affect<strong>in</strong>g the sector<br />
<strong>Furniture</strong> st<strong>and</strong>ards<br />
<strong>The</strong> objective of st<strong>and</strong>ardisation is to ensure that all furniture available <strong>in</strong> the market is safe to<br />
use <strong>and</strong> of solid <strong>and</strong> strong construction. <strong>The</strong>refore, st<strong>and</strong>ardisation is helpful <strong>in</strong> facilitat<strong>in</strong>g<br />
market conformance, <strong>in</strong>clud<strong>in</strong>g from develop<strong>in</strong>g countries. However, there is also a risk that<br />
st<strong>and</strong>ards may become a constra<strong>in</strong>t for market access or put small producers at a disadvantage<br />
when the requirements are particularly difficult to meet. Manufacturers normally use the<br />
st<strong>and</strong>ards voluntarily <strong>in</strong> their product development, process control <strong>and</strong> market<strong>in</strong>g. Hav<strong>in</strong>g a<br />
common language on test methods, dimensions, safety <strong>and</strong> strength characteristics is<br />
considered a major benefit.<br />
<strong>The</strong>re are over 140 furniture-related st<strong>and</strong>ards <strong>and</strong> labell<strong>in</strong>g requirements <strong>in</strong> the United States<br />
<strong>and</strong> Canada alone. Most st<strong>and</strong>ards are voluntary but some are regulated by the state or federal<br />
laws. One example of the toughen<strong>in</strong>g state-level health st<strong>and</strong>ards is <strong>in</strong> the text box below.<br />
International Trade Centre 25