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| Furniture Showroom in Lagos, Nigeria. Image Courtesy: 03techy.com |
The Nigerian Furniture Making Business Overview
Furniture
serve many uses in Nigeria and are in high demand. Offices need furniture;
desks, front desk table, conference room table, executive chairs, book shelves,
office cabinets, library cupboards, visitors bench etc. Homes also need furniture;
settees, single couches, single chairs, dinning table and chairs, TV stands
among other products. The list goes on and so too does the demand and supply
from furniture makers and showrooms but a few businesses have found creative
ways of selling more and making a ton of profit.
Nigerians spent close to 110 billion
naira in 2018 on furniture. This is the formal segment of the market as the informal
segment is not captured (people who buy from road side furniture dealers). The rich
especially visit exotic furniture showrooms and order for furniture worth
millions of naira at a sitting and this is just a tip of the iceberg. There are
offices, companies, government agencies that demand for furniture from time to
time and they usually have big budgets for such acquisitions.
The
Business of Furniture Making and Selling in Nigeria (Present Realities)
The first
part of this business starts from designing, cutting, shaping, joining among
other processes of furniture parts into desired type. This is from the informal
making process where skilled artisans do the work manually. There is the automated
process which involves highly technical and skilled personnel and use of very
specialized machinery like some Chinese investors have done recently to tap
into the ever-growing Nigerian market. The second part is the retailing of
finished furniture which is less lucrative from the profit margin point of view
but more cost effective than the former from the operational end.
Some Market
Facts about the Nigerian Furniture Market
- Major import markets for Furniture to Nigeria are; Italy, Turkey, China, USA and UK
- The average Nigerian office will likely change furniture every 3 to 5 years and we are talking of hundreds of thousands of offices
- Most Nigerian middle class make purchases for new furniture from time to time based on lifestyle needs and occasion
- Imports of furniture to Nigeria is in the region of 30 billion naira alone not excluding local sales made from local factories
- The market situation is highly volatile as new fashion and lifestyle trends can suddenly impact demand for certain furniture styles
Key
questions to answer if you are looking to crush huge sales in furniture Business
in Nigeria
- When do people really demand for furniture?
- How Much are they willing to spend?
- What kinds of furniture are they looking to buy?
- How can they find you instead of the competition?
- How can you find willing buyers for furniture?
To get answers
to these questions which are available on request send email to: paulonwueme@gmail.com
What to
Consider when Setting up a Furniture Business in Nigeria
- For investors willing to put in money automating the production process. This will not only lower the cost but enable you produce and sell more to the market. Automating the process also improves the efficiency and ensures quality finishing.
- Quick sales is possible but the competition is not asleep. The best way to achieve quick sales is to invest aggressive marketing but specifically highly targeted marketing.
- There are many ways to market your product; direct marketing, PPC, display adverts, excellent customer service to name a few. Prepare yourself for stiff competition no matter the marketing method you choose but some are far more effective than others.
- A solid financial plan that will enable you manage cashflow, grow your business sustainably and create a solid base of reserves among other financial goals to consider.
- The return on investment is impressive compared to most other manufacturing businesses. In some cases the ROI could be over 60% and payback period is between 2 and 3 years depending on the scale of operations and how quickly sales targets are met.
Want to
setup a furniture production business and need a bankable business plan to
achieve your goal or raising finance. Then send me an email to: paulonwueme@gmail.com or call: 0803 206
4106
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