You have been in the furniture business for decades. Tell us about the prospects of the industry.
Furniture is not a luxurious product now. It is something everyone needs after having met other basic needs.
It is a labour-intensive industry like RMG. In many countries there is a shortage of manpower but Bangladesh has enough workforce. It is a great advantage for the country to create jobs, something we badly need to upgrade our status to a middle-income country. Its impact on Bangladesh economy can be enormous.
From industry insiders to experts, everyone thinks furniture is an industry that has export potential and could help the government with export diversification. It can be very close to RMG sector in terms of job creation and export earnings.What are the challenges for Bangladesh furniture industry?
The biggest challenge for the industry is higher import duty on raw materials. We have to import raw materials due to supply shortage in the local market.
Land prices are another challenge for our industry, as we need more land to establish factories. Due to high prices of land, establishment cost of new projects go up. In this regard, the government should allocate land for the sector at an affordable price.
Most of our raw materials are imported and the industry has pay an average of 55-60% duty on them. As per the laws, an exporter is supposed to get the duty back after completing the export process, but that process is all so mired in red tape that exporters lose interest.
An exporter has to be competitive in the global market with its quality products and affordable price. The government should provide 25% incentive on export value instead of returning the import duty to the exporters. The government is currently providing a 15% cash incentive but it is not enough, as we are paying a much higher duty.Innovative designs and quality are key to attracting foreign buyers. Does the sector have enough innovation and research to ensure quality?
You know that Hatil already has exported furniture to several countries. We export the same products we make for local market to India, Nepal and Bhutan. On the other hand, we are exporting furniture to the middle east based on design and demand of clients.
For our own interest, we are upgrading systems and getting equipped to meet customers’ demands. I can tell you that we are capable. Every single company in this business has research and innovation teams to develop products.
From the association, we are taking initiatives to make workers technically sound. In capturing the global market share and taking advantage of China’s shift, what the sector needs is government policy support.What is the secret behind Hatil’s popularity?
Hatil always focuses on providing the best quality products for customers and never compromises with quality, this is what makes us different from others.
Traditional furniture occupies more space. In today’s living standards in Bangladesh, space is very expensive. Considering this, we have created new designs with space solutions, which also saves natural resources.What is the advantage of this industry in tapping the export opportunity?
Bangladesh’s basic advantage is its workforce and comparatively cheaper labour than other competing countries. As the supply of workforce is available and they have good adaptability to receive skill training, Bangladesh can execute larger work orders within short spans of time.
If you go through import-export data of furniture in the last five years, you will find that import has been declining while export has increased substantially. This is because of the quality of our products.
