Furniture and home furnishings are expected to flourish next year, as people seek to replace old pieces ruined by the floods, driving the industry to grow by up to 10%, or 60 billion baht.
A customer checks out furniture at a fair held in mid-March this year. WISIT THAMNGERN
The local market is also set to reap the benefits from the government’s first-home tax breaks, said Kasikorn Research Center.
The research house noted the sector would be sluggish this year, particularly in the fourth quarter as floods have affected much of the country.
K-Research forecast the industry would grow by a modest 3-4% to 55 billion baht on weak demand, lower production and delays in distribution channels and logistics.
A number of factories were inundated while key wood supply centres were also affected, slowing production in Pathum Thani, Nonthaburi, Nakhon Pathom, Nakhon Sawan and Ayutthaya.
“However, the impact [of flooding] is just short-term,” said K-Research.
“We expect the market will recover very rapidly within one to three months after the floods recede and people start cleaning and repairing their houses,” the research house affiliated with Kasikornbank wrote.
Given growing demand in the coming year, it suggested operators speed up expanding distribution channels, develop and upgrade product quality and diversity, and use more online purchase and delivery services.
K-Research added the flood may spur demand for more durable, waterproof furniture.