ANALYSIS OF SUPPLY AND DEMAND

ANALYSIS OF SUPPLY AND DEMAND

 

Demand from the domestic market is increasing in line with the changes in lifestyle currently underway. The size of homes in urban areas is being considerably reduced and greater importance is given to functionality and to the decoration of the space, with a desire to after change furnishing often. At the moment design furniture dominates the market, especially in the kitchen, bathroom and living room segments.

The majority of middle-income private consumers make their purchases in luxury furniture showrooms, while the retailers, interior designers and architects normally prefer  wholesalers, most of whom are present in the Iran furniture market in Tehran. These is a commercial area  entirely dedicated to furniture and furnishings for the home, with buildings posting hundreds  of showrooms of local a imported products, along with furniture market no.2, a 2nd important center for furniture trade.

  In order to encourage local production there are no import duties for wood in logs, while for finished and semi-finished panels the rate is 30%. The local industrialist would like to see this duty abolished, since in their opinion it has a negative influence on the qualitative grow of national production. The duty on imported furniture in currently 40%.