In order to extend its timber business to South Asia, a global corporation wanted to explore opportunities in the Bangladesh market. Demand for consumer durables like furniture has been growing over the last decade driven by rising income, growing population, increasing urbanization and changing family structure. Backward linkage for the furniture industry has also been evolving for catering to taste of end consumers and export market. Construction, another timber-based industry is also growing in parallel with demand for housing. However, Bangladesh has been depending on imported timber due to the government’s policies that restrict sourcing from local forests. Therefore, the client wanted to determine the timber demand-supply dynamics to decide on whether to integrate itself in the backward linkage of the timber value chain.
To provide a holistic view of the timber value chain, we identified key market actors and processes at each stage of the value chain. As the client wanted to assess the demand for timber in the aforementioned industries, along with the growth prospects over 5-year time horizon, we garnered in-depth insights on demand-supply dynamics for each industry for providing top-line market entry strategies for the client. We also prepared a breakdown for transportation cost and import duty structure to support the client’s market entry decisions. To further facilitate the client’s decision-making process, we gave an overview of the policy landscape regarding forestland management and timber import.
The client is considering a suitable means for entering the market. We have supported the conglomerate by connecting them to some industry actors.