The furniture industry has traditionally been dominated by the unorganized sector, especially in countries like India and other developing economies. This segment includes local carpenters, small-scale manufacturers, and regional players who operate without formal supply chains, branding, or standardized pricing. A few reasons for the dominance of the unorganized sector in the furniture industry include:

1. Customization: Local carpenters and small manufacturers offer customized designs tailored to specific customer needs, which larger, organized players may not be able to provide at the same level.
2. Affordability: The unorganized sector typically operates with lower overhead costs, making their products more affordable for a larger segment of the population.
3. Lack of formal infrastructure: In developing economies, formal furniture manufacturing infrastructure is still growing, giving local players a competitive advantage.
4. Proximity to customers: Smaller players often have close relationships with their customers due to being local, which allows them to understand and respond to preferences more quickly.

However, this trend is changing as the organized furniture sector is growing rapidly due to urbanization, changing consumer preferences, the rise of e-commerce, and the increasing demand for branded, quality, and ready-made furniture. Companies like IKEA, Pepperfry, and Urban Ladder are examples of players in the organized space that are challenging the dominance of the unorganized sector.