Furniture sales reached $628.6 million in the year to August, down 9% from 2005. The overall projection for 2006 is a 12% decrease from $990.4 million in 2005. Firms blame the exchange rate policy and the tax burden for the loss of shares in key markets, such as the USA, the major destination of the Brazilian furniture. According to the Brazilian Association of Furniture Industry (ABIMOVEL), some furniture producers had halted exports while others were selling at a loss, in expectation of a change in the exchange rate.

Thailand's furniture exports dropped slightly (down 1%) in the first half of this year due to fierce competitition in main export markets, according to AsiaTimber citing Wattana Charoennawarat, President of the Thai Furniture Association (TFA). Mr. Charoennawarat said China and Vietnam increased their market shares in Japan and the USA since labour wages there were cheaper than in Thailand.

He added that Thai furniture exports in 2006 were likely to miss the target of 50 billion baht ($1.33 billion) by 3-5%. TFA has projected that total furniture sales to increase by 15% in 2007 and by 20% annually over the next five years to 100 billion baht. Mr. Charoennawarat advised exporters to focus on an aggressive strategy to find new markets, such as the Middle East, where purchase power and demand for high quality products were strong. He suggested to position products in hotels, resorts, spas and restaurants in other markets such as India, the United Arab Emirates and Russia, and add greater value to products through better designs.

Guangdong's furniture exports have risen 20% to $4.4 billion in the year to August 2006, according to Customs statistics. The USA and Europe remained the province's main export markets, accounting for 60% of total exports. Guangdong's furniture exports to these markets have grown 23% and 26% to $2.1 billion and $700 million, respectively.

Guangdong is China's largest furniture production center and distributing base. Export prices for Guangdong furniture have risen markedly in recent years together with product quality. Wooden furniture, wooden frame seats and metal frame seats accounted for 70% of total furniture exports. China's exports of furniture such as upholstered sofas, seats and chairs could be subject to an anti-dumping investigation by the European Commission (see TTM 11:17 and 11:5) and Guangdong furniture exporters were preparing their cases should the investigation be carried out.

Trade in office furniture expands in Europe

Total European exports of office furniture were about €2.2 billion in 2005, up 7.8% from 2004. Imports of these products grew more slowly, reaching €2 billion, up 3.7%. Ireland, Portugal, the Netherlands and Austria recorded sizeable growth in exports in perceptual terms, but export growth was driven by increases in Germany, the UK and Italy. The UK was also the leading EU importer of office furniture with imports worth around €353 million in 2005, up 10% from 2004. France and Germany witnessed a slight increase in imports, while Belgium experienced a contraction.