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Germany is a key player in the international furniture sector, both as an exporter, a sales target and as a trend setter. Only one country in the world imports more furniture than Germany – the USA. In 2008, the United States imported furniture with a total value of around 16.3 billion euros. Germany’s import volume was around half that figure at 7.8 billion euros. Germany is also the world’s fourth largest furniture manufacturer (after China, US, and Italy) with annual production estimated at around US$24.5 billion in 2008 by the CSIL furniture research organisation in Milan. For almost 60 years now, a key date in the German furniture industry calendar has been the international furniture fair imm cologne. Every January, manufacturers and dealers from all over the world gather for a few days in Cologne, Germany and this fair influence prospects in the EU furniture sector for the year. To the relief of many in the industry, the 2010 IMM Cologne show was more dynamic than many expected given the economic situation. Despite being shortened by a day, the fair managed to equal the previous year's result with around 100,000 visitors. The number of exhibitors also marginally exceeded last year's level, rising around 1% to 1,053 companies. There was strong growth (7%) in the number of domestic firms taking part. Although the numbers of foreign companies were down, these still accounted for 58% of all exhibitors. The positive fair results are a boost to an industry that struggled badly in 2009. According to figures issued by VDM, the German furniture industry association, sales generated by the industry fell by 12.7% to €12.75 billion in the year to end October 2009. Office and shop furniture sales declined more dramatically (-17%) than home furniture (-12.1%) and kitchen furniture (-10.6%). The figures in 2009 come after a positive year in 2008 when German furniture producers ended the year with growth of 1.6%. Although there was a slight decline in German domestic furniture sales in 2008, this was more than offset by export growth of 4.3 percent as compared to the previous year. It should also be noted that while German furniture manufacturers were in the doldrums last year, Germany’s furniture retailers were in more buoyant mood. Despite the downturn, the country’s three largest furniture retailers – Ikea, Hoffner, and XXXLutz – were all expanding their sales area in Germany during 2009.
In a recent interview, Hans Strothoff, President of the Federal Association of the German Furniture, Kitchen and Furnishings Industry (Bundesverband der deutschen Möbelindustrie, BVDM) suggested that German furniture retailers have seen the recession as an opportunity to exploit consumer’s need for greater comfort and security in their own homes: “In times like these certainty is a rare thing, so it’s hardly surprising that people’s homes are becoming increasingly important to them. Retailers are sensing this – which is why they would be wise to ensure their range and services are consistent with this trend.”
Some other key industry trends identified by the IMM Cologne organisers during the show include:
• Increasing use of dark wood preferably combined with glass and stainless steel.
• More “green” furniture with a strong environmental message.
• Introduction of large-format dining tables and dining room armchairs that may be sat on comfortably
for a long time.
• The "kitchen - dining room - living area" as a spatial unit, now joined by private spa oases in which the
bedroom and bathroom merge into a single unit.
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The furniture sector saw a big drop in exports for the second consecutive year. Brazilian furniture exports ended 2009 with a fall of 28.5% compared to the previous year. The sector's foreign sales totaled US$ 706.9 million. US imports of Brazilian furniture declined 41% in 2009, dropping to a value of only US$ 95 million in 2009. Nevertheless, the US continues to be the main importer of Brazilian furniture, accounting for 13% of the total exports of the sector. Argentina follows in second place with an 11% share of the total Brazilian furniture sector exports, but sales were down 37% in 2009 to US$ 75.7 million. In third place was the UK which accounted for a 10% share of furniture exports from Brazil. This business was worth around US$
72 million in 2009, representing 1.2% drop compared to 2008. Cuba was the country with the highest growth in purchasing Brazilian furniture, despite having only a minor share of Brazil’s exports at only 2% of total export sales. Exports to Cuba increased some 60% in the period, and the Southern state of Rio Grande do Sul was the main exporter.
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Guangdong is one of the major furniture production and exporting provinces in China. Exports to ASEAN countries remain strong even as the traditional export markets have been battered due to the international financial crisis. According to the statistics from Guangzhou Customs, furniture exports fell slightly overall but exports to AESAN countries rose in 2009. Overall, furniture and parts exports from Guangdong Province in 2009 totaled US$9.96 billion, down 3 percent from 2008 but furniture exports to ASEAN countries rose to US$1.15 billion. Exports and exports to Middle East countries grew 14 percent. Analysts from Guangdong Customs said that Guangdong furniture exports in 2009 have been increasing steadily. The main reason for the increase is said to be the export tax rebate for furniture exporters which was increased in June 2009. Although Guangdong furniture exports to the US and EU fell (15 percent and 8 percent respectively), those to ASEAN countries rose considerably. Further growth is expected as the ASEAN/China FTA comes into effect. Local experts suggest that EU and US have trade policies which pose an obstacle to Guangdong furniture exporting. As a result furniture exporting enterprises are being encouraged to explore emerging markets, establish overseas selling channels of their own, reduce the dependence on EU and the US markets and strengthen the innovation of design and technology of their furniture products.
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