20domestic20furniture20 20EU2

CBI MARKET SURVEY: THE DOMESTIC FURNITURE MARKET IN THE EU
CBI MARKET SURVEY
THE DOMESTIC FURNITURE

MARKET IN THE EU
Publication date: October 2009
CONTENTS
REPORT SUMMARY 2
INTRODUCTION 4
1 CONSUMPTION 5
2 PRODUCTION 16
3 TRADE CHANNELS FOR MARKET ENTRY 21
4 TRADE: IMPORTS AND EXPORTS 29
5 PRICE DEVELOPMENTS 39
6 MARKET ACCESS REQUIREMENTS 43
7 OPPORTUNITY OR THREAT ? 46
APPENDICES
A PRODUCT CHARACTERISTICS 47
B INTRODUCTION TO THE EU MARKET 50
C LIST OF DEVELOPING COUNTRIES 51
This survey was compiled for CBI by Searce
Disclaimer CBI market information tools : http://www.cbi.eu/disclaimer
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: marketinfo@cbi.eu • www.cbi.eu/disclaimer
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Report summary
This survey profiles the EU market for domestic or household furniture both in finished and
semi-finished form. The items covered are made of wood, metal, iron, plastic/synthetic
material, glass, cane, osier, bamboo, other materials or a combination of different materials.
Consumption
The EU is the largest furniture market in the world. Total EU27 consumption was € 80.1 billion
in 2008. Average consumption per capita was € 161, with Austria, Luxembourg and
Scandinavian countries spending most on furniture. After strong increases in 2007,
consumption decreased in 2008 due to the global economic slowdown. An average annual
increase in consumption of 1.1% between 2004 and 2008, from € 76.8 billion, included falls in
some of the more mature markets, but significant increases by other countries, particularly
new Member States. The end of the house building boom coincided with the falling market in
2008. Kitchen furniture sales have developed strongly as this has become a more focal part of
the home, and the changing use of the home, particularly the home office trend, has further
stimulated sales. Media coverage of interior design and home improvement has also continued.
Future value sales will be mainly driven by:
• Growing importance of the home as a place to spend time and changing use of different
spaces within the home.
• The impact of technology within the home and the demand for more comfort.
• The impact of fashion in interior design coupled with frequent replacement of furniture.
• Multi-functional furniture items for small rooms, home office and for children’s rooms.
• Small and practical furniture focused on singles and on young people living at home.
Production
In 2008, the turnover of almost 100,000 EU27 furniture manufacturers was valued at € 73.7
billion, of which an estimated 75% was wooden furniture. Between 2004 and 2008, EU
furniture production increased by 0.9% per annum, but most countries experienced large
decreases in 2008 as export markets disappeared in the wake of the global economic
slowdown. Much EU production has been outsourced to other Member States in Eastern
Europe, as well as to other countries, particularly in Asia, but Europe still accounts for over
37% of global production. Employment in the industry continues to fall, due to new
technologies being introduced. Kitchen furniture and upholstered seating were the largest
product groups in terms of production. The leading producer countries were Italy and
Germany. Poland is increasingly important. Some major trends in EU production were:
• More e-commerce throughout the supply chain.
• Developments in market access outside of the EU.
• Consideration of developing an eco-label.
• More vertical integration, particularly up the supply chain.
• Greater co-operation between producers and sharing of skills and expertise.
• Growing importance of design at home and outsourcing of production.
Trade channels
Most furniture is supplied from manufacturers through importers/wholesalers or directly
purchased by the large retailers. In 2008, there were 125,000 furniture retail outlets in the EU,
with around 450,000 employees. Furniture retailing has become more diversified with many
types of outlets, varying from those stocking a special style of furniture to those carrying a
wide range of products with related accessories. Specialist furniture retailers represented 80%
of total EU furniture sales. Small furniture shops are still strongly represented in Italy, Spain and
the new Member States, whereas franchised, chain stores and buying groups are dominant in
France, Germany, the UK and the Netherlands.
Distribution is continuing to fragment, with a greater share increasingly being taken by non-
specialists e.g. DIY stores, hypermarkets and department stores. In addition, the Internet is
starting to become more influential in purchasing decisions. There is already much downward
price pressure on furniture retailers, and this trend further accentuates this situation.
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Imports
The EU is the second largest importing region, after NAFTA (USA, Canada, Mexico). However, it
is the largest when allowing for intra-EU imports, representing a total of 11.4 million tonnes
valued at € 32.4 billion. Germany was the largest EU importing country and represented 21% of
all EU imports by value (19% by volume). Between 2004 and 2008, EU27 domestic furniture
imports increased by an average 2.4% in value and 1% in volume. Of the leading countries,
Austria, Germany and the UK were below the average increase, the rest were above.
Furniture parts, valued at € 11.4 billion, was the largest group of imports by value and volume.
Upholstered seating was the next largest by value. It grew from € 4.6 to € 5.4 billion between
2004 and 2008. Other furniture was the next largest group, valued at € 4 billion, although this
figure may be understated as no data was available for other metal or plastic furniture. These
three groups represented two thirds of all imports. In 2008, 70% of EU imports came from
other EU countries. The leading supplier to the EU was Germany (14%), closely followed by
Italy and Poland. Extra-EU (excluding developing) countries reduced their exports to the EU by
an annual average of 28% over the period and accounted for less than 4% of furniture
supplies to the EU in 2008. This was partly explained by new countries joining the EU.
In 2008, EU furniture imports from developing countries were 3.4 million tonnes, worth € 8.5
billion. Between 2004 and 2008, the share from developing countries in total EU furniture
imports rose from 21% to 26% in value and from 24% to 30% in volume. 60% of rattan
imports came from developing countries, and half of all non-upholstered seating. The
significance of China continues to grow. In 2008, it accounted for € 4.6 billion of imports (14%
of all imports and 55% of developing country imports by value), up by an annual average of
17% since 2004. In volume terms, it represented 18% of all imports or 2 million tonnes (59%
of developing country imports), up by an annual average of 12% since 2004.
Exports
Between 2004 and 2008, EU exports increased by an annual average of 1.4% in value from
€ 32.7 to € 34.5 billion and by 0.9% in volume from 10.2 to 10.5 million tonnes. Much of this
was due to significant increases particularly by Poland, Greece, Slovakia and Lithuania. Italy
was the largest exporter, accounting for 22% of all EU exports. Three quarters of exports were
intra-EU exports. Germany received 18% of these exports. The USA, Switzerland and Russia
were the largest recipients outside of the EU. Furniture parts was clearly the largest product
group, representing € 12.2 billion, or 36% of all exports by value in 2008, followed by
upholstered seating exports.
Opportunities for exporters from developing countries

Changes in consumption patterns for furniture offer opportunities. The market for self-
assembly furniture is growing in certain segments, but exporters also need to ensure that
designs are innovative and take note of fashion changes in furniture. The increase in smaller
homes is also an opportunity for DC exporters. The demand for smaller-sized furniture items
also encourages good value products to be shipped from overseas.
Solid woods are becoming more popular instead of veneers and laminates. Importers are
looking for new types of solid wood, similar to light oak, cherry or darker woods. Bamboo has
become a popular material especially in eco-design furniture, as it grows very quickly. Bamboo
is sometimes combined with polystyrene and aluminium that can be recycled. There are good
opportunities for such eco-design furniture concepts.
Contemporary furniture styles now dominate the market. The emphasis is on quality, flexibility
and value. However, it is important that the item retains its authenticity by using special
woods, materials, designs, skills in terms of craftsmanship or in finish. New furniture items are
also more in demand due to the growing use of technology in the home. This creates demand
for new items such as kitchen cabinets and storage units.
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Introduction
This CBI market survey profiles the domestic furniture market in the EU. The emphasis of this
survey lies on those products, which are of importance to developing country suppliers. The
role of and opportunities for developing countries are highlighted.
This market survey discusses the following product groups:

• Upholstered seating
• Non-upholstered seating
• Dining and living room furniture
• Kitchen furniture
• Bedroom furniture
• Home office furniture
• Other furniture
• Furniture parts
For detailed information on the selected product groups please consult Appendix A. More
information about the EU can be found in Appendix B.
CBI market surveys covering the market in specific EU countries, specific product(group)s or
documents on market access requirements can be downloaded from the CBI website. For
information on how to make optimal use of the CBI market surveys and other CBI market
information, please consult ‘From survey to success - export guidelines’. All information can be
downloaded from http://www.cbi.eu/marketinfo Go to ‘Search CBI database’ and select your
market sector and the EU.
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1 Consumption
1.1 Market size
Despite significant falls in the market values of the EU and NAFTA regions, global sales of
domestic furniture broadly maintained their value due to increases elsewhere in the world.
Global sales valued approximately € 220 billion in 2008, of which the EU was the largest area,
accounting for € 80 billion or 36% of the global market. This was followed closely by the
NAFTA zone (USA, Canada and Mexico) with combined sales of € 78 billion, Asia with € 50
billion and Latin America € 5 billion. Within Asia, China accounted for 45% and Japan
accounted for 30% of sales. Brazil represented two thirds of all sales in Latin America.
Per capita consumption of € 161 in the EU was lower than the NAFTA zone, which was closer to
€ 180. This compared with consumption in Latin America of approximately € 8 per capita. The
EU figure hides wide differences between countries, ranging from € 301 in Austria to € 38 in
Poland. 10% of the value (14% of the volume) of EU sales came from extra-EU imports.
Global demand will increase further in 2009, despite the economic slowdown. This increase is
primarily driven by increasing affluence in emrging markets in Asia and Latin America, but also
by population increases, particularly in Asia. Growth should be even stronger in 2010 as the EU
and NAFTA economies emerge from the global financial crisis.
Table 1.1 EU consumption of domestic furniture 2004-2008, € million

2004 2006 2008 Ave Population Consum- Households Occu-
€m €m €M annual % (million) ption (000’s) pants
change per per h/h
capita €
Total 76,760 79,889 80,111 1.1 496.3 161 206,303 2.4
Germany 18,938 19,156 18,415 -0.7 82.3 224 39,122 2.1
Italy 13,394 13,499 13,356 -0.1 59.4 225 26,400 2.2
United Kingdom 10,259 10,865 10,553 0.7 61.0 173 26,750 2.2
France 8,575 9,016 9,641 3.0 63.6 152 27,045 2.3
Spain 5,951 6,430 6,346 1.6 44.9 141 15,600 2.8
Netherlands 3,502 3,706 3,625 0.9 16.4 221 7,091 2.3
Austria 2,308 2,439 2,502 2.0 8.3 301 3,410 2.4
Sweden 2,184 2,235 2,427 2.7 9.1 267 4,279 2.1
Belgium 2,011 2,166 2,198 2.2 10.6 207 4,502 2.3
Greece 1,399 1,462 1,520 2.1 11.2 136 3,800 2.8
Poland 1,280 1,318 1,460 3.3 38.1 38 13,865 2.8
Finland 1,083 1,244 1,389 6.4 5.3 262 2,452 2.1
Denmark 1,200 1,230 1,323 2.5 5.5 241 2,548 2.2
Portugal 1,219 1,250 1,223 0.1 10.6 115 3,730 2.8
Romania 740 830 987 7.5 21.5 46 6,820 3.2
Czech Republic 562 622 668 4.4 10.3 65 4,574 2.3
Ireland 549 625 584 1.5 4.4 133 1,430 2.9
Hungary 449 511 513 3.4 10.1 51 4,260 2.4
Bulgaria 264 302 344 6.8 7.7 45 2,360 3.0
Slovakia 175 190 212 4.9 5.4 39 2,045 2.8
Slovenia 171 190 204 4.5 2.0 102 750 2.7
Luxembourg 121 132 135 2.8 0.5 270 195 2.5
Lithuania 102 116 121 4.4 3.4 36 1,320 2.7
Estonia 93 108 111 4.5 1.3 85 627 2.3
Latvia 97 110 110 3.2 2.3 48 930 2.6
Cyprus 87 92 97 2.7 0.8 121 250 3.2
Malta 47 45 47 0.0 0.4 117 148 2.7
Source: Euromonitor, Mintel, National Trade Associations, Trade Estimates (2009)
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The EU market for domestic furniture shrank by approximately 2% in 2008, compared to the
positive performance in 2007, when the market value reached € 81.7 billion. Nevertheless,
over the review period between 2004 and 2008, the market still registered an annual average
increase in value of 1.1%. Demand for furniture has been sustained by increasing living
standards, a house-building boom around much of the EU, media interest in home interiors
and a wider choice of furniture styles on sale in a wider range of retail outlets.
The top five countries – Germany, Italy, the UK, France and Spain – dominated the EU market.
In 2008, their combined value was € 58.3 billion, or 73% or the total. This compared with a
market value of € 57.1 billion in 2004, representing over 74% of the EU27 total. The German
and Italian markets were lower in 2008 than 2004, whereas the French market has
experienced above average growth over the period. The market in Spain was also growing
strongly up to 2007, but it fell significantly in 2008.
Growth clusters
The value of the 12 most recent new Member States was € 4.9 billion in 2008, or 6.1% of the
total EU market. This has increased from € 4.1 billion in 2004 or 5.3% of the market. The
largest increases were experienced in the newest countries, Romania and Bulgaria. Slovakia
was also growing strongly, primarily as this market was less exposed to the difficulties of 2008
than many other countries. Lower levels of per capita consumption suggest that future growth
opportunities will exist in many of these countries.
The Scandinavian countries have also performed well above the EU average, particularly the
Finnish market. This area has some of the highest per capita levels of consumption, as well as
higher furniture prices. The continuing strength of this part of the EU is underpinned by a
strong design reputation in the manufacture of furniture, which is supported by local
consumers here. It is also underpinned by a higher priority to interior design here than
elsewhere.
Consumption by product group

The economic downturn has affected the different product groups. For example with living
room furniture, consumers have cut back on large value items such as sofas. Many
purchases were made on credit and now consumers are unwilling or unable to take out credit.
However in the longer term this group will benefit from delayed demand. The living room tends
to be the most important room in the house for most people. It is the main place in the home
for socialising and communication. Changes in the use of the home (see later section on
trends) will also have a significant impact on the type of products purchased in the future.
Nevertheless, sofas have become more comfortable and possess additional functions, such as
adjustable heights, movable arms and reclining features. More technology in sofas and chairs
includes holders for drinks and platforms for laptops. Leather is a popular material due to its
durability. Sofas are heavily used and a sometimes replaced when people prefer something
new, even though it may not have worn out.
In dining room furniture, the trend away from traditional dining suites continues,
particularly formal suites of a traditional style, as homes are getting smaller, but quality self-
assembly functional dining room furniture at lower prices is improving. Dining has become
more casual and families tend not to sit down together for formal meals. Other uses are made
of this space, depending on the type of people living in the home. Some homes combine living
rooms with dining areas. Other homes combine the kitchen with the dining area. Many dining
rooms are now used as a workspace.
Older consumers still prefer to eat at a table in a more formal way. However, in some homes,
the dining table is returning as eating and entertaining at home have become more important.
This is helped by the growing choice in types and styles of tables. Lower priced self-assembly
tables (and chairs) tend to be more contemporary in style, but those products in the mid-
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market made of natural wood are demanded in a variety of woods, including oak, maple, pine,
birch, ash, alder, cherry or tulip.
After years of strong growth, kitchen furniture has suffered due to the fall in the housing
market and lack of consumer confidence in spending large sums of money. Consumers prefer
to delay making a purchase rather than trade down, as the kitchen is an important room,
which makes a statement about the homeowner’s lifestyle. The kitchen has grown in
importance. It is changing from the place where meals are prepared to a more sociable room.
It is a room where high expenditures can be involved. Some consumers have been buying
individual kitchen cabinets, some choose to wait and buy a complete new kitchen suite, while
others buy freestanding units because of their flexibility.
Furniture in the kitchen has to be well designed, as storage space has to be maximised. In
addition, many consumers are demanding some form of customisation in design to make it
reflect their own style and design tastes. More men are becoming interested in kitchen design.
This is partly due to an increase in the number of men who like to cook. Men are also attracted
by the number of hi-tech gadgets that are now found in many kitchens.
Bedroom furniture is largely a replacement market. It is not directly linked to the fortunes of
the housing market. Here, consumers will trade down in difficult economic times. In the
bedroom a similar trend is occurring as in other rooms in the house. There is more demand for
freestanding items because of their flexibility. Individual items such as bedside tables or small
wardrobes are being purchased rather than larger investments in entire suites. The bedroom
provides a relaxing environment as well as a place to sleep. However for younger people, the
bedroom has become the main living area. Most have a TV and a computer in their bedroom.
It is where they communicate with their friends. Many young people also eat in their bedroom.
A similar principle applies to bathroom furniture, where individual cabinets continue to be

purchased rather than making an investment in a new bathroom suite. Future changes will see
a closer integration of the bedroom and bathroom as the importance of this as a private space
increases.
Other furniture includes furniture in halls, landings and bathrooms, and other small pieces of
occasional furniture such as side tables, shelving units and furniture for storage. Shelving has
become more intelligent, as well as open. It has developed both horizontally and vertically, as
it now fits any space, no matter how restricting or unusual. Low sideboards are becoming
fashionable again in some households, sometimes as design statements, but also because of
their storage capabilities. Other furniture also includes the home office segment. This has
slowed but continues to grow as the number of people working from home increases.
Consumers will trade down on this sort of furniture, as it is less likely to be on public view at
home. Alternatively, consumers are using other tables or surfaces in the house rather than
investing in a specific home office desk. New designs in home office furniture are more
compatible with other furniture within the home.
Figure 1.1 shows how the EU market, valued at € 80.1 billion was broken down. Upholstered
furniture was valued at € 21.4 billion; dining and living room furniture was € 20.6 billion;
kitchen furniture was valued at € 17.5 billion; bedroom furniture was € 11.9 billion and other
furniture was valued at € 8.7 billion. These figures hide wide differences between countries in
terms of the relative size of each product group. See the individual country reports for further
detail. Broadly speaking the markets for upholstered furniture and kitchen furniture have been
increasing, while dining room furniture has been decreasing.
Nevertheless, for example, ‘upholstered seating’ is a product group which in consumer terms is
usually part of living room furniture. Some countries combine figures for living room and dining
room furniture. In addition, the category ‘other furniture’ is very broad and will include many
items that are part of the other categories. However, what constitutes ‘other furniture’ will
vary from country to country.
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Figure 1.1 EU domestic furniture consumption by product group,

% value, 2008
Other
10.9%
Uphol stered
Bedroom 26.7%
14.9%
Ki tchen
Di ning &
21.8%
Livi ng
25.7%
Source: Eurostat (2009)
Market outlook
The downturn in this market experienced in 2008 will deteriorate further in 2009 as the global
economic downturn has had a major impact on consumer confidence and spending power.
Furniture is one of the product groups that consumers find easiest to defer if their budgets are
restricted. The downturn has also affected the housing market across Europe. Moving home is
one of the main triggers for purchasing new furniture. As consumers have stopped moving
home, this source of purchase has disappeared. In addition, there are much fewer first time
buyers coming to the market. These consumers usually own no furniture and normally
represent the group that purchases most new furniture.
The bright spot is that as this downturn has now lasted for over one year, there will be
demand building up. This should mean that once the economic recovery is more certain that
sales should return quite strongly. Consumers are prepared to hold onto old, damaged or worn
out furniture for some time, but not indefinately.
1.2 Market segmentation
The most commonly used means of segmenting the market is by room. It is used widely in the
trade, partly because furniture retailers tend to present furniture ranges in the context of
where they will be used by building ‘room sets’ so that consumers will more easily visualise
how the item of furniture will appear. Two other forms of segmentation are illustrated here to
highlight the benefit of looking more closely at different consumer types.
• Demographic segmentation
The composition of a household is usually a good indicator of the type of furniture that is
purchased. In particular, the presence of children in a home and their age will determine
whether there will be demand for children’s bedroom furniture. This is a bouyant segment as it
changes more frequently than furniture in adult bedrooms. Other demographic variables are
also strong indicators of furniture demand. For example, young couples will more likely buy
contemporary but lower priced furniture, while middle-aged consumers are more likely to
purchase more expensive furniture, with more traditional or classic design styles. At the other
end of the age spectrum, retired people are less interested in replacing furniture.
Each country has its own demographic characteristics. This form of segmentation is best used
on a country by country basis. Using an EU average figure will hide important differences
between countries. The following Table 1.2 illustrates the importance of demographic
segmentation in the UK. It highlights the differences between men and women, the differences
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between age groups, and the differences between different social classes in terms of the
features which are important when choosing a new kitchen. This helps manufacturers to
determine the best prospects for different kitchen types.
Table 1.2 Features important when choosing a new kitchen in the UK, 2009, %
Clever Built-in Made from Units with Units with
storage that lighting in natural built-in built-in
maximises units & over materials (eg stroage entertainment
space worktops wood, organisers (TV, WiFi,
granite) DVD)
All 62 42 34 33 11
Male 53 39 33 28 11
Female 71 45 34 39 11
16-34 years 52 38 28 25 14
35-64 years 68 45 37 38 9
ABC1s* 65 44 37 34 10
C2DEs 56 39 27 32 12
Source: Mintel (2009)
* AB=23% of population, professional, senior and middle management; C1=28% of the population,
junior management and non-manual workers; C2=21% of the population, skilled manual workers;
D=18% of the population, semi-skilled and unskilled manual workers; E=10% of the population,
unemployed or otherwise dependent on the state.
Hence the key demographic groups for clever storage and for built-in lighting in units are
women, aged 35+, ABC1 households with children. The key groups that prefer kitchen
furniture made from natural materials are ABC1s aged 35+.
• Segmentation by style of furniture

The above consumer groups also have preferences for different styles of furniture. For
example, you may expect that younger consumers may be more interested in modern
furniture. You may expect older consumers to have a greater preference for traditional or
classic designs of furniture, while people who live in the countryside may have a preference for
rustic styles. Furniture styles are usually classified as follows, and photographic examples of
some of these styles can be seen at the end of this section:
o Classical – inspired by traditional decoration, often ostentatious, highly decorated,
rococco, using the finest wood, panelled, engraved, polished, carved.
o Rustic – inspired by the country, using natural woods, with little treatment or
elaboration, much use of pine, special refinements by the craftsman making it.
o Modern – simple, functional, large scale, quite sophisticated and based on the latest
trends.
o Natural – basic forms, rounded corners and edges, natural wood as well as natural
fibres, stone, ceramic and other materials. Simple and unaffected style.
o Avant guard – representing the latest fashion, also known as designer furniture, wide
variety of materials, product of interpreting what is happening in the world.
o Minimalist – minimal expression, simple and practical forms, straight lines, multi-
functional, combinations of materials.
o High-tech – free style, solid and neutral colours, straight lines, much metal and glass,
without accessories, only the essential.
o Ethnic – oriental, Asian and African, non-western, colonial, exotic, exhuberant, great
diversity in forms, exotic materials, colourful, textures.
Photographs
The photographs on the following pages show the different kinds of interiors typical to each
furniture style, as described in this chapter. They are ranged from classic to modern and some
of them show combinations of styles.
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1. Classic style 2. Colonial style

(Couch mixed with metal table & leather chair) (Dark wooden bed & cabinet and white pouf)
3. Colonial style 4. Country-romantic style

(Textile couch with leather chair & pouf) (Whitewash/Upholstered seats & wicker chairs)
5. Country style 6. Contemporary style

(Dark wooden kitchen in bright open living) (Children’s favourite colour with fantasy prints)
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7. Contemporary style 8. Contemporary style

(Dark wooden bed with subtle decorations) (Multi-functional chairs in fashionable colours)
9. Contemporary style 10. Contemporary – Modern style

(Open living space) (Open structure and open shelving)
11. Modern style 12. Modern style

(Home cinema with flexible relaxing couch) (Integrated furniture and integrated woods)
Photo courtesy: Imm/Cosmit/Shutterstock
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1.3 Trends
A wide range of factors are impacting on how demand for domestic furniture is changing. This
can range from simple changing tastes for particular furniture designs to more fundamental
lifestyle changes that determine the type of furniture that is required in homes.
Merging of living areas

The trend in the main living area of combining cooking, eating and living has been developing
for some time. This has been a result of a number of factors, partly the increasing importance
of the home, and partly economic as people choose to spend more time at home for cost
reasons. This includes more entertaining at home. This trend of merging living areas can be
seen with home office space being shared with either living room or dining room space. More
recently, this trend has extended to the bedroom and bathroom areas. People are choosing to
combine their bathroom and bedroom space into a single private zone for relaxation rather
than just for sleeping, or just for bathing.
This desire for flexibility and the blurring of divisions between room spaces boosts the demand
for freestanding furniture, as it can be moved round to meet shifting needs. Many pieces such
as cupboards and tables are already comfortable in a number of different room environments.
More feminine furniture shapes

Much furniture, especially upholstered furniture is becoming more feminine overall. Rounded
shapes confirm the desire for people to enjoy a more cosy and relaxed feel, particularly for
seating. Part of this desire is practical, but there is also more aesthetic reasons, as consumers
move away from harder and colder, purely functional designs. Many wall cabinets also have a
softer and relaxed feel with more rounded corners. Consumers now expect better function but
want furniture to look more comfortable and inviting. This is also reflected in the growing
importance of lighting to create moods specific to different parts of the home. Much lighting is
now built into some pieces of furniture, while much is freestanding to offer a contrast to other
furniture items.
Men showing more interest

Traditionally it has been women that have expressed more interest in home furnishings. That
is changing, partly because there are increasing numbers of men living alone who now have to
make decisions on interior design. In addition, men are showing more interest in cooking. They
see it as part of their role as a host when entertaining friends. They are also attracted to
furnishings with technical refinements, both in the kitchen and in the living room.
Eco-friendly furniture continues to grow

Eco-friendly furniture is in demand in all sectors. Renewable raw materials and the possibility
of recycling the materials used are important purchase criteria for a growing number of
consumers. In some countries there are eco-labels on specific furniture items made from
sustainable sources. In some cases, furniture retailers identify which of their products meet
the eco-friendly criteria. Bamboo is becoming more popular as a material due to this trend.
As well as the increased demand for furniture from sustainable forest sources, there is also
increased demand for recycled furniture, much of which can be re-made in individualised
styles. However, as a contrast, environmental concerns are discouraging some consumers
from replacing furniture. They think that it is more responsible to extend the life of products,
particularly those that cannot be recycled, rahter than purchasing new furniture.
Colour and styling

White remains the dominant and most preferred colour. While there have been various mini-
trends involving other colours, white continues to be the most popular. Styles are constantly
changing and for 2009 baroque ornamentation as the design is upholstery materials is the
trendsetting style.
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Trading up
Despite the economic downturn, consumers are becoming more demanding. Many consumers
choose to postpone a purchase rather than purchase an inferior item. Furniture has
increasingly higher specifications at lower prices. Consumers want important pieces of
furniture to be a reflection of their own individual taste and are prepared to pay extra for
quality. For example, in kitchens interior fittings and lighting, as well as premium worktop
surfaces contribute to pushing up transaction values. This trend is also boosted by the growing
number of 45-64 year olds who tend to prefer to purchase on the basis of quality rather than
price.
Greater use of the Internet

Furniture is now one of the most widely purchased household goods online. The way in which
the Internet is used is changing. In the UK for example, 26% of Internet users say they
browsed furniture online and then bought it online, whereas 21% said they browsed online
then bought instore. A further 20% said they browsed and bought instore. 18% had not
bought online, while just 3% said they browsed instore and then bought online. This is a
powerful illustration of just how important the Internet has become for furniture purchasing. It
is also very important as an information source and a communication medium for design ideas.
More use of professional designers

Consumers are increasingly involving professional designers to help them choose furniture.
This is particularly the case for high value items such as fitted kitchens or bedrooms, but they
are also being used to help with other aspects of interior design. This might include offering
advice as to the best combination of other furnishings and decorations that might fit well with
a particular dining table or sofa that the consumer likes. Many consumers want to be more
involved in the design process to express their own individuality. They are not afraid to also
ask for professional advice.
Improvements in the recession

If a consumer is unable to buy a new piece of furniture, some may choose to adapt an existing
piece, or make some other change to the room as a way of refreshing its look without high
expenditure. Some examples of this trend include changing door frames, door knobs and
handles. Other ideas would be to re-upholster a chair or changing a small but central feature
such as a coffee table.
Media influence deepens

The powerful role of the media in determining interior design and furniture choice has
extended into most new Member States. Media coverage of home design was in part fuelled by
the property boom. Despite the fact that this boom has ended and less people are moving
home, the influence of the media continues. There has been a subtle shift in emphasis to
focusing on getting the best value out of improving your home on a limited budget. Although
funds are limited for many people, the aspiration for living in a nice home remains strong.
Emergence of speciality rooms

As the home has become more important and an increasing number of activities are carried
out within the home, some rooms are being used as speciality rooms. This will tend to reflect
the interests of the main homeowner. For example, if the person is a very enthusiastic TV
viewer he will convert a room into a home cinema. Alternatively, a room may be converted
into a technology centre based on computers and games, or it could be a sports room, either
for playing or watching sport. Music is another important basis for theming a room. This will
extend to the type of decoration used and type of furniture required. Any enthusiast with a
particular hobby can design a room to adapt to their special interest.
Page 13 of 52
1.4 Opportunities and threats
The leading trends tend to come from Western Europe. The markets in eastern EU countries
are not as sophisticated yet, and opportunities still exist here for more traditional, basic
furniture styles. However, the pace of change and globalisation will mean that these parts of
the EU will catch up with Western and Northern EU countries quite soon. In most EU countries,
there is a long-term shift from traditional to contemporary style furniture. This has made the
furniture market increasingly diversified in terms of the different styles available. In a mature
market with growing supplies from Eastern Europe and China, exporters should seek
opportunities in market niches. Here there is less competition and they can offer added value
by furniture that is unique to their country.
+ More opportunities will be found for modern styles of seating, kitchen furniture and
occasional pieces of furniture, such as cabinets, storage units and small tables.
+ While there is still demand for co-ordinated suites of furniture, more growth will come from
freestanding pieces, as consumers look for flexibility in how a room is used and arranged.
They also want to express their individualism over the design of their home.
+ Changes in consumption patterns for furniture offer opportunities to exporters from
developing countries. The market for self-assembly furniture is growing in certain
segments. This is good in terms of ease of transportation for exporters, enabling cost
efficiencies, but exporters also need to ensure that designs are innovative and take note of
fashion changes in furniture.
+ The large immigrant and now native population in most western EU countries are interested
in some of the styles and designs of furniture they were familiar with from their countries of
origin. In particular, there are sizeable sub-segments in many countries for oriental or
African furniture styles in terms of living and eating arrangements.
+ The increase in smaller homes is also an opportunity for DC exporters. The demand for
smaller-sized furniture items also encourages good value products to be shipped from
overseas.
+ The eco-trend will provide opportunities for those exporters that are able to demonstrate
that their products come from sustainable forest sources.
+ Solid woods are becoming more popular instead of veneers and laminates. Importers are
looking for new types of solid wood, similar to light oak, cherry or darker woods.
+ Bamboo has become a popular material in contemporary style furniture but also in eco-
design furniture, as bamboo grows very quickly. Bamboo is sometimes combined with
polystyrene and aluminium that can be recycled. There is a good opportunity for such eco-
design furniture concepts.
- The ageing population will bring short term opportunities in specific product categories, but
more broadly the over 65 age group spends less on furniture so there will be less
opportunities in the longer term. However the growth in the 45-64 age group will stimulate
opportunities for higher quality furniture items that offer excellent value as well as good
quality.
- A threat comes from being unable to meet very short delivery times, and also from not
being able to change the specification on a product at short notice. Fast delivery (according
to sample), good packaging, and after-sales service are taken for granted now by all major
buyers.
- Although some lifestyle changes are gradual, enabling exporters to have time to adapt to
the changes in demand that result from them, a significant part of the market has to
respond to the short term whims of what is fashionable. For example, a particular item of
furniture may be featured on a home interest programme, which creates high immediate
demand. Retailers need to be able to call on their supplier/s to deliver these products
immediately, otherwise the opportunity would be lost.
Equally any of these trends can be an opportunity for one exporter, but a threat to another.
The outcome of this analysis will depend on the specific situation of each exporter. EU buyers
are not always loyal to particular overseas suppliers, so you may lose out to a supplier from
your own country or neighbouring country.
Page 14 of 52
1.5 Useful sources
See CBI market surveys covering the market in individual EU countries for contact details on
important sources in each country.
• At an EU level, the European Furniture Manufacturers Federation (UEA) -

http://www.ueanet.com - occasionally publishes market information. A new organisation
called the European Furniture Industry Confederation - http://www.efic.eu - formed in 2006
featuring seven UEA members.
• The European Federation of Furniture Retailers - http://www.fena-furniture.com - also
features information.
• The European Union website - http://ec.europa.eu/enterprise/furniture/index_en.htm - has
a section on the furniture industry. Further information on furniture specific to forest-based
industries appears on the same website -
http://ec.europa.eu/enterprise/forest_based/furniture_en.html.
• The World Furniture Confederation - http://www.worldfurnitureconfederation.com -
provides information on the industry, while a very good source of pan-European information
on furniture can be found at the portal http://www.furniture.eu.
• The latest information on trends in home interior styles and furniture can be found at the
sites of the International Furniture Fair in Italy - http://www.cosmit.it - and at the more
trendfollowing fair in Germany - http://www.imm-cologne.de.
• Information is available from commercial research companies, sometimes at a cost. The
main sources are Csil, the Furniture Industry Research Institute in Milan -
http://www.csilmilano.com or http://www.worldfurnitureonline.com, Euromonitor -
http://www.euromonitor.com, Mintel - http://www.mintel.com - and MSI Reports -
http://www.msi-reports.eu/en/index.asp - with particular focus on kitchen and bathroom
furniture.
• Although Eurostat - http://epp.eurostat.ec.europa.eu - does not provide information on
consumption, figures for apparent consumption can be calculated by adding import and
production figures and subtracting exports.
Page 15 of 52
2 Production
2.1 Size of production
Global production of furniture was valued at over € 270 billion in 2008, of which approximately
€ 200 billion was domestic furniture as defined in this survey. The EU27 accounted for 37% of
global production, a lower proportion than in 2007, but still the largest furniture producing
region in the world by some distance. The Asia zone was the fastest growing area, and has
now overtaken the NAFTA area in terms of production value. It now accounts for
approximately 28% of global production. Within this, China (55% of all Asian production or
15% of global production) continued to grow while the EU and NAFTA regions contracted in
2008. Japan accounted for a further 20% of all Asian production.
The NAFTA area covering the USA, Canada and Mexico accounted for 26% of global
production. This was dominated by the USA (23% of global production). This region is
declining in importance in its share of global production. Domestic furniture production in Latin
America was valued at approximately € 4.5 billion or 2.3% of global production, two thirds of
which was made in Brazil. Other non-EU European countries accounted for 2.8% of production,
1.3% was from Oceania and 0.7% was made in Africa. The top 25 furniture-producing
countries accounted for 90% of world production. Out of them, 13 countries are European,
seven are Asian, four are American and one is from Oceania.
Table 2.1 EU production of domestic furniture, 2004-2008, € million

2004 2006 2008 Average % Number of Number of
value value value change in companies employees
value 2006 2006
04–08
Total EU 71,073 74,923 73,727 0.9 131,642 999,155
Italy 14,858 15,432 15,434 1.0 25,799 119,499
Germany 13,001 13,940 14,870 3.4 8,878 123,837
Spain 6,608 6,674 6,801 0.7 18,021 108,326
France 6,930 6,759 6,708 -0.8 18,220 72,893
United Kingdom 8,880 8,911 6,521 -7.4 6,211 78,670
Poland 3,434 4,160 4,629 7.8 11,452 133,204
The Netherlands 1,963 2,214 2,074 1.4 3,190 11,658
Sweden 1,745 1,866 1,999 3.5 2,895 14,512
Belgium 1,862 1,947 1,905 0.6 2,186 12,949
Austria 1,858 2,094 1,896 0.5 3,398 28,255
Denmark 1,943 2,014 1,842 -1.3 805 14,683
Romania 969 1,203 1,200 5.5 3,135 85,034
Czech Republic 1,181 1,268 1,148 -0.7 4,047 31,143
Finland 876 889 1,009 3.6 1,342 6,935
Greece 667 755 889 7.4 6,643 10,603
Portugal 969 968 843 -3.4 6,832 39,734
Hungary 682 830 821 4.7 3,164 17,397
Slovenia 676 826 814 4.8 571 8,986
Slovakia 593 656 693 4.0 281 13,385
Lithuania 289 347 440 11.1 1,151 19,948
Ireland 334 340 345 0.8 348 4,241
Estonia 235 256 287 5.1 491 8,976
Bulgaria 191 225 256 7.6 1,476 22,426
Latvia 121 140 109 -2.6 547 10,218
Luxembourg 89 91 88 -0.3 39 150
Cyprus 78 81 76 -0.6 420 993
Malta 41 37 30 -7.5 100 500
Source: National Statistics Offices, Trade Associations, Eurostat (2009)
Page 16 of 52
The negative trend in 2008 was due to a dramatic decline in the production of furniture in
almost all the EU27 Member States. The crisis generated a weak global demand that resulted
in less production and exports for the EU27 furniture manufacturers. All the major furniture
producing countries faced the crisis and the recession by contracting their production. In June
2009, the European Furniture Manufacturers Association requested additional measures from
the EU and national governments to support the industry during the financial crisis, as a result
of a further fall in production of between 20% and 50% in the first quarter of 2009.
Despite the strong contraction in 2008, the EU industry still managed to register a small
positive increase in value between 2004 and 2008. There have been changes in the
composition of production over the period, as kitchen furniture accounts for an increasing
proportion of production. Other key points include the fact that 40% of all production was
exported, of which approximately 80% was exported within the EU. Italy, Germany and Poland
were the largest exporters.
The top five producing countries (Italy, Germany, Spain, France and the UK) represented 68%
of total EU production value in 2008, compared to almost 71% in 2004. Much of this can be
explained by the large decrease experienced by the UK furniture industry. The overall trend is
explained by the continuing growth of the furniture industries in Eastern Europe. Significant
parts of German and Italy production have been outsourced there. The 12 new Member States
accounted for over 14% of EU production value in 2008, compared to less than 12% in 2004.
This grouping was not immune from the global economic slowdown and many of these
countries experienced decreases in 2008. Lithuania, despite being a small country, was the
fastest growing producer.
The composition of furniture production is changing. In 2008, kitchen furniture represented the
largest production segment, followed by upholstered seating. Although Eurostat has not
provided information on upholstered furniture, this is estimated to be the similar in size to the
value of kitchen furniture production, as highlighted in Figure 2.1. The share of production
accounted for by furniture parts has decreased in 2008, indicating a higher proportion of
finished products and more outsourcing of parts.
Figure 2.1 Production of furniture in the EU 2008,

as % of total value
Rat tan
Part s 0.5%
17.1% Upholst ered
21.6%
Other
9.0% Non-
upholstered
5.8%
Bedroom
12.4%
Kitc hen
Di ning and 22.4%
li ving
11.2%
A larger proportion of furniture parts were produced in the new Member States. Although the
production value of all types has increased since 2004, with the exception of furniture parts,
upholstered seating and rattan furniture, the share of production accounted for by bedroom
and dining and living room furniture was also marginally down.
Page 17 of 52
The furniture industry is concentrated in one or a few particular areas in each country. In
Germany the main areas are North Rhine-Westphalia, Bavaria and Baden-Württemburg. In
Italy two thirds of furniture suppliers are in the Lombardy and Pesaro regions. Most French
suppliers are located in the northern regions (West/Vendée/Brittany, Île-de-France and
Normandy) and the southern Rhône-Alpes region. Spanish furniture suppliers are mostly
concentrated in the Valencia, Catalonia, Basque and Murcia regions.
2.2 Trends
The EU furniture industry has experienced its worst year in recent history. All indications are
that 2009 will also be another year of contracting production. Although it is likely to show a
small recovery in 2010, the engine of growth for the global industry will continue to shift to
Asia, as well as some other notable areas such as Brazil. Many of the trends apparent in the
EU are increasingly based on survival strategies, rather than growth strategies. However, this
is not a universal generalisation.
Outsourcing
Outsourcing has been a feature of EU furniture producers for a number of years. While there
has been a transfer of some production from some of the more developed Western EU Member
States to newer Member States in the east, the overall picture has been a transfer to China
and some other developing countries, particularly in Asia. This trend has continued, although
the rate of growth in imports from China is slowing down. This reflects increasing costs in
China and a strengthening of the Chinese currency, as well as improving levels of quality and
competitiveness from other countries.
Development of eco-label
There has been some discussions within the EU industry about an EU eco-label for furniture
due to the high levels of consumer interest in sustainably produced furniture. The difficulty has
been in the fact that an eco-label would most readily lend itself to wooden furniture, while
manufacturers of metal or plastic furniture (or composite furniture of a number of materials)
would be disadvantaged as a consequence. The preference would be for a label that applies to
all types of furniture, but the practicalities of this have yet to be worked out.
Developments in the supply chain

The furniture trade is increasingly globalised and new distribution systems are taking this into
account. Two thirds of all companies now procure products electronically, although small firms
lag behind the larger ones. There is an increasing trend of companies using the same software
platforms. One third of manufacturers allow their customers to order goods electronically.
Design developments
As outsourcing of production continues with manufacturers finding partnerships with other
producers in lower cost economies, or with producers with different skills, outsourcing of
design is not taking place to the same extent. This is increasingly the central value of a
business. Consumers pay for innovation and good design. Manufacturers are also making more
serious efforts to protect their designs from copying, and taking legal measures to minimise
design theft. Three quarter of all companies use computer-aided design, but less than 30%
use computer-aided production.
More standardisation
Standards continue to be developed and improved for the production of furniture. These relate
primarily to strength, durability and safety. As well as the issue of quality and public safety, it
is considered that the existence of a robust set of standards to which furniture producers must
comply, this will also provide a point of competitive advantage to those non-EU producers that
do not adhere to such robust standards.
Page 18 of 52
Market access developments

While access to the EU for furniture importers is relatively liberal, there have been important
developments in cooperation with the European Commission to improve EU furniture
manufacturers access to key export markets. Trade barriers have already been removed in
markets such as Argentina, Turkey and Japan. While barriers in the area of sanitary and
phytosanitary measures have been a focus point for the EU for some time, the needs of small
and medium sized enterprises in relation to the increasingly important topic of access to raw
materials when accessing neighbouring markets is also on the agenda.
Sharing best practices

The EU industry continues to cooperate more fully and across a broader range of topics. This
helps in the overall competitiveness of the industry, as well as encouraging innovation. The
key areas for sharing are new product development, cooperation with other companies,
outsourcing, skills and competencies development, electronic data management and new
approaches for distribution.
Manufacturers as retailers
This is already a well-established practice in many countries, but the process continues to
develop and expand. As well as being able to talk directly to consumers, it enables
manufacturers to control more of the supply chain and better plan their production
requirements.
+ While DC exporters have in many cases found opportunities in the lower market
segments, consumer demand for best value, rather than lowest price is generating
opportunities for the supply of higher quality products. DC exporters should have the
confidence to attempt to supply higher market segments.
+ Opportunities exist for those exporters from developing countries who are able to supply
products from sustainable sources. All EU producers acknowledge the implications of the
consumer trend to more environmentally friendly furniture. If their existing sources are
not able to supply the correct materials, they will need to look elsewhere.
+ Outsourcing continues to offer opportunities for developing country exporters.
Outsourcing is largely driven by the desire to reduce costs, but try to ensure that you
offer something more than this to potential EU partners. They will also be interested in
your design expertise. There may be design styles unique to your country that can
provide you with a point of competitive advantage in relation to other exporters. Larger
EU companies are more likely to be the best contacts for this.
+ Opportunities can also be found by identifying small or medium-sized producers who wish
to maintain their independence in an increasingly competitive international market. They
will be interested in forming relationships with good companies who are willing to engage
to supply parts or components rather than finished products.
+ If you are technologically competetant, you will be better-placed to take advantage of
opportunities. For example, EU manufacturers will prefer to work with those developing
country suppliers who have the technical infrastructure to integrate their systems and
procedures with their own. This also relates to your ability to work with a range of
different materials.
- EU consumers are demanding more sophisticated furniture designs. This requires that
producers may need to afford to invest in capital-intensive equipment. This could be a
significant disadvantage in your ability to engage in the EU market.
- You will be just one of a number of exporters wishing to engage in the EU market. You face
threats from new Member States who have their own established furniture industries and
also possess a cost base well below the EU average. Other non-EU European countries are
also a threat. Their geographical proximity makes them interesting to EU manufacturers.
Page 19 of 52
2.4 Useful sources
• The European Furniture Manufacturers Association - http://www.ueanet.com - is the main

umbrella organisation representing the interests of the furniture industry in the EU. Links to
the main national furniture associations and selected trade press are also provided. There
are also some links to other issues affecting the industry, such as production standards,
issues on production efficiency etc. It occasionally provides production statistics via a
quarterly newsletter.
• The European Furniture Industry Confederation (EFIC) - http://www.efic.eu - is based in
Brussels, representing 65% of the sector at European level including Italy and Germany -
the two main producers, Spain, Denmark, Belgium, Portugal, Slovakia and Turkey. These
members have split from the UEA and wish to press for anti-dumping regulations against
cheap furniture imports.
• The World Furniture Confederation - http://www.worldfurnitureconfederation.com -
provides information on the industry, while a very good source of pan-European information
on furniture can be found at the portal http://www.furniture.eu.
• Production data can be found on the website of the European Union. The data is based on
information provided by the various National Statistical Offices. See
http://epp.eurostat.ec.europa.eu and select ‘industry, trade and services’ and under ‘data’
follow the links to access the database on ‘statistics for the production of manufactured
goods’.
• Production data can also be found at the various National Statistical Offices within the
European Union. The detail provided on furniture production varies for each country. The
United Nations Statistics Division provides links to all National Statistics worldwide -
http://unstats.un.org/unsd/methods/inter-natlinks/sd_natstat.htm.
• The Furniture Industry Research Institute - http://www.csilmilano.com - based in Milan,
Italy produces regular reports on production in the furniture industry, both in the EU and
worldwide. Information from this source has to be paid for.
• The European Union website also provides an overview of the furniture industry. See
http://ec.europa.eu/enterprise/furniture/index_en.htm.
• The International Alliance of Furnishing Publications (IAFP) – http://www.iafpalliance.com -
consists of 16 members representing the leading furniture-producing countries in the world.
It reports on business, economic conditions, marketing and design trends.
• Names and addresses of interesting players in EU furniture production are provided in the
individual country reports.
Page 20 of 52
3 Trade channels for market entry
3.1 Trade channels
The route from manufacturer to consumer in the furniture trade is complex and varied.
Although furniture is increasingly supplied in formats designed to improve the efficiency of
handling and distribution, the sheer size of many furniture items makes them unsuited to
multiple handling. Consequently the main distribution flows in the EU tend to be from
manufacturer to importer to retailer to consumer. There are variations on this, particularly
where large retailers such as IKEA ship direct from manufacturers, eliminating part of the
distribution chain. This is an increasing trend.
As Figure 3.1 shows, there is a clear distinction between specialist distribution where the
product is handled by intermediaries and furniture retailers, and non-specialist distribution
where furniture is just one of a wide range of products handled by the companies in question.
• Specialists represent approximately 80% of the distribution of furniture in the EU markets,
and they are either organised in the form of large chain stores or buying groups (this tends
to be most common in northern Europe), or independent (usually predominant in southern
European countries such as Italy, Spain and Portugal).
• Non-specialists include department stores, mail order, Do-It-Yourself (DIY) stores or
hypermarkets. They buy from specialised intermediaries, through their own intermediaries
or direct from manufacturers. This channel represents about 20% of furniture retail sales in
the EU.
Page 21 of 52
Trade channels
For exporters in developing countries, the physical distribution of furniture can be a constraint.
When exporting furniture for the first time, importers are the best channels. They have a good
knowledge of the market and provide the safest and most effective method of distribution for
exporters from developing countries. Once sales of your product(s) have developed, you could
either expand your business with your importer or consider supplying direct from your own
warehouse, which can be set up for you by a specialised logistics company in the EU.
Exporters need to appreciate the hurdles which have to be overcome in order to be accepted
by certain types of customers, whether they are wholesalers or retailers. In many cases, it is
necessary to undergo a process to become accepted as an approved supplier. It is often not
enough just to present your product to become accepted. You company will increasingly be
required to undergo regular inspections or audits to satisfy your customer that you continue to
meet their standards. This is particularly important as environmental considerations are
important in the furniture trade. The larger the organisation you are dealing with, the more
likely this will be the case.
Importers
By buying on his own account the importer takes title to the goods and is responsible for
their onward sale and distribution in his country and/or in other EU markets. Those importers
who are not exclusively tied to a brand manufacturer usually buy and sell the goods, take care
of import/export procedures and hold items in stock. Many importers sell directly to specialist
retailers and department stores through permanent exhibition centres, while others have their
own sales staff that visit retailers on a regular basis and take orders.
The importer has contacts in the local market, knows the trends and can supply considerable
information and guidance to the overseas manufacturer. The development of a successful
working relationship between manufacturer and importer can lead to a high level of co-
operation with regard to appropriate designs for the market, new trends, use of materials and
quality requirements. Some importers also act as wholesalers.
Wholesalers
Wholesalers often supply independent or specialist furniture shops and play a major role in the
supply of furniture. They usually specialise but often carry a wide variety of products. The
trend of bigger retailers and buying groups going outside the traditional distribution system
has caused wholesalers to reconsider their position in the distribution structure. This has
encouraged wholesalers, who were losing part of their business, to operate on a regional basis or
in a more product-specific manner.
The following other channels are good alternative distribution channels for exporters:
Agents
In your own country, there are buying agents. These independent companies negotiate and
settle business on the instructions of their principals and act as intermediaries between buyer
and seller. They do not buy or sell on their own account. They work on a commission basis and
represent one or more larger manufacturers/suppliers/retailers, although competition is
avoided. Often the buying agent has his office in the supplying country.
In the target country, there are selling agents, which also are (specialised) independent
companies. They work on a contract and commission basis for one or more manufacturers.
Some of them sell from stock in order to meet their clients' short-term demand, which is on
a consignment basis. If an agent builds up his own stock, he is in fact functioning as a
wholesaler or distributor.
Buying Groups
Buying groups prefer to minimise the cost of middlemen by purchasing directly from a supplier
whenever possible. This channel is used for large-scale requirements, where direct dealing
Page 22 of 52
with well-known suppliers is essential. These groups act as purchasing agents for their
individual members (smaller furniture retailers) and financial intermediaries between producers
and retailers. The objective of the buying group is to make it possible for its members to deal with
the growing power of large furniture chain stores and discounters.
As a group, they have the necessary buying power to obtain greater discounts from suppliers.
Sometimes they offer warehouse facilities to their members. Other advantages include credit
card rates, provision of marketing intelligence and use of the buying group’s brand name, staff
training and advice on legal and business issues. Buying groups are common in the furniture
trade, particularly in Germany (Begros, Garant and Europa Moebel) and Spain (Grupo Ventura
and ACEM). Some buying groups operate in a number of different EU countries.
Local suppliers
Faced with rapidly rising production costs, making some manufacturers uncompetitive
(especially in labour-intensive production lines), manufacturers are increasingly assuming the
role of importers. Like importers, they look for low-cost sources that can produce furniture on
a made-to-order basis, instead of purchasing ready-made articles. The main advantage is
that these items can be made according to their own design, quality and colour specification.
These are added to the local manufacturers’ own portfolio and help their own market profile.
These local manufacturers can offer good opportunities to DC exporters in some cases. It
may be in the form of partial supply, but it is an alternative route to the market.
Other terms used

You will hear many other terms used for various actors in the supply and distribution chain for
furniture. For example, distributor is a term used to describe a person, organisation or outlet
that has been appointed by a particular brand manufacturer to sell or resell that brand. A
licensee describes someone who has bought the rights to sell a particular brand in a particular
sales area. Factory outlets are an example of vertical integration established by
manufacturers/suppliers to sell ‘out of date articles’ from unsold stock direct to consumers, and
are growing in importance in the EU. They are a threat to retailers, especially in Italy, Portugal
and Belgium. Here, FOC (Factory Outlet Centre) schemes are being built closer to major cities
and there is no clear definition of the goods that can be sold in these centres.
Some recent distribution chain issues of relevance to exporters are:
• Vertical integration by manufacturers

Here manufacturers sell direct to consumers via their own stores, removing the need for
retailers. One example is the single brand or flagship store (e.g. Leolux ‘design centres’,
Ligne Roset, Sofa Workshop Direct, Classic Choice), which sells the complete furniture
range of one brand and is meant to enhance the brand image. Most stores have a design
corner for tailor made furniture.
• Store attractiveness and regular change by retailers

With the growing influence of fashion in furniture, furniture stores now change their ranges
more frequently, giving the store a sense of continual change. New furniture ranges can be
combined with all sorts of accessories, creating a total interior concept. For an exporter it is
important to be aware of this concept. He should try to make a link here when introducing
his products, even at importer level. Nowadays, shop interiors appeal more to consumer
target groups and can range from classic, colonial, contemporary to ultra-modern.
See Chapter 3 of the CBI Export Guidelines for more information on the selection of the most
suitable channel for your own situation.
Retailers
As shown in Figure 3.1, the structure of furniture distribution can be broadly divided as follows:
• Specialist distribution, where all retailers specialise in furniture, or in sub-sectors such as
kitchen, bedroom or bathroom. The specialist trade accounts for about 80% of all distribution
Page 23 of 52
in the major EU markets. Specialists can be organised or independent. Organised retailers are
the large chain stores (eg IKEA, Conforama etc), franchised stores or concept stores.
Independent retailers are smaller shops, more common in southern EU and new Member
States. Many of these are affiliated to buying groups.
• Non-specialist distribution refers to outlets that mainly sell other items, but also include
furniture, eg department stores, hypermarkets, mail order companies etc. This accounts for
about 20% of sales in the major EU countries. This share is forecast to rise in the future.
Specialist retailers
Despite the dominance of IKEA, furniture retailing in the EU is still quite regionalised. Retailing
varies by product (e.g. bedroom specialists, kitchen specialists) and by country. Chain stores
with large showrooms are prevalent in middle and northern EU countries, while independent
shops with small showrooms are typical in Italy, Spain and the new Member States. The broad
trend has seen independent outlets suffering at the expense of larger chain stores. This
concentration in outlets has coincided with an increase in the size of outlets.
In 2008, there were approximately 125,000 furniture retail outlets in the EU, with around
450,000 employees. Furniture retailing has become more diversified with many types of
outlets, varying from those stocking a special style of furniture to those carrying a wide range
of products with related accessories. Although the total retail floor space dedicated to selling
furniture has increased, the number of outlets selling furniture is decreasing. The expansion in
retail space has been helped by the suitability of furniture to out-of-town locations. More space
has also led furniture retailers to diversify into other related areas such as household goods.
There are three keys types of specialist retailer:

• Chain stores
These specialist stores are usually part of a national or international chain store or
franchised operation under the same name and central management. Chain stores are well
represented in the UK, Belgium, the Netherlands, France and Germany. Most chain stores
have standardised product ranges and are located on the high street or at out-of-town
shopping centres. Many chains are national, but an increasing number are now
international. Because of volume discounts from their suppliers, they can offer items at
low-medium prices, which consumers often purchase on impulse. Sales through furniture
chain stores represent about 25% of furniture sales in the EU.
Large chains such as IKEA have their own purchasing staff, buying from all over the world.
In the country of origin, most buyers prefer the lines between manufacturer and the source
of raw material (e.g. rattan farmers) to be as short as possible. In this case, there is better
control over production and communication lines are short, reducing the risk of
discrepancies between buyers' requirements and final product.
• Independent specialists
In most EU Member States, small shops are still well represented. Specialist shops must
know the latest trends in fashion, understand how that affects furniture design, and also
sell those contemporary products. Specialist stores need to offer added value by giving
good advice and service to consumers.
Nowadays, most specialist shops have to cope with issues such as more demanding
consumers, more competition from non-specialists and discounters and cheap imports. In
order to differentiate, these specialists continually seek new sources to develop their own
exclusive collections and change their ranges more frequently (more than twice a year).
• Furniture boulevards
In central and northern EU countries, furniture sales networks are modern, well-structured
and very efficient. Large interior shopping malls of 10,000 m² or more are located in out-of-
town shopping centres. A shopping mall houses a mix of smaller and medium sized stores,
which specialise in furniture (dining and living, bedroom, kitchen etc.), lighting or household
Page 24 of 52
goods. Most of these stores are linked to a buying group or to a chain store operation. Large
furniture boulevards have existed in the Netherlands for over ten years. They are now
extending the concept to include DIY in a new project at Westpoort near Amsterdam. The
first furnishings boulevard in France, Domus Paris, opened in 2006. With a total sales area
of 62,000 m² on three floors, 130 brands from the international furnishings trade are
represented. A further two are planned in Germany.
Non-specialist retailers
Furniture sales by non-specialist outlets are increasing, driven by consumers wanting more
choice in the places where they can buy furniture, but also due to the buying power of some
large operators that are able to offer good value furniture at attractive prices.
The main types of non-specialist retailers are:

• Department stores
This channel is very important in the furniture trade. Although department stores are non-
specialists in that they also sell a wide range of other products, many department stores are
in fact very specialised because of their long experience in the market. The German
Karstadt (91 stores), Kaufhof (141) and the Spanish El Corte Inglés (68) in particular are
leaders in the EU. They have furniture departments and concessions (shop-in-shop) in their
stores, including their own brand. Department stores in other countries include Galleries
Lafayette (France), John Lewis (the UK), Coin (Italy) and Bijenkorf (the Netherlands), which
also carry some furniture.
• DIY stores, hypermarkets and discounters

They have had a major influence on the increased price competition in the whole market,
with discounters selling at low prices. They tend to stock limited ranges of lower cost
furniture but their impact on the market in terms of polarising between low and high market
product is important. Some large retail organisations e.g. Carréfour (France), Metro and Aldi
(Germany) and DIY chains have furniture manufactured in low cost countries, to increase
their profit margins.
• Mail order and the Internet

Mail order has been important as a sales channel for ready-to-assemble furniture, but not
so important for sales of product at the higher end of the market. Consumers still prefer to
go to a retailer to see and try items of furniture, especially if they are paying significant
amounts of money. The same principle applies to the Internet, which until recently was
primarily used as a means of comparing prices. However, direct sales through this medium
are forecast to become more significant in the future.
Retailers versus suppliers

The increasingly concentrated retail sector has strengthened its position. This has had a
negative impact on suppliers, smaller EU manufacturers, and importers who are being
squeezed out in some cases. Large retailers source directly from any country at very low
prices. Suppliers compete by offering their own discount policies to different retailers (or buying
groups). In addition, suppliers pressurise retailers to order earlier and in large quantities.
These developments have created some mistrust between retailers and suppliers. This is a
situation from which some smaller suppliers and developing country exporters could benefit.
3.2 Price structure
When entering the target markets, successful pricing is a key topic in the market entry
strategy. In fact, pricing is the only area of the strategy that generates revenues for
exporters. All other activities generate costs.
Price is the first point of comparison in evaluating your product against the competition.
Profit margins have been under severe pressure due to increased competition in this sector
and increased expectations from consumers about product quality and after-sales service.
Page 25 of 52
Furniture is usually considered to be a non-essential purchase, so it is vulnerable to

economic downturns, which is another reason why margins can also be under pressure.
Large retailers exert further pressure on prices and margins in the trade channels by
purchasing in substantial quantities.
An exporter from a developing country would be better off by concentrating on the

exclusiveness of his product e.g. introducing original styles of furniture that meet the
function, design, size and comfort needs of a specific target group. In this case, price is less
important. Try to avoid being regarded as another cheap supplier from a developing
country.
Key issues on price structure

• The trade channels with typical mark-ups of each channel and retail category.
• Retail prices of competitors’ products in your target market.
• Discount structure and credit terms offered by local competitors.
• The production costs, incoterms, import duties, anti dumping levies and VAT level.
• Additional costs for product adaptation, packaging, marketing and promotion etc.
• The most ‘reasonable’ or ‘tactical’ price level according to some of your local contacts in
the field (agents, other exporters from your country, store managers).
In the case of trial orders, which are delivered for the first time, sometimes a discount is
given to buyers and freight is prepaid. Once prices have been agreed and the target
markets are set, it is important to keep control and avoid too large a difference between
prices in each target market, as they are now easier to compare because of the Euro.
Margins
In the price-competitive furniture market, margin maintenance is vital along with cost control.
Nevertheless, margins have been under pressure and have fallen. For retailers it is important
not to erode the margin too much when making price promotions. In several EU countries, this
has led to some stores being declared bankrupt. Successful retailers have the right balance
between cost control, good retail margins and good buying.
Margins at retail level

Due to the variety in product types, the typical mark-up for retailers averages between 80-
100% - see the price calculation example in Table 3.1. This includes value-added tax (VAT),
ranging between 15-25% depending on the EU country. Actual margins can vary widely around
these averages depending on the exclusivity of the product, the level of demand, the type of
store, the nature of the product and the handling involved. For example, where little input is
required from sales staff (e.g. IKEA), the retailer will ask for a low margin e.g. 70%. The same
applies to RTA furniture. On the other hand, margins for luxury furniture, which need more
display space, will most likely have a higher margin e.g. 100%.
Another factor is the location of the retailer. For example, high street chain stores are often
in expensive places, carry a wide range and have many sales staff. All of this is also reflected
in a higher margin. On the other hand, margins of department stores or large retailers such
as Fly are lower, because they often buy direct from manufacturers and have outlets at
out-of-town shopping centres.
Margins at importer/wholesale level

Wholesalers and importers base their costing on a Cost Including Freight (CIF) base. This
means that their landed cost is the FOB (Free on Board) plus transport to his warehouse and
insurance and possible import duty. The importer/wholesaler mark-ups average between 25-
30%. Depending on the circumstances, there is also a wide variation around these averages. In
principle, importers maintain a fairly close control over recommended retail prices, but
oversupply and the growing success of furniture discounters has distorted the situation. Mark-
ups as low as 15% and as high as 60% have been recorded.
Page 26 of 52
So try to look carefully at your costing before making your quote to importers, especially
if they supply the low end of the market e.g. hypermarkets, discounters etc. This may prove
not to be an interesting channel for you. Instead you may try to find importers who operate
in the medium to high range part of the market, supplying specialist independent retailers,
buying groups or department stores.
The typical average commission rate for an agent is usually 10-15% of sales.
The following Table 3.1 indicates the effect of low and high margins on the final consumer
price, based on a CIF price of 100 for an item of furniture when sold through an importer to
a retailer. If the same item is sold through an agent on to an importer and retailer the CIF
price is 110. The final consumer prices can be compared with the price level of similar items
of competitors.
In this example an imaginary mark-up is set, covering overhead costs (e.g. housing,
personnel, selling and general expenses, own profit), which is estimated at 35%. Please note
that the breakdown of the cost price by material, direct labour and other cost is purely for the
purposes of illustration here:
Table 3.1 Calculation of final consumer price

Low High
Material cost (incl. wood certification and 15% for

unsold stock) 25 25
Direct labour cost (incl. design costs) 25 25
Other cost (e.g. packaging, promotion, sample shipments) 9 9
Cost price 59 59
Mark-up (overhead costs incl. own profit e.g. 35%) 21 21
Export price (FOB) 80 80
Agent's mark up (e.g. low – not through agent, high 10%) 10
Agent's selling price 90
Import duties* (furniture parts 2.7%) 3 3
Other costs (e.g. transport, insurance, handling, banking) 17 17
Landed cost or CIF price 100 110
Importer's/wholesalers mark up (e.g. low: 20%, high 35%) 20 38
Importer's/wholesaler's selling price 120 148
Retailer's mark up (e.g. low 80%, high 100%) 96 148
Net selling price 216 296
VAT (e.g. 19% in the Netherlands) 41 56
Final consumer or retail price 257 352
Ratio Cost price - Consumer price 2.6 3.5
* If the GSP tariff is applicable for your country, the import duty can be reduced to zero.
See also the CBI market surveys covering the market in individual EU countries and Chapter
6.6.4 of CBI’s ‘Your guide to market research, Part 2: Your research practice’ for more general
information on pricing.
3.3 Useful sources
It is useful to contact specific operators in each of the distribution channels. To get a good idea
as to how they operate, or to find advice, it is recommended you talk to other people you
know who have looked into exporting furniture to the EU.
• The European Federation of Furniture Retailers represents the interests of furniture
retailers in Europe. You can visit its website at http://www.fena-furniture.com.
• You can find names of importers from the International Directory of Importers, where
5,600 furniture and home furnishings importers are listed. See
http://www.importersnet.com. An Indian company called Exim Infotek -
http://www.eximinfo.com - publishes a directory of European importers of all types.
Page 27 of 52
• The Furniture Industry Research Institute - http://www.csilmilano.com - has published a

report called Furniture Distribution in Europe. This compares the distribution structures in
different European countries as well as providing a list of furniture distributors. There is a
charge for this report.
• Agents or trade representatives can be found through local trade associations, Chambers of
Commerce, fashion centres and trade directories.
• Names and contact details for the major players in each of these distribution channels can
be found in the CBI market surveys covering the market in individual EU countries.
Page 28 of 52
4 Trade: imports and exports
Trade statistics in this chapter are taken from Eurostat. Eurostat bases its statistics on
information from the Customs and EU companies that is given on a voluntary basis. Not all
transactions are registered, particularly intra-EU trade such as those by smaller countries and
transactions from non-EU sources. Consequently, intra-EU trade tends to be understated. On
the other hand, figures for trade between the EU and the rest of the world (extra-EU) are
accurately registered, and therefore more precisely presented in these statistics. Nevertheless,
they must be treated with extreme caution and are only intended to give an indication of trade
flows in the international domestic furniture market.
4.1 Total EU imports
The global domestic furniture trade was valued at well over € 60 billion. The EU accounts for
over half of global domestic furniture imports. In 2008, this represented 11.4 million tonnes
valued at € 32.4 billion. This represented a 2.4% average annual increase in value and a 1%
average annual increase in volume since 2004. As well as indicating the growing importance of
imports in the market, it also indicated increases in prices over the period.
Table 4.1 EU imports of domestic furniture, 2004-2008, € million / 1,000 tonnes

2004 2006 2008 Average
value volume value volume value volume annual %
change in
value
Total EU, of which from 29,390 10,998 30,173 10,472 32,352 11,437 2.4
Intra-EU 18,708 6,587 20,818 6,856 22,652 7,659 4.9
Extra-EU 4,531 1,754 2,255 798 1,229 381 -27.8
Developing countries 6,151 2,657 7,100 2,818 8,471 3,397 8.3
There was a mixed picture for domestic furniture imports into the EU over the review period.
Of the major countries, only the French, Italian and Spanish markets grew at rates above the
EU average (see country reports for more detail). More increases came from developing
country trade, but also from increased intra-EU trade. Developing countries represented over
26% of all imports by value and 30% by volume, compared with under 21% by value and 24%
by volume in 2004. Intra-EU trade accounted for 70% of the value and 67% of the volume of
imports, up from 64% of value and 60% of volume in 2004. As a consequence, the extra-EU
share of trade (excluding developing countries) has fallen dramatically, from 15% of value and
16% of volume in 2004 to just 4% of value and 3% of volume in 2008. Note, Eurostat does
not provide figures in the other furniture category for metal or plastic furniture in either 2006
or 2008. The absence of these figures will understate the overall market performance.
These increases in imports can only partially be attributed to increased demand in the EU.
However, market sizes have been increasing at a lower rate than imports, but there has been
a mixed picture in production in the EU as a result of competition from lower-priced imports.
Between 2004 and 2008, despite significant falls in 2008, domestic production increased at an
average of 0.9% per annum in value, but rose further in volume. This can be explained by
significant additional volumes from some new Member States in particular.
4.2 EU imports per product group
This sector is diverse. It is broken down into eight separate product groups. For the purposes
of this survey, we have highlighted five of these groups, which are of potentially greater
interest and opportunity for developing country exporters, partly due to the size of the groups,
but also because of the greater relevance of some of the products within the groups.
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To put these five product groups in context, the following table summarises imports for all
products included within the domestic furniture sector, to more readily appreciate the
importance of the product groups we have selected.
Table 4.2 EU imports of domestic furniture by product group 2004-2008,

€ million / 1,000 tonnes
2004 2006 2008 Average
change in
value
Total EU 29,390 10,998 30,173 10,472 32,352 11,437 2.4
Furniture parts 9,179 2,465 10,635 2,752 11,418 3,005 5.6
Upholstered seats 4,613 995 5,349 1,244 5,406 1,284 4.0
Other furniture* 5,425 2,523 3,408 1,799 4,005 2,179 -7.3
Dining/living room 3,627 1,669 3,723 1,747 3,637 1,773 0.1
Non-upholstered seats 2,628 1,005 2,990 1,054 3,453 1,130 7.1
Bedroom 2,169 1,603 1,988 1,019 2,146 1,193 -0.3
Kitchen 1,199 449 1,472 617 1,736 643 9.7
Rattan 550 132 608 240 551 230 0.0
Source: Eurostat (2009) * no data for other metal or plastic furniture in 2006 and 2008
The main product groups for domestic furniture are shown in the next five tables. The product
groups selected are furniture parts, upholstered seats, dining/living room furniture, non-
upholstered seats and rattan furniture. These five groups between them represented 76% of
all domestic furniture imports by value and 65% by volume in 2008. Note that imports per
product group by individual Member States are provided in the CBI market surveys on
individual countries.
Furniture parts
Furniture parts represented the largest product group, as shown in Table 4.2, accounting for
35% of the imports by value (26% by volume). The significance of outsourcing was
highlighted by the size of this product group. The higher value reflected the higher prices paid
for these products compared to other domestic furniture. Within this group, parts of seats
(not wood) accounted for 61% of the value of this group (€ 6.9 billion), but just 35% of the
volume (1 million tonnes). These have been increasing at 3.2% year on year over the period,
compared with the product group as a whole that has been increasing at the rate of 5.6% per
annum. Hence they represented a decreasing share of the product group.
Parts of furniture of wood accounted for 17% of the value of the group (€ 2 billion), but 37%
of volume (1.1 million tonnes). This indicated that products made of wood were of lower value
than products made of other materials, where additional processing would be required for
them to attain their value. Of the other sub-groups, metal parts of furniture were valued at
€ 1.6 billion (550 thousand tonnes), other parts of furniture were € 697 million (234 thousand
tonnes) and wooden parts of seats were valued at € 174 million (77 thousand tonnes).
82% of the imports of this product group were supplied from within the EU, although these
have been increasing at the rate of 9.5% per annum over the period (7.9% by volume),
compared to 5.6% for the product group as a whole (5.1% by volume), and 9.1% per annum
for imports from developing countries (17% by volume). Germany, Poland and Italy were the
largest intra-EU suppliers. Over the period, extra-EU supplies (excluding developing countries)
have decreased by 25% year on year (23% by volume).
China was the largest developing country supplier of furniture parts, with supplies of € 548
million in 2008 (259 thousand tonnes) up on average 28% each year, from € 206 million in
2004 (109 thousand tonnes). South Africa was the largest supplier in 2004 (€ 338 million or
6.9 thousand tonnes). Their import value was down to € 232 million in 2008 (4.4 thousand
tonnes). Supplies from Turkey, Croatia, Bosnia-Herzegovina, Uruguay and Morocco increased
over the period but supplies from Tunisia, Thailand and Indonesia decreased.
Page 30 of 52
Table 4.3 EU imports and leading suppliers for furniture parts

2004 - 2008, share in % of value
2004 2006 2008 Leading suppliers to EU in 2008 Share
€ mln € mln € mln Share in % (%)
Total EU, 9,179 10,635 11,418
of which from
Intra EU 6,489 8,645 9,337 Germany (16.5%), Poland (12.2%), Italy 81.8
(11.1%), Czech Rep (7.1%), Austria (4.6%)
Extra EU ex. DC* 1,585 708 513 Switzerland (1.3%), USA (0.7%), Taiwan 4.5
(0.8%), Japan (0.6%), Russia (0.4%)
DC* 1,105 1,282 1,568 China (4.8%), Turkey (2.1%), S Africa (2.0%), 13.7
Croatia (1.3%), Bosnia Herzegovina (1.1%),
Tunisia (0.4%), Thailand (0.3%), Uruguay
(0.3%), Morocco (0.2%), Indonesia (0.2%)
* Developing countries
Upholstered seats
Upholstered seats represented the second largest of the selected product groups, as shown in
Table 4.2, accounting for 17% of imports by value (11% by volume). 65% of the imports
from this product group were supplied from within the EU, although these have been
increasing at the rate of 3.7% per annum over the period (7.9% by volume), compared to an
increase of 4% for the product group as a whole (6.6% by volume), and an increase of 22%
per annum for imports from developing countries (also 22% by volume). Italy, Poland and
Germany were the largest intra-EU suppliers. Over the period, extra-EU supplies (excluding
developing countries) have decreased by 26% year on year (42% by volume).
Within this group, upholstered seats with wooden frames was the largest sub-group, valued
at € 4.4 billion (82%) or 1 million tonnes. This group increased by an annual average of 2.5%
since 2004 from € 4 billion (5.1% by volume from 860 thousand tonnes). Upholstered seats
with metal frames were valued at € 985 million (18%) or 235 thousand tonnes. This group
increased by an annual average of 12% since 2004 from € 617 million (15% by volume from
135 thousand tonnes).
China was the largest supplier of upholstered seats, with supplies of € 1.3 billion in 2008 (426
thousand tonnes), up by the equivalent of 27% each year from € 498 million in 2004
(153 thousand tonnes). Malaysia was the second largest developing country supplier in
2008 (€ 76 million), followed by Turkey (€ 63 million). Supplies from all the leading
Asian suppliers have increased over the period. Of the non-Asian suppliers, Turkey, Bosnia-
Herzegovina, Croatia and Ukraine increased supplies, while the value of supplies from Serbia
decreased.
Table 4.4 EU imports and leading suppliers for upholstered seats

Total EU, 4,613 5,349 5,406
of which from
Intra EU 3,031 3,492 3,500 Italy (17.2%), Poland (15.8%), Germany 64.7
(7.0%), Romania (4.5%), Belgium (2.7%)
Extra EU ex. DC* 828 532 253 Norway (2.6%), Switzerland (0.9%), USA 4.7
(0.3%), Hong Kong (0.3%), Taiwan (0.2%)
DC* 754 1,325 1,653 China (24.0%), Malaysia (1.4%), Turkey 30.6
(1.2%), Thailand (0.9%), Vietnam (0.8%),
Bosnia Herzegovina (0.5%), Indonesia (0.4%),
Croatia (0.4%), Ukraine (0.3%), Serbia (0.2%)
*Developing countries
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Dining/living room furniture

Dining/living room furniture represented the third largest of the selected product groups, as
shown in Table 4.2, accounting for 11% of imports by value (16% by volume). 64% of the
imports of this product group were supplied from within the EU, although these have been
increasing at the rate of 2.1% per annum over the period (5.8% by volume), compared to
0.1% for the product group as a whole (1.5% by volume), and 8.2% per annum for imports
from developing countries (8.3% by volume). Poland and Italy were the largest intra-EU
suppliers. Over the period, extra-EU supplies (excluding developing countries) have decreased
by 36% year on year (42% by volume).
China was the largest supplier of dining/living room furniture with supplies of € 579 million in
2008 (306 thousand tonnes), up by an annual average of 23% from € 254 million in 2004 (128
thousand tonnes). Indonesia was the second largest developing country supplier in 2008
(€ 160 million or 69 thousand tonnes), followed by Vietnam (€ 101 million or 49 thousand
tonnes). Supplies from Indonesia, Malaysia and Thailand decreased but supplies from Vietnam
and India increased. Of the non-Asian suppliers, Turkey and Ukraine increased, while Brazil
and Belarus decreased.
Table 4.5 EU imports and leading suppliers for dining/living room furniture
Total EU, 3,627 3,723 3,637
of which from
Intra EU 2,143 2,266 2,327 Poland (13.8%), Italy (10.8%), Germany 64.0
(7.9%), Denmark (4.6%), Belgium (3.5%)
Extra EU ex. DC* 596 322 91 Switzerland (0.8%), USA (0.5%), Russia 2.5
(0.4%), Taiwan (0.2%), Hong Kong (0.2%)
DC* 888 1,135 1,219 China (15.9%), Indonesia (4.4%), Vietnam 33.5
(2.8%), India (2.3%), Brazil (1.9%), Malaysia
(1.8%), Turkey (1.0%), Thailand (0.7%),
Ukraine (0.4%), Belarus (0.4%)
Non-upholstered seating
Non-upholstered seating represented the fourth largest of the selected product groups, as
shown in Table 4.2, accounting for 11% of imports by value (10% by volume). 47% of the
imports of this product group were supplied from within the EU, although these have been
increasing at the rate of 7.8% per annum over the period (4% by volume), compared to an
increase of 7.1% for the product group as a whole (3% by volume), and an increase of 12%
per annum for imports from developing countries (7.9% by volume). Developing countries
were the dominant suppliers in this group. Italy and Poland were the largest intra-EU
suppliers. Over the period, extra-EU supplies (excluding developing countries) decreased by
26% year on year (36% by volume).
Within this group, seats with metal frames was the largest sub-group, valued at almost € 1.3
billion (37%) or 429 thousand tonnes. Seats with wooden frames were valued at € 936 million
(27%) or 323 thousand tonnes. Other seats were valued at € 792 million (23%) or 201
thousand tonnes. Seats convertible into beds were valued at € 458 million (13%) or 176
thousand tonnes. Seats with metal frames were the fastest growing sub-group by value. Seats
convertible into beds were also growing quickly.
China was the dominant supplier of non-upholstered seating, with supplies of € 1.1 billion
in 2008 (446 thousand tonnes), up by the equivalent of 20% each year from € 560 million in
2004 (273 thousand tonnes). Vietnam was the second largest developing country supplier
in 2008 (€ 226 million or 97 thousand tonnes), followed by Indonesia (€ 135 million or 36
thousand tonnes). Supplies from all the leading Asian suppliers increased over the period,
Page 32 of 52
with the exception of Indonesia and Malaysia. Of the non-Asian suppliers, Turkey increased,
while the value of supplies from Croatia and Ukraine decreased.
Table 4.6 EU imports and leading suppliers for non-upholstered seating

Total EU, 2,628 2,990 3,453
of which from
Intra EU 1,194 1,399 1,611 Italy (8.1%), Poland (6.9%), Germany (5.4%), 46.6
The Netherlands (4.3%), France (2.9%)
Extra EU ex. DC* 333 205 101 Taiwan (0.7%), Norway (0.6%), USA (0.5%), 3.0
Russia (0.4%), Hong Kong (0.2%)
DC* 1,101 1,386 1,741 China (33.1%), Vietnam (6.5%), Indonesia 50.4
(3.9%), Malaysia (1.6%), Thailand (1.5%),
Turkey (1.5%), India (0.4%), Croatia (0.4%),
Philippines (0.3%), Ukraine (0.2%)
Rattan furniture
Rattan furniture represented the smallest of the selected product groups, as shown in Table
4.2, accounting for 1.7% of imports by value (2% by volume). 36% of the imports of this
product group were supplied from within the EU, although these have been increasing at the
rate of 1.2% per annum over the period (44% by volume), compared to unchanged for the
product group as a whole (15% increase by volume), and 0.5% per annum for imports from
developing countries (4.4% by volume). Developing countries remain the principle source of
supply. Italy and Germany were the largest intra-EU suppliers, although significant supplies
from the Netherlands indicate re-exports from other countries, most likely developing
countries. Over the period, extra-EU supplies (excluding developing countries) decreased by
14% year on year (4.7% by volume).
Rattan furniture other than seats accounted for 75% of all rattan imports by value (€ 412
million) and 83% by volume (190 thousand tonnes). Imports of rattan seats are in decline.
They are now valued at € 139 million (40 thousand tonnes).
China was the largest supplier of rattan furniture with supplies of € 150 million in 2008
(90 thousand tonnes), up by the equivalent of 22% each year from € 68 million in 2004
(42 thousand tonnes). Indonesia was the second largest developing country supplier in 2008
(€ 123 million or 41 thousand tonnes), down by 10% per year from € 184 million in 2004 (61
thousand tonnes). Supplies from Vietnam were valued at € 36 million (16 thousand tonnes).
Supplies from all the leading Asian developing countries decreased, with the exception of
Vietnam, which was unchanged. Supplies from the leading non-Asian suppliers increased, with
the exception of Morocco, which decreased.
Table 4.7 EU imports and leading suppliers for rattan furniture

Total EU, 550 608 551
of which from
Intra EU 189 216 198 Italy (8.2%), Germany (5.9%), Spain (4.7%), 35.9
Poland (3.4%), The Netherlands (3.0%)
Extra EU ex. DC* 34 30 19 Taiwan (1.8%), Switzerland (0.8%), USA 3.5
(0.3%), Hong Kong (0.2%), Canada (0.1%)
DC* 327 362 334 China (27.2%), Indonesia (22.3%), Vietnam 60.6
(6.5%), Philippines (1.3%), Turkey (1.3%),
Malaysia (0.5%), India (0.3%), Thailand
(0.3%), Morocco (0.1%), Brazil (0.1%)
Source: Eurostat (2009) *Developing countries
Page 33 of 52
Additional comment on other furniture

Although the lack of Eurostat data on some of this group (metal and plastic) makes a proper
analysis impossible, we are still able to provide some information on the important other
wooden furniture sub-group. Of the € 5.4 billion total in 2004 (2.5 million tonnes), other
wooden furniture represented 54% of the group (€ 3 billion), or 60% by volume (1.5 million
tonnes). Other metal furniture was valued at € 1.9 billion (800 tonnes) and other plastic
furniture was valued at € 593 million (216 thousand tonnes).
In 2008, other wooden furniture increased by an annual average of 7.9% to € 4 billion (9.7%
by volume to 2.2 million tonnes) compared with 2004. This made it one of the strongest
performing groups. 64% of value (66% of volume) was intra-EU and 32% of value (30% of
volume) came from developing countries. China (€ 609 million or 323 thousand tonnes),
Vietnam (€ 213 million or 101 thousand tonnes) and Indonesia (€ 189 million or 75 thousand
tonnes) were the leading DC suppliers. Poland (€ 469 million or 303 thousand tonnes),
Germany (€ 388 million or 174 thousand tonnes) and Italy (€ 365 million or 148 thousand
tonnes) were the leading intra-EU suppliers.
4.3 The role of developing countries
The role of developing countries in supplying domestic furniture to the EU has become
increasingly important. In 2004, 21% of all domestic furniture imports by value (24% by
volume) to the EU came from developing countries. By 2008, 26% by value (30% by volume)
of all EU imports came from developing countries. Note that imports by product group for
individual Member States can be found in the CBI market surveys covering the market in
individual countries.
As shown in Table 4.8, imports from developing countries to the EU increased by an annual
average of 8.3% by value (6.3% by volume) to reach € 8.5 billion in 2008. This average
increase hides significant differences between countries.
Table 4.8 Imports of domestic furniture from developing countries

2004-2008, € million / 1,000 tonnes
2004 2006 2008 Average
change in
value
Total EU 6,156 2,657 7,100 2,818 8,471 3,397 8.3
United Kingdom 1,648 737 1,858 712 1,946 807 4.3
Germany 1,179 402 1,176 388 1,478 488 5.8
France 760 340 816 349 955 402 5.9
The Netherlands 534 245 526 215 687 261 6.5
Spain 399 190 588 254 618 260 11.5
Italy 370 196 423 216 510 243 8.3
Belgium 296 132 324 133 433 176 9.9
Denmark 183 85 248 107 291 129 12.3
Sweden 176 82 235 102 282 121 12.5
Slovenia 72 18 225 27 253 28 37.0
Poland 44 23 89 47 177 92 42.0
Greece 108 54 119 54 175 81 12.8
Ireland 97 43 155 64 121 50 5.5
Austria 113 25 66 24 106 41 -1.7
Romania 17 10 34 18 93 48 54.0
Finland 40 21 62 28 75 33 17.2
Czech Republic 24 11 34 18 65 32 28.9
Bulgaria 8 5 14 9 40 22 51.0
Cyprus 16 6 28 14 34 17 22.0
Portugal 23 9 19 9 27 13 4.4
Hungary 25 12 22 10 22 10 -3.3
Slovakia 7 3 6 3 21 11 30.0
Lithuania 5 3 9 5 20 9 44.2
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2004 2006 2008 Average

change in
value
Latvia 2 2 8 5 19 12 70.2
Estonia 3 1 9 4 13 7 44.3
Malta 5 2 7 3 8 4 11.7
Luxembourg 3 1 2 1 3 1 0.0
The top four importers (UK, Germany, France, the Netherlands) accounted for 60% (58% by
volume) of all EU imports from developing countries, down from 67% (65% by volume) in
2004. Spain was the fifth largest importer and increased its imports by more than these other
four countries. The UK has been the leading importer for some time, with volumes similar to
those of Germany and France combined.
Imports by the twelve newest Member States were valued at € 765 million (292 thousand
tonnes) in 2008, 9% of the total by value and 8.6% by volume. This compared with € 228
million (96 thousand tonnes) in 2004, 3.7% of the total by value and 3.6% by volume. Hence
the significance of the new Member States as import destinations has grown significantly over
the period.
The largest increases were experienced by Latvia, Romania, Bulgaria, Estonia, Lithuania and
Poland, as well as Slovenia, Slovakia and the Czech Republic. However, large increases were
also experienced by four of the EU15 Member States, Finland, Greece, Sweden and Denmark.
These increases are explained by increases in their domestic market, but also due to the fact
that their economies have performed generally better than many other EU countries over the
period.
Only Hungary of the new Member States experienced a decrease in their imports from
developing countries. All other new Member States experienced above average increases. The
poorest performing original Member State was Austria, the only other country also to register
an overall decrease in imports over the period.
China dominated the supply from developing countries, accounting for 55% by value
(€ 4.6 billion) and 59% by volume (2 million tonnes). This represented an annual increase of
17% in value (12% by volume). Vietnam (8.2% of supplies worth € 694 million or 313
thousand tonnes) registered a 12% annual increase. Indonesia (8% of supplies worth € 675
million or 243 thousand tonnes) registered a 5% annual decrease. Malaysia (4% of supplies
worth € 342 million or 182 thousand tonnes) registered an increase of 1.2%. Thailand and
India were the next two leading Asian suppliers, with India increasing but Thailand decreasing
supplies. Turkey (€ 452 million), South Africa (€ 243 million), Brazil (€ 234 million) and
Croatia (€ 213 million) were the leading non-Asian DC suppliers. It is clear that the dominance
of supplies from China is increasing.
Table 4.9 indicates the relative importance of the different product groups for developing
countries. Figures in brackets indicate the proportion of the total that developing countries
represent. The product groups that are increasing their imports most rapidly from developing
countries are upholstered seats and kitchen furniture, although kitchen furniture still accounts
for a very small proportion of imports from developing countries. Rattan furniture and non-
upholstered seats have the highest proportion of imports from developing countries.
Page 35 of 52
Table 4.9 EU imports from developing countries of domestic furniture by

product group 2004 - 2008, € million / 1,000 tonnes
2004 2006 2008 Average
change in
value
Total EU 6,156 2,657 7,100 2,817 8,471 3,397 8.3
(21%) (24%) (24%) (27%) (26%) (30%)
Non-upholstered seats 1,101 488 1,386 560 1,741 662 12.1
(42%) (49%) (46%) (53%) (50%) (59%)
Upholstered seats 754 243 1,325 421 1,652 541 21.7
(16%) (24%) (25%) (34%) (31%) (42%)
Furniture parts 1,105 223 1,282 305 1,568 411 9.1
(12%) (9%) (12%) (11%) (14%) (14%)
Other furniture* 1,490 832 1,126 572 1,290 648 -18.8
(27%) (33%) (33%) (32%) (32%) (31%)
Dining/living room 888 446 1,135 549 1,219 614 8.2
(24%) (27%) (30%) (31%) (34%) (35%)
Bedroom 459 275 437 227 613 337 7.5
(21%) (17%) (22%) (22%) (29%) (28%)
Rattan 327 132 362 159 334 156 0.5
(59%) (46%) (60%) (66%) (61%) (68%)
Kitchen 31 19 47 25 53 27 14.3
(3%) (4%) (3%) (4%) (3%) (4%)
Source: Eurostat (2009) * no data for other metal or plastic furniture in 2006 and 2008
4.4 Exports
The EU accounts for over 40% of world exports of domestic furniture. Italy was the leading
exporter, followed by Germany, Poland, France and Denmark. EU exports were 6.6% higher by
value (8% lower by volume) than EU imports in 2008. In 2004 they were 11% higher in value
terms (7.5% lower by volume).
As indicated in Table 4.10, exports from the EU have been increasing year on year, although
they have fallen from a high point in 2007. Exports of domestic furniture to developing
countries were increasing faster than to any other part of the world. The major explanation for
this was the growth of imports by large emerging economies such as China, India and Brazil.
Decreases by Italy, Belgium, Denmark and Austria in particular, as well as decreases by the
UK, Spain, Ireland and Portugal have been offset by significant increases by Poland, Germany,
Romania, Slovakia, the Czech Republic and Lithuania.
Table 4.10 EU exports of domestic furniture, 2004-2008, € million / 1,000 tonnes

2004 2006 2008 Average
change in
value
Total EU, of which to 32,655 10,177 32,513 10,051 34,481 10,528 1.4
Intra-EU 24,043 7,731 24,454 7,827 25,723 8,380 1.7
Extra-EU ex. DC* 6,905 1,930 6,255 1,705 6,485 1,578 -1.6
DC* 1,707 516 1,804 519 2,273 570 7.4

In 2004, intra-EU exports accounted for 74% of all exports by value (76% by volume). This
had increased in 2008 to account for 75% of all exports by value (80% by volume). Although
extra-EU exports fell by an annual average 1.6% in value, there was an annual average
volume fall of 4.9% over the same period. Exports to developing countries represented just
6.6% of all EU exports, up from 5.2% in 2004.
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In terms of product groups, furniture parts was the largest group, valued at € 12.2 billion, or
36% of exports, followed by upholstered seating (€ 5.4 billion); other furniture* (€ 4.5 billion);
dining and living room furniture (€ 3.9 billion); kitchen furniture (€ 2.9 billion); non-
upholstered seating (€ 2.6 billion); bedroom furniture (€ 2.4 billion) and rattan furniture
(€ 0.6 billion).
* note that exports of other furniture may also be understated due to the absence of Eurostat
data for other metal and plastic furniture.
Imports into the EU have been rising ahead of the growth in EU consumer markets, and
increases in imports from developing countries have been increasing at more than double the
average rate of increase.
+/-The key long-term trend that will provide an opportunity for DC exporters is the changing
dynamic in production in and between some of the main EU markets and the transfer of
production to low-wage economies overseas. The issue for many DC exporters is as much
one of competing with other DC exporters, as one of finding new EU markets. What is an
opportunity for one exporter becomes a threat for another. The import figures show quite
clearly how patterns of trade seem to shift between countries. For example, there seems to
be a relationship between Tunisia and Morocco, where on occasion one country has
increasing supplies to the EU while the other has falling supplies. Other examples of this
are also apparent within Asia, for example between Indonesia or Malaysia and Vietnam.
+ All of the selected product groups are growing, and imports from developing countries are
growing at a faster rate than the market as a whole, although bedroom, dining and living
room and rattan furniture imports have been growing at lower rates. The upholstered
seating category has experienced rapid increases in growth from developing countries. This
is explained by increasing capacity by some developing country producers to produce
furniture with higher levels of finish and detail, as well as EU consumers looking for higher
levels of finish and comfort in some of their domestic furniture purchases.
+ While China dominates DC supply in many product groups, there are still opportunities for
high quality suppliers of other furniture, particularly small cabinets and cupboards.
Although there has been alot of pressure on these products from lower priced products
made of other materials, EU buyers always appreciate high quality. There are also growing
opportunities for all furniture products that are made with a combination of materials,
usually wood and a synthetic compatible material.
+ Opportunities in the other furniture category will also include multi-functional furniture,
furniture for storage and furniture that can also have a use as home office equipment. Each
of these sub-categories represent some of the fastest growing market segments in the EU.
+ Opportunities and threats can also be seen in the relative position of DCs in each of the EU
Member States. The newest members, Bulgaria and Romania, as you might expect have
shown some of the greatest level of increases in imports from DCs. The Scandinavian
economies have been booming and have been taking in many more imports to support
their growing domestic demand. Note that not all new Member States have provided
opportunities. Hungary has taken more imports from other EU sources rather than
developing countries.
- Developing country exporters need to take care that their already strong volume position is
not exploited further by EU buyers, who may view certain DC suppliers purely as a source
of low cost imports. This is especially true for manufacturers of rattan furniture. Here DC
exporters already dominate volume imports, but the category is not performing well. Work
is needed to improve the perceived value of rattan products in the eyes of EU consumers,
many of whom perceive this category to be of low value.
- Furniture parts is the largest product group by some distance, but developing country
exporters are poorly represented here. Growth rates are above average but the share of
imports is low. Most of this trade is between EU Member States.
Page 37 of 52
4.6 Useful sources
• EU Expanding Exports Helpdesk

http://exporthelp.europa.eu/
go to: trade statistics
• Eurostat – official statistical office of the EU
http://epp.eurostat.ec.europa.eu;
go to ‘themes’ on the left side of the home page
go to ‘external trade’
go to ‘data – full view’
go to ‘external trade - detailed data’
• Understanding eurostat: Quick guide to easy comext
http://www.eds-destatis.de/en/database/download/Handbook_Comext_Database.pdf
Page 38 of 52
5 Price developments
5.1 Price developments
Consumer prices
Prices of furniture increased by 2.6% in the EU27 area in 2008. This compared with a rate of
3.8% for all items. This was higher than furniture price increases in previous years (+2.1% in
2007; +0.7% in 2006; and +1.3% in 2005). However, the position in 2009 is expected to
reveal a narrowing differential between the all-price index and furniture prices. After relatively
high inflation during most of 2008, inflation has fallen significantly in 2009. This EU27 average
hides significant differences between countries. Specific details can be found in the individual
country reports.
Prices within the Member States that share the common currency (Euro) are more transparent,
as it is relatively easy for consumers to compare the prices of furniture items across borders.
In some cases this has led to an increase in cross-border shopping. Price convergence would
be expected in the Eurozone but there are still quite wide differences. Household expenditure
on furniture represents approximately 2.5% of total household consumption, but this varies
between 1% and 5% depending on the country.
A survey by Eurostat (published in April 2007) provides a good comparison of furniture prices
around the EU. It covered 140 comparable products of all types of furniture. It included
‘specified brands’ that have a reputation throughout the EU, ‘well known brands’ which relate
to quality products with a good local reputation, and ‘brandless items’, which tend to be at the
lower end of the market.
It concluded that there are wide price disparities between countries. Price dispersion was
lowest in the EU15 area, indicating greater market integration in this area. There was even
less dispersion for ‘specified brands’. Dispersion was much greater in the new Member States.
The countries can be divided into three distinct clusters:

• Countries with a furniture price index above average (>105% and <115% of the EU25
average) in descending order – the United Kingdom, Italy, Ireland, Malta, Luxembourg.
• Countries in the mid-range (>85% to 105%) in descending order – Cyprus, Greece,
Finland, Spain, Belgium, Sweden, Portugal, France, Denmark, Austria, The Netherlands,
Germany.
• Countries in the low range in descending order - Slovenia, Czech Republic, Hungary,
Estonia, Slovakia, Poland, Lithuania, Bulgaria, Latvia and Romania a distant last, where
prices are half that of the EU average.
Within each country there are wide variations between prices in different market segments, as
well as differences between the same retailers in different countries. The leading retailer
IKEA is represented in many EU countries. This example illustrates on the one hand how prices
converge in parts of the Eurozone while there are greater price differences outside this area.
Part of the reason could also be different costs of supply. Using IKEA’s Hemnes bed and
Leksvik dining table, the following prices were found around the EU for the same products:
• In the Eurozone, The Netherlands € 169 and € 159; Germany € 169 and € 159; France
€ 179 and € 159; Spain € 189 and € 159; Portugal € 197.34 and € 157.68; Austria € 199
and € 159; Slovakia € 199 and € 165.64; Belgium € 209 and € 159; Italy € 219 and
€ 159; Finland € 229 and € 139; Greece and Cyprus € 229 and € 179.
• Outside the Eurozone, Poland 699 Pln (€ 160.75) and 499.95 Pln (€ 114.98); United
Kingdom £151.69 (€ 177.33) and £116.47 (€ 136.15); Hungary 49,900 Ft (€ 183.76) and
39,900 Ft (€ 146.93); Czech Republic 4,990 CzK (€ 193.12) and 3,990 CzK (€ 154.42);
Denmark 1,599Dkk (€ 214.77) and 1,299 Dkk (€ 174.48); Romania 945 Rol (€ 225.86)
and 575 Rol (€ 137.43); Sweden 2,545Kr (€ 234.54) and 1,595Kr (€ 146.99). Exchange
rates at 6th July 2009.
Page 39 of 52
Import prices
Import prices of furniture in the EU have been on a gradual upward trend. Table 5.1 shows
how average import prices have increased between 2004 and 2008, especially DC prices,
which have been increasing at a faster rate than intra-EU import prices. This is in part
explained by a narrowing of the price differential between intra-EU and DC import prices.
Import prices should be interpreted with care, as changes in imports do not reflect the demand
in these countries. Imports can change abruptly because of re-exports to neighbouring
countries, building up stock by distribution centres for the following year, the establishment or
departure of manufacturers or large retailers in a particular market etc.
Table 5.1 Developments in EU average import prices

2004 2006 2008 ave. annual
ave price ave price ave price % change
per ‘000 per ‘000 per ‘000
tonnes tonnes tonnes
Total EU imports 2.67 2.88 2.88 1.5
Intra EU 2.84 3.04 2.96 1.0
Developing countries 2.32 2.52 2.49 1.8
Table 5.2 highlights the average prices of the selected product groups. It shows that average
developing country prices were still falling for each of the selected product groups, with the
exception of non-upholstered seating.
Table 5.2 Developments in EU average import prices by product group

2004 2006 2008 ave. annual
per ‘000 per ‘000 per ‘000
Total EU furniture parts imports 3.72 3.87 3.80 0.5
Developing countries 4.97 4.21 3.82 -6.4
Total EU upholstered seating

imports 4.64 4.30 4.21 -2.4
Total EU non-upholstered seating

imports 2.61 2.84 3.06 4.1
Developing countries 2.26 2.48 2.63 3.9
Total EU dining & living room

furniture imports 2.17 2.13 2.05 -1.4
Total EU rattan imports 1.89 2.53 2.39 6.0

Table 5.3 shows that the average price developments are different by each importing EU
country. Average prices decreased particularly in Austria, Portugal, Slovakia, Cyprus and
Malta. There are different explanations. Prices in the new Member States from Eastern Europe
were generally lower than those in the established western EU economies.
Price increases were seen in Romania and Bulgaria, the newest members. This was to be
expected, as their prices will rise in the next few years as their economies converge with the
Page 40 of 52
EU average. There were also above average price increases in the Netherlands, France and
Finland. The highest developing country import prices were in Slovenia, followed by Germany.
However, there may be a statistical error that explains such a high price in Slovenia.
Table 5.3 Developments in average import prices from developing

countries in EU countries
2004 2006 2008 ave. annual
per ‘000 per ‘000 per ‘000
Germany 2.93 3.03 3.03 0.8
Italy 1.89 1.96 2.09 2.5
France 2.24 2.34 2.38 5.9
United Kingdom 2.24 2.61 2.41 1.8
Spain 2.10 2.32 2.38 3.2
Netherlands 2.18 2.45 2.63 4.8
Belgium 2.25 2.43 2.46 2.3
Denmark 2.15 2.32 2.25 1.1
Sweden 2.17 2.30 2.33 1.8
Finland 1.89 2.21 2.30 5.0
Austria 4.58 2.72 2.61 -13.1
Ireland 2.24 2.43 2.40 1.7
Greece 1.99 2.18 2.17 2.2
Portugal 2.49 2.15 2.16 -3.5
Poland 1.92 1.91 1.93 0.1
Slovakia 2.40 1.91 1.84 -6.4
Czech Republic 2.07 1.93 2.05 -0.2
Hungary 2.10 2.17 2.27 2.0
Slovenia 4.09 8.45 9.18 22.3
Cyprus 2.72 1.99 2.05 -6.8
Lithuania 1.62 1.77 2.31 9.3
Latvia 1.44 1.66 1.57 2.2
Luxembourg 2.70 2.13 2.08 -6.3
Estonia 2.14 2.27 1.97 -2.0
Malta 2.74 2.20 2.19 -5.4
Romania 1.60 1.90 1.94 4.9
Bulgaria 1.46 1.64 1.77 4.9
5.2 Useful sources
The widespread use of the Internet makes it much easier to compare retail prices. Care needs
to be taken when comparing prices, as price promotions are a regular occurrence. Take care
not to compare the same product when one is on promotion and one is not.
You can find out about wholesale prices at trade fairs. It is an increasing feature of some trade
fairs that trade or wholesale prices are on open display. Previously prices were for individual
negotiation depending on the size of the buyer. This trend is more apparent at the lower end
of the market.
A good link to wholesalers and wholesale prices in the UK is the Wholesale Suppliers Directory
(http://www.the-
wholesaler.co.uk/trade/distributor/Furniture_directory_of_UK_wholesale_distributors/).
Prices can also be found at leading department stores around Europe, such as El Corte Ingles
Page 41 of 52
in Spain - http://www.elcorteingles.es, or John Lewis in the UK - http://www.johnlewis.com.
Other sources of price information are:

• The EU furniture portal EU furniture portal providing links to
companies with electronic stores, including
prices: http://www.furniture.eu
• IKEA store on-line Web site giving information on retail prices

of IKEA furniture items:
http://www.ikea.com
• EUROSTAT – Statistics in Focus This bulletin covers from time to time

comparative price levels of consumer
goods, including furniture in EU countries:
http://epp.eurostat.ec.europa.eu/
Page 42 of 52
6 Market access requirements
As a manufacturer in a developing country preparing to access EU markets, you should be

aware of the market access requirements of your trading partners and the EU governments.
Requirements are demanded through legislation and through labels, codes and management
systems. These requirements are based on environmental, consumer health and safety and
social concerns. You need to comply with EU legislation and have to be aware of the additional
non-legislative requirements that your trading partners in the EU might request.
For information on legislative and non-legislative requirements, go to ‘Search CBI database’ at

http://www.cbi.eu/marketinfo, select domestic furniture and the EU in the category search,
click on the search button and click on market access requirements.
Quality standards
There are national quality standards for furniture, which should not be neglected. For example,
durability standards have been established relating to the resistance of products – surface
resistance to dry heat, cold liquids and contracting movements. More information and
addresses of standard organisations can be found in the CBI market surveys covering the
market in individual EU countries.
Even if there is no official EU quality standard, you can find in the CBI market information
database a document on the international requirements in the furniture industry, which
reviews some important voluntary quality standards for furniture.
Within the furniture industry, buyers in most EU countries expect woods of an excellent
quality e.g. kiln dried, free from pest, cracking, splitting and from full grown trees from
well-managed forests. This will also depend on the furniture item and style, but this is of an
increasing importance as e.g. many German consumers regret their cheap furniture purchase
as these items have worn out fast, smelled strongly or deformed quickly, due to the use of
woods from too young trees.
Quality, as well as social and environmental related market requirements are of growing
importance in international trade and are often requested by European buyers through labels,
codes of conduct and management systems.
Furniture sizes
The dimensions for domestic furniture vary considerably from country to country within the
EU. In general, furniture sizes are smaller than those typically sold in the USA, where
homes and individual rooms tend to be bigger than their European equivalents. Northern
Europeans tend to be taller than southern Europeans and so require larger furniture.
Always check the exact requirements for the prospective market with their importers. They
are able to specify the best dimensions for their customer target group. The body sizes of
Europeans are changing. This has become an issue for furniture manufacturers, particularly
for beds, but also for chairs and tables to a lesser extent. People are generally becoming
bigger and heavier. The issue of weight affects both the size and structure of seating.
As an example, the following list indicates available sizes of furniture in the Dutch market:
Page 43 of 52
Table 6.1 Typical furniture dimensions in the Netherlands
Item Feature Dimensions / cms
Couches/lounge chairs Seat height from ground 32-45

Seat depth 40-55
Total depth: chair 80-100
Width: one seater 80-110
Width: two seater 160-210
Width: three seater 200-230
Seat height from ground 43-47
Dining room chairs Height 72-76
Dining tables Round table diameter 105-130

Square table diameter 80-120
Rectangular/oval table, width 80-95
Rectangular/oval table, length 140-230
Width insert leaves 40-50
Height 35-60
Occasional tables Round table diameter 40-100

Square table diameter 60-100
Rectangular table diameter 60-75 x 115-145
Total height 30-50
Depth
Bookcase, wall unit 35-50
Width per unit
60-90
Height per unit
40-120
Beds Single bed diameter 80-90 x 200-220

Double bed diameter 140-200 x 200-220
Couch bed (convertible) diameter 120-140 x 200
Couch bed seat height 40-47
Wardrobes Height 180-235

Width of units 40-60-80-100-120
Depth 55-60
Packaging
Deliveries from developing countries generally have a long distance to go before reaching their
destinations, therefore it is very important that close attention is paid to seaworthy and solid
packaging. Furniture items can easily be damaged in transit by dampness or mishandling and
must therefore be packed carefully and securely.
• In the case of RTA furniture, the packaging is extremely important because large quantities
are usually involved and buyers want to be able to transfer goods from the port of
destination straight into the retail outlet. In most cases, there should be no need for buyers
to repair or to change the factory packing.
• On the other hand, rattan furniture only needs to be wrapped in corrugated paper at the
corners or in damp-proof wrapping. It is very important to be aware that requirements
vary from country to country and to obtain information on the exact packaging needs
directly from the prospective importer or buyer.
Apart from the safety aspects and protection against damage, the focus of packaging is
definitely on environmentally friendly transport - as well as sales promotion packaging. This
means, among other things, that it should be considered whether returnable systems could
be used on a much greater scale than before.
Page 44 of 52
Additional information on packaging can be found at the website of ITC on export packaging:
http://www.intracen.org/ep/packit.htm.
Labelling
With regards to labels there are forest certification schemes of which the Forest Stewardship
Council (FSC) is most widely recognised - http://www.fsc.org. However especially in southern
EU countries, the Programme for the Endorsement of Forest Certification (PEFC) is increasingly
gaining support from the furniture industry - http://www.pefc.org. The PEFC was specifically
developed in 1999 for small forest owners in EU countries. Similar to the FSC, this scheme
promotes forests to be managed sustainably by providing an assurance mechanism to buyers
of wood and furniture. PEFC has 35 independent national forest certification systems in its
membership.
Many EU Member States have labelling systems for furniture, including the Nordic Swan in
Nordic countries - http://www.svanen.nu, the Blue Angel - http://www.blauer-engel.de - and
ÖkoControl - http://www.oekocontrol.com - in Germany, Österreichische Umweltzeichen in
Austria - http://www.umweltzeichen.at, Milieukeur in the Netherlands -
http://www.milieukeur.nl - and Marque NF Environment in France - http://www.marque-
nf.com.
Tariffs
Up-to-date information on import tariffs and an updated list of least developed countries
can be obtained from the Customs Authorities in Rotterdam in the Netherlands, through their
online system, known as the Integrated Tariff of the European Communities (TARIC), at
http://www.douane.nl. Click on ‘Business’ and on ‘Imports’ where you will have to mention
the HS code of the furniture item concerned - a detailed list of HS codes can be found in
Appendix A. The global furniture trade is rather liberal and therefore most furniture items
are free from duties. Import duty for kitchen furniture, and furniture parts is 2.7%, while it is
5.6% for seats and furniture of cane, osier or bamboo.
More information on tariffs and quotas can be found at http://exporthelp.europa/eu. The

website of the European Commission also has information on specific EU countries at
http://ec.europa.eu/taxation_customs/index_en.htm.
Quota
There are no quantitative restrictions for imports of furniture. Anti-dumping duties on
hardboard from Russia and parts of Eastern Europe have been lifted.
Environmental legislation
Details of how to find legislative requirements are mentioned above, but the new regulations
on chemical substances affect leather goods, and should be noted carefully. The new EU
regulation on chemical substances, called REACH, has been in force since 2007. For more
information on REACH, see the document on what exporters need to know on the CBI website
- http://www.cbi.eu/marketinfo.
Page 45 of 52
7 Opportunity or threat ?
An overview of the general opportunities and threats are given at the end of Chapters 1, 2 and
4 in this EU survey. Specific opportunities in each EU market can be found in Chapters 1 and 3
of the CBI market surveys on individual countries. However, to make it easier to translate the
opportunities into successful trading, it is important to know the trends. It is particularly
important to be aware of trends when they change quickly. Although some trends are slow
moving, others are very rapid, hence highly risky. Developing country exporters need to be in
a position to anticipate and react quickly to these developments. Once the trend is clear it is
important to know which target group in which country is involved.
A given trend offers an opportunity to one company, but can be a threat to another. The
domestic furniture market has its limitations, and growth in one segment may take sales from
another segment. For example, development of home office furniture can take sales away from
dining room furniture.
Discovering opportunities
A good example would be the current trend for technology built into bedroom cabinets. To
analyse its potential for yourself, you should find out whether this trend applies to all EU
markets, or just to a selected number. With this information, you will then know whether the
country markets are suitable for you as export markets. For example, you may have good
contacts in the trade in Greece, but you find out that this trend is not so strong in that
country. Conversely, you may discover that the best opportunities for these type of cabinets
are in EU markets, which have the most affluent population. You need to ask yourself if you
have good contacts in these markets. If not, are you confident that you can develop such
contacts? You also need to be confident that you can develop bedroom cabinets for these
markets that will be of interest to both the trade and consumers.
Consider the implications of the opportunity

How will you design and produce these products? Will they be standalone products, or will they
be part of a range that includes other bedroom items? Will the production of this new product
line impact on your other production of other items? Have you properly costed the implications
of pursuing this opportunity? Which trade channel will you use to try to sell this product? Do
you know a suitable importer or wholesaler that you can trust? What time scale will you be
working to in order to optimise the opportunity presented by this product trend? Do you have
a product design already developed? Have you protected the design from copying by
competitors?
The greater the opportunity, the more likely more of your competitors will also be looking at
the same opportunity. How confident are you that you can match the quality, design and
service specifications that your competitors will provide?
An opportunity can be a threat

In short, every listed opportunity becomes a threat for your company if you are not able to
incorporate it in your product line and exploit it, because other companies will, thereby putting
you at a disadvantage. It is therefore important not only to have a clear view of the market,
but of your company’s capabilities as well. You have to organise your company in such a way,
that you can adapt to market preferences and produce attractive products at competitive
prices. In interviews with successful DC exporters, a couple of things turned out to be crucial
for sustainable success:
• Design quality
• Product quality
• Competitive pricing
• Continuous customer communication
For more information on these, refer to CBI’s Export guidelines for domestic furniture.
Page 46 of 52
Appendix A Product characteristics

Product groups
The products covered in this survey are domestic or household furniture items, both in
finished and semi-finished form. It specifically excludes the contract sector, which includes
furniture for civil aviation, offices, hospitals, schools, hotels and other similar purposes.
Antique and other second-hand furniture has been excluded, as well as garden furniture.
Furniture is usually divided by function into the following major groups:
Product groups Most common items
Upholstered seating - Armchairs, reclining chairs, couches, sofas, divans, footstools,

seating elements upholstered with leather, wool, synthetic
material, cotton etc;
Non-upholstered seating - Seats, armchairs, rocking chairs, seats convertible into beds,
stools;
Dining and living room - Dining sets (tables and chairs), dressers, coffee tables,
furniture sideboards, shelf systems, room dividers, television/ video/
music system storage units;
Kitchen furniture - Fitted cabinets and kitchen units, kitchen tables and chairs,
free-standing pieces such as moveable trolleys and butcher blocks;
Bedroom furniture - Beds, headboards, bedside tables, dressing tables, chests of
drawers, wardrobes (fitted or free-standing);
Home office furniture* - Desks, chairs, drawer unit, filing cabinets, integrated
workstations, also known as SOHO (Small Office Home Office);
Other furniture - Cupboards, bookcases and wall units,
- Occasional furniture like small tables, desks, mirrors, hall-stands,
- Bathroom furniture such as storage cabinets, baskets etc.;
Furniture parts - Parts of furniture or seats, also including semi-finished furniture.
* Note that home office furniture is classified in consumer terms as domestic furniture, although some
items may be declared in import figures as office furniture, which is excluded from this survey. The
figures involved are small, although it is a growing and important segment of furniture used in the home.
Although kitchen furniture is a sizeable segment in the EU furniture market, it is covered only
briefly in this survey. The supply is dominated by Italy and Germany, who offer short lead
times, good after sales service and are able to keep up with fast changes in designs.
Kitchen furniture is often made in Eastern European countries and the competition is on price
and on short lead times, especially in the low to medium end of the market. Most furniture
items are made of capital-intensive material such as chipboard, plywood, multiplex and MDF
(Medium Density Fibreboard), being produced in large volumes and at low cost. In most EU
countries, newly built homes come complete with fitted kitchen and appliances.
In addition to its function, furniture can be also defined by material content or by style:
Furniture by raw material Furniture by style
• Wood • Classic
• Cane, osier, bamboo or similar • Colonial
material • Rustic / country
• Metal • Contemporary
• Plastic / synthetic • Modern / avant garde
• Stone
• Glass
• Combination of materials
RTA Furniture
The majority of furniture sold in the EU market is in ready-assembled form. On the other
Page 47 of 52
hand, from 1970 onwards the expansion of IKEA and other furniture chain stores (MFI, But)
stimulated sales of furniture bought for self-assembly by the consumer. This category is also
referred to as ready-to-assemble (RTA) furniture, flat-pack or take-away furniture and is
often contemporary style furniture. The single term ‘RTA furniture’ has been used throughout
this survey to describe this category.
Furniture product groups according to CN and Prodcom codes
CN CODE DESCRIPTION PRODCOM DESCRIPTION
Upholstered seats 940161 Upholstered seats with 36111259 Upholstered seats with
wooden frames wooden frames (including
three piece suites)
940171 Upholstered seats with 36111179 Upholstered seats with metal
metal frames frames
Non-upholstered 940140 Seats, convertible into 36111210 Seats, convertible into beds
seats beds
940169 Seats with wooden frames 36111290 Seats with wooden frames
940179 Seats with metal frames 36111190 Seats with metal frames
940180 Other seats 36111309 Other seats
Kitchen furniture 94034010 Kitchen furniture, fitted 36131050 Wooden units for fitted
kitchens
94034090 Other wooden kitchen 36131090 Other wooden kitchen
furniture furniture
Dining & living 94036010 Dining & living room 36141250 Dining & living room furniture
room furniture furniture (excl seats), of (excl seats), of wood
wood
Bedroom 940350 Wooden bedroom furniture 36141230 Wooden bedroom furniture
furniture
94032091 Metal beds (See below)
Other furniture 94036090 Other wooden furniture 36141309 Other wooden furniture
94032099 Other metal furniture 36141100 Other metal furniture, inc
metal beds
94037090 Other plastic furniture 36141439 Other plastic furniture
Rattan furniture 940150 Seats of cane, osier, 36111230 Seats of cane, osier, bamboo
bamboo or similar or similar
940380 Furniture of cane, osier, 36141450 Furniture of materials other
bamboo or similar than wood, metal or plastic
Furniture parts 94019030 Wooden parts of seats 36111410 Wooden parts of seats
94019080 Parts of seats of other 36111430 Parts of seats of other

materials materials, including aircraft
seats
94039010 Metal parts of furniture 36141530 Metal parts of furniture
94039030 Wooden parts of furniture 36141550 Wooden parts of furniture
94039090 Other parts of furniture 36141590 Other parts of furniture
Statistical product classification
Prodcom and Combined nomenclature (CN)

In this survey two different sets of statistical data are used. Both sets have been provided
by Eurostat, the statistical body of the EU.
The first set is derived from Prodcom. The term Prodcom is derived from PRODucts of the
European COMmunity. This is a survey based on products whose definitions are standardised
across the EU to allow comparability between the Member States’ data. Prodcom covers some
7,000 products that are assigned to some 250 industries (sub-classes) as defined by the
Standard Industrial Classification (SIC). Prodcom data contains production, imports and
Page 48 of 52
exports. Based on this data apparent consumption can be calculated as follows: apparent
consumption = production + imports - exports.
The second set is the trade data based on the Combined Nomenclature. The abbreviation
CN stands for Combined Nomenclature. This Combined Nomenclature contains the goods
classification prescribed by the EU for international trade statistics. The CN is an 8-digit
classification for a total of 9,500 products/commodities. The Harmonised System (HS) that
consists of three 2-digit levels (HS2, HS4 and HS6) is further specified in the CN classification.
HS was developed by the World Customs Organisation (WCO). More than 179 countries and
economies use the system. In this survey CN data are used to indicate imports and exports.
Statistical data: limitations

Trade figures quoted in CBI market surveys must be interpreted and used with extreme
caution.
In the case of intra-EU trade, statistical surveying is only compulsory for exporting and
importing firms whose trade exceeds a certain annual value. The threshold varies considerably
from country to country, but it is typically about € 100,000. As a consequence, although
figures for trade between the EU and the rest of the world are accurately represented, trade
within the EU is generally underestimated.
Furthermore, the information used in CBI market surveys is obtained from a variety of
sources. Therefore, extreme care must be taken in the qualitative use and interpretation of
quantitative data. It puts limitations to in-depth interpretation of relations between
consumption, production and trade figures within one country and between different countries.
The CN classification given differs from the product groups and products mentioned in the
paragraphs above, this puts limitations to in-depth interpretation and of the possible
relationships between import and export figures on the one hand and consumption and
production figures on the other.
Page 49 of 52
Appendix B Introduction to the EU market

The European Union (EU) is the current name for the former European Community. Since
January 1995 the EU has consisted of 15 Member States. Ten new countries joined the EU in
May 2004. In January 2007 two more countries – Bulgaria and Romania - joined the EU.
Negotiations are in progress with a number of other candidate Member States. In this survey,
the EU is referred to as the EU27, unless otherwise stated.
Cultural awareness is a critical skill in securing success as an exporter. The enlargement of the
EU has increased the size of the EU, and also significantly increased its complexity. With more
people from culturally diverse backgrounds, effective communication is necessary. Be aware of
differences in respect of meeting and greeting people (use of names, body language etc.) and
of building relationships. There are also differences in dealings with hierarchy, presentations,
negotiating, decision-making and handling conflicts. More information on cultural differences
can be found in Chapter 3 of CBI’s export manual ‘Exporting to the EU (2006)’.
General information on the EU can also be found at the official EU website

http://europa.eu/abc/governments/index_en.htm or the free encyclopaedia Wikipedia
http://en.wikipedia.org/wiki/Portal:Europe.
Monetary unit: Euro

On 1 January 1999, the Euro became the legal currency within twelve EU Member States:
Austria, Belgium, Finland, France, Germany, Italy, Ireland, Luxembourg, the Netherlands,
Spain, and Portugal. Greece became the 12th Member State to adopt the Euro on January 1,
2001. Slovenia adopted the Euro in 2007 and Cyprus and Malta adopted the Euro in 2008.
Slovakia is the latest country to adopt the Euro, joining in January 2009. Since 2002 Euro
coins and banknotes replaced national currency in these countries. Denmark, the United
Kingdom and Sweden have decided not to participate in the Euro.
In CBI market surveys, the Euro (€) is the basic currency unit used to indicate value. For
exchange rates of EU currencies in €, please visit http://www.oanda.com/
Page 50 of 52
Appendix C List of developing countries
OECD DAC list - January 2006

When referred to developing countries in the CBI market surveys, reference is made to the
group of countries on this OECD DAC list of January 2006.
Afghanistan Gabon Nepal Uruguay

Albania Gambia Nicaragua Uzbekistan
Algeria Georgia Niger Vanuatu
Angola Ghana Nigeria Venezuela
Anguilla Grenada Niue Vietnam
Antigua and Barbuda Guatemala Oman Wallis & Futuna
Argentina Guinea Pakistan Yemen
Armenia Guinea-Bissau Palau Zambia
Azerbaijan Guyana Palestinian Admin. Areas Zimbabwe
Bangladesh Haiti Panama
Barbados Honduras Papua New Guinea
Belarus India Paraguay
Belize Indonesia Peru
Benin Iran Philippines
Bhutan Iraq Rwanda
Bolivia Jamaica Samoa
Bosnia & Herzegovina Jordan Sao Tome & Principe
Botswana Kazakhstan Saudi Arabia
Brazil Kenya Senegal
Burkina Faso Kiribati Serbia
Burundi Korea Rep. of Seychelles
Cambodia Kyrgyz Rep. Sierra Leone
Cameroon Laos Solomon Islands
Cape Verde Lebanon Somalia
Central African Rep. Liberia South Africa
Chad Libya Sri Lanka
Chile Macedonia St. Helena
China Madagascar St. Kitts Nevis
Colombia Malawi St. Lucia
Comoros Malaysia St. Vincent & Grenadines
Congo Democratic Rep. Maldives Sudan
Congo Rep. Mali Suriname
Cook Islands Marshall Islands Swaziland
Costa Rica Mauritania Syria
Cote d’Ivoire Mauritius Tajikistan
Croatia Mayotte Tanzania
Cuba Mexico Thailand
Djibouti Micronesia, Fed. States Timor-Leste
Dominica Moldova Togo
Dominican Republic Mongolia Trinidad & Tobago
Ecuador Montenegro Tunisia
Egypt Montserrat Turkey
El Salvador Morocco Turkmenistan
Equatorial Guinea Mozambique Turks & Caicos Islands
Eritrea Myanmar Tuvalu
Ethiopia Namibia Uganda
Fiji Nauru Ukraine
Page 51 of 52
CBI countries – January 2008:
CBI supports exporters in the following Asian, African, Latin American and European (Balkan)
countries:
Afghanistan
Albania
Armenia
Bangladesh
Benin
Bolivia
Bosnia-Herzegovina
Burkina Faso
Burundi
Colombia
Ecuador
Egypt
El Salvador
Ethiopia
Georgia
Ghana
Guatemala
Honduras
India
Indonesia
Jordan
Kenya
Kosovo
Macedonia
Madagascar
Mali
Moldova
Montenegro
Morocco
Mozambique
Nepal
Nicaragua
Pakistan
Peru
Philippines
Rwanda
Senegal
Serbia
South Africa
Sri Lanka
Suriname
Tanzania
Thailand
Tunisia
Uganda
Vietnam
Zambia
Page 52 of 52

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CBI MARKET SURVEY: THE DOMESTIC FURNITURE MARKET IN THE EU

CBI MARKET SURVEY

THE DOMESTIC FURNITURE

This survey was compiled for CBI by Searce

Disclaimer CBI market information tools : http://www.cbi.eu/disclaimer

Opportunities for exporters from developing countries

This market survey discusses the following product groups:

1.1 Market size

Table 1.1 EU consumption of domestic furniture 2004-2008, € million

Consumption by product group

A similar principle applies to bathroom furniture, where individual cabinets continue to be

Figure 1.1 EU domestic furniture consumption by product group,

Source: Eurostat (2009)

1.2 Market segmentation

• Segmentation by style of furniture

1. Classic style 2. Colonial style

3. Colonial style 4. Country-romantic style

5. Country style 6. Contemporary style

7. Contemporary style 8. Contemporary style

9. Contemporary style 10. Contemporary – Modern style

11. Modern style 12. Modern style

Photo courtesy: Imm/Cosmit/Shutterstock

Merging of living areas

More feminine furniture shapes

Men showing more interest

Eco-friendly furniture continues to grow

Colour and styling

Greater use of the Internet

More use of professional designers

Improvements in the recession

Media influence deepens

Emergence of speciality rooms

1.4 Opportunities and threats

1.5 Useful sources

• At an EU level, the European Furniture Manufacturers Federation (UEA) -

2.1 Size of production

Table 2.1 EU production of domestic furniture, 2004-2008, € million

Figure 2.1 Production of furniture in the EU 2008,

Source: Eurostat (2009)

Developments in the supply chain

Market access developments

Sharing best practices

2.3 Opportunities and threats

2.4 Useful sources

• The European Furniture Manufacturers Association - http://www.ueanet.com - is the main

3 Trade channels for market entry

3.1 Trade channels

Other terms used

Some recent distribution chain issues of relevance to exporters are:

• Vertical integration by manufacturers

• Store attractiveness and regular change by retailers

There are three keys types of specialist retailer:

The main types of non-specialist retailers are:

• DIY stores, hypermarkets and discounters

• Mail order and the Internet

Retailers versus suppliers

3.2 Price structure

Furniture is usually considered to be a non-essential purchase, so it is vulnerable to

An exporter from a developing country would be better off by concentrating on the

Key issues on price structure

Margins at retail level

Margins at importer/wholesale level