Post on 26-Mar-2018
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
Future development of the furniture industry –A look at the next 3-5 years
Verband der Deutschen Furniture Industry e.V.
Dirk-Uwe Klaas - Managing Director
Tappi-Symposium at interzum 2007
on May 7, 2007
Hauptverband der Deutschen Holzindustrie e.V.
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
Contents
Furniture industry data
Economic trends for the next 3-5 years
Strategies for the future
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
Furniture Industry Data
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
The Furniture Industry worldwide
Sales growth increasing worldwide
European furniture production2005 at 93.8 billion Europlus 1 percent
International furniture trade2005 at 82 billion US$2006 at 87 billion US$
Prognosis 2007 at 92 billion US$
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
Furniture Industry worldwide
Emerging Markets stimulate demand
Forecasted 2007 furniture consumption
Russia plus 8 percentChina plus 7 percentIndia plus 6 percentMalaysia plus 6 percentUkraine plus 6 percentNear East plus 4 percent
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
German Furniture Industry 2006
Suppliers about 1,000 firms, 60,000 jobs
Production about 1,080 firms, 103,000 jobs
Commerce about 10,000 Shops, 130,000 jobs
Size average 100 employees
Export quota 34 percent in 2006
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
The German Furniture Industry 2006
Return on sales 1.7 percent
Bankruptcies 500 firmsover the past 10 years
Job reductions 70,000 over the past 10 years
Population about 83 million
Consumers in 37.5 million householdsplus exports
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
Sales, firms, and employees in the German furniture industry 1995 - 2006 (1995=100%)
0%
20%
40%
60%
80%
100%
120%
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Sales Firms Employees
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
plus 7.2 percent
3.5 percent through growth of domestic demand
15 percent through growth in exports
Sales trends of the 2006 German furniture industry
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
Sales in the 2006 German furniture industry by segment Adjusted values (total 18.4 billion €; +7.2 % of previous year)
Mattresses0.9 billion € (+3.0%)
Cabinet furniture63 billion € (+75%)
Kitchen furniture3.9 billion € (+11.2%)
Office and shop furniture 2.6 billion €
(+11.0%)
seating furntiure, adjusted
4.7 billion € (+2.7%)
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
Furniture Trade Abroad
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
Furniture industry sales in EU - compared to 2005in billion Euro (not adjusted)
0
5
10
15
20
25
German
y
Italy
Great B
ritain
France
Spain
Poland
Denmark
Netherl
ands
Austria
Belgium
Sweden
Czech
Rep
ublic
Portug
al
Finlan
d
Hunga
ry
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
German furniture commerce in billion Euro, 1995-2006
2.94 3.04 3.28 3.56 3.86
4.845.17 5.22
4.925.26
5.56 5.72
4.504.80 5.07
5.58 5.70
6.81 7.01 6.84 6.87 6.72 6.80 6.82
0
1
2
3
4
5
6
7
8
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
(prel
imina
ry)
Furniture exports Furniture imports
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
Top 10 German export countries in 2006
810.4
631.2587.2
552.4
427.8 403.1
232.6199.9 192.3 188.5
-1.8
9.2
-0.4
4.3
-0.2
-8.7
8.9
5.4
23.4
-0.2
0
100
200
300
400
500
600
700
800
900
Netherl
ands
Switzerl
and
Austria
France
Great B
ritain
Belgium
Spain
USA
Italy
Czech
Rep
ublic
-15
-10
-5
0
5
10
15
20
25
30
Exportwert in Mio. € Veränderung zum Vorjahr in %
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
Top 10 German import countries 2006
1,584.0
707.0
551.5452.8 446.9
310.4 289.2 269.7 234.6 217.1
-3.2
-8.5
19.1
4.3
15.9
-2.2
7.1
-17.1
-4.9
0.6
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Poland Italy China CzechRepublic
Austria Slovenia Hungary Denmark South Africa Switzerland-2
-1
-1
-5
0
5
10
15
20
25
Importwert in Mio. € Veränderung zum Vorjahr in %
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
German International commerce with China 1995-2006 in million Euro
3.4 5.2 5.4 8.6 8.3 14.4 14.938.8
93.4 104.756.0 64.0
34.5 45.4 57.0 73.0103.3
177.4202.8
236.9
350.0
460.5 463.2
551.5
0
100
200
300
400
500
600
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Export Import
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
German International commerce with Russia 1995-2006in million Euro
88.8 83.5
102.8
87.2
51.4
64.076.2 71.5
76.988.0
108.9
128.8
16.2 11.7 13.217.9
24.733.6 35.7 34.0 34.3
47.1 45.6 48.9
0
20
40
60
80
100
120
140
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Export Import
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
WORLD FURNITURE MARKET OUTLOOK 2007
Real Growth of Furniture Consumption in 60 CountriesFORECAST as of April 2006
USA +3%
MEXICO +3%
BRAZIL+ 3%
CHILE+ 4%
ARGENTINA
SOUTH AFRICA+ 6%
NEW ZEALAND+ 2%
PORTUGAL + 2%
FRANCE +2%
ITALYGREECE +2%
%
GERMANYUK +2%
SWEDEN +2%
NORWAY +3%FINLAND+ 3%
IRELAND+ 6%
EGYPT + 4%ISRAEL +4%
KUWAIT + 3%SAUDI ARABIA + 3%UN.ARAB EMIR. + 4%
SPAIN +2%
RUSSIA + 8%
JAPAN +1%
INDIA
CHINA+ 7%
Csil Milano
© Copyright CSIL 2006 CSIL Milano • tel: +39 02796630 • fax: +39 02780703 • e -mail: csil@csilmilano.com • http://www. csilmilano .com
LITHUANIA +6% POLAND +4%ESTONIA +5% CZECH REP. +3%HUNGARY +5% SLOVAKIA +5%LATVIA +6% SLOVENIA +3%MALTA +2% CYPRUS +3%
DENMARK + 3%NETHERLANDS+ 1%BELGIUM-LUX + 2%SWITZERLAND + 1%AUSTRIA + 2%
CANADA +2%
%
Above US $ 10 billion
Between US $ 5 billion and US $ 10 billion
Between US $ 1 billion and US $ 2 billion
Below US $ 1 billion
Not considered
Size of country’s furniture market
Between US $ 2 billion and US $ 5 billion
AUSTRALIA +3%
+4%
+6%
1%
+1%
HK +3%INDONESIA +4%MALAYSIA +6%PHILIPPINES +4%SINGAPORE +4%S.KOREA +3%TAIWAN +4%THAILAND +5%VIETNAM +6%
LEBANON +3%
CROATIA +4%BULGARIA +4%SERBIA MONT. +3%UKRAINE +6%ROMANIA +5%
TURKEY +3%
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
Economic Trends
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
Economic Trends over the next 3-5 years
Globalization more worldwide demand
Market polarization lower intermediary prices
Demographic development fewer people in Europe
Furniture lifespan shorter than ever before
Individualization requires variety of offerings
Staying home in the West feeling safe at home
Trademark process guaranteed quality
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
Globalization – increasing demand for furniture
Per-person expenditures for furniture Europe
Germany 370 €Italy 202 €France 204 €Austria 370 €
Worldwide
USA 210 €Russia 20 €China 5 €India 2 €
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
Market Polarization - in percent
23
49
28
24
49
27
31
34
35
34
30
36
47
15
38
1973 1981 1986 1990 2010
High-value top-quality products
Mid-range pricesegment
Low-costproducts
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
Demographic DevelopmentGraue Revolution
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
The population is aging
Years of life
35
40
45
50
55
60
65
70
75
80
85
1880 1900 1920 1940 1960 1980 2000 2010
WomenMen
Graue Revolution
Source: Statistisches Bundesamt
Median Life Expectancy in Germany
Prognosis >
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
Demographic DevelopmentGraue Revolution
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
Demographic DevelopmentGraue Revolution
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
Living-room furniture 9 YearsUpholstered furniture 7 YearsBeds 12 YearsMattresses 8 YearsChildren 6 Years, then
passed onKitchen 15 Years
Median lifespan of furniture in Europe today
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
Living-room furniture minus 3 to 6 YearsUpholstered furniture constant 7 YearsBeds minus 4 Years to 8 YearsMattresses minus 3 Years to 5 YearsChildrenmöbel minus 2 Years to 4 YearsKitchen minus 5 Years to 10 Years
Median Lifespan of furniture in Europe, tomorrow and later
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
Individualization requires a variety of offerings
Variety is important to today‘s customer
Everyone wants to decide for him/herself-color, pattern, quality level
There are no longer any general trends
ThemeIdentification with one‘s own living space and
individual self-realization
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
Staying home in the West Feeling safe at home
In unpredictable and uncertain times,
citizens of industrial nations are
more concerned about their home.
Retreat into one‘s own Refuge is indicated
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
Trademarks are an anchor of trustthey reduce the risk of making the wrong purchase. They
provide a guarantee in advance of assurance of the expected product performance. Trademarks provide security
Trademarks provide a touchstone, and are an aid in recognizing a familiar product
in a world rife with information overload, they increase the efficiency of the purchasing decision-making process
Trademarks give meaningin a world where we are searching for meaning, the use of a
trademark becomes ever more important
Trademark process guaranteed quality
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
Strategies for the Future
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
• Considering the shrinking domestic market, even more energy must be invested into the securing of Export Markets
• We must market the quality level and the Design of our furniture more aggressively andemphasize the advantage over cheaper products
• The industry must clearly step up the Trademark process for furniture
Strategies for the Furniture Industry
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
• New sales concepts must include the entire home experience so that the German customer is again interested in new furniture
• Price-cutting must stop.Customers want price security, not constant special
offers and discounts.
Strategies for the Furniture Industry and Commerce
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
The value of furniture as a growth culture must be brought back into focus...
The President of Germany, Horst Köhler, says:
“Since we are more expensive, we must be even better”
Strategies for Furniture Industry und Commerce
TAPPI-Symposium zur interzum 2007 - 7. Mai 2007
End