According to CSIL’s report 2023 ‘The contract furniture and furnishings market in Europe‘, the major manufacturing countries in this segment are Italy, Germany, the United Kingdom, Poland, and Sweden, representing together over 60% of the total European contract furniture production.

The project sector has been severely hit by the pandemic and following a significant drop in 2020 it has returned to grow over the last two years. With the uncertainties emerged in the international socioeconomic scenario, the outlook for the near future is nonetheless positive. A full recovery of the market values is expected within 2024.

THE COMPANIES MARKET APPROACH

According to a sample of 200 European specialist contract manufacturers surveyed by CSIL at the scope of the report, the company revenues in the sector are represented for 77% by internal manufacturing (own portfolio) on average, while about 23% is composed by traded products from other manufacturers.

The share of traded products tends to be higher depending on the kind and dimension of the single project. Generally speaking, for the interior fit-out companies with internal production (I.e. Ovebury, ISG, Input Interior) that manage large turn-key projects, traded products have a relevant incidence on the turnover, while for the ‘traditional’ furniture manufacturers (Molteni, Lago, Pedrali, Arper, Fermob, EMU, etc.) the own portfolio, although customized, represent 90% or more of the business.

The sample of manufacturers also gave indication about the market approach to the contract business. About 40% of the revenues of the sample are represented by project managed through general contractors, a 36% is managed through dealers active in contract and turn-key projects and only 24% of sample turnover is represented by direct sales to final clients (i.e. hotel chains).

The market approach highly depends on the destination segment. In the Education business, especially for kindergarten and K-12, direct sales to municipalities and institutions is by far the preferred option as it happens for Healthcare, Museums, Theatres and other public facilities.

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With more than 16 years of experience in the furniture event industry, especially successfully organized 14 editions of the international fair VIFA EXPO, Lien Minh Company is pleased to introduce VIFA ASEAN – Vietnam ASEAN International Furniture & Home Accessories Fair 2023, which will be held from August 29 to September 1, 2023 at Saigon Exhibition and Convention Center (SECC) – 799 Nguyen Van Linh, District 7, Ho Chi Minh City, Vietnam.

Vietnam’s target is to become the furniture trade hub of the ASEAN region and the world. VIFA ASEAN is a contribution to this target, as well as introducing furniture brands of Vietnam and ASEAN countries to the world.

Especially, this VIFA ASEAN 2023 is co-organized by the prestigious organizations: the Vietnam Chamber of Commerce and Industry – Branch in Ho Chi Minh City (VCCI-HCM) and the Vietnam Coconut Association (VCA). This further increases the influence and credibility of the Fair with the organizations and large purchasing corporations around the world, as well as enhances the stature of the event in the regional and international markets.

Not only limited to Indoor furniture, VIFA ASEAN 2023 also expands its scale with a variety of other categories such as Outdoor/Garden Furniture; Eco-friendly/Recycled products; Crafts and Home Decoration; Wood material; Machines, Equipment and Hand tools… provides opportunities for global buyers to experience and discover the most uniquely designed and developed furniture & home décor products of the region that incorporate a variety of specific and innovative materials.

As a place that connects the supply and demand chain of furniture products from Southeast Asia to the global market with the motto: “One show – One place to Global“, VIFA ASEAN will have pavilions of Southeast Asian countries such as Malaysia, Indonesia, Singapore, Philippines …, and other countries for the purpose of introducing and creating opportunities for buyers & importers to explore the unique display space of regional products with unique designs that are combined and manufactured from different materials.

Besides, VIFA ASEAN is in the chain of Asia’s major furniture fairs in the Fall of 2023, including KOFURN – Korea International Furniture & Furniture Fair (August 24 – 27, 2023); VIFA ASEAN – Vietnam ASEAN International Furniture & Home Accessories Fair (August 29 – September 1, 2023); CIFF Shanghai – Shanghai CIFF International Furniture Fair (September 5, 2023), Maison Shanghai – Shanghai Furniture Fair (September 11–14, 2023); Furniture China – China Furniture Fair (September 11–15, 2023); IFFINA – Indonesia Furniture and Design Exhibition (September 14–17, 2023). VIFA ASEAN is planned to attract 1,400+ booths and 350+ indoor & outdoor furniture exhibitors on a total scale of 20,000+ m2, VIFA ASEAN is expected to be a destination connecting international buyers with prestigious indoor & outdoor furniture manufacturers & suppliers of the region, help buyers find the right furniture sources from Vietnam.

Register for free: http://vifaasean.com/for-visitor/#register

Discover more about VIFA ASEAN:

• Website: www.vifaasean.com
• Facebook: https://www.facebook.com/vifaasean
• LinkedIn: https://www.linkedin.com/showcase/vifa-asean/

Alliance Handicraft Wooden Fine Art Corporation

• Address: 2/13 Bau Cat 2 Street, Ward 14, Tan Binh District, Hochiminh City, Vietnam.
• Phone: +84 28 7306 7887
• Hotline: +84 79 999 7657
• Email: info@hawacorp.com.vn
• Website: www.vifafair.com

The post VIFA ASEAN 2023 in the largest chain of international furniture fairs in Asia Autumn 2023 appeared first on World Furniture Online.

However, it is worth noting that the real-term result is far less exciting (+0.9%) due to the significant impact of rising inflation on revenue trends.
Raw material costs heavily influenced the list prices as office manufacturers were forced to raise their list prices multiple times in 2022, resulting in an average total variation of over +12% (over +14% in some countries).

After a strong performance in the first half of the year, demand cooled down in September due to the concerning economic landscape.

Eurostat’s international trade figures for the entire year of 2022 indicated a slowdown in imports (-4%), while exports continued to grow (+11%).

The year 2023 is expected to be challenging as commercial real estate investments are tapering off. Observers suggest that rising interest rates, economic uncertainty, and the strength of the U.S. dollar are weighing on performance. Nevertheless, office occupancy is recovering in line with the hybrid working model, which is having a positive impact on the quality of offices. Investors are prioritizing premium spaces.

Price evolution is expected to moderate in 2023; however, the aforementioned conditions will lead to a slowdown in European office furniture production.

CSIL’s The European market for office furniture Report 2023 will be issued by half of June. Contents description (link goes to the current 2022 release) at https://www.worldfurnitureonline.com/report/the-european-market-for-office-furniture/

The post Trends and Perspectives of the Office Furniture Industry in Europe appeared first on World Furniture Online.

According to the office furniture manufacturers interviewed by CSIL, material costs increased severely in 2021 and 2022. In the last months also energy prices boomed, and this situation is expected to persist until the first half of 2023, at least.

Persistently, high energy prices will continue to have inflationary implications, particularly through second-round effects such as higher transport and electricity costs for businesses. Inflationary pressures stemming from commodity prices will be further exacerbated in countries that have had sizeable currency depreciations against the US dollar.

In response to the further increase in costs, office furniture companies have significantly increased their list prices between 2021-2022 and they already announced renewed price increases for 2023. Most companies especially in Europe and in the United States explained that they were forced to make extraordinary list prices growth besides the standard ones.

Many of them declared that extra price increases started at the end of the year 2021 (typically Oct-Dec 2021). The expectations for the whole price growth of 2023 are very uncertain. However, all the companies already decided on a further lift for the first semester of the next year.

As a result, the range of growth operated in 2022 and already decided for the next months of 2023 is in a total range of 18%-22% on average for Europe and North America. It easily surpasses 25% if we also include the modification already operated at the end of 2021.

On the other hand, list price variations are less marked in the Asia Pacific.

CSIL’s office furniture market studies deal with facts and figures of the global office furniture industry. CSIL is currently working on the new edition of an in-depth analysis of European office furniture sector in the report ‘The European market for office furniture’. Find more details at https://www.worldfurnitureonline.com/report/the-european-market-for-office-furniture/

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In the last decades, the Malaysian furniture industry has witnessed rapid expansion. However, its growth rate has tapered off in recent years, primarily due to stagnating productivity and intensified competition from emerging furniture markets in Asia, such as China and Vietnam.

Despite maintaining a growth trajectory in terms of exports, the industry underperformed in 2020 and 2021, compared to the other Asian countries. Notably, Malaysia has faced significant challenges, including logistic constraints and labor-related issues, with a more pronounced impact compared to the rest of the Asia-Pacific region. Consequently, these challenges have translated into substantial price increases across the industry.

The Malaysian kitchen furniture industry comprises approximately 200 manufacturing companies, each with an average annual revenue of USD 3-4 million.

As far as the Kitchen furniture market in Indonesia is concerned, it is estimated at 80-90 thousand units. Most of the consumption is localized in Java Island (Jakarta), for at least 60%. Also, to be considered Sumatra (20%).

The upper-end market can be quantified in around 5 thousand units (that is also the number of built-in dishwashers sold).

The huge production and consumption of single elements (or 120 cm buffet kitchens) are hard to evaluate, usually just 120-280 USD. This latter is the core of kitchen furniture in most Indonesian houses.

The Kitchen Furniture Market in Malaysia and The Kitchen Furniture Market in Indonesia Reports will be published by mid-June 2023.

Essential insights covered in the Reports: Key drivers and emerging trends shaping the industry; Analysis of export and import dynamics; Key players and examination of the industry’s relationship with built-in appliance companies, countertops companies, and hinges and other metalware manufacturers; Overview of distribution channels and evolving product trends

For further information, please Contact us

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THE TOP 200 FURNITURE MANUFACTURERS BY CSIL

In its recent study ‘Top 200 Furniture Manufacturers Worldwide’, CSIL listed the largest companies in terms of furniture turnover. This group of companies produces a total turnover of around USD 180 billion, of which nearly USD 120 billion, according to CSIL estimates, is related specifically to the furniture sector.

The concentration ratio of the Top 200 furniture manufacturers in the world furniture industry has continued to increase in the last years, reaching more than 20% of world furniture production. The average company’s size in terms of total turnover has also increased, with differences across different geographical areas.

The Top 200 are spread all over the world. They have headquarters in 30 countries. Regarding furniture turnover, top companies from Asia and the Pacific account for nearly 40% of the total furniture turnover generated by the top 200 companies. European and Americas companies account for 30% each.

COMPANIES’ PERFORMANCE

The total turnover of the Top 200 furniture manufacturers increased by over 30% from 2017 to 2022 (more than compensated for the pre-pandemic level). The trend indicates that the growth of the Top 200 companies was higher than that of the sector in terms of sales.

In 2020, the decrease in sales of the Top 200 manufacturers had been contained compared to the world furniture production, driven by larger financial capabilities that allowed leading companies to quickly re-align business strategies, implement new sales channels (e.g. online), and reposition their supply chain.

Preliminary results show that in 2022, the Top 200 companies maintained the same level as in 2021, whereas world furniture production decreased by 3%. Their performances differ accordingly to the geographical areas and the furniture segments. Asian manufacturers have grown impressively over the last five years. European players have shown promising results, particularly in 2021 (surpassing the pre-pandemic level). North American manufacturers experienced significant development in 2019 and stabilized in 2021.

Regarding furniture segments, the most dynamic manufacturers belong to the kitchen and upholstered furniture segments, which have continued to grow in the period considered. Office furniture manufacturers showed a significant drop in 2020 and a slight increase in 2021 without reaching the pre-pandemic level.

COMPANIES’ STRATEGIES

Strategies of delocalization and differentiation of companies’ manufacturing footprint have been accelerated over the last few years, driven by an increasing need to contain logistic and transport costs, reducing the time-to-market.

About half of the Top 200 companies have manufacturing activities outside their headquarters country. Companies that mostly delocalize part of their production abroad have headquarters in North America, followed by Asian manufacturers and European companies.

In terms of furniture segments, companies specializing in outdoor furniture are the most prone to delocalize production (80% of the companies selected opened manufacturing plants abroad), followed by companies specializing in office furniture and upholstered furniture manufacturing.

About 80 M&A operations have been identified among the Top 200 furniture companies since the beginning of 2019, averaging 20 significant operations per year. American and Italian companies were the most active in recent years, concluding around 40 M&A operations among the sample of the Top 200 companies, followed by companies headquartered in China and the United Kingdom.

Over the period, the most active American companies observed have been two office furniture specialists: Herman Miller, which acquired Maars (NL), HAY (DK), and Naughtone before finally merging with Knoll, and Steelcase, which also made 4 acquisitions since 2019. In Italy, different operations have been concluded among leading highend furniture manufacturers. IDB Italian Design Brands was the most active company, with 4 acquisitions. Another Italian high-end furniture group, Design Holding, was also actively acquiring foreign companies with a strong presence in Northern Europe and North America: Company (DK) and YDesign Group (US).

Since 2019 there have been three significant mergers between the Top 200 companies. The first occurred in 2020 when ACProducts merged with Masco Cabinetry to form Cabinetworks Group, now one of the largest global cabinet/kitchen furniture manufacturers.In 2021, Alsapan and P3G Industries merged to form Alpagroup, a leader in RTA furniture production. In the US, the two office furniture giants Herman Miller and Knoll merged to form MillerKnoll, now the largest office furniture manufacturer in the world (in terms of turnover).

ABOUT THE COMPANIES FIGURES

CSIL constantly updates a comprehensive set of companies’ information, including financial figures, employment, export sales, and product portfolio, supported by different sources of information: an extensive database of companies that includes historical data on main financial indicators; annual reports of companies quoted on the stock exchange; specialist sector press, companies’ websites, and press statements; CSIL’s field research, including online surveys and direct interviews conducted during the year.

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While North America increased in 2022, Europe remained almost flat, and Asia-Pacific recorded a double-digit drop. However, in this regard, attention should be given to the currency issue. All data are in US dollars, and they are affected by the exchange rate fluctuations.

Another factor to be considered is inflation; prices are generally growing worldwide, and they are conditioning each country’s performance.

Office furniture represents around 11% of the total world furniture output. The Asia and Pacific is the main manufacturing area with a 48% share of world office furniture production, followed by North America, which accounts for 29%. Europe ranks third with an incidence of 19% of the worldwide output. The other geographical areas hold marginal shares. The production of office furniture is highly concentrated in only 8 countries accounting for around 79% of the total output: China, the United States, and, at a distance, Germany, India, Japan, Canada, Italy, and Poland.

INTERNATIONAL TRADE

World trade of office furniture (in current USD) peaked in 2021 increasing by +23% and then dropped by -10% in 2022 to a total value of USD 12.7 billion (preliminary). According to the CSIL forecast, world trade is expected to grow by 2% in 2023 and by 3% in 2024.

The ratio of exports over production in the office furniture segment amounts currently to around 26%. Even though this ratio is growing (it stood at 21% in 2016), it remains low compared to the furniture sector, where the export/production ratio is around 39%. The bulk of office furniture exports originates from China, Canada, Germany, Poland, and Italy and flows to the United States, Germany, France, the United Kingdom, and the Netherlands. China keeps the largest share of world exports accounting for 40% of the total flows. To be noticed, however, that China lost 7 percentage points in 2022 due to weak international demand.

FURNITURE AND TECHNOLOGY FOR THE WORKPLACE

In the last three years, we saw an acceleration of several structural processes leading towards more fluid, multi-format real estate portfolios. Expanded employee choice includes more remote working, comprised in satellite or suburban locations that do not require extensive commuting. Technology investment in buildings will be crucial both for the existing motive of enhanced user experience and increasingly also for health management and wellbeing.

Fluidity will come in the form of working from a variety of locations (home, headquarters, flex office, or coffee shops) reflecting the diversity of tasks and the preferences of employees. The above-mentioned factors led to a rethinking of workplaces, timing, and resources, with more focus on interaction and corporate productivity. Priority is assigned to workspaces that encourage active collaboration and the informal exchange of views, with spaces for presentations, seating areas, and break zones to foster conversation and discussion. At the same time, there is a parallel need for zones that may facilitate concentration, eliminating distractions.

We have assisted in an exponential growth in the consumption of office chairs (or better, ergonomic work chairs). Over the past two years, the share of this product in total consumption has risen in each and every country. Once again, remote work, even if only for a couple of days a week, is the driving force behind this trend. It should also be highlighted that this growth was most notable for products in the mid-economic range.

Height-adjustable tables (HAT) are another fastest-growing segment in the office furniture business. In the last five years, HAT’s presence became tangible not only in Europe but also in North America. Almost all the major sector players worldwide introduced sit-stand desk collections and these products become visible also at the retail level (including e-commerce and large stores like IKEA).

Acoustic Booths/Room in Room Systems suffered from the slowdown of projects, but they are considered crucial for the new office conceiving. The presence of these products, also defined as pods, phone cabins, booths, silent rooms, privacy boxes, and cubes, is spreading in all kinds of commercial open-plan spaces.

Intelligent workplaces rely on the design of flexible facilities, suitable for smart work and all other needs, while also reducing the floor space required for workstations, or modifying layouts to create functional work zones inside public or domestic settings. These micro-architectures offer privacy, safety, and acoustic comfort, besides being outfitted with all the equipment and technologies that have become so indispensable today.

OMNICHANNEL TO EXPAND IN THE OFFICE BUSINESS

Over the last two years, sector companies reassessed distribution and logistics for a market that is becoming more fragmented, solving issues related to e-commerce and planning investments on that, communicating to the end customer (B2C) who commonly is not familiar with brands, and features and quality of office furniture products.

Omnichannel retail provides a complementary business model to reach more customers. Investments in new stores/showrooms, property webstores, and global e-commerce platforms, expanded significantly. The introduction of new product assortments and technology systems means that the retail business became part of the long-term growth strategy of office companies.

Generally speaking, office furniture distribution still shows a high degree of specialisation, with direct sales and office furniture specialists and/or exclusive dealers accounting for the largest portion of the total. However, the distribution systems are peculiar to each market and sometimes they differ significantly according to each country.

The direct channel incidence is very high in Japan with few corporations controlling the office market. In China, direct sales (including contract) cover almost half of the market due to a strong injection of Government commitments. Specialists or exclusive dealers represent the lion’s share in Europe and North America. In India, the unorganized distribution still represents 70% of the market. However, the organized business (contract, retailers, showrooms, importers) increased fast over the last decade jumping from 15% to 30% of the total.

The penetration rate of e-commerce in the sector is 4% with a total value that tripled compared to 2018 when online sales of office furniture represented only 1.7% of the total. E-commerce incidence in office furniture consumption is higher in North America and Europe (Germany, Scandinavia, and the United Kingdom). China leads the Asia- Pacific market in terms of values, although Japan shows an incidence of 5%, which is by far over the average of the Region.

CSIL’s office furniture market studies deal with facts and figures of the global office furniture industry. CSIL is currently working on the new edition of an in-depth analysis of European office furniture sector in the report ‘The European market for office furniture’. Find more details at https://www.worldfurnitureonline.com/report/the-european-market-for-office-furniture/

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Over 200,000 housing and design professionals flocked to Las Vegas for the 10th annual Design & Construction Week (DCW), the colocation of the National Kitchen & Bath Association’s (NKBA) Kitchen & Bath Industry Show (KBIS), the National Association of Home Builders (NAHB) International Builders’ Show (IBS). DCW’s total attendance was comprised of 40,000 KBIS attendees and nearly 70,000 IBS attendees. 500 exhibitors, including 140 New Exhibitors and 148 International Exhibitors (many European players of ceramic slabs among them) were attending this year.

FORECASTS

The kitchen and bathroom market outlook from the National Kitchen & Bath Association (NKBA) for 2023 is evaluated at USD 162 billion, with an expected 14% decrease (-13% kitchen, -15% bathroom, after an increase of its share in recent years). The study, conducted by John Burns Real Estate Consulting, estimates a 17% decrease for new construction (USD 96 billion) and -10% for remodeling (67 billion USD). The decrease is mainly recorded for the professional sector (-15% from 138 billion USD), then for DIY (24 billion USD, -8%).

Projects in the mid-range (2200- 17000 USD) register a more severe slump (-18%), respectively -8% and -14% in the low and high end. Remodelling is approximately 60% for existing portfolio improvements and 40% for new properties. The huge sales growth during 2022 (+17%) has been mainly due to an increased value (and prices) of the average value of the quantities sold, and it has been equally shared among the different price segments (with a negligible further increase of the lower end market, in comparison with the upper end).

Perspectives are of a moderate decrease for the current year, especially on the East side and for the multifamily building construction.

MAIN PLAYERS

In line with the general trend sales from Masterbrand, for example, due to higher sales volume in both stock and make-to-order products. Cabinetworks Group, the second player, plans to expand its Mount Union facility in Huntingdon County, Pennsylvania, and add 300 jobs to its current roster of 1,694 quality manufacturing jobs. American Woodmark experienced growth in the home center, builder, and independent dealers and distributors channels. Net sales for the first half of fiscal year 2023 increased by USD 200 million, or 23%. After the huge growth of 2020-2021, kitchen furniture sales are reducing in real terms in the Home improvement channels (Lowe’s, Home Depot).
From Europe, Nobilia, Haecker, Scavolini, Aster, Aran are among the major players, usually focusing their commitment in selected areas of the country (New York, Miami, Los Angeles, but increasingly also Texas).

A higher share in the upper end is shown by the Canadian companies. And the upper end is a highly lucrative market in the United States, with kitchens also priced at 50-250 thousand dollars, including all annexed expenses, from the designer’s fee to lighting, flooring, appliances, and installation.

DUTIES OR NOT DUTIES?

The duty policy of the Administration on Chinese imports is lasting for at least 2- 3 years and has received different comments from most of the local manufacturers (enthusiastic) and the top three players in the market (CabinetWorks, Masterbrand, American Woodmark) whose supply chain is more connected internationally.

Nevertheless, a relevant share of the export from China moved to Vietnam, Malaysia, and to a lesser extent to Cambodia.

PRODUCT TRENDS

The US kitchen furniture market is dichotomized among a (by far) larger share for products that are traditional manufacturing (wood and plywood, shaker style, almost no standardization, most of the assembling of various components at the last mile of the distribution chain) and a smaller share (maybe 30% just in selected geographical areas) where also European products are available.
Step by step, the difference is reducing (will ceramics substitute the traditional role of quartz and granite?) but still the look remains “Transitional”.

Built-in appliances are a quite small share and sizes, at least in the upper end of the market (where a complete set costs 20- 30 thousand USD) are even upgrading. White covers always keep a huge share of the market but mix matching with grey, blue navy, and Scandinavian green. Gradually, also in the USA matt is becoming predominant.

The Italian Bocchi has been awarded for its Baveno Kitchen Sink System. Lighting fixtures and electricals weigh an average of 4% on a complete kitchen remodelling (around 800 USD on a kitchen priced at 20,000 USD). Around 400 USD in the lower end (6-7 downlights per kitchen, at Home Depot, priced 56 USD each). Dimmable. Halo (Signify) is always among the market leaders, with its Wiz Pro app (16 million colors), WiFi- Bluetooth connected.

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Hive Furniture Show 2023, to be held in June 14-16 at Expo Center Sharjah, is set to be the ultimate destination for furniture and home décor trade professionals worldwide. With projected trade buyers from over 50+ countries and 600+ confirmed hosted buyers, this is a must-attend for anyone in the industry.

To showcase the industry’s finest, HFS invited the top 250+ manufacturers from over 10+ countries to exhibit at the show. These manufacturers have been carefully selected based on their reputation for producing high-quality products and their ability to meet the demands of a growing market such as the Middle East, Africa, and the Indian Subcontinent.

Taking place in the heart of the UAE, the Hive Furniture Show 2023 will occupy a 40,000 sqm venue, double the size of last year’s event. This increase in space will accommodate even more exhibitors and buyers, providing an unrivaled opportunity for networking and collaboration.

At the show, established and emerging manufacturers will showcase their diverse range of furniture and home accessories. From contemporary to classic, there will be something to suit every style and taste. The event is designed to facilitate business and provide trade buyers and manufacturers a chance to interact with one another and discuss market trends.

Hive offers buyers and exhibitors a unique opportunity to connect and create long-lasting partnerships that drive the industry forward. Attendees will have the chance to view and discuss furniture products with industry leaders and innovators, gaining valuable insights into the latest trends and developments.

With such a diverse range of exhibitors and attendees, the Hive Furniture Show is the perfect opportunity to connect with like-minded professionals and take your business to the next level.

For further information and registration, please visit Hive Furniture Show or contact:

OMG
1605, Sidra Towers, Sheikh Zayed Road
Dubai, UAE
Tel: +971 4 566 5205

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The workforce of the Polish furniture industry comprises approximately 197,000 people employed in more than 21,000 companies.

The furniture industry in Poland is a fragmented sector, mainly composed of SMEs. It also includes medium to large companies that have increased their revenues with good margins and profitability in recent years.

The country’s furniture sector occupies an important position both on a European and global level. According to CSIL, Poland ranks third in Europe and seventh in the world for furniture production, while in terms of furniture exports, it ranks first in Europe and third globally.

Furniture production in Poland has almost doubled in the last 10 years. The growth has been mainly driven by exports, but the market has also increased in the last six years.

The Polish furniture sector has proven to be very competitive in external markets, even among non-European countries.

The United States is among the top ten destinations for Polish furniture exports. Polish manufacturers have increased their competitiveness in the US market, particularly in certain furniture segments, such as upholstered furniture. They have benefited from relatively low logistics barriers (delivery times, transport costs) compared to Asian competitors.

‘Poland furniture outlook’ is part of CSIL’s furniture COUNTRY REPORTS series which focuses on the features of the furniture sector in a specific country and provides key figures with different levels of detail.

Other Sources:

• World furniture outlook 2023
• The furniture industry in Europe

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The first CSIL report focused on e-commerce was published in November 2001, an internet era ago. There were 418 million internet users in the year 2000, this was about 5 years after Jeff Bezos delivered from his garage the very first book ever sold from the newly born Amazon platform.

The appearance of the first e-commerce stores dates back to 1994/1995, with Amazon and eBay as first comers, other milestones were at the end of the century the start of online payment systems like Paypal and the launch of Alibaba in 1999 in 2012 finally overtook U.S. e-commerce giants turnover and set the Asian leadership in the e-commerce field, with China rising as the world’s largest e-commerce market in the world.

The following milestones were off course the smartphone revolution together with the social media one, Facebook birth is dated 2004, the first mobile transaction was made in 2008, in 2011 Google launched the wallet payment app, in 2011 the first social sponsored stories for advertisement were launched by Facebook and finally in 2017 Instagram introduces shoppable tags – concluding the social media metamorphosis in real e-commerce platform by 2020.

FURNITURE E-COMMERCE

In about 2 decades the number of internet users grew from about 418 million to over 4 billion with online sales reaching 5,7 trillion USD from only 50 billion in the year 2000.

According to CSIL’s latest observatory (E-commerce for the furniture industry), the global value of furniture sold online is worth about USD 96 billion, representing about 11% of the worldwide furniture consumption at end-user prices, to conclude our journey through e-commerce history timeline it was estimated to only 1% back in the year 2000.

The United States is now the largest single e-commerce marketplace in value, China follows, while Europe as a whole is ranking third. However, the penetration rate of e-commerce on furniture consumption is higher in North America (15%), followed by Asia-Pacific (11%) and Europe (10%).

A GROWING TREND

While global consumption of furniture decreased on average by 3% in 2022/2019, e-commerce consumption increased by +18% as a yearly average for the same years. A booming performance of online sales has been registered in 2020 and 2021, while in 2022 the trend has been substantially flat.

Markets are currently being affected by increased volatility due to the war in Ukraine and rising inflation. As a result, consumer confidence has declined and expenditure on major purchases such as furniture is being postponed. Different performances have been registered according to geographical areas in the period considered. European countries generally increased faster, followed by North America.

The performance of Asian Countries (particularly China, Japan, and South Korea) has been weaker than the average. The mentioned regions represent over 95% of the worldwide e-commerce sales of furniture.

FROM ‘BRICK & MORTAR’ TO ‘BRICK & CLICK’

In 2022 the furniture market still faced some challenges and disruptions in production and supply chains: lack of availability of raw materials and components, fluctuation of input prices, increasing energy costs, congested logistics, increasing transport costs, affecting trade, and causing delays in delivery.

Strong inflationary pressure, softening demand for home-related products, and low consumer confidence are posing further uncertainties to the market. It is worth noting that 2021 had been an excellent year for furniture demand; thus, those negative performance results remain positive if compared to 2020 or 2019, both in sales and e-commerce incidence.

It seems reasonable to assume that the growth trajectory of online sales is still increasing and that the pandemic has permanently accelerated the shift to online. E-tailers include global e-commerce platforms (like Amazon), large regional marketplace (like TMall), and specialist furniture web stores (like Wayfair, Home24, or Dunelm) representing more than half of the market in 2022. Specialist furniture dealers/distributors operating through both physical stores and e-commerce, also called ‘brick & click’, represent a fast-growing category.

Non-Specialist/Lifestyle/DIY chains are large multichannel dealers selling furniture, homewares, accessories, home improvement products, and lighting fixtures. When looking at single product categories, a higher incidence has been registered for the upholstered furniture segment.

A fast-growing category is an outdoor furniture, which holds a relevant share especially if considering the contained values of this kind of furniture in the global account. A fast-growing trend has been registered in office furniture (especially office chairs). Among the fast-growing product categories, there are tables, home office desks, chairs, and beds.

THE OMNICHANNEL APPROACH

The market for online furniture is a highly competitive and rapidly changing one. As a general main trend, we can underline that the majority of retailers are moving towards an omnichannel strategy. Today customers are always connected, and they are used to on-demand services that they can access when they want.

Consumers have grown accustomed to an almost unlimited choice that they can access online, from anywhere, at any time. And they expect a seamless experience that is joined up between physical stores, online, or phone, and where they can switch among channels easily. This has rewritten the rules of traditional retailing.

A retailer’s success no longer depends on its ability to provide many products. It no longer depends on offering promotions. And the number of stores is less relevant now unless you’re developing a convenience offer. It is difficult for all retailers to adapt to this new paradigm. Brick-and-mortar retailers are establishing a strong online presence. But, at the same time, we are seeing e-commerce platforms moving towards brick-and-mortar.

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Over 120 top brands from Japan and abroad will gather on an area twice as large as at the last edition.

As of today, the second edition of ORGATEC TOKYO 2023 is open for visitor registration. Just like the exhibitor numbers, the exhibition space has doubled compared to the previous show. More than 120 top brands from Japan and abroad, including Okamura, Kokuyo, Itoki, Uchida Yoko, Plus, Karimoku Furniture, Knoll, Wilkhahn, CITTERIO, Draft, Häfele will present themselves and their innovative products in the West Exhibition Halls 1 and 2 of Tokyo Big Sight.

The theme of this year’s ORGATEC TOKYO is “SHIFT DESIGN – Emerging Innovations through Design-Driven Workplace”. In a world where everything around us – from the things we use to the way we live to the society we live in – is shaped by design, ORGATEC TOKYO shows that good design also creates opportunities for creative and innovative work.

The keynote speaker at ORGATEC TOKYO is Primo Olpilla, director and founder of Studio O+A, the company behind innovative offices such as McDonald’s, Adidas and Slack. Other speakers include emerging artists who develop product installations, design graphics and create spaces. Moderated by Ryuko Kida, Brand Director of ELLE DÉCOR, the creative potential of SHIFT DESIGN will be on display.

The organiser will also set up the Xperience Area, a biophilic space that promotes employee well-being and stimulates creativity. In addition to a lounge as a place for exchange, the stage will also be the venue for the “Best Presentation Award”, a stand design competition supported by the interior design magazine ELLE DÉCOR. In addition, various seminars to communicate and experience the concept of “SHIFT DESIGN – Emerging Innovations through Design-Driven Workplace” will take place in the Xperience Area.

In response to global changes in the world of work, all interested parties are invited to ORGATEC TOKYO to experience future solutions for office design and working style that are ahead of their time.

For more information, please visit www.orgatec-tokyo.com.

Visitor registration: https://event-admin.biz/registration/ORGATEC_Tokyo2023_Registration

ORGATEC TOKYO
26 (Wed) – 28 (Fri) April 2023
Tokyo Big Sight, West Exhibition Halls 1 and 2

Download the Press Release with registration details:

The post The 2nd ORGATEC TOKYO is now open for registration appeared first on World Furniture Online.