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CSIL - World Furniture International Markets Review - #61 March 2014


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World Furniture is a quarterly review of economic information and market analysis published by CSIL. The magazine is issued in English and offers contributions on international furniture and furnishing markets, demand and supply, retail and consumption, business trade, country profiles, competitive systems, international events, fairs and exhibitions.
A 'Special Report' and a 'Focus' are included in each issue, offering in-depth analyses of manufacturing segments with their markets of reference, trends and perspectives on the global competitive scenario.
Each print issue is mailed to a selected target of 2000 manufacturers and suppliers in the world's main producing, exporting and consuming countries. World Furniture is also circulated at major international fairs in the sectors of reference.
60% Furniture manufacturers (kitchen, office, upholstery, bedroom, dining and living room, bathroom, outdoor). Producers of lighting fixtures, appliances, interior decoration.
30% Suppliers of parts, components, fittings and accessories to the furniture industry. Producers of woodworking machines and industrial automation systems.
10% Trade Associations, Press Offices, Fairs and Exhibitions.
55% Western Europe, Central-Eastern Europe, Russia
30% China, India, South-East Asia, Japan
10% United States, Canada, Mexico, South America
5% Middle-East, North Africa, Australia
World Furniture No. 61/March 2014
World Furniture No. 62/June 2014
World Furniture No. 63/September 2014
World Furniture No. 64/December 2014

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CSIL - World Furniture International Markets Review - #61 March 2014

  1. 1. World FurnitureInternational Markets Review 61 - March 2014 - Year 16 SPECIAL REPORT RETAILING SPECIAL REPORT RETAILING FOCUS ON LIGHTING BUILDING TECHNOLOGIES FOCUS ON LIGHTING BUILDING TECHNOLOGIES INSIDE 150 smart & fast cities of the world financial analysis of major players office furniture market in asia pacific INSIDE 150 smart & fast cities of the world financial analysis of major players office furniture market in asia pacific Cop.WF61 Caffè+arancio:CISL_XPRESS 26/02/14 12:15 Pagina 1
  2. 2. 10 EDITORIAL Larger role for cities worldwide by the Editor 10 POINT OF VIEW Italy between export and bonus by Sara Colautti 11 COUNTRIES World Furniture Outlook 2014 by Alessandra Tracogna 13 STUDIES Smart & Fast Cities. Forecasting furniture demand to 2020 by Jessica Catalano 15 EVENTS Milan Agenda. Today Salone del Mobile, tomorrow EXPO STRATEGIES Haworth acquires Italy’s Poltrona Frau Group 16 STRATEGIES Financial analysis of major furniture players in Europe SPECIAL REPORT RETAILING 17 STUDIES Furniture flagship stores by Aurelio Volpe 19 INTERVIEW The company world in a flagship store. Talking with Giulia Molteni 21 MARKETS Best bad retail season in the U.S. by Jerry Epperson MARKETS A new step of Scavolini’s road map in the United States 23 PROFILE Ghyczy’s multichannel choice 24 EVENT EuroShop 2014. Retail for the future by Paola Govoni 26 MARKETS Distribution in India. When furniture consumption peaks by Aurelio Volpe 27 MARKETS Brand strategies to target the Turkish consumers by Alessandra Tracogna FOCUS LIGHTING 29 MARKETS Growing market for lighting fixtures in Russia by Aurelio Volpe 30 RETAIL A new home for Fontana Arte in Milan 31 R & D Energy Strategy Berlin Adlershof 2020 32 REVIEW In Stockholm it’s all about Design, Sound and Balance by Mauro Spinelli FOCUS BUILDING 35 SCENARIO Windows and Doors World Market Outlook by Stefania Pelizzari 36 PREVIEW Sustainability and performing comfort at Fensterbau/Frontale 37 PROJECTS Beneteau headquarters. When HI-MACS® becomes a work of art 38 MARKETS Asia Pacific. A high performing market for office furniture by Mauro Spinelli FOCUS TECHNOLOGIES 41 R & D Lectra leather solutions help furniture manufacturers reach operational efficiency 42 PREVIEW Acimall. Looking at the global markets while waiting for Xylexpo 2014 44 PREVIEW Holz-Handwerk 2014. On the path of success again 45 MARKETS United States driving Italian marble exports 46 FAIRS CALENDAR 2014 World FurnitureInternational Markets Review Publisher CSIL Centre for Industrial Studies 15, Corso Monforte I-20122 Milano tel. 0039 02 796630 fax 0039 02 780703 Editor Paola Govoni Collaborators to this issue: Jessica Catalano Sara Colautti Jerry Epperson Paola Govoni Stefania Pelizzari Mauro Spinelli Alessandra Tracogna Aurelio Volpe Graphic Design backup8 Printer CPZ spa Via Landri, 37/39 I-24060 Costa di Mezzate (Bergamo) Annual subscription 2014 Euro 100 Frequency 4 issues/year in March - June - September - December Subscription Services Alessandra Cavada Registrazione nr. 92 del 03.02.1999 presso il Tribunale di Milano Spedizione in abbonamento postale 70% - Filiale di Milano Copyright CSIL All rights reserved. No part of this publication may be reproduced or transmitted in any form without the prior consent of the publisher. CONTENTS 009_CONTENTS_60:prova1 04/03/14 18:36 Pagina 9
  3. 3. EDITORIAL 10 WF - March 2014 POINT OF VIEW Johannesburg, South Africa, hosted the 5th biennial Summit of ‘C40 Cities-Climate Leadership Group’ Mayors in February 2014. Established in 2005, C40 is a net- work of large and engaged cities from around the world committed to imple- menting meaningful and sustainable climate-related actions locally that will help address climate change globally. The network welcomed three African cities, Cape Town, Dar es Salaam and Nairobi, bringing the total representa- tion of the continent to 7 member cities and total C40 membership to 66. The role of cities in tackling global cli- mate change is of crucial importance. More generally, there is evidence of a larger role for cities worldwide. We will be talking about that theme in this issue of the magazine, focusing on 150 Smart & Fast Cities, which are expected to be key actors of the world economic growth and also a promis- ing marketplace for furniture con- sumption up to 2020. Companies will- ing to increase and extend their busi- ness in a new market cannot disregard the peculiarities of cities within a country.There is much to read about LARGER ROLE FOR CITIES WORLDWIDE In the last years of 2013 there were conflicting signs, and first signals of a (weak) recovery as well, but all in all 2014 will be another hard year for Italian economy. Among the good news for the furni- ture sectors: the international trade is recovering and this will further pull the export growth of Italian compa- nies. While exports from Italy towards emerging countries will continue to growth in 2014, Italian companies should be ready to capture the signal of recovery showed by some European countries. CSIL estimates that Italian furniture exports will grow by +3% in real terms this year. Another good news: the decreasing gap between the domes- tic market and foreign markets trend. The gap reduces because the domes- tic market stopped falling down. The ‘bonus’ for furniture linked to the housing renovation has been extend- ed for entire year 2014. Thanks to this measure, retailers could witness a return of consumers to the stores and yet the last months of 2013 showed the first positive effect on fur- niture sales in Italy. CSIL forecasts for furniture consump- tion in 2014 and 2015 are positive, but growth is very modest (+0.9% in real terms for 2014 and +1.2% for ITALY BETWEEN EXPORT AND BONUS by Sara Colautti CSIL Industry Studies 2015) if compared to the fall over last years. Despite better results recorded on the domestic and foreign markets will lead to a growth of production (+2% in real terms), the situation of Italian companies of the furniture industry will remain critical. The selection process is already ongoing and the level of redundancy fund remains very high. It is worth noting that perform- ances among Italian furniture clusters have been extremely heterogeneous over recent years. The different per- formances of Italian districts mainly depend on differentiation of products and destination of export markets. forecasts for Italy and the World Furniture Outlook 2014 in this issue, which is also focusing on Lighting Fixtures, Building and Construction, Technologies for wood, leather and marble. The Special Report is dedicated to Retailing with highlights on flagship stores and retail strategies in Italy, the U.S., India, and Turkey. Special contributions from Stockholm, Düsseldorf and the Asia Pacific area are also included. Enjoy it! by Paola Govoni Editor 010_POINT OF VIEW_Check up:prova1 26/02/14 08:58 Pagina 10
  4. 4. COUNTRIES 11March 2014 - WF MAjOr FUrNITUrE IMPOrTING COUNTrIES. IMPOrTS, 2003-2013. CUrrENT US$ BILLION Source: CSIL processing of United Nations, Eurostat and national data 2013: Preliminary MAjOr FUrNITUrE ExPOrTING COUNTrIES. ExPOrTS, 2003-2013. CUrrENT US$ BILLION Source: CSIL processing of United Nations, Eurostat and national data 2013: Preliminary WORLD FURNITURE OUTLOOK 2014 by Alessandra Tracogna CSIL Country Analysis and Forecasts orld production of furniture is worth about US$ 437 billion (in current dollars). This estimate is based on CSIL processing of data from official sources, both national and international, that cover the 70 most important countries. The leading importers are the United States, Germany, France, the United Kingdom and Canada. The major exporters are China, Germany, Italy, Poland and the United States. In the 2003-2007 period there was a very large increase in the imports of the United States (from US$ 19 billion to US$ 26 billion in current dollars) and of the United Kingdom (from US$ 5.3 bil- lion to US$ 8.6 billion in current dollars), and smaller increases in France, Germany and Canada. The recession in the USA caused a major decrease in fur- niture imports (from US$ 26 billion in 2007 to about US$ 24 billion in 2008 and 19 billion in 2009), but growth of imports resumed in subsequent years. All major furniture importing countries have seen decreases in their import flows during the recession of these last years. By 2013 the USA and Canada have reached or exceeded the pre- recession level, while recovery is still slow in Europe. The share of import penetration for furni- ture (measured as the ratio between imports and consumption), for the entire world rose from 27.8% in 2003 to 30.6% in 2007. In 2008 and 2009 it decreased as a consequence of the recession, and remained below the pre-recession maxi- mum thereafter. The World Furniture Outlook 2014 report assumes that the international scenario will be the one forecasted by IMF. W 011_012_COUNTRIES vs8:prova1 28/02/14 12:20 Pagina 11
  5. 5. In the last ten years world trade of furni- ture (defined as the average between total furniture exports from the 70 major countries and total furniture imports into the 70 major countries) has grown faster than furniture production and has consis- tently amounted to about 1% of world trade of manufactures. World trade of furniture amounted to US$ 94 billion in 2009 (19% below the previous year) and grew to US$ 106 bil- lion in 2010, US$ 117 billion (i.e. the pre- recession level) in 2011 and US$ 122 billion in 2012. If the predicted world scenario is confirmed, world trade of fur- niture would be likely to grow in current US$ to US$ 124 billion in 2013 and to US$ 128 billion in 2014. The World Furniture Outlook report by CSIL contains data on furniture produc- tion, consumption and trade for 70 coun- tries. demand forecasts for 2014 and 2015 are also included. Furniture consumption is expected to record different growth rates in different geographical regions of the world, with mature economies growing at a lower speed and emerging countries showing higher growth rates. A summary of forecasts of furniture con- sumption in the 70 countries (grouped by geographical region) is as follows: Growth of furniture demand for the 70 countries combined is forecasted at more than 3%. The outlook at a glance is for: - extremely limited growth in Western Europe - slow growth in North America - fast growth in many emerging market economies, particularly in Asia. 12 WF - March 2014 COUNTRIES The following countries are covered in the ’World Furniture Outlook’ report by CSIL (edition November 2013): Algeria • Argentina • Australia • Austria • Bahrain • Belgium • Bosnia and herzegovina • Brazil • Bulgaria • Canada • Chile • China • Colombia • Croatia • Cyprus • Czech republic • denmark • Egypt • Estonia • Finland • France • Germany • Greece • hong Kong, China • hungary • Iceland • India • Indonesia • Ireland • Israel • Italy • japan • Kazakhstan • Kuwait • Latvia • Lebanon • Lithuania • Malaysia • Malta • Mexico • Morocco • Netherlands • New Zealand • Norway • Oman • Philippines • Poland • Portugal • Qatar • romania • russia • Saudi Arabia • Serbia • Singapore • Slovakia • Slovenia • South Africa • South Korea • Spain • Sweden • Switzerland • Taiwan • Thailand • Turkey • Ukraine • United Arab Emirates • United Kingdom • United States • venezuela • vietnam For more information about the CSIL report “World Furniture Outlook 2014” please contact: Online purchase and immediate download of all CSIL reports at: Source: IMF, World Economic Outlook, October 2013 EvOLUTION OF WOrLd GdP. ANNUAL PErCENTAGE ChANGE IN rEAL TErMS 2012 2013 2014 World 3.2 2.9 3.6 Advanced Economies 1.5 1.2 2.0 Emerging and developing Economies 4.9 4.5 5.1 WOrLd TrAdE OF FUrNITUrE. CUrrENT US$ BILLION Source: CSIL *Preliminary ** Projected FUrNITUrE CONSUMPTION By GEOGrAPhICAL rEGION 2014. FOrECASTS OF yEArLy ChANGES IN rEAL TErMS Source: CSIL 011_012_COUNTRIES vs8:prova1 28/02/14 12:20 Pagina 12
  6. 6. STUDIES for more than a quarter of the global fur- niture consumption. The selection of the cities was driven by looking at the growth rates expected by 2020 in terms of pop- ulation, economic welfare and consump- tion (fast dimension), as well as at the capacity of the city to enhance its resources through efficient infrastruc- tures, to improve the quality of life for its citizens, to create a favorable environ- ment for doing business, as well as to offer good investment opportunities (smart dimension). Results of CSIL research show that the selected 150 cities are expected to gen- erate a potential demand of furniture and furnishing products equal to US$ 160.8 billion in the year 2020, which repre- sents an increase of 42% compared to the value estimated for 2012. Overall, rising income levels, global economic exposure of the city, population growth, development of residential and office markets, booming of the tourism sector and the need to be prepared to host international events are amongst the fac- tors likely to drive the furniture demand of these cities by 2020. 13March 2014 - WF 150 SMART&FAST CITIES. FORECASTING FURNITURE DEMAND TO 2020 by Jessica Catalano, CSIL Industry Studies hy focusing on cities rather than on countries? Today, the world is more about cities than about countries. Cities are geographic concen- trations of people, skills, economic activ- ities and capital infrastructures, which are making them the key actors of the world economy’s growth. Companies willing to increase and extend their activities in a new market cannot disregard the development trend and peculiarities of the cities within a country. Population’s growth, citizen’s economic welfare, quality of life, avail- ability and accessibility to resources, quality of infrastructures, political stabili- ty, consumers’ attitudes are all factors that should be taken into account, when selecting a city where to invest. Which are the most promising cities for the furniture market in the coming years? A new research from CSIL titled ‘150 Smart&Fast Cities: Forecasting Furniture Demand to 2020’ and aiming to answer to this question has been issued in February 2014. The research throws light on 150 cities located in 72 countries and accounting W TALKING ABOUT CITIES Bangalore and Jinan are two fast grow- ing cities from the Asia Pacific area, which are expected to significantly push the demand for the furniture market. As a consequence of the population growth (higher than 30% by 2020), these two cities are expanding their geographical borders and putting pres- sure on housing stocks. In North America, population is project- ed to grow at a moderate pace com- pared to Asian cities. However, the ris- ing of the immigration rate is making cities like Denver, Houston, New York, San Francisco, Kolkota to become increasingly cosmopolitan. In Europe, cities such as Barcelona, Madrid, London, Brussels, Amsterdam and Athens are increasingly attracting students, working age people, young families and migrants. The young and multi-ethnic profile of these cities is believed to bring about different tastes, preferences, needs, purchasing atti- tudes and disposal income to the furni- ture markets. Consumers in Ho Chi Minn City are 013_014_COUNTRIES vs8:prova1 26/02/14 09:12 Pagina 13
  7. 7. increasingly becoming ‘west-oriented’ (especially young people). In Tokyo, con- sumers are paying much more attention to high quality and high performing prod- ucts, while Dalian is an emerging high- end market. Overall, the increase of economic wel- fare of the selected cities is expected to boost household disposal income and to increase consumption as well. By 2020, cities like Moscow, Dallas, Chicago, Tokyo, Singapore, Hong Kong will see an increasing share of households with a disposal income higher than US$85,000, which makes them appeal- ing markets for high-end products. KEY DEMAND DRIVERS The construction sector will be the driver of the furniture demand in many of the selected cities. Constructions of new houses are planned in Boston, Baltimore and San Diego in order to face the increase of immigration and expansion of middle-income groups. A booming hotel construction is expected in cities like Reykjavìk and Lyon in Europe. Lodging sector development is an important driv- er of many cities in the Middle East and South America such as Dubai, Doha, Lima, Rio de Janeiro, where increased tourism flows as well as the hosting of international events are pushing the lodging sectors which, in turn, will foster the demand for furniture and the furnish- ing products, especially in the contract sector. There are cities which are economically booming and are undergoing a radical transformation of their economy shifting to more service-oriented sectors, through the construction of Special Economic Zones (for instance Tianjin and Qingdao in China), high tech parks, implementation of large projects (e.g. Kochi is going to become the new Silicon Valley of the State of Kerala in India), construction of financial and com- mercial centers (e.g. Riyadh in the Middle East). These changes are expected to boost demand for new office space and in turn for workstations and office furniture. Cities like Bonn and Berlin in Europe, San Francisco de Quito in South America are transforming them- selves into international business venues and, by doing so, they are boosting demand for new business centers. While some cities are extremely interest- ing for their economically and demo- graphically fast growing rate to 2020, others deserve attention for being out- performer in terms of quality of life and ease of doing business and for boasting advanced transport infrastructure and strategic geographic position. The Australian Sydney and Melbourne are amongst the world’s most liveable cities along with Vancouver in Canada and 14 WF - March 2014 STUDIES The new CSIL report ‘150 Smart & Fast Cities: Forecasting Furniture Demand to 2020’ (over 360 pages, Edition I, Language: English) has been issued in February 2014. Comparative tables of 150 cities are provided, showing the expected range of growth which will be faced in 2020. 150 cities profiles include the performance of each city in terms of quality of life, business attractiveness and governance as well as the following key forecasts to 2020: Population growth rate, Gross domestic income per capita, Household growth rate, Household growth rate by level of income, Household’s consumption growth rate, Furniture demand. Data and forecasts are summarised in table format and are complemented by qualitative information which could be of interest for furniture and furnishing players, such as constructions planned in the city in the coming years, availability and quality of infrastructures, investment opportunities, booming tourism and international events to be hosted in the city, etc. Online purchase and immediate download at: For more information about the Report please contact Jessica Catalano: Vienna in Europe. Monterrey and Tijuana boast a strategic location for doing busi- ness, being located in Mexico and very close to the US market. 013_014_COUNTRIES vs8:prova1 26/02/14 09:12 Pagina 14
  8. 8. EVENTS 15March 2014 - WF peaking at the International Press Conference held in Milano, Palazzo Reale, last February, Mr Claudio Luti, President of COS- MIT, outlined the crucial role of the Salone del Mobile within the Italian furniture indus- try and the worldwide scene, focusing on the close relationship with the city during the forthcoming Milan Design Week. Mayor of Milan Mr Giuliano Pisapia partici- pated in the press conference, underlining that the Design Week in April will give once again its valuable contribution in terms of city involvement and visibility, being a model of success for the organisation of a huge international event, and this matters, also in the light of the forthcoming Expo 2015 scheduled to take place in Milan from 1 May to 31 October with leading theme ‘Feeding the Planet, Energy for Life’. The 53rd edition of the Salone Internazionale del Mobile is set for 8-13 April 2014, along with the biennial EuroCucina-Kitchen Furniture Exhibition and the International Bathroom Exhibition. Some 2,400 exhibitors are expected, and over 300,000 visitors from 160 different countries. There will also be a major cultur- al event at the Milan Fairgrounds Rho, involving eight leading international archi- tects. Salone del Mobile will boast not just the consolidated presence of leading national and global players, but also the new inclu- sion of high-end furnishing companies such as Hästens, Kvadrat, Iittala, Tom Dixon, and upmarket fashion brands such as Ferré, Pierre Cardin and Ungaro, mak- ing the wide range of goods on offer even more dazzling. Some well-known names will be back on the stands: Flötotto, Gebr. Thonet, SCP, Thonet, Treca, Wittmann. The increasingly close collaboration between Salone del Mobile and Milan’s City Council, including the Departments of Culture and Fashion and Design, will see two major initiatives designed to strength- en the promotion of Milan’s heritage and MILAN AGENDA. TODAY SALONE DEL MOBILE, TOMORROW EXPO S culture: the exhibition ‘Bernardino Luini and his sons’ (Renaissance painters) and free entrance to the city Civic Museums during the Milan Week. A further innovation at this 53rd edition of the Salone del Mobile relates to getting around the city. The Salone del Mobile and Car2Go, Milan’s car-sharing service, have signed an agreement enabling visi- tors to the Salone to “hire” the distinctive smart cars at the Milan Fairgrounds. STRATEGIES he agreement for the purchase by Haworth of the 58.6% of the share capital of Poltrona Frau has been signed, at the agreed price of Eur 2.96 per share. Poltrona Frau Group is the Italian leader in the segment of Luxury and Design furni- ture, with the iconic brands Poltrona Frau, Cassina and Cappellini. In November 2006 Poltrona Frau was listed on the Milan Stock Exchange. In 2012 the Group’s consolidated turnover reached Eur 247 million. An increase of +12% up to 276 million Eur is projected on the basis of the trend of the first nine months of 2013. Founded in 1948 and headquarteded in Holland (Michigan, USA), Haworth is among the top 4 leaders in the worldwide market for office furniture, with a 2013 turnover of US$1.41 billion, an increase of +7.3% on 2012. Haworth has been a part- ner of Poltrona Frau Group for North America since 2011. Also in the European market for office furniture, Haworth is rank- ing in the top 4 positions (even after having dismissed Castelli in the year 2011). One first synergy between the two companies is in the Contract business. Haworth is also active in segments like Hospitality and Education, while Poltrona Frau Contract division weights for a relevant 20% on total business. Poltrona Frau will open to Haworth highly performing markets like the Gulf Countries, and a primary retail network including 70 monobrand stores. Haworth will open new B2B opportunities to brands like Cassina (established in the U.S. since the 70s) and Cappellini. Franco Bianchi, CEO of Haworth since HAWORTH ACQUIRES ITALY’S POLTRONA FRAU GROUP T 2005, said: “We are highly motivated to continue to develop the extraordinary course that Charme started back in 2003, maintaining and enhancing the Italian tradi- tion of design and innovation that has been characterizing this group for over 100 years”. Poltrona Frau iconic Vanity Fair 015_STRATEGIES vs8:prova1 26/02/14 09:16 Pagina 15
  9. 9. ver the past few years, furniture spending of EU consumers has been contracting and competi- tion on the market is increasing. European furniture manufacturers are facing this difficult situation, trying to find their way out of the crisis. In a recent study, CSIL analyzed over 2,400 balance sheets of medium and large companies and found that turnover was +3.7% higher than in 2012 with respect to the peak down of 2008. Investments are also necessary to grant solvency and liquidity when facing diffi- culties. Shareholder fund were in 2012 +9% higher. The European average for the solvency ratio is acceptable (38%) and the same is true for the current ratio (1.7). But difficulties remain… Employment reduced by -2%, ROE passed from 11.9% to 7.6% and EBITDA decreased from 7.1% to 5.7%. Furthermore, within Europe, some countries are growing rapidly and others are lagging behind. Comparative advantages such as the low cost of labor, the presence of abundant raw materials, the technological endow- ment and the investments in the sector (made by national or foreign companies or fuelled by institutional bodies) are key drivers. The fast growth of Central Eastern European countries gives evidence that labor cost is an important issue. In CSIL sample it takes a share of 20% of the company turnover and the average cost per employee is in the range of Eur 30,000 in Europe, but it is five times lower in Central Eastern Europe with respect to Germany. However, this is partly counterbalanced by the higher added value generated in the leading western European countries such as Germany, Scandinavia and (to a lesser extent) in Italy, where the added value per employee is over Eur 60,000 in the sample of companies considered here. The reference market is a key issue. The mattress segment is recording particular- 16 WF - March 2014 SAMPLE* BREAkDOwn By SEGMEnT. % Source: CSIL processing STRATEGIES FINANCIAL ANALYSIS OF MAJOR FURNITURE PLAYERS IN EUROPE O Sample* = 660 balance sheets of companies for which a more in-depth analysis was conducted ly favourable market conditions and turnover in the sample increased by over 10% in the period considered (2008- 2012). Operating in niches is also a valu- able strategy. Companies operating in the contract segment were fast growing in terms of turnover and can count on two digits in the ROE. Value added cre- ation is also higher in the outdoor and upper end segments, where EBITDA is in the range of 8%. On the other side, mass production of RTA furniture creat- ed employment (particularly in Central Eastern Europe) and generated high returns on assets (ROA is 4%). Each company’s ability in putting innova- tion, design, quality and efficiency in the production process, in gathering money from the market and from investors and in making it profitable, is the key issue. The CSIL analysis conducted at compa- ny levels ranked the top performers on the basis of the financial data from bal- ance sheets. Good performing results of a group of 100 companies demonstrated that prof- itability is still possible for furniture com- panies and this is true not only for large companies, even if company size still matters. (A.T.) For more information about the CSIL report “Financial Analysis of the Major Furniture Players in Europe” please contact: Online purchase and immediate download of the report at: 016_STRATEGIES vs8:prova1 26/02/14 09:20 Pagina 16
  10. 10. 17March 2014 - WF FURNITURE FLAGSHIP STORES by Aurelio Volpe CSIL International Market Research SPECIAL REPORT STUDIES RETAILING n February 2014 CSIL published a brand new market report on ‘Furniture Flagship Stores’ world- wide. The Report provides 300 case histories on monobrand and flagship stores managed by trendsetter furniture players in selected countries. Most of these stores are located in the top 100 Megacities and Fast Growing Cities, that will host a relevant part of the world population and revenues by the year 2020 (see also on page 13 of this issue). There are different ways to explain what a flagship store is. Usually it is defined as a monobrand store (although not all monobrand stores can be considered flagship stores) and frequently it is locat- ed in the very heart of a fast growing city (but sometimes the best location could be in a loft of a former industrial site…). A store having the most trained sales force, medium to big size, and show- casing a complete range of the compa- ny products. These are other criteria to bear in mind. Investment in the region of one million Eur is needed to build a furniture flagship store from scratch. Furniture in the stock can easily be worth some 250 thousand Eur (depending on brand and size of the store) and the cost for building a store can be easily in the region of 2000 Eur per sq.m. So, it is a hard work to do. Not for ‘common’ furniture manufacturers. TWO MAIN DRIVERS In its new report, CSIL could identify at least two main drivers for establishing monobrand stores: on the one hand, there is a urgent need to “explain” the philosophy and product range of a trend- setter company, and, on the other hand, I Kartell Beijing Flagship Store 017_018_SPECIAL REPORT vs8:prova1 26/02/14 09:24 Pagina 17
  11. 11. rents in megacities like London, Tokyo or Rome are getting more and more expen- sive. Furniture distribution in the mass market progressively left the city centers. The cost of investment to re-launch a trendsetter furniture store is now fre- quently shared between furniture manu- facturers and retailers. The rentability of the store will be sustained by a high rate of success in the sales deals (25% is a good score) and contract sales. There are also successful alternatives like shop-in-shops (usually sized 100- 150 sq.m.) or co-branding or showcas- ing the company range in “real houses”: Christine Kroncke, 10 Corso Como, and Lago Apartments are three examples of different retail opportunities. Flagship stores may have many and well located windows (8 windows for Natuzzi store in Beirut) and they are well equipped with all kind of new generation retail software. Frequently, flagship stores are designed by archistars (Hirsch Associates for the new Roche Bobois 18 WF - March 2014 The new CSIL report ‘300 Furniture Flagship Stores’ offers detailed information about locations, brand policy, economic data and merchandise mix for flagship stores of leading international furniture players. Publication date: February 2014, Edition I, Language: English. The report is available for online purchase and immediate download at: store in Chicago) A flagship store should not be necessarily big but, for example, “The Kraftwerk” of Kare Design in Munich has an exhibiting surface of some 10,000 sq.m. Asia Pacific is home of a new wave of flagship stores run by leading internation- al furniture players, like, for example, the new Kartell store (designed by Ferruccio Laviani) opened in Beijing at Sunlitun Village, in cooperation with the Chinese company Gold Bond Enterprises. The store has a large 400 sq. m. showroom just nearby, where architects, clients and contractors can see the whole col- lection. SPECIAL REPORT STUDIES RETAILING 10 Corso Como in Milan Casamilano Flagship Store in Vienna Event at Bulthaup Flagship Store in Milan 017_018_SPECIAL REPORT vs8:prova1 26/02/14 09:24 Pagina 18
  12. 12. 19March 2014 - WF THE COMPANY WORLD IN A FLAGSHIP STORE Giulia Molteni Retail Manager Molteni & C spa SPECIAL REPORT INTERVIEW RETAILING e spoke to Giulia Molteni, a member of the third genera- tion of the family that found- ed Molteni&C in Brianza in 1934. Today the firm has four production sites in Italy on a total covered area of 161,000 square metres with 800 employees and a 2012 turnover of Euro 225 million. The Molteni S.p.A. holding comprises four separate companies: Molteni&C (home furniture), Dada (kitchen furni- ture), Unifor (office furniture) and Citterio (home and office furniture), with nine commercial branches in America, Europe, Asia and Australia. The Group is active on the residential market (62%) and on the contract market (38%) with a global presence, although the European market predominates (60%). During our interview we discussed the W distribution strategies of the Group, which boasts a direct presence in more than 60 countries around the world, with 22 mono-brand stores, eight of which are in Italy and 16 abroad, plus 11 office showrooms. Q) What constitutes a flagship store for Molteni, and what difference is there, if any, between a flagship store and a mono-brand store? A) There is a difference. For Molteni flag- ship stores are the most representative stores of the brand. In our case they are multi-brand stores, because there are two brands present, Molteni&C and Dada. These are large stores, from 400- 500 square metres to as much as 800 square metres for the New York store. The first difference between flagships and mono-brand stores is the size of the outlet; the second difference is the loca- tion. While the mono-brand stores are located mainly in small to medium-sized cities, we have flagship stores in Milan, London, Paris, New York, Singapore, Brussels and Mexico City (due to open May 2014). Q) What must a flagship store communi- cate? A) It must represent the values of the brand and know how to best get them across, not only as regards the products on offer, but also the company identity and philosophy of quality. Naturally, it is also a showcase for presenting new products, for organising previews, talks with designers and architects, and ad hoc events. The stores are also excep- tional information receptors to under- stand what the market is looking for, and to collect suggestions, opinions and advice about product integrations, fancy goods or carpets, for example. Naturally, to succeed in communicating the values of the brand in the best way possible, our personnel needs to be highly trained and capable of making a good first impression on the customer and following him/her in a totally profes- sional manner in all the steps of the pur- chase. For this reason we pay particular attention to training and in 2013 we cre- ated the Dada Academy to transmit the philosophy and values that inspire the firm. Q) Tell us about the Milan flagship store A) The Milan store opened in 2005 and offers a display area of 600 square metres. Here the windows are dressed ad hoc by our art directors and inspired by different concepts during the year, usually changing three-four times a year, mainly linked to seasonality and to the main sector events (e.g. the Salone del Mobile, autumn, Christmas). Flagship Store Molteni&C Dada New York Dedicated event in New York 019_020_SPECIAL REPORT vs8:prova1 26/02/14 09:29 Pagina 19
  13. 13. Q) Do you own your flagship stores, or are they joint ventures with a retailer or someone else? Do you have agreements with other producers? A) There is no hard and fast rule; it varies from case to case. In some stores, like Singapore, Brussels, Milan and Mexico City, management is shared with the client under a franchising contract. In others, like Paris, London and New York, the firm manages the stores directly and rents the premises. The cost of samples may be shared according to specific agreements. Q) Have you tried co-branding or alterna- tive concepts to the flagship store? A) No, we believe in the philosophy of mono-brand and flagship stores. But I would like to mention an event that we organise in conjunction with Ferragamo in their store in Via Montenapoleone dur- ing the Milan Salone del Mobile, which has been a great success with the Italian and international public. We share many 20 WF - March 2014 SPECIAL REPORT INTERVIEW RETAILING brand values with Ferragamo and again this year we will be launching an event together for the Fuorisalone in April. Q) How important are online sales for Molteni and how do customers behave in the store, have they previously visited your website, do they use Smartphone apps or do they do what the Americans call ‘showrooming’ (using your phone to look for the best price for an article while you are in the store)? A) In our stores we monitor access and analyse the requests from customers and visitors (type of product, finishing, markets). Stores are equipped with touch screens and corporate smart app to guarantee an interactive presence. Generally speaking, we tend to discour- age customers from purchasing our products from websites, you could say we put up with e-commerce rather than benefit from it. For this reason, in mar- kets where e-commerce is particularly popular, like in Anglo-Saxon countries, we try to enhance the degree of service in our flagship store (in this case, the London one) to provide the customer with a useful, personalised and profes- sional experience, which they cannot get over the Internet. . Q) Is there any one aspect of your prod- uct range that you would like to highlight? A) Certainly, the Gio Ponti Collection. This was a cultural operation, with the agreement of his heirs, to recover some designs from the immense archive left by the architect and give new life to prod- ucts that would otherwise be lost. We shall soon be presenting new items in this collection that is being very well received, especially at an international level, where Gio Ponti was famous and highly appreciated, and also thanks to a series of dedicated events that we have organised in Los Angeles, New York and Paris called ‘Vivere alla Ponti’ (Living Ponti-Style). (Interview by Paola Govoni) Flagship Store Molteni&C Dada Milano 019_020_SPECIAL REPORT vs8:prova1 26/02/14 09:29 Pagina 20
  14. 14. 21March 2014 - WF BEST BAD RETAIL SEASON IN THE U.S. by Jerry Epperson SPECIAL REPORT MARKETS RETAILING e have read a lot of analysis of the 2013 calendar year’s retailing, including the impact of the internet, changes in shopping patters, and even the sustainability of certain American retailers. For December, overall retail sales (not just home furnishings) rose 0.2%, and 4.1% year-to-year. For 2013, retail sales grew 4.2% with inflation of 1.5% for a real gain of about 2.7%. Overall, non-store retail sales grew 1.4% in December and 9.9% year-to-year. That includes the internet, catalogs and home heating oil deliveries, among other things. That doesn’t sound too bad, does it? But that’s not the full picture. First, the impact of the Great Recession continues with the American consumer. Consumers want value and the new nor- W mal for many purchases is 50% off. Looking at Amazon, eBay or most inter- net sites, the focus is on discounts, which are supposed to create an urgency for the purchase. Here lies part of the problem. The veil of retail mark- ups has become largely transparent and in many product categories, the lowest price or even the vendor price is easily available to the consumer. Price compe- tition in an internet world with free ship- ping becomes a matter of trust and urgency. Second, we have seen a move away from traditional brands. Consumers will make do with something other than the most recognized brands if they feel com- fortable with the retailer. For example, both Prada and Gucci are leaving a lot of their department store dealers and going both online and aggressively opening their own single brand stores in high fashion shopping areas. This is done to enhance their margins, to build direct consumer relationships, to assure the consumer a proper buying experience, and to leverage the value of brands. There are parallels, of course, in home furnishings as Ethan Allen, Ashley, Thomasville, Select Comfort, Bassett, Norwalk, Drexel-Heritage, La-Z-Boy, and more recently Tempur-Pedic and Serta have all utilized the single-brand con- cept, although most of them did not abandon other multibrand or multi-prod- ucts retailers. This has challenged the independent retailers of all types to depend more on their own brand identi- ties, relationship with the consumers and has created more competition for the once dominant brands in almost all merchandise. Third, during the recession, many of our brick-and-mortar stores reduced inven- tories, and in doing so, hurt themselves in terms of servicing the consumer and this may work to the immediate benefit of the internet and its virtually unlimited assortment. As a result, the rules of shopping have changed to be a combi- nation of finding the product, finding it to be adequate for the need at a reason- able price, and actually buying it. Fourth, in 2013 the number of people walking through stores was greatly reduced from the levels that had been expected when the retail real estate was built. In addition, the consumers went to the stores and bought what they has researched, but they did not stay in the stores and shops. They were in and out. They are not browsing and buying high margin impulse goods. Thus, because of the internet, the consumers are looking at fewer stores and taking less time while there. Fifth, at the absolute core of this problem is that most of our current prime retail real estate was built to service the mas- sive 77 million person post-war ‘Baby Boom’ generation, now 50-68, not the much smaller 47 million person Generation X, aged 35-49 and in the most important buying age for many con- sumer products. The good news, of course, is the much larger 72 to 80 mil- lion Millennial generation will begin to move into the key buying ages in 2016. Speaking of malls, there have been no new malls built since 2006 and the vacancy rate in malls is the highest it has been since recession of 1991, but furni- ture stores are not typically mall-based. All in all, holiday sales of furniture were up in US, but heavy discounting to gen- erate traffic kept profits very soft. We’ve also learned that consumers want physi- cal stores, but not for everything. 021_022_SPECIAL REPORT vs8:prova1 26/02/14 09:36 Pagina 21
  15. 15. he first Florida Scavolini Store opened in Miami last September, as a new step of Scavolini’s road map in the United States, following the Scavolini Soho Gallery opened in 2010 in New York, that nowadays is reported to be the largest kitchen showroom in Manhattan. Founded in Pesaro (Central Italy) in 1961, in a few years the family-owned company turned to be one of the most important Italian industries and since 1984 the leading company in the kitchen furniture manufacturing sector. More recently, the Consumers want stores that have an atmosphere, that have decent prices, a wealth of service, advice and interaction. Stores either have a good vibe or they didn’t. To survive, brick-and-mortar stores must offer an experience that can- not be recreated online and a merchan- dise that requires an educated pur- chase. Furnishings that are sold are not a commodity. Stores need to remember other strengths like consumer financing, decorating assistance, complentary sales and rapid delivery with recourse. 22 WF - March 2014 The Furnishings Digest is published monthly and is free of cost to anyone in the home furnishings industry, offered by Mann, Armistead & Epperson, Ltd., the leading investment banker in the U.S. furnishings sector. To receive the Digest, please e-mail Jin S. Ko at According to IBM, ‘showrooming’ (i.e. using your mobile device to look up and finding a better price for an item while in store) has not had nearly the impact that most people expected. In this last holiday season, 40% of consumers used elec- tronic devices to find the best price but only 8% used it to buy. Consumers value convenience and if they can find what they are looking for at a good price locally, they will continue to buy it. SPECIAL REPORT MARKETS RETAILING A NEW STEP OF SCAVOLINI’S ROAD MAP IN THE UNITED STATES T company entered the bathroom furniture sector under the brand Scavolini Bathrooms. The company’s production site is located in Pesaro on 204,215 sq.m. with some 550 empoyees. The new Scavolini Store Miami is located not far from Miracle Mile in Coral Gables on a surface of over 300 sq.m. showcas- ing a whole range of kitchen and bath- room furniture, from minimal contempo- rary furnishing solutions to sophisticated combinations and innovative, high-tech, ergonomic and multifunctional design, all expressing Italian lifestyle at its best. The store is managed by Group 2600, a company specializing in interior design projects, and offers a number of free-of- charge services like: 3D design, trans- portation, assembling, post-sale assis- tance. Today, the Scavolini Store project launched in 2006 boasts 80 Stores in Italy and 60 abroad. The company’s whole retail network comprises over 1000 stores in Italia, 150 in Europe, 50 in Russia and Eastern Republics, 30 in North America, 15 in Central/South America and 15 in Asia and Oceania. 021_022_SPECIAL REPORT vs8:prova1 26/02/14 09:36 Pagina 22
  16. 16. 23March 2014 - WF SPECIAL REPORT PROFILE RETAILING n an attempt to explain the true character of his work, Peter Ghyczy defines himself a “Createur Fabricant”. “Never totally free to design what I want, I’am always feeling closed between the restricted lines of the right quality/price ratio, but this way of working finally leads to a discipline, both in creation and production” he says. Born in Budapest in 1940, he is one of those personalities, who in the ‘60s lifted the furniture design to a whole new level. End of the ‘60s he started working with plastic in the ‘Design Centre’ of the Reuter company. At that time plastic was a brand new material and a very promising one. It was ‘modern’ and trendy, until in 1973 the first oil crisis broke and the initial signs of shortage of the raw material changed the feeling of the industry and the consumers. In the following years, plastic was not ‘IN’ anymore. Peter Ghyczy began working with glass, metals (brass, copper, stainless steel, alu- minium) and wood (sometimes coming from 200 year old German oak trees). Self-explaining products were made, with I quality materials as a priority choice and refinements in every detail. Peter’s design was based on innovations in the technical industry, combined with a refined touch for creating customized comfortable items. Craftsmanship and industry merged together and created serene interiors with lasting value objects. Peter’s son Felix took over his father’s company several years ago. He reorgan- ized it according to the Kaizen principles of lean production. Collections and pieces of furniture are mostly sold through retailers, often as a collector’s item by well-known vintage retailers and the major auction houses like Christie’s. The iconic ‘Garden Egg Chair’ designed by Peter Ghyczy in 1968 is part of the fix collection of many museums worldwide, such as the Vitra design museum in Germany and the Victoria and Albert Museum, London. The company accounts for a yearly turnover of 1 million Eur. Main markets are Germany (60% of total sales), Holland (30%) and Belgium. Target markets are Brazil and Italy. Plans about Italy include an event at ‘Galleria Milano’ during the Salone del Mobile next April, addressing retailers and international interior archi- tects. The big challenge is the search for new agents, interior designers and retail- ers for these ‘haut couture’ collections. Sales and visitors in the Internet are per- forming well. “We have about 2000 unique visitors per month in our website” says Felix “and 20% are returning visitors. We have recorded some 600 search requests per month for Ghyczy direct in Google and almost daily new Ghyczy items or items related to Ghyczy are sold in e-bay. According to the figures from Archiexpo, last year 224,653 views of the brand were recorded, of which 55,000 from Italy”. Dining table GHYCZY’S MULTICHANNEL CHOICE Black shades Sensual textures and quality details Personalised interior 023_SPECIAL REPORT vs8:prova1 26/02/14 09:39 Pagina 23
  17. 17. uroShop 2014 from 16 to 20 February has been the largest edition ever since the exhibition was launched in 1966. The World”s Leading Retail Trade Fair taking place every three years in Düsseldorf recorded over 2,200 exhibitors from 57 countries and some 109,000 visitors from 110 countries. Four exhibition sections in 16 halls offered a huge platform and a valuable source of inspiration for companies and professionals in the fields of: - shopfitting, architecture and store design (from innovative materials to floor- ing, from refrigeration/air conditioning to lighting) - shopping experience, visual marketing and emotional merchandising - retail technology solutions in customer service, POS and mobile shopping - marketing, communications, design and layout of exhibitions and special events. According to Michael Gerling, CEO EHI Retail Institute in Cologne, the global retail sector is currently facing its greatest challenges in decades. Profound changes in consumer purchasing behav- iour, rapid technological changes, the ongoing globalisation of the sector and the emerging of new marketing and distri- bution models demand from retailers a high degree of entrepreneurship, creativ- ity and innovation readiness, in order to ensure their survival and generate new 24 WF - March 2014 SPECIAL REPORT EVENT RETAILING business opportunities in the future. A recent CSIL study on “The Contract Furniture and Furnishings market in Europe” indicates that there were some 2.5 million commercial businesses in EU17 (EU15+Norway and Switzerland) in 2010, with the number of firms operating in the retail sector in Europe decreasing by -3% since 2002. Although the number of shops reduced and many long-estab- lished retailers who missed the change disappeared from the market, the retail sector still remains a stable pillar of the overall economic expansion in the medi- um term, showing noticeable differences in the retail landscape (depending on dif- ferent distribution systems in each coun- try) and with a number of new players emerging, who will bring innovative prod- ucts ranges and store concepts into the markeplace. The enormous speed of new concepts conquering the market is going to short- en the lifecycle of stores, thus accelerat- ing their renovation, with a high profes- sional approach to sourcing behaviour in shop and shopfitting investment. TRENDS TO KEEP IN MIND The material mix in shopfitting implies a sustainable shop design with the increas- ing use of natural, eco-friendly and recy- clable materials. Colours from nature, solid surfaces and wood finishings are fashionable and wellbeing inspiring. Being able to create a special ambiance is one of the priorities if you want to attract customers. Trends toward individuality in shop design and a desire to surprise clients with total optical and/or tactile enjoyment, fuel the innovation development climate around shopfitting and booth construction mate- rials and structures. Be it painted metal, veneer made from banana trees, photo- luminescent granulate or bendable and rollable plywood, rustic wood, but also stone or concrete, acoustic boards or vertical green space and water walls. It”s all on show at EuroShop. The lighting sector has been booming this year with the entire Hall 11 showing the complete spectrum of modern light- ing technology and design for store light- ing, be it emotional light experience for promoting sales, corporate light con- cepts, energy-efficient and sustainable architectural lighting. LED technology is becoming ever more established and additional investment in energy-efficient lighting, refrigeration and air conditioning is the rule. MULTICHANNEL RETAILING No doubt, the online business is boom- ing. According to data from the US com- pany eMarketer, the web-based B2C sales were expected to increase by 17% in 2013. The hot spot is the Asia-Pacific region with a growth of 23%. In China EUROSHOP 2014. RETAIL FOR THE FUTURE E by Paola Govoni 024_025 SPECIAL REPORT vs8:prova1 28/02/14 12:21 Pagina 24
  18. 18. alone online sales are climbing by 65%, while Indonesia shows growth rates of 71%. Far-seeing brick-and-mortar retailers are aware of the change and they are devel- oping into cross, multi or omni-channel dealers. A typical entry step into multi- channel retail is “click & collect”. The customer buys a product online and then picks it up at the retailer”s outlet. “Multichannel retailing is becoming a standard for retailers worldwide, and it is a decisive success factor for a growing number of companies” observes Thilo Freund, Managing Director of MICROS Retail Deutschland GmbH. “Multichannel retailing probably repre- sents the most radical change retail has experienced since the establishment of self-service in the middle of last century. The synthesis of both worlds, the digital and the real one, embodies the model for success for the retail sector of the future” says Jürgen Berens von Rautenfeld, CEO of Online Software AG. VISUAL MARKETING U.S. and Asia are rapidly adopting digital signage solutions. “Digital signage allows us for unusual marketing strategies” says Klaus Lach, CEO and Vice-President of the European Visual Marketing Merchandising Association (VMM). “These new tools are a necessity in get- ting consumers’ attention. Nowadays the merchandiser should always check and see whether the deployment of digital design elements might be an option, keeping the needs of the target audience in mind”. For your agenda: next edition of EuroShop Düsseldorf is scheduled to take place from 5 to 9 March 2017, whereas from 13 to 15 May 2015 the first EuroShop edition in China will be held in Shanghai. 25WF - March 2014 EXPERIENCE THE DIFFERENCE Under the motto “Experience the differ- ence” addressed to architects, planners, designers and retailers, EGGER present- ed the 2014 ZOOM innovations for the first time at EuroShop. The collection has been expanded by 20 decors in 7 striking textures. 6 of the sur- face textures were newly developed. Based on highly modern technologies, the innovations with surface textures that can be felt, seen and experienced repre- sent a whole new generation of products and promise maximum expressiveness for the user. “The ZOOM innovations are accompa- nied by a whole new generation of sur- faces that combine the best of two worlds. The special depth of the surface texture results in an entirely new product experience that is both visual and tactile. This is the next generation of melamine boards in the perfection of appearance” says Hubert Höglauer, Head of Marketing EGGER Group. The new developments follow the innova- tion in technologies – for example the ability to press synchronised pore sur- faces on both sides – and current design trends. Verena Michels, Design and Decor Management EGGER Group, explained that the innovations integrate the ZOOM Collection with material and decor char- acteristics that can be experienced, fol- lowing the trend of authentic and striking types of wood and wood reproductions with the new decors Gladstone Oak or Jackson Pine. “We are meeting the uni colour trend for furniture with reddish- warm grey with a matt look and a warm feel. With the decor series Tortona and the Feelwood Elegance synchronised pore surface, with the Painted Wood tex- ture on uni colours as well as the discreet wood reproduction Orleans Oak, we are responding to the sustained, popular trend of elegant naturalness”. With the 2014 ZOOM innovations fitters, cabinet makers and shopfitters are pro- vided with a source of inspiration and great design flexibility. Customer require- ments can be met with individual designs. With the product characteristics of melamine faced boards (such as scratch resistance, colour fidelity for the entire lifecycle of furniture, and easy cleaning), they offer the highest quality with a per- fect natural look and feel. At EuroShop EGGER presented a wealth of solutions for shop fitting and exhibition stands, such as: - Compact laminate with a black or white core, for high-end furniture and elegant designs with slim dimensions, resistant to impacts, bending and moisture - EUROLIGHT lightweight building boards, that support the integration of electronic components - Acoustically effective boards with cus- tom perforation patterns for wall panelling or partition walls, ceiling applications and ceiling systems also equipped with the LED auriLUX lighting system - EGGER cork + flooring collection: silent, warm ecological. Suitable for com- mercial applications and hotel rooms. EGGER Press Conference at EuroShop 024_025 SPECIAL REPORT vs8:prova1 28/02/14 12:21 Pagina 25
  19. 19. ndia is one of the main furniture markets in the world, due to a huge domestic market of over 1.2 billion inhabitants. According to CSIL brand new report “Furniture Distribution in India”, local furniture consumption is expanding rapidly and reached a new peak of US$ 14.8 billion in 2013, over three times higher than in 2002. A further 4%-5% yearly increase is forecasted for the coming two years. Market values are considered at retail prices and include both furniture and furnishings (decorative lighting, mattresses, accessories and other home related items). Why TO gO TO InDIA? The first region is that more and more affluent Indians prefer to buy branded fur- niture (15% of the market until yesterday, now around 30%). Branded products and increasing imports of low-cost furniture are now challenging India's highly skilled carpentry industry. The second reason is: after recent policies to allow 100% for- eign direct investment (FDI) in single- brand retail, competition is going to be intense in the near future for furniture companies in India. Just to mention IKEA’s Rs 10,500 crore investment (Euro 1.2 billion). China, Italy and Malaysia are the main furniture exporters to India. But also Scandinavian (Bo Concept) and Americans (Maitland-Smith) are opening their monobrand stores over there. The CSIL report focuses on suggested 8 Megacities and 6 Indian States with expected high growth of household expenditure by 2020. Maharashtra, one of the targeted mar- kets, today hosts around 14% of urban population and represents 22% of furni- ture consumption (approximately US$ 3,250 million). Future growth for Mumbai, nashik and Pune metropolitan areas is given up to 2020. Mumbai (pre- viously known as Bombay) is the most populous Indian city and the 4th largest one in the world. Known as India’s com- mercial and entertainment capital (Bollywood), the city generates 6.6 % of India’s gDP and 30% of tax collection, and it ranks 7th in the list of "Top Ten Cities for Billionaires" by Forbes maga- 26 WF - March 2014 The new CSIL report ‘Furniture Distribution in India’ offers detailed information about size of the market, recent developments and future trends, import penetration, demand determinants. Furniture consumption by market range and product segment, retail prices, countrywide distribution channels, focusing on 8 megacities and 6 Indian States. Short profiles of top retailers and importers. Publication date: February 2014, Edition I, Language: English. The report is available for online purchase and immediate download at: SPECIAL REPORT MARKETS RETAILING zine. Mumbai is the third most expensive office market in the world, and ranked among the fastest cities in the country for business start-up. Among the largest dis- tributors with headquarters in Mumbai there are: godrej Interio, home Town, @home and Durian. Andra Pradesh today hosts around 7% of urban population and represents 9% of furniture consumption (approximately US$1,330 million). Andhra Pradesh has the biggest seaport at Visakhapatnam, with feeder services to Europe, Russia, USA and the Asia Pacific area. Bangalore, known as the Silicon Valley of India, is an IT/software hub. 5th largest Indian city, Bangalore also is home to R&D centres of companies like Airbus, Bosch, Boeing, gE, gM, google, Microsoft, Mercedes-Benz, nokia, Oracle, Philips, Shell, and Toyota. The city is a preferred retail destination after by Aurelio Volpe InDIA. FURnITURE COnSUMPTIOn By SEgMEnT, 2013. PERCEnTAgE ShARES Source: CSIL processing Delhi and Mumbai. Total operational mall space (as for 2012) is 7.65 million sq. m. Mantri Square at Malleshwaram, Phoenix Market, City at Whitefield and Brigade Orion at Rajkumar Road are key regional malls, while The Forum at Koramangala and Royal Meenakshi Mall at Bannerghatta Road are prominent com- munity malls in the city. There are about 25 existing Malls, plus 15 under con- struction and 15 in the pipeline. By 2016, Bangalore is expected to wit- ness additional 5.67 million sq.ft. of retail space. Luxury retail emerged as a new concept in the city with the successful establishment of UB City at Vittal Mallya Road. Other high street locations are Lavelle Road and Indiranagar 100 Feet Toad (Viveks, Veneta Cucine). Bangalore is expecting to witness the entry of major brands like Carrefour, WalMart, and IKEA. DISTRIBUTION IN INDIA. WHEN FURNITURE CONSUMPTION PEAKS I 026_SPECIAL REPORT vs8:prova1 26/02/14 10:18 Pagina 26
  20. 20. 27March 2014 - WF BRAND STRATEGIES TO TARGET THE TURKISH CONSUMERS by alessandra tracogna SPECIAL REPORT MARKETS RETAILING s a result of better economic conditions and the recovery after the crisis, turkish con- sumers started to pay more attention to their homes and they are going to increase their spending on fur- nishings. also they are upgrading furni- ture, with a substitution ratio that lowered to 9 years on average. the increasing number of young people leaving alone is a further driving force. this resulted in a higher number of furniture stores all over the country and in a huge variety of prod- ucts and brands on the market. market ranGe and purChaSInG attItudeS according to preliminary estimates, total turkish furniture consumption in 2013 accounted for eur 4 billion (at producer prices). abdullah tuglu, Secretary General of moSder – association of turkish furniture manufacturers representing over 50% of turkish furniture exports and 65% of domestic production – stated that the main criteria of consumer choice when purchasing furniture are: brand, customer assistance and post sales serv- ices, with an increasing attention paid to quality and product details. the upper end of the market is dominated by foreign suppliers, with Italy and Germany accounting for over 20% of total imports (around uS$ 150 million), where- as Chinese companies are penetrating the market in the lower end. In the middle and middle-upper end of the market (esti- mated to be around 70% of the total), turkish branded furniture chains predomi- nate (both owned stores and franchising stores). foCuS on Store openInGS turkish companies and the government are aware of the importance to target the domestic market (and the export one) through brand reputation, good quality product and additional services. on the public investment side, the turQuaLIty program should be mentioned, aimed to create a positive image and branding of turkish goods in different sectors. a among the sector events, ISmoB 2014 Istanbul furniture fair (28 January-2 february) hosting over 300 exhibitors on 120,000 sq.m., was a showcase for lead- ing sector companies. When asking companies about their strategies, the most common answer is: ‘store openings in 2014’. opening a store in Istanbul costs around eur 150,000. the investment for opening a store abroad is in some cases supported by the government (for example coverage of the rent cost). CILek a.S., operating in the baby/chil- dren/teen bedroom segment, runs over 440 stores all around the world. aLfemo, a family owned company strongly convinced of the brand impor- tance, is also following the trend with a target of 30 new stores in 2014. Quality is a must for tepe, sourcing row materials from Germany and opening 4 new stores in 2014. keLeBek moBILya will increase its showrooms in the kitchen segment (and continue to invest in its contract division) and its sister company doGtaS has a schedule of +20 furniture stores and +15 bedding stores all over the country and not only in main cities (Istanbul, ankara and Izmir). the Boydak Group, one of the largest turkish companies established in kayseri, is present on the market through several brands. among them: Istikbal, Bellona, mondi. the mattress segment has been growing fast with an increasing consumer attitude toward ergonomy and a higher attention to quality, when replacing old mattresses. the spending in the medical sector is also very high. the offer is diversified with spring mattresses still prevailing, but latex and foam are also present. yatSan, a specialist in the sector, expects a +15% growth for the year 2014 and operates through 57 owned shops in the middle to high market end. most of turkish companies of the furniture industry are supported and active on the foreign markets, (mainly in Lybia, azerbaijan, Saudi arabia) with the same formula. the export growth of last year was extremely important for many compa- nies investing abroad and a stimulus to continue in the future. turkey. nomInaL houSehoLd fInaL ConSumptIon expendIture per CapIta. uS$. 2003-2013 Source: CSIL processing on World Bank data 027_SPECIAL REPORT vs8:prova1 28/02/14 12:22 Pagina 27
  21. 21. he Russian market for lighting fixtures totalled Eur 1,488 mil- lion in 2013, accounting for an average yearly growth of 5.5% (in EuR) during the last six years. in local currency, the average growth is in the region of 8.6% per year. The Central District (including Moscow) still generates most of the lighting fixtures sales (36%), although its weight is by far less predominant than ten years ago (55%). in 2012, China and italy together accounted for around 54% of total Russian imports. imports from italy were relatively stable during the period 2007-2012, while imports from China grew 25% yearly on average. germany, Austria (both growing fast) and Poland (relatively flat) followed at a distance. LEDs account for about 12% of Russian lighting fixtures market for the year 2013. Applications of LEDs in the Russian market are mainly recorded for commercial lighting (38%) and outdoor lighting (38%), followed by industrial lighting (19%) and consumer/residen- tial lighting (5%). The Russian market for commercial lighting is made by a com- paratively higher share of lighting for offices and a relatively lower share of lighting for hospitality. 60 Top compa- nies control 70% of the Russian market for lighting fixtures. Lighting Technologies and Boos Lighting are market leaders, accounting for 8%-9% market share each. in 2013 the emerging Russian market for LED lighting is expected to grow by 55% (growth in 2012 was 20%). CSiL estimates that the share of LED lighting on the total market for lighting fixtures will be 20% or more by 2015. LED-based road lighting is one of the most attractive and dynamic markets in Russia and one which is showing a fast developing trend. FOCUS MARKETS LIGHTING 29March 2014 - WF RuSSiA. inDuSTRiAL LighTing. SALES BREAkDown By PRoDuCT, 2010-2012-2013*. PERCEnTAgES SouRCE: CSiL PRoCESSing More on the Russian market by CSIL: The lighting fixtures market in Russia (2013 edition) The kitchen furniture market in Russia (2013 edition) The office furniture market in Russia (2014 edition) Furniture Distribution in Russia (2012 edition) All reports are available for online purchase and immediate download at: T GROWING MARKET FOR LIGHTING FIXTURES IN RUSSIA by Aurelio volpe, CSiL international Market Research (*) PRoviSionAL DATA A State programme for the moderniza- tion of road lighting, where the share of LED lighting will reach 50% by the year 2015, has definitely contributed to the rapid development of the market. Any analysis of the prospects for Russian demand requires a separate approach for each Federal District, with particular attention to the main urban centres. Moscow and St. Petersburg are considered the main “gateways” to the Russian market and they are Russia’s key commercial and trans- portation hubs. Both Moscow and St. Petersburg are well connected to the rest of the country by road, rail and air transport. The continuous development of the transportation infrastructure in Russia and the overall economic growth in the Regions resulted in more direct import flows directed to other areas of the country, bypassing the two capitals. 029 FOCUS_vs 8:prova1 26/02/14 10:42 Pagina 29
  22. 22. FOCUS RETAIL 30 WF - March 2014 LIGHTING he new FontanaArte flagship store in the very heart of Milan, Corso Monforte, is a warm, welcoming space in which lighting fixtures created by famous architects and lighting designers from the past, are showcased together with contemporary lamps from the compa- ny’s latest collections made by a new generation of emerging international designers. The furnishings, the floor covering in vinyl textile made from renewable raw materials and the pastel walls with pic- tures from FontanaArte historic archive are all elements that help create an inti- mate and private dimension within such a ‘public’ location as a store. The soft rounded lines of the niches, housing the lamps along the walls, give off a warm light. Designed by architects Fabio Calvi and Paolo Brambilla, the store is a connecting space between past and future and a place showing the company’s philosophy: real light in a beautiful home. Echoes of works by Gio Ponti, who founded FontanaArte in 1932 together with Pietro Chiesa, can be seen in the modern version of folding walls, which open and close to suit the showroom requirements. During the opening days last mid- November, a totem made of ‘Fontana’ and ‘Uovo’ lamps stood for the compa- ny’s history: both lamps, in satin-finish blown glass, are two icons. Designed by Max Ingrand in 1954, Fontana is a table lamp, while Uovo comes from a sketch found in the company’s historic archive in 1972. A second totem was a composition of colorful Bloms by the young Norwegian designer Andreas Engesvik, reflecting a new international language. A NEW HOME FOR FONTANA ARTE IN MILAN T Founded in 1932 from an idea by Gio Ponti, FontanaArte is a leading Italian company of the lighting fixtu- res industry. Since 2010 FontanaArte has been part of Nice Group S.p.A., an international com- pany for integrated home automa- tion and protection systems. The new partner represents the opportu- nity to develop a solid industrial base for the future and provides the strategic research needed to deve- lop a new international language. The new flagship store FontanaArte in Milan 030 FOCUS_vs 8:prova1 26/02/14 10:45 Pagina 30
  23. 23. ajor cities are ‘energy guzzlers’ and responsible for around 80% of worldwide greenhouse gas emissions. Hence, it is par- ticularly important that energy consump- tion be stemmed there. To this end, Berlin is particularly creative and pioneering and has come up with a number of ambitious ideas. One of them is the ‘Energy Strategy Berlin Adlershof 2020’ at the renowned Adlershof Science and Technology Centre in the southeast of the city. Together with partners from research and business, the operators want to increase the energy efficiency of the site through the use of innovative tech- nologies. The aim is to cut the consump- tion of primary energy at Adlershof by 30% by 2020. A challenging target because the project encompasses 450 buildings, over 900 companies, 16 scientific institutions and 23,000 people, who research, study, produce and live there. Adlershof is Europe’s biggest inner-city development area (467 hectares). A new ‘Campus Residential Area’ will be built on 14 hectares of the area up to 2020. Dr Beate Mekiffer of WISTA Management, the operating company, is in charge of the entire energy project: “The demand for primary energy is expected to rise from 360 at present to around 825 gigawatt hours if no action is taken to stop this development. In other words, the situation is extremely urgent!” The German government is also aware of the problem and is sponsoring ‘Energy Strategy Berlin Adlershof 2020’, a cluster project that is unparalleled anywhere in Germany. At Adlershof, the focus is on building efficiency and intelligent electrici- ty grids on both existing and new develop- ments. According to an analysis in cooper- ation with Berlin Technical University, the energy consumed by the lighting would be almost halved if just the lighting systems at Adlershof were to be modernised. Therefore, motion detectors with electron- ic sensors will be used to manage the lighting in future. Dimmers will be fitted so the brightness of the interior lighting can be controlled intelligently in accordance with the time of day. Particular attention is FOCUS R & D LIGHTING 31March 2014 - WF Light + Building, World’s Leading Trade Fair for Architecture and Technology from 30 March to 4 April 2014 im Frankfurt am Main presents market-ready technologies for energy-optimised buildings and districts. At L+B around 2,300 international exhibitors from 50 countries will show their latest products and innovations for the fields of lighting, electrical enginee- ring, house and building automation and software for the building industry. M ENERGY STRATEGY BERLIN ADLERSHOF 2020 being paid to the construction of the planned ‘Campus Residential Area’. Around 100 of the 1,300 apartments are to be built in a plus-energy estate where more energy will be generated than used. To this end, the plans call for a highperfor- mance solar plant and cogeneration for decentralised power supply. Berlin Technical University and partners are looking at the integration of a smart- grid solution for an intelligent power supply system. In addition to saving energy, the operators are also banking on the increased use of regenerative energies. To date, Adlershof has primarily used photovoltaic systems. In the future, they will be supplemented by geothermal energy, wind energy from the surrounding countryside or decentralised cogeneration plants. Dr. Beate Mekiffer: “We are working closely together on all these aspects with scientists in Austria and Switzerland, who are also research- ing into the energy-saving potential of model districts. The ‘Energy Strategy Berlin Adlershof 2020’ will play a pioneer- ing role in this direction.” Berlin Adlershof Credit: © WISTA-MANAGEMENT GMBH Centre for Photonics and Optical Technologies Credit: © WISTA-MANAGEMENT GMBH 031 FOCUS_vs 8:prova1 26/02/14 10:53 Pagina 31
  24. 24. he 63rd edition of the Stockholm Furniture & Light Fair took place from 4 to 8 February 2014, hosting about 700 exhibitors, mainly (80%) coming from Sweden, Norway, Denmark and Finland. The fair attracted 35,654 visi- tors and around 6,000 international buy- ers, architects, designers and journalists from 90 countries. The 2014 program was even more extensive with the intro- duction of “Stockholm Design Talks”, a new forum dedicated to knowledge and discussion about furniture and interior design, and “Twelve” an additional design area where 12 designers show- cased their own project philosophy. A major fair’s highlight is “Guest of Honour”, where an internationally recog- nized designer is invited to create the lounge area at the Stockholmsmassan Entrance Hall. The Danish-Italian design studio GamFratesi - this year’s Guest of Honour - called its installation “Balance”. A beautiful project made primarily with metal elements and textile panels sus- pended from the ceiling. “For us, as for most people, each day is a struggle to find balance in life”, said Stine Gam and Enrico Fratesi. PRODUCT HIGHLIGHTS Furniture on show is characterized by high quality, clean lines, bright wood fin- ishings, and with a touch of color. However, this year, the attention to acoustic themes has been predominant and the use of fabric represented a widely shared topic among attending companies. Manufactureres in the lighting area indi- cated “sound absorption” to be a rele- vant topic, especially for contract and office projects. Felt covered lamp- shades could be seen at the fair booths as well as in the showrooms downtown Stockholm. One of the most successful product in this field is “Hood”, a suspen- sion by the Swedish brand Atelié Lyktan displayed both by Kinnarps and EFG at their booths. Office furniture manufacturers focused their attention on how to make office environments more communicative and 32 WF - March 2014 REVIEW IN STOCKHOLM IT’S ALL ABOUT DESIGN, SOUND AND BALANCE T somehow ‘looking residential’. Visiting the fair there was evidence that today customer budgets are partially moving from super-technical workstations to more functional surroundings and com- mon spaces. Furniture producers responded with the introduction of upholstered furniture collections, with integrated high back supports giving pri- vacy in open-space offices and in large by Mauro Spinelli CSIL International Market Research Balance by GamFratesi Offecct booth Hood by Atelié Lyktan 032_033 REVIEW vs8:prova1 26/02/14 11:06 Pagina 32
  25. 25. public spaces (Resolve from Edsbyn among the others). Furthermore, low partitions are becoming flexible design pieces, coloured, featuring some sound absorption properties (acoustic panels in fabric, felt or recycled pressed materi- al). Notes suspended panels and Wheel rounded low partitions by Offecct is a good example. HANGING OUT IN THE CITY Started one day before and ended one day after the fair closure, the Design Week is becoming a not-to-be-missing event downtown Stockholm, where city restaurants, galleries and museums become spotlights for product innova- tions, with showrooms organizing public events in the evening and design studios opening their doors, proudly showing their laboratories and prototypes. One of them is NOTE, a Stockholm-based Design Studio, which cooperates with major local brands (Zero, Fogia and EFG just to mention a few), and designed the Greenhouse hall at the Fair for the sec- ond year in a row. The Greenhouse included specially produced materials and a large wood tent designed in part- nership with architects from Nyréns Arkitektkontor. THE SWEDISH FURNITURE MARKET Sweden is the 3rd furniture exporter in Europe (after Germany and Italy) and the 9th at a world level. The local furniture industry accounts for approximately 2,300 firms and 16,000 employees. Medium and small sized companies rep- resent the largest share, however, some of the largest Swedish manufacturing groups are among the well-known furni- ture brands in the world. The sector shows strong local roots, as Swedish companies mostly preferred to invest in proximity manufacturing basis efficiency, rather than relocating busi- ness in the emerging countries. “It is gratifying to see that the Swedish furni- ture industry remains strong and that we go up stream by keeping production in Sweden, while Western European coun- tries are moving production to low-wage countries”, says Cecilia Ask Engstrom, Director of Industrial Development at TMF, the Swedish Federation of Wood and Furniture Industry. During the first ten months of 2013, trade activity in Sweden, although weak- er than in the past, could perform over the European average. It is worth noting, that 65% of exports are destined to other Scandinavian markets and to Germany. REVIEW 33March 2014 - WF SWEDEN. INTERNATIONAL TRADE OF FURNITURE AND LIGHTING FIXTURES. TREND 2013/2012, JANUARY-OCTOBER. % CHANGE Resolve from Edsbyn Greenhouse tent by Note Design Studio and Nyrèns Arkitektkontor Source: CSIL processing 032_033 REVIEW vs8:prova1 26/02/14 11:06 Pagina 33
  26. 26. recent ‘Windows and doors World market outlook’ issued by CSIL contains an overview of the world industry for windows and doors and it focuses on the 30 most important markets for this business area. data on international trade cover for a total of 70 countries are also pre- sented. International trade of windows and doors (defined as the average between the total of windows and doors exports from the 70 major countries and the total of windows and doors imports into the 70 major countries) grew from about US$ 7.1 billion in 2003 to about US$ 12.7 billion in 2012. Slow growth was recorded in 2013 and the same is expected in 2014. The main importing countries are the United States, France, germany, japan, the United Kingdom and Switzerland. For the 30 major countries the imports/consumption ratio is presently about 6%. The main exporting countries are China, germany and Poland. other major exporters are the United States, Italy and Canada. Among these major exporters, the two countries with the highest propensity to export are Poland and germany, with exports/production ratio of 36% and 16%, respectively. The rankings of exporting countries for windows and doors made of different FOCUS SCENARIO BUILDING 35March 2014 - WF CONTENTS OF 'WINDOWS AND DOORS: WORLD MARKET OUTLOOK' REPORT PART I. PRODUCTION, CON- SUMPTION AND INTERNATIO- NAL TRADE OF WINDOWS AND DOORS (30 major countries) • World Windows and Doors trade matrix (70 countries) PART II. COUNTRY TABLES (30 major countries) and FORE- CASTS OF GROWTH OF DEMAND FOR WINDOWS AND DOORS IN 2013 AND 2014 PART III. PROFILES OF MAJOR MANUFACTURER ASSOCIA- TIONS WORLDWIDE PART IV. ADDRESSES OF A SELECTION OF WINDOWS AND DOORS MANUFACTURERS For more information about CSIL report “WINDOWS AND DOORS: WORLD MARKET OUTLOOK” please contact: Edition I, Year 2013, Over 130 pages + list of useful contacts. Online purchase and immediate download of the report at: A WINDOWS AND DOORS WORLD MARKET OUTLOOK by Stefania Pelizzari, CSIL Statistical office WINdoWS ANd dooRS ImPoRTS, 6 mAjoR ImPoRTINg CoUNTRIES, 2003-2012. US$ mILLIoN Source: CSIL processing of official data WINdoWS ANd dooRS ExPoRTS by mATERIAL, mAjoR ExPoRTINg CoUNTRIES, 2012. Percentages are processed in value Source: CSIL processing of official data materials are shown in the following graph, that refers to the year 2012. In terms of breakdown of windows and doors production by material, there are differences in the various countries of the world. Regarding Europe, there is a preference for wooden windows in Nordic countries and for metal windows in Southern European countries. An overview of production shows that the 30 countries together produce win- dows and doors for more than US$ 150 billion and they export 7% of their pro- duction. The largest manufacturing countries for these products are China and the United States. 035 FOCUS_vs 8:prova1 26/02/14 11:38 Pagina 35
  27. 27. Fensterbau/frontale is also a founding member of the Global Fair Alliance of world-leading window exhibitions and is involved with ift Rosenheim in the International Strategic Partnership Fenestration. FOCUS PREVIEW 36 WF - March 2014 BUILDING ensterbau/frontale 2014 will take place in the Exhibition Centre Nuremberg, Germany, from 26 to 29 March. The product spectrum on show at this leading international exhibition reflects the worldwide innovations in windows, doors and facades. Some 99,000 trade visitors and over 1,200 exhibitors made fensterbau/frontale in combina- tion with HOLZ-HANDWERK an impres- sive highlight for the industry in 2012. The new hall 3A will provide even more exhibiting space in 2014. Every two years Nürnberg is a meeting point for window and facade manufac- turers, carpenters, architects and traders, who can see the latest profile systems, prefabricated units, architec- tural glass, fixing equipment, safety equipment, machines, installations and many more products on show. The wish for sustainability and performing com- fort continues to drive innovation in the window, door and facade construction sector. Experts will meet at fensterbau/frontale to discuss on how aesthetic and design trends can cope with energy-efficient building. The 7th Forum Architecture- Windows-Facades will take place on Thursday 27 March (10.00-13.00) at the Exhibition Centre, NCC Ost, Tokyo Hall. Reportedly, 97% of the exhibiting com- panies in 2012 welcomed international visitors mainly from Germany’s neigh- bouring countries, followed by Italy, Great Britain, Russia, Turkey and other countries worldwide. “Well over 90% of the companies involved said they had reached their most important target groups at fensterbau/frontale, and nine out of ten exhibitors showed a new product or innovation in Nürnberg,” says Elke Harreiß, Director Exhibitions fensterbau/frontale at NürnbergMesse. Visitors attending the 2014 edition will look forward again to the latest know- how on the main topics of sustainability, comfort, automation and energy effi- ciency. “For anyone wanting to get to know the innovations on the international market in a compact form at one place, there is simply no way round the display of prod- ucts from the almost 800 fensterbau/frontale exhibitors in Nürnberg” Harreiß says. The organizer of fensterbau/frontale is NürnbergMesse GmbH. The honorary sponsors are the association, the Fachverband Glas Fenster Fassade Baden-Württemberg, and the two guilds, the Landesinnungsverband des Glaserhandwerks Rheinland-Pfalz and the Landesinnungsverband des Bayerischen Glaserhandwerks. SUSTAINABILITY AND PERFORMING COMFORT AT FENSTERBAU/FRONTALE F The product spectrum at fensterbau/frontale 2014: • Structural and profile systems • Semi-finished materials • Materials, production aids • Components, prefabricated ele- ments • Shading and ventilating equip- ment • Glass, glass products • Hardware, doors, fixing equipment • Safety equipment • Office organization • Machines, installations and tools • Operating systems, operating equipment • Services, associations, research & development • Technical information More on: 036 FOCUS_vs 8:prova1 26/02/14 12:13 Pagina 36
  28. 28. ocated in Givrand (France), BENETEAU’s (a major sailing boat, yacht and motorboat man- ufacturer) headquarters has a façade designed using HI-MACS® new generation acrylic stone designed and produced by LG HAUSYS and featuring high thermoformable, multipurpose, ultra-resistant and non-porous proper- ties. The project consists of two different buildings separated by a patio and con- nected by a glass gallery. The company PAD created the project’s initial design by integrating a perforated mesh-like façade. Wanting to follow the original design as closely as possible, BERI 21, the project manager and in-house gen- eral contractor for Beneteau, started looking for different materials used in FOCUS PROJECTS BUILDING 37March 2014 - WF L BENETEAU HEADQUARTERS. WHEN HI-MACS® BECOMES A WORK OF ART PHOTOGRAPHER: Mathieu Ducros© other façades while the structure was being designed. After he discovered HI-MACS® material in a sailing yacht shower room, it was officially selected once its fastening system had been tested and approved. The main southern facing façade with the mesh-like design built in HI-MACS® identifies Beneteau headquarters. A remarkable work has been created thanks to the adaptability and excellent thermoformability of this new genera- tion acrylic stone and taking benefit from invisible fastening systems. HI-MACS® helps regulate the façade which is exposed to large amounts of sunlight and reduce high levels of ener- gy due to radiation thanks to its perfo- rated material. The façade has a perfo- ration rate of nearly 50%. Its white colour and reaction to light gives the material a matt and velvety texture and a nice appearance from either inside and outside. Designers were able to reach the desired level of transparency and to choose variations in the perforation, in order to incorpo- rate the logo. 037 FOCUS_vs 8:prova1 26/02/14 12:20 Pagina 37
  29. 29. FOCUS MARKETS 38 WF - March 2014 BUILDING oRLD’S fASteSt GRow- InG AReA the Asia Pacific market for office furniture in ten coun- tries Australia, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, taiwan, thailand, Vietnam (excluding India and China) is estimated by CSIL to be worth uS$ 7 billion in 2013. over the last decade, the area grew by 4% on average, each year. According to preliminary estimates, office furniture consumption increased by 2% in 2013 (in real terms). Around 11% of the market is currently satisfied by imported office furniture (uS$ 806 million), recording an average annual growth of +10% since 2003. office furniture production is mainly destined for the local market, while just 8% is exported outside the region. Malaysia is the leading exporter of the area, with a share of 47% of total office furniture export. Japan and Australia are the leading importers, with 37% and 23% of total office furniture import in Asia Pacific. the leading supplier of office furniture for all these countries is China, providing about 60% of total imports. ASIA PACIFIC. A HIGH PERFORMING MARKET FOR OFFICE FURNITURE w JAPAn, the LARGeSt MARKet- PLACe After the earthquake in 2011, Japan economy has been experiencing a recovery. In 2012 and 2013 GDP grew by 2% in real terms and it is expected to increase by 1.2% in 2014. Japanese imports of office furniture are worth about uS$ 300 million and 83% of total imports are office seating. China and taiwan are top two suppliers: together they provid 84% of total Japanese imports. Major customers for office furniture in Japan are governmental agencies, industrial firms and trade organisations. the traditional distribution chain ‘pro- ducer-wholesaler-retailer’ is increasing- ly losing ground, due to the existence of important commercial ties among small- er local producers (oeM) and large assemblers/distributors known as Brand name Makers (okamura, Kokuyo, Itoki, etc.). these companies are present throughout the country with an impressive distribution network. foreign brands in Japan are mainly dis- tributed through a large network of local corporations. Kokuyo controls wilkhahn Japan Co., Ltd., okamura is importer of wiesner hager, fora form and wogg (just to mention a few), Kurogane Kosakusho has commercial agreement with Steelcase and Dauphin. AuStRALIA to DeVeLoP offICeS AnD hoteLS Australia’s 22 million inhabitants are mainly concentrated in metropolitan areas like Sydney, Melbourne and Brisbane. According to the Australian Bureau of Statistics, in the first ten months of 2013 the value of total non- residential building approved (94% coming from the private sector) rose by 10% on the previous year. ASIA PACIfIC. GRowth of offICe fuRnItuRe ConSuMPtIon. MILLIon uS$ Source: CSIL processing (*) in real terms by Mauro Spinelli, CSIL International Market Research 038_039 FOCUS_vs 8:prova1 26/02/14 16:59 Pagina 38
  30. 30. 170,500 sqm. office spaces are under construction in Melbourne, expected to be completed by 2015. 68% is pre- committed. In Brisbane there are three large office buildings under construc- tion (totalling 188,000 sqm), reportedly to be completed not earlier than 2016. with its estimated stock of 136,000 hotel rooms, Australia is expected to increase its pipeline both in the tourist and business hotel premises. Australian imports of office furniture amounted to uS$ 185 million in 2012 (+5% on the previous year), coming mainly from the Asia and Pacific Area (84% of total imports). Australia’s major trading partner is China, accounting for 55% of total imports. taiwan, new Zealand, united States and Malaysia followed. office furniture distribution in Australia is partially in the hand of the largest local manufacturers, who also act as major importers of international brands. the role of local distributors, mainly organized as interior design studios, is also relevant. Schiavello, widely known in Australia as a leading supplier, is the leading local company with over 1,000 employees, 10 showrooms and 6 man- ufacturing plants in operation. SInGAPoRe, the ReGIonAL huB the office furniture market in Singapore is highly penetrated by imported prod- ucts from Malaysia and China. Some of the largest companies with headquar- ters in Singapore operate production facilities in Malaysia, China and Indonesia. this is particularly true for the office seating segment. Singapore is a main hub, not only for the local market but also for the entire Asia Pacific region. Some relevant architectural and interior design compa- nies are located there and they “speci- fy” products for major project all over the Pacific area. office furniture distri- bution in Singapore mainly passes through space-planning companies and contractors, and major office furniture manufacturers have their own show- room over there. MALAySIA, A LeADInG eXPoRteR over 60% of Malaysian office furniture production is destined for foreign mar- kets. exports totalled about uS$ 270 million, increasing +12% yearly on aver- age since 2003. Main countries of des- tination are India (15%), Singapore (13%), united States (9%) and the united Arab emirates (8%). FOCUS MARKETS BUILDING 39March 2014 - WF ASIA PACIfIC. offICe fuRnItuRe. IMPoRtS By CountRy. uS$ MILLIon AnD AVeRAGe AnnuAL % ChAnGe Source: CSIL processing THE OFFICE FURNITURE MARKET IN ASIA PACIFIC The CSIL report analyses supply structure, market demand, import-export flows, competitive system, providing statistical data and trends of office furniture production and consumption, as well as import and export data. 2014 forecasts on office furniture demand by single country are also provided, and competitive systems of each single country are presented, with sales figures, market shares and short profiles of selected top office furniture companies. 10 countries covered: Australia, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam. Publisher: CSIL. Issued: January 2014, V Edition. Language: English Available for online purchase and immediate download at: ReAL GRowth of GDP. foReCASt 2014. AnnuAL % ChAnGe. Merryfair is the leading office chair manufacturer both countrywide and in the whole region. the Canadian teknion pioneered as foreign investor in the country taking over in 1999 a lead- ing Malaysian manufacturer of filing, storage and seatings with 180,000 sq. ft. facility in Klang. In 2001 a similar strategy was adopted by Steelcase, which established a JV with a relevant local producer. 038_039 FOCUS_vs 8:prova1 26/02/14 16:59 Pagina 39
  31. 31. oday’s furniture industry is becoming increasingly like fash- ion; customers are demanding more models, more often and with more customization. For manufac- turers, this translates into a need for greater flexibility, the ability to handle smaller orders, more frequently and with much shorter delivery times. In addition, the cost of the raw material, wet blue, has doubled in the past two years and continues to rise. Upholstered furniture manufacturers using leather today are facing three main challenges: material efficiency, to make the best use of each hide in terms of quality and quantity, operating flexi- bility to be able to handle small produc- tion runs, and to mix models and vari- ants, as well as process optimization to reduce waste wherever possible, streamlining and reducing the risk of human error. Companies are realizing that just adding more equipment does not solve the problem: the key is efficiency, and this is best achieved by reviewing processes, stripping away non-essen- tial tasks and optimizing available resources. LECTRA AS A TRUSTED PARTNER With its 20 years in leather and in-depth knowledge of its customers’ business, Lectra is recognized as a trusted advi- sor. This experience has enabled the company to develop a unique, end-to- end offer for the furniture industry, from design and 3D prototyping to cutting. Lectra takes a holistic approach, identi- fying challenges and tailoring the best solution to overcome them. Lectra’s teams of experts work with customers to understand their operations, analyze processes and identify where improve- ments can be made. Then, and only then, can the right solution be pro- posed. FOCUS R&D TECHNOLOGIES 41March 2014 - WF T LECTRA LEATHER SOLUTIONS HELP FURNITURE MANUFACTURERS REACH OPERATIONAL EFFICIENCY INTEGRATED CUTTING SOLUTIONS TO OVERCOME INDUSTRY CHALLENGES The challenges faced by the uphol- stered furniture manufacturers were the key drivers for Lectra in developing the VersalisFurniture range, launched in 2012. The result is a combination of state of the art technology and software, completely integrated with the produc- tion process and able to handle all types of leather and all production envi- ronments. The VersalisFurniture is available with one, two or three cutting heads. This enables for example furniture manufac- turers using small pieces, such as those specializing in recliners and sec- tionals, to optimize system use. It also includes an automated hide analysis solution and accurate, easy-to-use operation management and optimiza- tion software. Customers using the VersalisFurniture report average leather savings of 5%. Given the high cost of leather, this translates into hundreds of thousands of Euros every year, depending on the scale of the manufacturing operation. “There may still be some resistance to change, but once manufacturers see the scale of savings they are able to make, they do not want to be left behind.” explains Celine Choussy- Bedouet, Lectra’s Director of Marketing for Automotive Furniture and Technical Textiles. Among the other benefits: pro- ductivity is high; to match just one hour of VersalisFurniture output could take a human operator an entire day. A LONG-TERM PARTNERSHIP WITH ITS CUSTOMERS Lectra’s involvement does not stop with the delivery of a new system. The Versalis unique on-board intelligence maximizes production by monitoring its behavior, offering a real-time interface with Lectra experts, which ensures customers are always using the system to the best of its ability. Predictive main- tenance, available for customers under contract, anticipates possible break- downs, allowing Versalis to maintain one of the best uptimes in the industry - up to 96%. With this specific service offer, Lectra takes the leather cutting room to a new level of excellence, essential for its customers to maintain and improve their competitive advantage. 041 FOCUS_vs 8:prova1 26/02/14 12:51 Pagina 41