World Furniture - International Markets Review by CSIL nr. 60 - December 2013


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EU FURNITURE SECTOR. INTEGRATION AND COMPETITIVENESS ON FOREIGN MARKETS - A quarter of the world’s furniture production originates in the EU even if with the presence of fast growing consumption areas at a global level, the eu market still accounts for around one quarter of world furniture consumption... read more

UPHOLSTERY FURNITURE WORLDWIDE - World consumption of upholstered furniture (valued at production prices, excluding markup) is worth US$ 63 billion. The largest markets are China, the US, Germany and the UK. Upholstered furniture accounts for about 15% of totalworld furniture...
UK BED MARKET 2013 - ... it has been an interesting year for the UK bed market... read more
SMART STREETS - There is plenty of room for energy savings in public lighting and this was the starting point for the European SETPLAN for smart cities ...
4% OF THE LIGHTING FIXTURES SOLD ONLINE - E-commerce sales of lighting fixtures started approximately in the year 2000 and doubled during the last five years ... read more
• CIFF - Guangzhou • FURNITURE CHINA - Shanghai • KIFF - Kyiv
• LIGHT+BUILDING - Frankfurt • MEBLE POLSKA - Poznan • MIFF - Kuala Lumpur ... read more

FURTHER CONTENTS Contract - Gruppo Margaritelli • Outdoor • Marble & Natural Stone • Ecological Mirrors & Glass - Saint Gobain • Global Handicrafts • Wood-based Panels - EPF • E-Commerce - MADE.COM • Components - Sueddekor - Grass

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World Furniture - International Markets Review by CSIL nr. 60 - December 2013

  2. 2. 009_CONTENTS_60:prova1 06/11/13 09:05 Pagina 9 Publisher CSIL Centre for Industrial Studies 15, Corso Monforte I-20122 Milano tel. 0039 02 796630 fax 0039 02 780703 10 10 POINT OF VIEW Middlecities vs. Megacities by Sara Colautti 11 COUNTRIES EU furniture sector. Integration and competitiveness on foreign markets by Alessandra Tracogna FOCUS EDITORIAL Industry evolution is a matter of people by the Editor INNOVATIVE PRODUCTS & VISIONS 30 PREVIEW Intelligent automation technology promises big energy savings in buildings 31 PROJECTS Smart Streets by Aurelio Volpe 33 E-COMMERCE 4% of lighting fixtures sold online by Mauro Spinelli BEDDING & UPHOLSTERY 35 13 SCENARIO World Mattress Outlook by Sylvia Weichenberger E-COMMERCE MADE.COM. 'Good design' voted by the website community 36 17 MARKETS The development of the UK bed market in 2013 by Paul Farley KNOW HOW Listone Giordano Contract Division 37 18 SCENARIO Upholstery Furniture Worldwide by Sara Colautti MATERIALS Marble and natural stone. Back to the future by Paola Govoni 39 20 PREVIEW New format of KIFF 2014 will bring together Italian furniture manufacturers and Ukrainian buyers MATERIALS Innovative and ecological mirror from Saint Gobain Glass 40 MARKETS An overview of the wood-based panel industry by Isabelle Brose 22 42 Alessandra Cavada OUTDOOR Heritage. A timeless outdoor Collection PREVIEW Exploring the potential of the Polish furniture industry 23 44 Registrazione nr. 92 del 03.02.1999 presso il Tribunale di Milano Spedizione in abbonamento postale 70% - Filiale di Milano STRATEGIES Global handicrafts: a future vision by Patrizia Scarzella STRATEGIES Süddekor Group Grass 25 REVIEW Shanghai, home to Furniture China by Giovanna Castellina 45 FAIRS CALENDAR 2014 26 PREVIEW More Muar furniture producers to exhibit at MIFF 2014 28 PREVIEW CIFF-Office Show 2014. More space, new dates and an extra day by Emilia Prevosti Editor Paola Govoni Collaborators to this issue: Isabelle Brose Giovanna Castellina Sara Colautti Paul Farley Paola Govoni Emilia Prevosti Patrizia Scarzella Mauro Spinelli Alessandra Tracogna Aurelio Volpe Sylvia Weichenberger SPECIAL REPORT Graphic Design backup8 Printer Eurgraf sas Via Magellano, 4/6 I-20090 Cesano Boscone (Milano) Annual subscription 2014 Euro 100 Frequency 4 issues/year in March - June - September - December Subscription Services 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 World Furniture International Markets Review
  3. 3. 010_POINT OF VIEW_Check up_prova1.pdf:prova1 07/11/13 12:46 Pagina 10 EDITORIAL INDUSTRY EVOLUTION IS A MATTER OF PEOPLE Creativity and the manufacturing industry are witnessing a progressive shift towards a greater ethical and cultural awareness. Design and production are increasingly connected with the idea of sustainability and strongly characterised by the stamp of a responsible use of resources and wastes with an effective energy saving approach to the global growth. Companies are requested to follow smart development paths and they are doing a good job in this direction. More industry-friendly poli- by Paola Govoni cy programmes would help. We will be talking about new routes and new approaches to the concepts of ‘smart living’ in this issue of the magazine, where the Focus is dedicated to Innovative Products & Visions, with an overview of smart lighting projects, an analysis of growing e-commerce business and some contributions on wood, marble, natural stone and last generation glass. The Special Report on Bedding & Upholster y offers two world overviews of the mattress and uphol- Editor stery furniture market, in addition to a closer view to the Bed Show in UK and to latest product highlights. Exclusive reportages from Shanghai and Thailand are included, as well as the preview of coming fairs in Ukraine (KIFF), Malaysia (MIFF), Poland (Meble Polska), Germany (Light+Building) and China (CIFF Office Show). The market integration process and global competitiveness of the EU furniture sector are also presented in this issue. Enjoy it! POINT OF VIEW MIDDLECITIES VS. MEGACITIES by Sara Colautti CSIL Industry and Country Studies How is the urban world evolving? Urbanization was and will be one the drivers of the global economic growth of this century. The centre of gravity of the urban world moves to South and East. China is not the only country to determine this shift. India, but also Latin America will contribute to the urban growth. Fast growth in the per capita GDP is driving the economic expansion of larger cities, fuelling their capacity to attract higher investment and skilled workers. But following several recent studies, contribution of megacities to the growth is lower than expected. 10 WF - December 2013 Middleweight cities will be the true engine, the ver y fast growing cities. In the next ten years these cities will show increase in number of households and incomes outperforming the growth of the existing megacities. However economic performances are not the only key factors. Social conditions, wealth creation, sustainable resource use, finance and governance need to be considered as well, to build the right portfolio of cities where to do business and middleweight cities are newly gaining ground. Urbanization and the income of new consuming classes are rising and generating new demand. Meeting demand from these new consumers will require large investments in construction and infrastructure. Smart growth and prosperity of these cities will depend on how this evolution is managed. Both policy makers and companies have to anticipate these trend to be prepared to answer and to catch the new demand from these cities. This scenario will indicate a direction for companies and policy makers in fields like infrastructure investments, consumer demand, industr y evolution.
  4. 4. 011_012_COUNTRIES vs8:prova1 06/11/13 19:00 Pagina 11 COUNTRIES EU FURNITURE SECTOR. INTEGRATION AND COMPETITIVENESS ON FOREIGN MARKETS A SmeS SeCTor WITh The preSenCe oF gLobAL LeAderS A quarter of the world’s furniture production originates in the eu. even if with the presence of fast growing consumption areas at a global level, the eu market still accounts for around one quarter of world furniture consumption. The eu's share of world furniture production has constantly contracted over the last decade and the value of furniture production in 2012 was almost at the same as ten years ago. even if the value of furniture output produced in european plants is stable (or even decreasing in some countries), the trend is counterbalanced by furniture production that takes places in plants run by european companies outside the ue. Around 85% of european sector companies are micro enterprises with less than 10 employees but, according to a recent CSIL research, europe is home of 84 out of world’s Top 200 furniture manufacturers. These companies are from both Western and Central eastern europe and top manufacturers are (in order of importance) german, Italian, Swedish, French, british, polish, Finnish, dutch, Austrian, danish, Lithuanian, Spanish and rumanian. The companies are very large in terms of the size of employment and together they boast a eur 20 billion turnover (average value eur 150 million). Their productive presence is spread at a global level, with plants also in extra-eu areas like China, russia, ukraine, belarus and in the uS. Strategies implemented during the crisis included downsizing (with plant closures and lay-offs), optimization of the production process, increasing sourcing from Asia, strong investment in existing and new retailing formats (store openings in emerging countries) and branding strategies. european manufacturers set the trend at a global level in terms of design and innovation, but significant differences within the eu by Alessandra Tracogna CSIL Country Analysis and Forecasts WeSTern europe. FurnITure exporT by mAIn deSTInATIonS grouped by InCome, 2002-2012. % ShAre Source: CSIL processing CenTrAL eASTern europe. FurnITure exporTS by CounTry. CurrenT eur mILLIon, 2002, 2008, 2012 Source: CSIL processing December 2013 - WF 11
  5. 5. 011_012_COUNTRIES vs8:prova1 06/11/13 19:00 Pagina 12 COUNTRIES WeSTern europe. FurnITure ImporTS by mAIn AreA oF orIgIn, 2002-2012. mILLIon eur remain and the role of the furniture manufacturing sector varies from country to country. Comparative advantages relate to the low cost of labour, the presence of raw materials, technological endowment and investments in the sector (made by national or foreign companies or fuelled by institutional bodies). A long tradition in furniture making is another comparative advantage, which can lead to a strong, fast growing furniture industry. WeSTern And CenTrAL eASTern europe: TWo Speed groWTh Western europe (eu15) provides around 80% of total eu furniture production (the share was 10% higher a decade ago), losing relative importance compared to Central eastern europe (eu13), whose production is at present 50% higher than ten years ago, with fast growth in production in poland, romania, Lithuania and Slovakia. however, the value of Western european production would be reasonably higher if we include the production made by european companies in plants outside the area (not only in Asia but also in eastern europe). Competitiveness of Western european companies more and more relies on the ability of furniture manufacturers to exploit market potential through exports activities due to the difficult conditions on the domestic markets. It is worth noticing that exports from Western europe are increasingly directed to fast growing emerging markets, which are proving to be more dynamic and able to absorb furniture items. germany is the best performer with a value of furniture output higher than a decade ago. germany is a key player in the furniture sector at a world level, as it is the second importer after the uSA, it ranks second for furniture exports, third for consumption and it is the third largest furniture producer after China, and the united States. According to eurostat data, there are over 9,000 furniture manufacturing companies operating in the german furniture manufacturing sector. With 20,000 companies, mainly Smes, Italy used to be the first producer in europe until 2012, when it was surpassed by germany. The furniture sector accounts for a high share on total Italian manufacturing sector (2.5%), showing the presence of a number of industrial clusters. performances of Italian furniture clusters have been extremely heterogeneous over recent years (depending on differentiation both in terms of export markets and product specialization). Furniture production in Central eastern europe is mainly driven by exports thanks to eu market integration with increasing flows of imports/exports within eu member states, international fragmentation of produc12 WF - December 2013 Source: CSIL processing tion and related trade in furniture parts and components across different countries within (and outside) europe. poland is by far the export leader with over eur 6 billion in 2012 and a share of export on total production in the range of 79%. romania, Lithuania and hungary follow at a distance in terms of furniture exports. over the years poland has reinforced its position at an international level, becoming the world’s 7th largest manufacturer (12th in 2002) and the 4th furniture exporter (5th in 2002) after China, germany and Italy. At present, there are almost 24,000 companies that declare furniture production to be their main activity. There are about 160,000 people employed in the sector. In terms of territorial distribution, most of registered furniture companies are located in the Wielkopolskie, mazowieckie and małopolskie regions. romania is the second furniture producer in the area (eur 1.5 billion in 2012). The furniture sector is made mainly by Smes and contributes for approximately 1.2% to the country’s 2012 gdp. The romanian furniture sector shows a growing trend between 2002-2012 (annual average growth rate +6.3%), with the furniture production value recovering after the 2009 decline and exceeding the pre-crisis levels, and with exports being the main driver. ratio export/production (88% in 2012) is one of the highest among the eastern european countries. Czech republic is the third furniture producer in the area (eur 1.4 billion in 2012), and the second consumer with a value of eur 1.3 billion. The furniture sector is characterized by small-sized companies and there are almost 500 producers with 10 or more employees. Czech ownership is approximately 90%, with a low share of foreign investments in the furniture industry compared to 1 data refers only to finished furniture and exclude furniture parts poland and other countries in the area. In Lithuania the value of furniture exports is over 4 times the value of a decade ago due to its increasing role as a supplier of the Swedish giant IKeA. CSIL report “The furniture industry in europe, part I: outlook for 16 countries” includes: Austria, belgium-Luxembourg, denmark, Finland, France, germany, greece, Ireland, Italy, netherlands, norway, portugal, Spain, Sweden, Switzerland and united Kingdom. publication date: September 2013, xVIII edition, Language: english. The report is available for online purchase and immediate download at CSIL report ‘The furniture industry in europe, part II. outlook for 12 countries’ includes: bulgaria, Cyprus, Czech republic, estonia, hungary, Latvia, Lithuania, malta, poland, romania, Slovakia, Slovenia. publication date: September 2013, xI edition, Language: english. The report is available for online purchase and immediate download at These reports are part of the Country Furniture outlook Series, covering 70 countries. each Country report contains all the main furniture statistics and indicators useful to analyze the furniture market: Furniture industry overview, Forecasts, Furniture production, demand determinants, Furniture consumption by segment, Furniture import and export by segment, by main countries and by geographical area of origin/destination, market potential and Top companies.
  6. 6. 013_014_015 SPECIAL_vs8:prova1 06/11/13 09:26 Pagina 13 BEDDING & UPHOLSTERY SPECIAL REPORT SCENARIO WORLD MATTRESS OUTLOOK INTERNATIONAL TRADE OF MATTRESSES, 60 COUNTRIES 2003-2014* by Sylvia Weichenberger CSIL Source: CSIL * Forecasts T HE MATTRESS INDUSTRY AT A GLANCE The mattress industry is a mature sector, which after a growing period until 2008, slowed down after the 2009 crisis and is currently showing signs of recovering in a number of countries. Traditionally the United States was leading in terms of production but over the last decade China started a major expansion, registering by far the highest annual growth rates. Other important manufacturers are Brazil, Canada, India and Italy. Regarding mattress consumption, leader remains the USA, accounting for over one fourth of total consumption in the 30 countries considered. The USA is followed by China, which showed the most impressive increase in terms of mattress consumption over the last decade. China is followed by Brazil, Germany, Canada and France. The top 6 mattress consuming countries mentioned above account for approximately 70% of total consumption among the 30 countries included in CSIL’s 'World Mattress Industry' report. Over the last 10 years, the most important growth rates were registered by Asian countries, including China, India and Malaysia. Further, some Central and Eastern European countries including the Czech Republic, Poland and Russia, still comparatively small mattress consuming markets, registered significant growth rates. These countries are clearly becoming very dynamic local markets not yet mature as it is the case for Western European markets like France and Germany, or North American markets like USA and Canada. Highest per capita mattress consumption is in North America, Germany and the Northern countries, while Eastern Europe and Asia register currently the lowest per capita consumption. FOCUS ON THREE GROWING MATTRESS INDUSTRIES IN ASIA China’s mattress production capacity has been increasing very rapidly in recent years due to the fast growth of the domestic property market and the expansion of exports. Today China is leading mattress production and exports worldwide registering double digit growth rates. This emergence of China as one of the major exporters is likely to change the general picture substantially in the next few years, as an increasing number of China's leading mattress manufacturers are focussing on developing their export activities significantly. December 2013 - WF 13
  7. 7. 013_014_015 SPECIAL_vs8:prova1 06/11/13 09:26 Pagina 14 SPECIAL REPORT SCENARIO Considering the enormous capacity of the local market, apparent mattress consumption is estimated to continue its growing trend in the coming years. Currently the share of local consumption satisfied by imported mattresses still remains below the 1% mark, including mainly upper-end products. BEDDING & UPHOLSTERY MATTRESS ExPORTS, 6 MAjOR ExPORTING COUNTRIES, 2003-2012 US$ MILLION It is worth noticing that in China there is a large unorganised bedding and mattress market besides the organised one, which still accounts for a relatively important share of local consumption. Especially in rural areas where mattress distribution is not yet very developed and poverty is an issue. India’s mattress production is mainly oriented to the domestic market. In 2012 estimated mattress production increased by a double digit rate compared to the previous year. India ranks among the top 5 mattress producers. Since the Indian market is very large and manufacturers are of rather small size, exports claim currently only about 1% of production. Inefficient transport and poor power infrastructures still undermine the development of the Indian mattress industry in several States. The population distribution among the Federal States is not homogeneous. Furthermore, so far competition has been moderate. The Indian government is however continuously taking steps to minimise entry-exit barriers for foreign companies and it is facing pressure to liberalise the duty structure. Local mattress consumption followed an Source: CSIL processing of official data * Preliminary estimate increasing trend over the last decade but consumption is still almost entirely satisfied by local production. There are some difficulties that foreign firms intending to export mattresses to India have to face. First of all there is the lack of proper infrastructures and distribution systems, and regional differences in income and tastes. Malaysia is placed on in twenty-fourth position in terms of mattress production among the 30 countries studied. Production continues to increase. Export activity among Malaysian manu- MATTRESS IMPORTS, 6 MAjOR IMPORTING COUNTRIES, 2003-2012 US$ MILLION Source: CSIL processing of official data 14 WF - December 2013 facturers is important accounting for roughly two thirds of total production. Exports increased significantly since 1997. Apparent consumption of mattresses in Malaysia returned to growth in 2010 and continued to grow in 2012. It is estimated that consumption will remain positive in 2013 and 2014 thanks to Malaysia’s growing population, resulting in increased demand for quality mattresses. Urban population recently reached 70% of the total. The bedding industry in Malaysia is expected to further grow, as it is driven by the growth of the property sector, which is powering a growth in the bedding sector. There are opportunities to grow in major cities, as well as in the hospitality, marine and medical industries in Malaysia. INTERNATIONAL TRADE: BACK TO GROWTH International trade of mattresses almost reached US$ 3.2 billion in 2012 with forecasted growth for 2013 and 2014. The ratio of exports over production in the mattress segment amounts currently to around 14% (8% in 2000). Although this ratio is growing, it remains low compared to the furniture sector where the export/production ratio for the same countries is almost 30%. Recovery from the crisis seems evident and CSIL estimates that the
  8. 8. 013_014_015 SPECIAL_vs8:prova1 06/11/13 09:26 Pagina 15 overall value for mattress trade will continue to grow slowly over the coming years. One of the most important engines for mattress growth is the opening of the different mattress markets as well as the increasing role of emerging markets, not only in terms of productive location for mattress plants but also in terms of mattress consumption. Progress in vacuum packing of mattresses and in transport logistics has also been changing the economics of mattress trade, and imports and exports are becoming more substantial. Top mattress exporting countries are China and Poland, followed by Denmark Belgium and Italy. Main mattress importing countries are the USA, Germany, France, japan, Canada and the Netherlands. Looking at the opening of the markets considered the share of imported mattresses on local consumption has been increasing from 7% in 2001 to approximately 12% in 2012. However import/consumption ratio remains still low for most studied countries, compared to the furniture sector where the ratio is of almost 30%. The 10th edition of CSIL’s World Mattress Industry report has been published in June 2013. Focussing on the 30 most important mattress manufacturing countries, the report includes detailed information on mattress industries in Australia, Austria, Belgium, Brazil, Canada, China, Czech Republic, Denmark, Finland, France, Germany, Greece, India, Ireland, Italy, Japan, Malaysia, Mexico, the Netherlands, Norway, Poland, Portugal, Russia, South Korea, Spain, Sweden, Switzerland, Turkey, the UK and the US. The Report is available for online purchase and immediate download at
  9. 9. 017_SPECIAL_MARKETS vs8:prova1 06/11/13 09:28 Pagina 17 BEDDING & UPHOLSTERY SPECIAL REPORT MARKETS THE DEVELOPMENT OF THE UK BED MARKET IN 2013 I n just four years, the National Bed Federation (NBF) Bed Show has become the key local buying event for the UK bed industry. A small, simple affair, held mid-country in Telford in late September over two days each year, the event is a members-only affair – the exhibitors comprise only UK manufacturers, and their component and machinery suppliers. The event continues to perform well. This year, it attracted almost 1400 visitors – an increase of over 5% from 2012. Jessica Alexander, executive director of the NBF, says: “For us it’s about creating an event that keeps costs low for exhibitors but has a unique product focus for the visitors – where else can they get to see such a wide range of large and small companies and most major UK brands?” Founded in 1912, the NBF’s membership today accounts for around 75% of the total bed turnover in the UK. The federation also demands that its members adhere to certain standards, helping build consumer trust in their products. This year, it launched the NBF Code of Practice, an independentlyaudited standard covering the areas of flammability, health and hygiene and trade description, designed to “raise the bar, ensuring every product is clean and of a high standard”, according to NBF President, Stuart Hibbert. The federation is also working more closely with the European Bedding Industries’ Association (EBIA) to better understand the wider market. The Sleep Council, the NBF’s consumer education arm, continues to implement campaigns designed to raise awareness of the importance of a good night’s sleep, and its Seven Year Hitch initiative – which encourages consumers to replace their mattress after a seven-year cycle – has proved a powerful selling tool. Viscoool, an alternative to gel and memory foams, to the UK, while Sealy introduced the Hybrid, a combination of new spring design and a gel top layer. Traditional, UK-manufactured pocketsprung models remained prevalent, with plenty of new introductions from Sweet Dreams and the Airsprung Group, among others. The prestigious Hypnos, like many others seeking to expand their customer base, displayed leanings towards the contract market. A LOOK AT THE BED MARKET In general, it has been an interesting year for the UK bed market. In March alone, leading retailer Dreams was quickly rescued from administration, while Hilding Anders sold its UK subsidiaries to Bensons for Beds and Harveys owner Steinhoff. A recent Plimsoll study into the financial health of the UK’s 310 largest beds and bedding companies revealed the market to be a “highly competitive” one, enduring a “period of great change”, with around a third of those investigated “clearly operating under financial pressure” and at risk of “being forced out of the market”. Meanwhile, GfK’s consumer monitor for 2012 highlighted the importance of online sales in the sector, claiming that it account- by Paul Farley Editor, Furniture News, UK ed for 45% of the bed and mattress sales in volume terms, indicative of the bargain-hunting mentality of consumers still enduring a period of restricted disposable income. However, this may not be indicative of the overall picture, as many online purchases follow referrals from bricks-and-mortar retailers, who are increasingly adopting a multichannel approach to selling. The monitor also pointed out the year-on-year growth in children’s beds, due to the biggest baby boom in 40 years. Despite these upheavals, the UK furniture and furnishings sector has seen an upswing in recent months, driven by a recovering property market. While it is too early to have much confidence in any sustained revival, it does appear that the UK bed industry – supported to a great degree by the NBF – is doing a relatively good job of making the best of a difficult economy. CONSTANT INNOVATION The bed sector sees constant innovation in materials and marketing. This year’s Bed Show saw several developments in mattress foams and gels, including Silentnight’s new Geltex technology, a compound combining pressure relief, breathability and body support. Breasley Consumer brought December 2013 - WF 17
  10. 10. 018_019 SCENARIO:prova1 06/11/13 09:39 Pagina 18 SPECIAL REPORT SCENARIO BEDDING & UPHOLSTERY UPHOLSTERY FURNITURE WORLDWIDE W by Sara Colautti CSIL Industry and Country Studies orld consumption of upholstered furniture (valued at production prices, excluding markup) is worth US$ 63 billion. the largest markets are China, the US, germany and the UK. Upholstered furniture accounts for about 15% of total world furniture. apparent per capita consumption of upholstered furniture appears to be close to 0.1% of per capita gnp worldwide. World consumption was about US$ 37 billion in 2003 and increased rapidly in the following years, reaching US$ 58.9 billion in 2008. the world recession resulted in a decrease to US$ 52.7 billion in 2009, but growth resumed in the following years and exceeded US$ 63 billion in 2012. UphoLStered fUrnItUre ImportS. SIx major ImportIng CoUntrIeS, 2003 – 2012. CUrrent US$ mILLIon Source: CSIL from industry and official data 18 WF - December 2013 about 54% of world upholstery consumption in value takes place in high income countries (including 38% in the seven major industrial economies (g7) which in order of consumption are the United States, germany, the United Kingdom, france, Canada, Italy, japan and 16% in other high income countries). the balance (46%) is consumed in middle and low income countries, among which the largest consumers are China, India, Brazil, russia and poland. hoW ConSUmptIon ChangeS While total consumption is changing slowly worldwide, there are major variations in the composition of consumption in almost all major markets. Imported furniture has been growing (except during the 2009 recession). the opening of the north american and British markets to foreign upholstery is a major structural phenomenon. It was the main engine for growth of international trade of upholstered furniture until 2007 and is becoming important again after the slump of 2008 and 2009. most major markets have opened substantially and even Italy (which is still consuming to a large extent locally manufactured upholstery) has started to open to imports. for the world as a whole, growth of the imports/consumption ratio has been substantial until 2007 (from 26% in 2003 to 30% in 2007). growth has stopped with the recession and it has not yet resumed. WorLd prodUCtIon World production of upholstered furniture is worth almost US$ 68.5 billion, including US$ 45.1 billion for local consumption in the manufacturing country and US$ 23.4 billion for
  11. 11. 018_019 SCENARIO:prova1 06/11/13 09:39 Pagina 19 BEDDING & UPHOLSTERY exports, which constitute international upholstery trade. about 36% of world upholstery is manufactured in high income countries. the balance (64%) is manufactured in middle and low income countries among which the largest producers are China and poland. Some major producing countries have a high exports/production ratio and are strong exporters. China and poland have overcome Italy and are now the first two upholstery exporting countries, followed by Italy, germany, the US and romania. the oUtLooK the world upholstery industry is now broadly globalized and the outlook for the global upholstery industry is as follows: − Worldwide, there is excess upholstery manufacturing capacity. as a consequence, there will be continuing pressure on prices. − Short term, the excess capacity will persist because some producers from high income countries tend to open new plants in developing countries faster than closure of old plants at home. − Long term, the tendency to move upholstered furniture production from industrial to developing countries will continue. also, some producers in emerging countries aspire to develop their own design and their own brands; as a consequence, competition in the sector will remain very severe. World trade of upholstered furniture (in current dollars) dropped by 14% in 2009, and resumed growth in 2010, reaching US$ 17.1 billion in 2010, 18.7 in 2011 and 20.8 in 2012. according to CSIL forecasts it should grow to US$ 21.7 billion in 2013 and to US$ 22.8 billion in 2014. major pLaYerS the major upholstered furniture manufacturers are constantly monitored by CSIL, particularly this year in the report “top 200 furniture manufacturers worldwide: performance and strategies”, where companies of this segment were analysed in order to identify peculiarities and differences. among the world's 200 top manufacturers there are 27 companies specializing in the upholstery production, and other companies from the sample of home furniture segment, which manufacture sofas as well. SPECIAL REPORT SCENARIO UPHOLSTERED FURNITURE: WORLD MARKET OUTLOOK 2014 Publisher: CSIL. Date of publication: July 2013, XI edition. Language: English Available for online purchase and immediately download at This report provides an overview of the world upholstered furniture industry, with statistical data on production, consumption, imports, exports and forecasts 2013-2014 for 70 major upholstered furniture markets. The growth of upholstered furniture imports and the role of upholstered furniture exporting countries in the world marketplace are also considered. The analysis of the opening of upholstered furniture markets covers 10 years, with data on imports/consumption and exports/production ratio. Market shares of the major upholstery exporters are provided by high income and middle and low countries. Trend in the world upholstered furniture trade is outlined, while forecasts are provided for both upholstery consumption (2013-2014) and trade in large markets (2013-2014). Statistics and outlook data are also available in a country format: historical series on upholstered furniture production, consumption and trade, opening of the upholstered furniture industry to foreign trade, growth of upholstery products consumption (forecasts), origin of upholstery imports, destination of upholstery exports, country rankings to place all statistics in a broad worldwide context. A section provides detailed company profiles of selected major upholstered furniture manufacturer. the upholstered segment has a higher average number of employees in comparison to other furniture segments, thus confirming the greater dependence on labour in the manufacturing process (a highly labour-intensive segment) and it witnesses an increasing presence of new companies, mostly from asia and eastern europe. In these countries manufacturers producing huge volumes of goods at competitive prices have reached high levels of turnover. It is worth remembering the huge investments made by european and US firms in productive plants in poland or China to manufacture upholstered furniture for export purposes. the most frequent strategies implemented by the top 200 companies involve product innovation, followed by actions in the field of retailing, thus aimed at reaching consumers with innovative products and with suitable retail formats. Strategies aimed at differentiation may work both in terms of enlarging the product mix, and to reach new potential buyers along with traditional ones. Branding strategies are also frequent (with varying importance across areas). the difficult economic situation has put further emphasis on cost rationalization strategies (which are most important for large companies in advanced economies), and partially limited plant expansion strategies (less in emerging economies). It is worth noting that in the sample of 200 top manufacturers considered, the share of companies that directly manage retailing activities is higher in upholstered segment in comparison with other segments of the furniture industry. Is product innovation a winning strategy for upholster y? according to the sample of companies considered, it is relatively less important than pricing, retailing and branding strategies in comparisons with the other furniture segments. however this does not mean that upholstered furniture manufacturers do not invest in product innovation (this is the most commonly mentioned group of strategies) but the relative importance is lower than, for example, for kitchen producers. December 2013 - WF 19
  12. 12. 022_PREVIEW_prova1.pdf:prova1 06/11/13 09:44 Pagina 20 PREVIEW NEW FORMAT OF KIFF 2014 WILL BRING TOGETHER ITALIAN FURNITURE MANUFACTURERS AND UKRAINIAN BUYERS U kraine's leading international furniture exhibition KIFF is a good starting point for Italian furniture brands on the Ukrainian market. More ideas, more opportunities for bigger and more effective sales, making closer the company and the customer – this is what the new format of KIFF 2014 means. Creation and realization of new idea belongs to the partner of the exhibition, the Italian designer studio Adriani & Rossi. The format of the exposition, which will be presented for the first time in Ukraine on March 12-15 during KIFF2014 is also used at Abitare il Tempo 100% Project, Cersaie and INDEX. The slogan for the new format is: “Become an Italian Best Seller”. Leading brands of Made in Italy will present their luxury products of interior design in a new way thanks to the reorganization of the exhibition space. New format of the exhibition will offer new, more effective tools for products promotion. All exhibition space is divided into three halls. Hall 1 – VIEW. For the first time each participant in the international exposition will get support from Italian designers in the presentation and creation of a product style. Apart from that, the exhibition program traditionally boasts workshops and master- 20 WF - December 2013 Kyiv International Furniture Forum KIFF will be held on March 12-15, 2014. This international exhibition of furniture and interior objects is held annually since 2006. Organizer is Kyiv International Contract Fair, Ltd. classes from leading Italian designers and will be formed under the support of the Polytechnic Institute of Milan Politecnico di Milano. Hall 2 – TecnoHall is devoted to technical innovations, which are directly influencing design and create style: latest materials, technologies, colours, textures and fabrics. Hall 3 – Best Seller Italia will present the best tools of sales in three projects: Shop in Shop, Ideal Shop and Showcases. On the area Shop in Shop two 'Made in Italy' installations will be presented: classic and modern design. Italian brands will demonstrate the process of creation ‘Made in Italy’ via harmonious interaction of furniture, materials, lighting and accessories. How to project the shop of the future, how to use the newest solutions for showing products and new methods of information about the structure of the shop, how to create innovative concepts of distribution and to find really useful information for development of modern business. All this can be learnt on the platform Ideal Shop. Showcases are chosen by Italian companies as relevant elements of customer attraction. Their décor is also created in accordance with the basic concept: everything will be subordinated to the competent presentation of the product, its different interpretation from the point of view of design, its perception depending on the choice of lighting, furniture, wallpapers, color of floor covering, textiles and accessories. The main advantage of the new format is to present more effective tools for sales, to improve interaction between manufacturer and customer and to show the potential of the international companies for Ukrainian customers. The large scale and maximum openness, and orientation to the international market, precise positioning and innovation will help participants become ‘best sellers’ - the best in the Ukrainian market.
  13. 13. 022_OUTDOOR:prova1 06/11/13 20:55 Pagina 22 OUTDOOR HERITAGE. A TIMELESS OUTDOOR COLLECTION F ounded by Michele Düring in 1994 and based in Verona (Italy), the Arco company reflects experience, passion, and the most advanced technologies in production of outdoor furniture. Special attention is given to manufacturing techniques, high quality details and countless attractive combinations between fabrics and colours. "The Heritage collection is based on historical shapes and details transformed into a more clean modern classic collection of luxury and comfort addressing highly demanding international clients in leading markets like Russia, Ucraine, Medio Oriente, Usa, Mexico and Southamerica" explains Mr. Düring. "We control every single process says Mr. Düring - from fabric selection and cushion production, to the assembling of brass parts and medallions. Our full range of fabric choices apply to all orders, including small order quantities. All cushions are made in Italy, wich means excellent craftsmanship and delivery flexibility as frames and cushions are from a single source. We use only exterior grade high strength and fade resistant threads wich are carefully colourmatched to the cushion design and fabric colour. Covers for each of the Heritage items boast a 100% waterproof protection". "Right now the Heritage collection has introduced a new concept in outdoor living – Day and Night-time finishes – especially for customers who like the idea of getting their cushions dressed for the evening", says Mr. Düring. "Our 'Day-time' fabrics are made from fade-resistant acrilic and polypropylene and come in a wide variety of colours. For 'Night-time' we offer more fashioning fabrics including silk-cashmere, velvet and linen-cotton blends in sophisticated colours". Michele Düring Because cushions and metal parts are produced entirely in Italy, the company can custom-make and offer colours and fabrics that fit perfectly with every interior and exterior design, both classic and contemporary style. All materials are carefully selected, using the best selection of premium plantation teak, whereas medallions and feet are in pure brass, made in Italy by CNC process. Galvanization is in yellow gold or palladium. Both satin and highly polished finishings are available and some details can be in mother of pearl. 22 WF - December 2013
  14. 14. 023_024_STRATEGIES:prova1 07/11/13 12:44 Pagina 23 STRATEGIES GLOBAL HANDICRAFTS: A FUTURE VISION I by Patrizia Scarzella n a recent international meeting held last October in Bangkok organized by the International Good Shepherd Foundation Onlus, this issue has been discussed from different perspectives by a wide audience of producers, marketers, economists. It has been as well the occasion to evaluate the results of the design and product development training carried on by the Foundation in the last three years in Thailand, Kenya and Philippines as part of an Income Generating Project called ‘Networking Our Way of Poverty’. Especially addressed to women artisans in disadvantaged social situation who work in the centers of handicrafts production run by the Good Shepherd Sisters in those countries, the training’s main aims were to improve the quality of the products, to increase the design competence and creative potentiality, to understand the creative process from a new idea to the product, to achieve better self confidence in their creative possibilities, to create a stronger cohesion of the working team, to foster relations among them and the feeling to be part of a common project that can improve through learning. Products and materials from the Design Training and Product Development workshops held in Thailand and Kenya (by Patrizia Scarzella) and Philippines (by Patrizia Scarzella and Valentina Downey) for the IGP (Income Generating Project) ‘Networking Our Way of Poverty’ for the International Good Shepherd Foundation Onlus, 2011-2013. December 2013 - WF 23
  15. 15. 023_024_STRATEGIES:prova1 07/11/13 12:44 Pagina 24 STRATEGIES NINE SEMINARS These goals and outputs have been achieved through nine seminars of one week each I’ve carried out (five in Thailand in Nong Khai and Bangkok, two in Kenya in Nairobi, two in the Phililippines in Manila) to introduce the artisans involved in handicraft innovation to the fundamental principles of design. The training methodology has been conceived by me with the collaboration of Valentina Downey. The participants practiced numerous techniques learning how to approach the design process of new products. New collections of home and fashion accessories - mainly in textiles but also in different materials as paper or pottery - have been developed. These handicrafts products can count on a international structured network of distributors that are part of the Good Shepherd Sisters Congregation: in the USA the Foundation Handcraftingjustice, in Australia The Trading Circle and in Europe Sharing Fair Europe and Sharing Fair Italy based in Rome. This strong network had guaranteed in the past years till now a stable income to the producers: nowadays, despite the great efforts of the marketers and their new marketing and sales strategies, affected by the global economics crisis, they are not able anymore to support the same amount of sales. SOME QUESTIONS ARISING Considering this experience as a starting point, some main general questions and considerations have been put on the stage to be discussed. In a global highly saturated market, which are the possibilities for handicrafts in the poor countries to survive in the next future and become a sustainable source of the economy? Is handicrafts still a valid sector to focus on as a potential income generating project? All the countries must urgently respond to these challenges. Sustainability is thinking in long terms – on financial side, human capacities building, structures to face with world’s challenges - and the struggle to guarantee a sustainable future to millions of artisans in South America, Asia, Africa requires new stategies to be put in place in very short terms before many of them definitely disappear. 24 WF - December 2013 Almost all the handricraft products are not competitive in the market of similar products made in China at global level and small artisanal production cannot generate enough income. Very often they adopt a basic, spontaneous ‘supply-driven’ marketing strategy: “we produce what we can in the way we can, with little feed back from our customers, then we present the products to the markets hoping that they will buy them”. Most handicraft productions are still relying more heavily on the international markets that is highly saturated and can’t absorb any more the increased quantities of handicraft products. In those markets the general trend in the consumer attitude to spend less on this kind of products should be considered as well as a factor that is changing in short and long term the sales perspectives. Despite the common thought, the Internet doesn’t seem to be such a powerful channel to increase easily sales of handicraft products: too many competitors are struggling on the same stage with very similar products and they cannot challenge at all with the Chinese productions, where the so called ‘handmade’ handicrafts has reached an outstanding industrial dimension and structure at very low prices. As a Malaysia private buyer said: “No matter what you say about fair wages, quality, handmade, the final pricing must be competitive. People look at the product, then the price and have no time for the stories”. Facing within this common increasing mentality, even the handicraft productions based on income generating projects supported by international funds and grants and with the final aim of reaching the economic justice are suffering for their future. BEHIND THE PRODUCTS What is behind the products – equity, quality, dignity of the work, a vision of a more economic justice system etc – are values that seem to motivate only narrow niches markets that actually buy handicrafts more for charity reasons than for real need or pleasure. The reflections on actions to take are focused on some main points to develop that we can assume to be valid for all the handicraft field. First of all, the urgent need for any handicraft production to look very carefully at local emerging market opportunities in order to diversify their markets by developing a strong local marketing strategy and not only rely on the same channels of the past. From the financial point of view, the need to adopt a business model and not to rely anymore on the spontaneous ‘supply-driven’ marketing strategy. From the human capacities building: improving cultural and technical training of the artisans, fostering micro credit is a strategy that can build the base for independence and for a sustainable economy in the long term. From the point of view of the structures: strenghtening the business structure and management to face with a fast changing world.
  16. 16. 025_REVIEW:prova1 06/11/13 10:57 Pagina 25 REVIEW SHANGHAI, HOME TO FURNITURE CHINA by Giovanna Castellina CSIL S ince the '90s the Chinese furniture industry has been recording double-digit growth in production every year. Within 10 years, production value and exports grew by about 9 times, with profit increase being even higher. According to CSIL statistics, the Chinese furniture industry has now become a huge integrated industry with more than 5 million employees, accounting for over 40% of total world production. The impressive economic development of the country boosted the 1.3 billion population’s disposable income, also causing a surge in domestic consumption. Since 2009, the country is the largest furniture market in the world and also the one where the strongest increases in furniture demand are expected in 2014. The domestic market, in fact, will be the driving force behind China’s furniture growth, not only for domestic production but also for imported furniture. The furniture industry has become the fourth largest consumer goods industry in China. (Source: CSIL 2013 country report “China Furniture Outlook”, Year 2012). Organised jointly by UBM Sinoexpo and CNFA, the FURNITURE CHINA fair in Shanghai is a major annual appointment for the furniture industry. In 19 years Furniture China Shanghai has grown to some 3,000 exhibitors and 750,000 sq.m. of exhibiting space. Beside local companies, about 300 overseas companies attended the show. The 2013 edition was spread over two locations in the Pudong area: Shanghai New International Expo Centre and Shanghai World Expo Exhibition & Convention Center. A greater number of large international companies like Ashley, Ligne Roset, Natuzzi, Tvilum exhibited in Shanghai this year. Home Furniture continued to take the lion's share as the most popular and interested section of the exhibition, while office furniture, furnishing and interior design products were getting more and more attention from the visitors. TOP PLAYERS IN THE UPHOLSTERED FURNITURE INDUSTRY - MORE THAN 300 UPHOLSTERED FURNITURE EXHIBITORS Globally, China ranks first in the world for its upholstered furniture production, consumption and exports. Upholstered furniture accounts for about 17% of the total Chinese furniture production, increasing annually by 20% over the last five years. Upholstered furniture accounts for 14% of total furniture consumption. Local manufacturers satisfy the whole domestic consumption. Chinese top producers of upholstered furniture where showing in Shanghai for Furniture China 2013: HTL, Kuka, Man Wah, Xilinmen, Zouyou, Violino. All these players have more than 3,000 employees and, generally speaking, some of them are also active in other home furniture segments such as dining and living room furniture or bedroom furniture. The Zhejiang province, being traditionally focussed on the production of leather clothing, is now home to many upholstered furniture factories. A TOP PLAYER ALSO IN THE OFFICE FURNITURE INDUSTRY - 250 OFFICE FURNITURE EXHIBITORS China is currently the largest manufacturer of office furniture in the world. The country’s enormous production capacity enables it to fully satisfy domestic demand, leaving very little space for imported products. Among major office furniture companies exhibiting in Shanghai: Sunon, Henglin Chair, Novah, UE. With double-digit growth of attendants at +18.5%, the 5-day exhibition FURNITURE CHINA attracted 85,313 visitors in total, including 64,182 local visitors and 21,131 visitors from overseas coming from 144 countries and regions. Besides the key Chinese furniture enterprises, around 292 overseas companies attended as exhibitors, including 8 pavilions from France, Belgium, Italy's Puglia, Spain, Singapore, Malaysia, Indonesia, and Thailand at Shanghai New Int’l Expo Centre (SNIEC) and 4 pavilions from France, USA, Sweden and Taiwan at Shanghai World Expo Exhibition & Convention Center (SWEECC). Design was among the key topics of the fair. Two main design events took place during the exhibition: Design Hall and Design of Designers. Another highlight was: 2013 China Furniture Marketing & Sales Conference, 2013 China Furniture Design. For your agenda: the next edition of Furniture China Shanghai will be held from 10 to 14 September 2014. December 2013 - WF 25
  17. 17. 026_PREVIEW:prova1 06/11/13 11:00 Pagina 26 PREVIEW MORE MUAR FURNITURE PRODUCERS TO EXHIBIT AT MIFF 2014 M ore furniture producers from Muar, the furniture city of Malaysia, will exhibit at the 20th anniversary of the Malaysian International Furniture Fair (MIFF) in Kuala Lumpur from March 4 to 8, 2014. Muar has 700 furniture manufacturing companies and accounted for 45% of Malaysia’s RM 8 billion worth of furniture exports last year. The Muar Furniture Association (MFA), one of the strongest industry groups in the country, expects a 30% increase in its participation following the successful debut of the MFA Hall with 80 companies at MIFF 2013. MFA had entered into a strategic alliance with the organiser, UBM Asia, to participate exclusively in MIFF. This has resulted in significant market advantages for both and further strengthened MIFF’s position as the leading industry trade show in Southeast Asia and a global top 10 event. The launch of the MFA Hall had nearly doubled the presence of Muar exhibitors at MIFF. Ms Karen Goi, General Manager of MIFF, said: “We are delighted to welcome more exhibitors from Muar. This is a very positive outcome from our strategic alliance with MFA and it will also benefit our trade visitors directly because they will have more buying choices, value and get more business contacts. MIFF will continue to work hard to ensure that all our exhibitors and buyers will gain as much return as possible from the fair.” Mr Neo Chee Kiat, President of MFA, said: “We are very happy with our partnership with a global organiser like UBM. During MIFF 2013, our exhibitors were able to sell to more countries and approached by buyers from small emerging markets who were willing to pay for quality products. We would like to have a bigger hall next year to accommodate more exhibitors due to good response.” MIFF 2014 will again be held at the downtown Putra World Trade Centre (PWTC) and Matrade Exhibition and Convention Centre (MECC), covering a total of 80,000 square metres. Sales hit another high of US$ 854 million this year, up US$ 24 million from 2012. The fair drew 6,054 international buyers from 140 countries with a good turnout of quality buyers from emerging regions and traditional markets of Australia, the United States and Japan. About MIFF ( Malaysian International Furniture Fair (MIFF) is an export-oriented furniture trade show held annually in Kuala Lumpur, Malaysia. It is also a global leading trade show approved by UFI, The Global Association for Exhibition Industry. Since 1995, MIFF has nurtured partnerships between thousands of buyers and furniture makers across the globe. About UBM Asia ( Owned by UBM plc listed on the London Stock Exchange, UBM Asia is Asia's leading exhibition organiser and the biggest commercial organiser in mainland China, India and Malaysia. Established with its headquarters in Hong Kong and subsidiary companies across Asia and in the US, UBM Asia has a strong global presence in 25 major cities with 30 offices and over 1,400 staff. 26 WF - December 2013
  18. 18. 028_PREVIEW:prova1 06/11/13 11:45 Pagina 28 PREVIEW CIFF-OFFICE SHOW 2014. MORE SPACE, NEW DATES AND AN EXTRA DAY T Most of exhibitors believe that the success of products they are now exporting worldwide is due to continued investment in R&D and design: the Chinese furniture industry has entered an era in which competition becomes a crucial level for building new brands and making companies more competitive. In this regard, they consider CIFFOffice Show the ideal platform to do business and an essential meeting point for a synergic exchange of ideas with operators from all over the world. he largest office furniture exhibition in the world is also becoming the main platform for international business and trade, the expression of a continuously developing market that attracts an increasing number of buyers and professionals from all over the world. The Chinese furniture industry saw a turnover of over 340 billion RMB (about 40.5 billion Euros) in the first six months of 2013, an increase of 12.7% on an annual basis: exports, despite the crisis in international markets, increased by 10.5%, while the domestic market increased by as much as 20.7% (source: China national Furniture Association). Guangzhou - China Import and Export Fair Complex The development of the entire office furniture sector in China has been positively influenced by the continued growth of the real estate market: in the first 8 months of this year more than 700 million square meters of commercial real estate have been sold with an increase of 23.4% on an annual basis and a value of more than 4,500 billion RMB (about 535 billion Euros). In particular, investment in office buildings has grown by 42% (source: national Bureau of Statistics of China). The next edition of CIFF-Office Show, which will be attended by more than 900 exhibitors, will have a greater surface area (220,000 square meters), new dates (from 28th March to 1st April 2014) and will last 1 day more than usual to meet the needs of exhibitors and visitors who want more time to develop their business at the exhibition. Exhibitors participating in CIFF-Office Show 2014 will be presenting high quality products: more and more Asian manufacturers of office furniture are investing in patenting products and technological solutions, obtaining environmental certification and working with leading international professionals, deserving a growing attention to the design, quality and ergonomics of their products. 28 WF - December 2013 by Emilia Prevosti Edimotion ThE LARGEST ExhIBITIOn SySTEM In ThE wORLD CIFF (China International Furniture Fair), with an exhibition area of 880,000 m², 4,500 exhibitors for home furniture, outdoor living, home decor, home textile, office furniture, machinery and materials, and 190,000 international buyers, holds 2 editions each year: the first, in March, is divided into 2 stages: first home, then office and manufacturing support; the second, in September, is dedicated to the home. Office chair Arti by B.One - design Endison Lu
  19. 19. 030_FOCUS_Windows_sb vs8:prova1 06/11/13 11:39 Pagina 30 FOCUS PREVIEW INNOVATIVE PRODUCTS & VISIONS INTELLIGENT AUTOMATION TECHNOLOGY PROMISES BIG ENERGY SAVINGS IN BUILDINGS E nergy costs are rising. This applies equally to petrol, diesel and heating oil. The shift away from nuclear power in Germany and the associated promotion of energy renewable sources have led to a relevant rise in prices, particularly for electricity. Particularly in existing buildings, cutting cost by using modern automation systems is a high potential option. Besides fitting highly energy-efficient pieces of equipment and components, such as heat pumps or energy-saving illuminants, it is also possible to increase the energy efficiency of buildings as a whole. In the field of building-service equipments, electrical applications like energy technology, lighting and mechanical elements (heating, air-conditioning and ventilation) play a particularly interesting role. INTELLIGENT BUILDING AUTOMATION SAVES ENERGY Using intelligent building-service technology for the control of systems in accordance with the daylight and different levels of demand can lead to enormous energy savings. An intelligent regulator can ensure that a room is only heated if it's actually being used or that the lighting is switched off when nobody is inside. As in the field of industrial automation technology, numerous different bus systems and communication standards have been developed over the years for building automation. the daylight and switched on via a motion sensor whenever someone enters a room. A link to the awning control system, which is oriented towards the angle of the sun, helps prevent direct solar radiation, while permitting sufficient daylight to pass through. If the awning control communicates with the heating, lighting and air-conditioning system and with a weather station, rooms can be heated or the awnings used to prevent overheating, thus reducing the load on the air-conditioning system. In order to allow users to choose individual settings, most systems come with an operating panel, through which the user can enter values such as the room temperature and lighting times within a predetermined range. All data from each individual room run via a network to a main management and operating unit, where they can be analysed and system adjustments can be accordingly made with regard to energy consumption. Interaction of the main building automation system with individual regulator units is one of the main demand on the overall system. SMART GRID HELPS FURTHER Building automation has the potential to be even more important if the electricity system is suitable for connection to a ‘smart grid’. Then, a heat pump or a charging station for e-automobiles could be switched on and off to ensure that power is only consumed at a time when it is less expensive. A lot of development work remains to be done with regard to communication between intelligent networks and intelligent buildings. Countless ideas for solving this problem can be seen at Light+Building, World’s Leading Trade Fair for Architecture and Technology, in Frankfurt am Main from 30 March to 4 April 2014. Luminale downtown Frankfurt SYSTEMS MUST BE NETWORKED Building automation can only be called ‘smart’ if all systems are able to communicate with each other. Only in this case the automatic systems can be coordinated, thus increasing the overall energy efficiency of the entire building. To really save energy, it is essential that – in a large office building, for example – the lighting and blinds, as well as the heating, lighting and air-conditioning systems are networked. Thus, lighting can be controlled in accordance with the level of 30 WF - December 2013
  20. 20. 031_032_FOCUS_Windows_sb vs8:prova1 07/11/13 12:42 Pagina 31 INNOVATIVE PRODUCTS & VISIONS FOCUS PROJECTS SMART STREETS T by Aurelio Volpe CSIL International Market Research here is plenty of room for energy savings in public lighting and this was the starting point for the European SETPL AN* for smart cities. The variables in play include the development of a new system for the total control of the street (“smart streets”) based on networks of intelligent lampposts, new technologies for public lighting (LED), and experimentation in pilot countries. At the Italian level, ENEA (the National Agency for New Technologies, Energy and Sustainable Economic Development) is promoting the Lumiere consortium, which provides technical and economic assistance, particularly to municipalities with a population of between 5,000 and 50,000. Already the cost savings per lamppost installed in the Lumiere municipalities are roughly 50 euro a year. The lighting industry hasn’t been idle either; the TALQ Consortium was formed in June 2012 by Philips, Osram, Hubbell, GE, Harvard Engineering, Kingsun, Schréder, Streetlight.Vision and Thorn/Zumtobel. This means not only the three leading world producers of light sources, but also a LED firm supported by the Chinese government (Kingsun), the leading European specialist in the business sector (Schreder), two of the largest lighting producers in Europe (Zumtobel) and the United States (Hubbell), and two important electronics and software companies. The TALQ Consortium aims to provide a globally accepted standard for a management software interface for Outdoor Lighting Networks to enable interoperability between Central Management Systems and Outdoor Lighting Networks from different vendors. A light regulator allows the switching on and off of the lamps to be calibrated according to the atmospheric conditions and to the actual presence of people on the street. One example of a software platform is CityTouch by Philips. It is an integrated platform that allows to reduce energy costs through automatic light regulation and also becomes a very useful tool for the intelligent management of maintenance work. CityTouch is the starting point for an all-round approach to the “Smart City”, which in the future could link different types of systems together (public lighting, CCTV, traffic management) to create a truly intelligent city. But we are just at the beginning, and we don’t have PLC (Power Line Communication) broadband technologies. In addition to providing light, the “intelligent lamppost” can be a point of access to the public urban network, a detector of atmospheric pollution, a battery-charger for electric vehicles and, again according to ENEA, “potentially much more besides”. ENEA maintains that a light flux regulator allows for energy savings (with the same lighting source) of between 25% and 30%. Light flux regulators may be fed by dimmable electronic ballasts or a centralised voltage regulator. Even the simple replacement of mercury lamps allows for an annual reduction of 37 tons of CO2 in a municipality of 8,500 inhabitants (Castelnuovo Magra, Italy). December 2013 - WF 31
  21. 21. 031_032_FOCUS_Windows_sb vs8:prova1 07/11/13 12:42 Pagina 32 FOCUS INNOVATIVE PRODUCTS & VISIONS PROJECTS From the point of view of the lighting sources employed, in 2012 the use of LEDs in street lighting almost doubled at a world level, driven by countries where the public sector promoted the change (United States, China). On the other hand, the new technology is not immune to criticism and alternatives do exist (lamps with ceramic burners, high-pressure sodium lamps). Philips’ solution for public lighting is LEDGINE, a unique and modifiable platform for outdoor lighting that enables it to keep up with the progressive improvements in the modules and drivers of LED lighting. In this way, over the years it will be possible to update the lighting fixture with more efficient LED boards maintaining the same level of lighting.  In the past one of the criticisms of the use of LED lighting for outdoor purposes was that the rapid technological advances made soon new installations obsolete. ENEA firmly believes that the development of the Smart City begins with the Smart Street. * What is the SET-Plan? The SET-Plan is the technology pillar of the EU’s energy and climate policy. It was adopted by the European Union in 2008 as a first step towards establishing an energy and technology policy for Europe. It is the principal decision-making support tool for European energy policy, and aims to: • Accelerate knowledge development, technology transfer and uptake; • Maintain EU industrial leadership in low-carbon energy technologies; • Foster research into transforming energy technologies to achieve the 2020 Energy and Climate Change goals; • Contribute to the worldwide transition to a low carbon economy by 2050 32 WF - December 2013
  22. 22. 033_034_FOCUS_Windows_sb vs8:prova1 06/11/13 21:06 Pagina 33 INNOVATIVE PRODUCTS & VISIONS FOCUS E-COMMERCE 4% OF LIGHTING FIXTURES SOLD ONLINE E by Mauro Spinelli CSIL International Market Research -commerce sales of lighting fixtures started approximately in the year 2000 and doubled during the last five years. Today almost 4% of the US$ 75 billion market of lighting fixtures is managed through e-commerce, when considering both B2B and B2C. North America is still the largest market but its incidence on the world market for lighting fixtures sold by e-commerce is only 47% of the total in 2012, followed by Europe with 30%. E-commerce share on total sales is the highest among electrical wholesalers worth around 10% of their lighting fixtures business. Only a quite small part of the ecommerce business is managed by “pure e-tailers”. Leading players for the e-com- merce of lighting fixtures include Amazon, Grainger, Ikea, Rexel, Solar, Sonepar, Willliams-Sonoma. For many among these players, lighting fixtures represent just 1%-2% of total turnover. A higher percentage of around 20% is recorded by electrical wholesalers. Lighting fixtures manufacturers managing e-commerce include Erco, Foscarini, Philips, among others. E-commerce for the lighting fixtures in China is still at its early steps. The opposite is true for the Australian market. E-commerce market for lighting fixtures (B2B and B2C) is estimated to account for approximately 3.9% of total lighting fixtures market at retail prices, for a total value of US$ 4.4 billion. The e-com- December 2013 - WF 33
  23. 23. 033_034_FOCUS_Windows_sb vs8:prova1 06/11/13 21:06 Pagina 34 FOCUS INNOVATIVE PRODUCTS & VISIONS PROJECTS Lighting fixtures. E-commerce in the main markets. Dimension, penetration and average growth 2012/2006 Source: CSIL estimates Note: The dimension of the bubble is: market value in million US$. The E-commerce penetration is: e-commerce lighting sales/total lighting sales merce penetration varies from country to country. The United States and the United Kingdom show the highest penetration rate with 6.2% and 5.6%, respectively. The largest part of the business in the residential lighting fixtures segment is in the hand of Lighting Fixtures Specialist and furniture stores/DIY chains: traditional retailers which heavily invested in e-commerce setting-up their webshops, continues to drive the market due to their powerful advertising campaigns and high street presence combining “in-store” experience and the Internet presence. However, a number of pure e-commerce entities (etailers) are emerging in the market (i.e. The technical lighting fixtures segment is largely driven by wholesalers, both big entities working at worldwide scale (i.e. Sonepar) and local/regional networks. These groups launched their webstores (generally with restricted access for traders and professionals) and due to the important logistic capacity they are able to deliver products, in different quantities, in very limited period of time, enabling retailers (plumbers and installers) to reduce warehousing costs. From a geographical point of view, ecommerce models are quite similar in North America and Europe and main players successfully expanded their presence in both regions. On the contrary, The CSIL Report “E-COMMERCE FOR THE LIGHTING FIXTURES INDUSTRY” has been carried out using the following tools: - field research including direct interviews with important manufacturers and distributors operating in the e-commerce business - desk analysis and comparison for a sample of around 200 webshops (mainly US and Europe-based); - analysis of CSIL databases concerning lighting fixtures sector worldwide; 34 WF - December 2013 the Chinese market implies a completely different consumer approach, different user interfaces (not only language, but contents and tools), enormous logistic and delivery problems to be solved in order to have a countrywide coverage. There is a lot of examples of foreign multinational companies (not only e-commerce groups) which failed in their market approach (i.e. eBay, Google and Yahoo). At the moment only Amazon is ranked among the top five websites in China. Dedicated logistic platforms become necessary when groups decide to really compete in this business. BUT in France has three large warhouses, two for B2B (delivering orders to its stores) and one dedicated to B2C organizing deliveries to customers buying on-line. In 2014 M&S will inaugurate its 900,000 sq ft distribution centre at Castle Donington in the east Midlands/UK as a crucial step of a £1 billion improvement program designed to ensure the retailer has the right stock in its stores and online shop. The “Price Promise” is a condition used by the largest part of e-commerce retailers today. It is linked to the “price battle” wich leads to uncontrolled discount policies, especially from e-tailers. It is important to point out the different degree of e-commerce penetration according to segments. In the home related products the penetration of ecommerce is low if compared to the fashion segment. We mention two different successful stories: Home24 entered the e-commerce business in 2009 and achieved EUR 63 million turnover in 2012. Zalando started at the same time as Home24 and achieved sales of EUR 1.159 billion in 2012. - processing of official statistics and various e-commerce related sources worldwide. The Report highlights a strategy for the e-commerce of lighting fixtures in the middle run, focusing on logistic platforms, price promise, investments from incubators, increasing use of smartphones, lack of infrastructure. Publisher: CSIL. Edition II. Publication date: September 2013. Language: English Available for online purchase and immediate download at:
  24. 24. 035_FOCUS_Windows_sb vs8:prova1 06/11/13 12:14 Pagina 35 INNOVATIVE PRODUCTS & VISIONS FOCUS E-COMMERCE MADE.COM 'GOOD DESIGN' VOTED BY THE WEBSITE COMMUNITY A WIN-WIN SITUATION The leading strategy of the new MADE.COM business model is to target people who are looking for quality design furniture and furnishings at an affordable price and to implement a win-win situation through directly connecting designers, manufacturers and e-commerce customers. The cost structure is very simple: no agents, no warehouses, no bricksand-mortar shops and no intermediaries. All the cost savings are passed on to the consumers. Before launching a product, they put a photo of the prototype on the website and ask the visitors to vote (crowd sourcing web pages). The most voted product goes into production and onto the market. Basically, the website community chooses the preferred items following a "good design" criterion and also expresses its feedback and preferences about textiles, forms and colours. MADE.COM was launched in the UK by Ning Li, co-founder and CEO, and Brent Hobermann, co-founder of Later on, Julien Callende, co-founder and COO, and Chloe Macintosh, co-founder and Art Director, also joined the business. This innovative idea has been funded and supported by investors and entrepreneurs based in the UK and USA since the very beginning in March 2010. "Our typical UK customer - says Ning Li - is a very wealthy one who can afford brands, but prefers not to spend too much, or a low-budget consumer who wants to have good design at an affordable price". After three and half years, there are 120 people employed in London and Shanghai. Total sales increased by 200% in 2012 and the e-commerce business boasts double-digit monthly growth with two new collections every week. The online catalogue comprises some 1,000 items with over 1 million visitors each month in UK. According to Chloe: “We do not need to run a huge catalogue and to design products to be marketed after one or two years. We produce for the market of today". In fact, the chain is very short, from the first idea to the online purchase. And it is short for designers too, from the first project to the royalties. Average time to market is reduced from one year to five months. Nowadays, orders are placed every week until the requested volumes are reached, according to a "made to order" production model. Average delivery time in the United Kingdom, France and Italy is 12 weeks and the cost of delivery is never higher than 15%-20% of the price of the product. The rule is: the more you buy, the more you save. Big items are more cost affordable. Word-of-mouth is a fundamental marketing tool for MADE.COM. MADE.COM was launched in France and - since 26th September 2013 - is now available online in Italy, too. Expectations about Italy are high: the target is to double sales year on year, involving local designers and collaborating closely with Italian furniture and furnishing manufacturers. (P.G.) December 2013 - WF 35
  25. 25. 036_FOCUS_Windows_sb vs8:prova1 07/11/13 13:11 Pagina 36 FOCUS INNOVATIVE PRODUCTS & VISIONS KNOW HOW LISTONE GIORDANO CONTRACT DIVISION L Daeyang gallery and house - Place: Seoul, Korea Products: Listone Giordano 90, Oak Noir, Cabreuva Vermehla customized production Architect: Steven Holl Architects Surface: 1760 mq Year: 2012 - Photos: Iwan Baan Relais Orso - Place: Rome, Italy Products: LG Contract Collection Architets: Danilo Maglio Anno: 2012 Vitti Villa - Place: St. Barth, Product: Old Reclaimed Teak / Indoor & Outdoor Year: 2012 36 WF - December 2013 istone Giordano Contract Division was established in the year 2000 to develop and implement projects and products for contemporary architectural areas. As an independent structure, it operates with the other company departments in an integrated way and it is in close contact with the branch offices in Europe, North America and with selected distributors in about 30 different countries. Listone Giordano Contract Division successfully operates in several sectors of the large-scale contract market, boasting a reference list of prestigious realizations in Europe, North America, Australia, Asia and Middle East. Hospitality, retail, residential, private and public buildings stand side by side with luxury projects in the fashion and yacht business. Points of strength and added value of the Listone Giordano Contract Division are the creation of custommade wood flooring projects and the large-scale supplies. By dimension, width, finishing and surface treat- Casa Batlló Gaudí Place: Barcelona, Spain Product: Original Oak DuraPlus “quadrotto” special pattern Renovation by: Doble Espacio Year: 2002 ments, wood essences and construction techniques, collections are able to satisfy different segments of the market. Project supervisors and area managers on site provide skilful evaluation and perfect connection between the Company and constructors, architect and specifiers as to fully meet expectations. Margaritelli is today a large multi-business Group that operates in different industrial sectors - doors, wood panelling, bathroom furnishings, outdoor products, road and noise reduction barriers, railway sleepers, industrial vehicles - and boasts over one hundred years of story. In the year 1870 Eugenio Margaritelli specialized in the production of mechanical tools for agriculture and forestry manufacturing and, since then, offering solutions in wood for interior furnishing represents the core business of the Margaritelli Group. Listone Giordano is a leading brand name and a reference for superior wooden floors. The production plant in Miralduolo of Torgiano, Umbria (Central Italy) was built in 1970. Since 1995 Margaritelli has launched an innovative franchising programme that in a few years led to the creation of over 650 specialised hardwood-flooring retailers worldwide (Paris, London, Barcelona, Mexico City, Shanghai, New York, Beijing, etc.) THE GROUP IN FIGURES Over 950 employees Turnover EUR 178 million in 2011 9 production plants 700,000 sq.m. of industrial surface
  26. 26. 037_038_FOCUS_Windows_sb vs8:prova1 07/11/13 12:39 Pagina 37 INNOVATIVE PRODUCTS & VISIONS FOCUS MATERIALS MARBLE AND NATURAL STONE. BACK TO THE FUTURE by Paola Govoni S IZE OF A SECTOR The Italian chain of marble and granite has a workforce of 35,000 with 3357 companies and total sales acounting for EUR 3.8 billion in 2012. The sector is strongly export-led. Export data for marble and granite (both raw and processed) in the first six months of 2013 show a +7.3% increase to EUR 896 million in comparison with EUR 835 million in the same period of 2012. Verona district recorded a +4.5% increase of its export to EUR 183.7 million. Total exports of Italian machinery and technology accounted for EUR 447 million in 2013 (463 million in 2012). Quarry. Photo Marmi Bruno Zanet BUSINESS CLIMATE Natural stone and marble are among the most classic and ancient materials. A large share of the 1400 exhibiting companies at Marmomacc in Verona, leading international trade show for natural stone design and technology (25-28 September), came from geographical areas like Egypt, Palestine, Greece, Maghreb, India, Iran, Turkey, Spain and Portugal, Italy, where high civilizations blew in the past and natural stone is still a lively business sector keeping pace with latest product trends and innovative technologies. According to the Organizers, the concept of the fair can successfully combine culture of the product, design, architecture, constant training and innovation with a global trade activity called 'Marmomacc in the World' featuring a strong presence of the fair in the United States, Brazil, Qatar, Saudi Arabia, Morocco and Egypt (from 2014), with China and India as a notto-be-missing opportunity for the near future. Basically, the feeling of this year's edition of Marmomacc was that of a positive climate, with a high share of foreign operators and buyers (+6% on 2012), who accounted for 55% of total 56,000 visitors. Top ten of foreign operators is: Germany, India, Spain, Turkey, France, United States, United Kingdom, China, Russia and Brazil. Good prospects in the coming months are expected to be recorded on traditional and emerging markets like Brazil, Saudi Arabia, Asia, the Gulf countries and the United States. CELEBRATING 55 YEARS OF ACTIVITY Since the foundation year 1958, Marmi Bruno Zanet has been present in the most important mining areas of the world. The first stone yard in Volargne/Verona in 1972 was followed by two major logistic centers near Massa Carrara at the end of the '70s. In 1978-1980 the crisis of the marble hit the company, thus forcing it to find new quarries, but especially new markets and new trends and it was the beginning of a process of globalization. Since 1990 Marmi Bruno Zanet from a trading company turned to be the owner of several quarries. In 2003 a factory processing slabs from blocks was created in Vitoria, Brazil. Main export markets are Spain, France, Germany, Austria, USA, Canada, China, Taiwan, Singapore, Hong Kong, Japan, Malaysia and Indonesia. Among the latest international proj- Paved hall. Ariston Hotel Paestum December 2013 - WF 37
  27. 27. 037_038_FOCUS_Windows_sb vs8:prova1 07/11/13 12:39 Pagina 38 FOCUS INNOVATIVE PRODUCTS & VISIONS MATERIALS Stonetech Gonianakis entered the field of marble and natural decorative stones 40 years ago in Heraklion/Crete and since then the company recorded steady growth. Over the years, it has built strong relationships with quarries in Greece and abroad, also based on exclusive cooperation. The company owns a modern showroom (1800 sq.m.) and runs a main factory in Heraklion/Crete and a partner factory in Athens. Combining a great collection of natural stones and special applications, Stonetech created projects ranging from villas, to five star hotels spas, resorts and villages worldwide. Main export countries are: Russia, the Emirates, North-Africa, Lebanon. Based in Rajasthan/India, Tirupati Impex is in mining of green marble since 1982 and has seven operational mining areas fully mechanized and equipped with modern machinery. Precious varieties of green marble and other natural stones like granite, sandstone, quartzite are extracted at the mine site and processed at the facilities in Udaipur and Bangalore using mainly Italian technology and machinery. White Onyx Since its foundation in 1987 Persian Marble Co. has been one of the leading companies in the producion and export of Iranian stones. It owns a marble factory in Tehran (30,000 sq.m.) producing slabs (1000 sq.m./day), cut to size and tiles (600 sq.m./shift) and its own "Crema Persia" marble quarry in Dehbid area, Fars province, at an altitude of 3,300 m on the sea level. "Crema Persia" is a beautiful beige marble with a current capacity of 10,000 tons/month. Marmomacc Exhibition. Bathing in Light ects, there are the Ariston Hotel in Paestum, Italy (see photo) and the Chamber of Commerce in Seoul, South Korea. WALKING AROUND THE FAIR Superior for Marble is one of the largest factories (33,300 sq.m. located in Suez) and quarries in Egypt for the production and manufacturing of marble, granite and onyx with a daily production of 3500 sq.m. of slabs and tiles using advanced technologies. The company runs a own showroom in Cairo, Nasr City and exports mainly to the Middle East and Europe. At Marmomacc the company exhibited in 38 WF - December 2013 the Egyptian Pavilion. This year Egypt accounted for the largest foreign participation with over 40 exhibitors. Sharabati Modern Company for Marble & Stones was founded at the beginning of the '80s. From the deep mountains of Palestine, from Jerusalem City, from Ramallah and Herbon the company based in Hebron extracts beautiful stones in different shapes and colours, including the gold stone of Tarqomia, the white, cream, red and pink stones of Al-Shioukh and the Taffouh stone. It owns more than 10 quarries and supplies raw and customer tailored products of stone. LAST MINUTE Since 1979 Stone Italiana based near Verona, has been carrying out relevant architectural projects and realizations in recomposed quartz and marble with tailored surfaces (floors, coverings, tops and facades) and customized design and colours. In October 2013 Stone Italiana (160 employees with a turnover of EUR 40 million in 2012) won the job to supply 305 bathrooms within a London's major real estate project called 'Nova Victoria' at West End, Central Victoria district. The project accounts for a total investment of £ 2.2 billion. The job is worth EUR 11 million and Stone Italiana will implement it through its subsidiary StoneBathwear.
  28. 28. 039_FOCUS_Windows_sb vs8:prova1 06/11/13 21:14 Pagina 39 INNOVATIVE PRODUCTS & VISIONS FOCUS MATERIALS INNOVATIVE AND ECOLOGICAL MIRROR FROM SAINT-GOBAIN GLASS S aint-Gobain Glass launched its latest addition to the world of mirrors, the SGG MiraLiTe® reVoLuTion, an ecological and innovative mirror resulting from an intense r&D programme and a ecofriendly production process. The basic glass used for the production of the mirror is made by 30% recycled glass. The SGG MiraLiTe® reVoLuTion lends itself to numerous applications, according to the specific needs: it can be used both in homes and in professional situations such as gyms, hotels, shopping centres, shops and restau- THe oriGinS of SainT-Gobain in 1665, four years after Louis XiV, the Sun King, came to the throne, SaintGobain was appointed as a Manufacture royale des Glaces de Miroirs. its origins are linked to the realisation of the Hall of Mirrors at the Palace of Versailles, which is the Group’s first large architectonic project. The french historian Maurice Hamon, author of the Group biography “Du Soleil à la Terre: une histoire de Saint-Gobain“, explains: “There are well-established beliefs that link the foundation of the Manufacture des Glaces des Miroirs to the construction of the Hall of Mirrors at the Palace of Versailles, which began in 1678. The splendid realisation was the highly prestigious embodiment, the triumph, of a genre of reception rooms, and it was decorated with numerous inserted mirrors in the walls to make them look even more magnificent. This fashion, brought to france by italian queens such as Caterina de’ Medici, subsequently spread throughout the europe of the eighteenth century”. rants. The mirror can be personalized through a logo or a drawing. it is ideal for enhancing interiors and guarantees top quality scenic and decorative effects. The SGG MiraLiTe® reVoLuTion mirror is highly versatile, it can be cut to any shape or size and can be drilled, the edges may be decorated or plain, with or without a frame, and it may be used as a wall covering or a furnishing item, always promising excellent durability. available thicknesses: 3,4,5 and 6 mm. The product is conform to the en 1036 regulation and bears the Ce label. THe SainT-Gobain GrouP The Saint-Gobain Group is world leader on the habitat markets, designing, producing and selling new generations of materials for modern buildings. The Saint-Gobain Group is today present in 64 countries worldwide, with a workforce of 190,000 and a 2010 turnover of roughly eur 40 billion. it is organised into four Sectors: - Construction Products (plasters and insulating products, adhesives, flooring, cast iron pipe chases), - innovative Materials (glass for construction, glass for transport vehicles, glass for solar energy, abrasives, textiles, fire-resistant, ceramic and plastic solutions), - building Distribution (sales of building materials) and - Packaging (glass containers for foodstuffs). in italy the Saint-Gobain Group is active in all four Sectors; it has some 4,000 employees, more than 30 production facilities and a turnover of around eur 1,300 million in 2010. Cascade Hi-Tech, Paris Showroom Silvera, Paris December 2013 - WF 39
  29. 29. 040_041_FOCUS_vs 8:prova1 06/11/13 21:18 Pagina 40 FOCUS INNOVATIVE PRODUCTS & VISIONS MARKETS AN OVERVIEW OF THE WOOD-BASED PANEL INDUSTRY t REnDS on tHE MARKEtS the European Panel Federation (EPF) represents the European manufacturers of particleboard, MDF, oSB and fiberboards. in 2012, EPF observed that the European woodbased panel sector slowly got out of the economic doldrums though it continues to face significant challenges especially in the countries most affected by the crisis. the European particleboard production shrunk further by 5.5% down to 28.7 million m³. this production level remains far below the output peak at 37.8 million m³ observed in 2007. the furniture industry and the construction sector are the two main drivers behind the particleboard activity. Both remained subdued in 2012, reflecting the European economic context and the stagnant consumption especially for durable goods. Following two years of moderate growth, MDF production in Europe contracted by 6% in 2012, reaching almost 11 million m³, excluding turkish and Russian production. this production level is significantly lower than the peak of 2007 at 13.3 million m³. in 2012, European production of oSB contracted moderately by 2.3% but still exceeded 3.5 million m³. Following the decision by the former FERoPA members to dissolve their federations, EPF has welcomed the wet process fibreboard producers and started to develop statistical information on their activity. in 2012, production of hardboard in Europe increased moderately by 1% while the European production of softboard upturned slightly by 2.1%. CoSt Evolution 2006-2012 (2006=100) Source: EPF, 2013 40 WF - December 2013 by isabelle Brose, EPF Economic Adviser ACtivitiES At EuRoPEAn AnD intERnAtionAl lEvEl At European level, EPF is leading a wide range of advocacy actions in all fields that could affect the competitiveness of the European wood panel producers. one of the more recent success was the eventual approval by the Council and the European Parliament of the European Commission’s proposal on the accounting rules and national plans for emissions resulting from land use and land use change from agricultural and forest activities (luluCF). the new luluCF rules finally correct the aberration introduced by the Kyoto Protocol in 1997 when it was decided that, whenever a tree was cut, the Co2 returned to the atmosphere at once. the new rules open the way not only to improve the carbon accounts, but also to include in these accounts the pool of wood products in use in each Member
  30. 30. 040_041_FOCUS_vs 8:prova1 06/11/13 21:18 Pagina 41 INNOVATIVE PRODUCTS & VISIONS ovERAll PRoDuCtion oF PARtiClEBoARD, MDF AnD oSB in EuRoPE (1,000 M3), 2002-2012 Source: EPF, 2013 State (MS), by acknowledging that wood, until the end of its useful life, continues storing the Co2, that trees absorbed during their growth. EPF expects that the new luluCF rules will prompt governments to support the sector concretely, for example by encouraging the replacement of more energy-intensive materials for wood in new buildings and renovation. EPF will continue working with the Eu policymakers in the development of the concrete application of these new rules such as, for instance, the promotion of harvested wood products, the end of subsidies for the direct burning of wood and the substitution of energy intensive materials with carbon positive wood products. However, EPF’s combat against the subsidies and other support measures for the burning of wood is far from ended. Although currently only minor amounts of wood are used in liquid biofuels production for economic reasons, EPF fears that the situation may change dramatically in the near future due to the proposed list of feedstock that would count double and quadruple towards the Eu’s 10% target on the share of renewable in transport fuels. the industry also fails to see any solid technical or economical grounds for the proposed listings and is especially worried about the proposal to support saw dust and cutter shavings by four times their energy content in the production of advanced biofuels. Consequently, EPF has managed to establish a joint position paper with EoS, CEi-Bois, FEP and FEFPEB. the wood-based panel sector continues to face significant challenges such as the limited availability of wood and increases in production costs, especially for wood, resins and energy. EPF therefore advocates several ways of enhancing the future competitiveness of the woodworking and furniture industries in Europe: the importance of using wood first as material and then as an energy source, the recognition that wood is an essential instrument to tackle climate change and that the use of this environmental friendly material should be extended and enhanced in order to store more carbon and to reduce greenhouse gas emissions from the use of other materials. the recent Communication from the European Commission: “A new Eu Forest Strategy: for forests and the forest-based sector” is certainly an important document for the wood-working industries and for the wood-based panel sector in particular. EPF hopes that MSs will be able to implement this strategy especially for finding solutions for increasing the pool of harvested wood products and fostering the cascade use of wood. At international level, EPF is in close contact with the north American Composite Panel Association (CPA) and, especially, co-operates with CPA on topics such as biomass availability and newly proposed formaldehyde emission regulations. Growing wood pellet business in the uS is becoming a threat to the fiber supply for composite panels. CPA opposes any governmental subsidy or other assistance to give a FOCUS MARKETS preference to wood pellet production, especially pellets destined for Europe and other offshore energy markets. Concerning formaldehyde emissions, like CPA, EPF principally welcomes the intention of the uS Environmental Protection Agency (EPA) to establish a harmonised uS-wide regulation on the formaldehyde emission of composite wood products to be aligned wherever possible with the existing provisions of the California Air Resources Board (CARB) regulations. However, EPF is worried about the fact that the statute provides the uS EPA discretion in some areas to vary from the California model and a number of EPA’s proposals are markedly different, which could tremendously issue costs for compliance with both regulations. EPF is also in good relations with the Japan Fiberboard and Particleboard Manufacturers Association (JFPMA) and several other wood-based panels associations across the globe. ABOUT EPF AS AN ORGANISATION EPF has members in 25 countries, either national member associations or individual companies and groups. There is also a special status for associate members. Since 1 January 1999, EPF represents the European manufacturers of particleboard, MDF and OSB. In March 2012, also the leading European manufacturers of wet process fibreboards, who were previously represented by FEROPA, decided to join EPF. Since then, EPF also operates the ‘Natural Fibre Boards’ (NFB) trademark. As European branch federation, EPF is member of the umbrella association CEI-Bois, the European Confederation of woodworking industries. For a more comprehensive view of the EPF activities see the latest EPF Annual Report considered as the reference handbook for the wood-based panels industry. Detailed table of contents and order form are available on simple request to December 2013 - WF 41
  31. 31. 042_PREVIEW:prova1 06/11/13 15:41 Pagina 42 PREVIEW EXPLORING THE POTENTIAL OF THE POLISH FURNITURE INDUSTRY P oland is the third largest furniture exporter in Europe and the fourth furniture exporting country at a world level. Polish furniture manufacturers use the latest international technologies and are among the world leaders in terms of workmanship quality. Thus Polish factories can guarantee full flexibility of production and supply. MEBLE PoLSKA 2014 Furniture Fair - a major furniture fair in Central and Eastern Europe, which will be held in Poznań on February 18-21, 2014 - is a not-to-bemissed opportunity to explore the potential of the Polish furniture industry. The 2013 edition of MEBLE PoLSKA confirmed the leading position of this event among furniture industry events in this part of Europe. The exposition cov- ered the total area of exhibition halls equalling 31,000 sq. m. This year edition of the fair was visited by furniture traders from 48 countries. As many as 24% of all visitors came from abroad. The most numerous were furniture traders from Germany, the Czech Republic, Lithuania, Great Britain, Russia, Slovakia, Belgium, France, the Ukraine, Hungary, Latvia, the Netherlands, Romania, Belarus, Spain, Sweden and Estonia. There were also guests from new emerging markets as Azerbaijan, Libya, Mongolia, Paraguay or New Zealand. The full statistical data can be found at: VIP PRoGRAMME Furniture traders taking part in MEBLE PoLSKA can expect a special package of benefits and services. The most important, key clients receive special attention and can take advantage of additional benefits, such as support in the organisation of transport and accommodation, as well as an invitation for a business night. Traders of especially significant purchasing potential (the representatives of large furniture chains in particular) can count on free of charge temporary offices and meeting venues where they can conduct business negotiations in comfortable conditions and with full discretion. 42 WF - December 2013