CSIL’s global outlook / 57 BFM / 58 Feedback

GLOBAL OUTLOOK

Based on preliminary estimates, world production of furniture in 2021 will exceed US$500b – a stronger-thanexpected recovery, mainly due to the major contribution from Europe and Asia – says Milan-based industry researcher, the Centre For Industrial Studies (CSIL) …

THE PROSPECTS FOR 2022 AND 2023 ARE

FAVOURABLE, YET UNCERTAINTIES REMAIN

By CSIL www.csilmilano.com

Our estimate is based on data from official sources, both national and international, covering the 100 most important furniture manufacturing countries.

Demand was globally strong during the period, with differences across countries and segments. However, production growth is subject to a series of constraints – raw material scarcity and growing prices, supply chain challenges, high costs of transport and container shortages. Moreover, systemic uncertainties, deriving from continuing trade restrictions and changing supply chain strategies, affect the entire sector.

More than half of world furniture production took place in APAC. The main producer was China, followed at a distance by the US, Germany and Italy.

In the last 10 years, the international trade of furniture has grown faster than furniture production, and has consistently amounted to about 1% of international trade of manufactures, reaching about US$152b in 2018/19. The pandemic caused stagnation in 2020, but 2021 promises to be a year of steep growth. The prospects for 2022 and 2023 are favourable, yet there remain uncertainties deriving from supply constraints and transport problems.

The bulk of international trade of furniture originates in China, Vietnam, Poland, Germany and Italy, and goes to the US, Germany, France, the UK, and the Netherlands (as a trading hub).

On the consumption side, the lockdown experience highlighted the importance of the home, which acquired a new significance both for living and working. Spending more time at home emphasised the usefulness of having functional spaces for the whole family, and possibly modular furniture also suitable for working from home.

Consumers invested in improving their living spaces, often allocating to furniture substantial portions of income made available because of decreased expenditure for other leisure activities. For this reason, the worldwide pandemic-induced contraction in furniture consumption in 2020 was limited in size, affecting the different products of the furniture spectrum in different ways. Office furniture was more severely hit, following the decline in investments by both the industry and the service sector. Strong growth has resumed in 2021, with furniture consumption reaching a level well above pre-pandemic values.

According to the IMF World Economic Outlook (October 2021), world GDP growth is resuming in 2021 (+5.9%), in 2022 (+4.9%) and 2023 (+3.6%). Growth prospects remain stronger for emerging and developing economies than for advanced economies. However, uncertainties remain high – differences in the speed of recovery (both across and within countries) will be substantial, and the downside risks remain significant.

Our World Furniture Outlook report assumes that the international furniture consumption growth will reach about +4% in 2022 (in real terms). Among large markets (greater than US$5b of furniture consumption) those expected to have a greater rebound in furniture consumption growth are the European and Asian countries

(image credit iStock.com/caracterdesign)

GOING FORWARD TOGETHER

The British Furniture Manufacturers (BFM) has represented the interests of the nation’s furniture industry for more than 65 years – but it has a few more tricks up its sleeve for 2022, writes the association’s new MD, Sean Holt …

WE ARE LOOKING AT NEW AND ENGAGING WAYS TO TAKE THE

ASSOCIATION FORWARD

By SEAN HOLT www.bfm.org.uk

BFM aims to grow, to expand membership and increase its value and relevance to the furniture industry. Working with the board, we are looking at new and engaging ways to take the association forward to meet these aims.

As part of that approach, we are focusing on introducing more opportunities to get together in person as an industry, in 2022 and beyond. It’s important the furniture community has a chance to come together – particularly after all the limitations of the last few years.

More details will follow of initiatives and opportunities for the industry to engage with the BFM in the weeks and months ahead, but one date on the calendar to consider now is our first in a series of regional events which will take place this year. We’d urge members and non-members alike to put the date, Thursday April 7th, in their diary. The event will take place after work, from 6-9pm, at Ercol’s manufacturing headquarters in High Wycombe. We are delighted that BFM member Ercol is hosting the first of these regional events. It’s a superb location for us to get together.

The purpose of the evening is to bring the furniture community, both BFM members and non-members alike, together to create networking opportunities and share best practice. There will be an opportunity to listen to, and discuss, contemporary issues and challenges facing the industry, and to generally increase understanding and knowledge.

Designed to enhance the value of membership of BFM, this particular event will include a tour of the Ercol factory, too.Bookings can be made by contacting Steph.Nelson@bfm.org.uk.

Another date for the diary is in March, when buyers within the international furniture community can take advantage of a fresh new format for one of the leading B2B events in the industry calendar, the BFM Fabric Show London 2022.

This hosted, invite-only show will offer an unrivalled exhibition experience for buying professionals to source high-quality, contemporary fabrics for upholstery, beds and soft furnishings. We have moved the premium event to the ILEC Conference Centre, near to Earls Court, to offer increased capacity and space, as well as greater opportunities for more fabric suppliers to showcase their very latest products.

Running across two days, on Tuesday and Wednesday, 8th and 9th March, the show will house more than 40 prestigious UK and international fabric suppliers, showcasing their latest collections, bestsellers and exclusive options.

It will feature world-renowned fabric manufacturers and suppliers from Belgium, as well as Italy, Spain, Portugal, Turkey, Germany and the UK. We are delighted to be attracting an international audience, and to be able to offer certainty with the date. With the industry pushing for an opportunity to network and move business forward, we took the decision to press forward with plans to invigorate the event, after the challenges of the last few years due to Covid. To secure an invitation, please register at www.bfmfabricshow.uk.

As we move forward in 2022, it’s exciting to start planning a timetable of events and initiatives to increase our value and relevance throughout the industry. I’m looking forward to meeting as many members of the community as possible in the months ahead. In the meantime, please get in touch if we can support you and your business

INDUSTRY PARTNERS

THIS MONTH, WE’RE ASKING …

Steve Pickering, MD, Sussex Beds Over the next 12 months, our biggest competitor will be the return of aviation and the holiday industry. As it reopens, it will inevitably take a bigger share of consumer spend, which will have an impact on available funds to spend on other big-ticket purchases

Paul Wray, MD, Modern Outlook Furniture With Covid, and the borders closed here in China, my competitors are very few. This is giving me a strong position in the market to maximise on new product development and sales here John Conroy, BDM, Morrisofa Europe The fellow shippers that are competing for container space out of Shanghai – everyone involved in supply chain is longing for a return to normality, both on rates and availability!

WHO/WHAT DO YOU SEE AS YOUR BIGGEST COMPETITOR?

John Northwood, trade agent Anyone that sells the same product. The large companies have the reach with their marketing, but we are also seeing a lot of micro businesses starting in the sector, because of the advanced technology to print wallpapers and fabrics digitally

Royce Clark, MD, Grampian Furnishers Some online pureplays have not updated their pricing to take into account the shipping surcharges and overall price increases, so price matching – and trying to explain the issue to customers – has become a real problem

Wendy Martin Green, chairman, Peter Green Furnishers The web is definitely giving us all a run for our money, but in many ways it’s also our ally. Our in-store marketing surveys show that around 40% of our customers visit our website before they visit us in person – and they have checked out our competitors online too, which means by the time they reach our doorstep they’re more ready to buy

Rob Walker, MD, Orbital Vision Our biggest competitor will always be the speed at which technology within the CGI industry develops

Mike Whitman, head of product, Iconography It’s not so much a single company, as much as a concept. Traditionally, omnichannel retail has been supported by a hodgepodge of systems that are trying to do things that they simply weren’t designed to do. We’ve all seen the EPoS system that is trying to provide ecommerce data to a website, but doesn’t store images so those are done elsewhere – or an accounts package that is being used to drive stock levels. Our challenge is to show furniture retailers that unified commerce is a better way of doing business. We aren’t simply offering a one-stop-shop, but a different way of thinking – a single digital operations platform that encompasses EPoS, RMS, ecommerce and CRM. Our competitor is the Frankenstein’s monster bolted together out of mismatched parts

Steve Adams, CEO, Mattress Online This is an ever-changing field, especially online. Importantly, there is enough business for all – the bricks-and-mortar nationals are an aspirational competitor who consistently do a fantastic job of retaining market share

Peter Harding, MD, Fairway Furniture The internet is the single biggest threat to bricks-and-mortar retailers, so you could say that is the biggest competitor. In trems of retailers, I admire DFS for their ability to generate new customers, and Furniture Village for their marketing and product range

Andy Stockwell, Gardiner Haskins Wherever your physical location might be, the internet is your biggest competitor because it’s accessible from anywhere. Physical retailers should embrace the challenge and at the very least have a clear, functional website that shows what they have to offer

GOING GLAM

New brands broaden Kettle’s portfolio

#389 February 2022

www.furniturenews.net

WE WANT TO HEAR FROM YOU!

* Join the conversation on Twitter @FurnitureNewsED * Message the editor at paul@gearingmediagroup.com * For advertising and subscription enquiries, see p3