EU Furniture Sector Integration and Competitiveness on Foreign Markets

World
Furniture
International Markets Review
60 - December 2013 - Year 15
SPECIAL REPORT

BEDDING &
UPHOLSTERY

FOCUS

INNOVATIVE PRODUCTS
& VISIONS
INSIDE
EU FURNITURE ON THE GLOBAL MARKET
FROM KIEV TO CHINA AND SOUTH EAST ASIA
E-COMMERCE FOR LIGHTING AND DESIGN
MARBLE, PANELS, WOOD FLOORING

www.worldfurnitureonline.com

COP_WF 60_2013:CISL_XPRESS 06/11/13 18:53 Pagina 1

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
www.csilmilano.com

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
cavada@csilmilano.com

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
govoni@csilmilano.com
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

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All rights reserved.
No part of this publication may
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consent of the publisher.

CONTENTS

World
Furniture
International Markets Review

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.

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

December 2013 - WF 11

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


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.


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.


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.

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


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


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


017_SPECIAL_MARKETS vs8:prova1 06/11/13 09:28 Pagina 17


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


018_019 SCENARIO:prova1 06/11/13 09:39 Pagina 18

SPECIAL REPORT
SCENARIO


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

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

018_019 SCENARIO:prova1 06/11/13 09:39 Pagina 19

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.

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-


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.


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.



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.



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.

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.

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.


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 (www.miff.com.my)
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 (www.ubmasia.com)
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.




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.

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


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.
www.messefrankfurt.com

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


031_032_FOCUS_Windows_sb vs8:prova1 07/11/13 12:42 Pagina 31


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).




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




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-



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.
ampenwelt.com).

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;


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:



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
Lastminute.com. 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.)


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

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




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



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

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.



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.
www.saint-gobain-glass.com

Cascade Hi-Tech, Paris

Showroom Silvera, Paris


040_041_FOCUS_vs 8:prova1 06/11/13 21:18 Pagina 40

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


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

040_041_FOCUS_vs 8:prova1 06/11/13 21:18 Pagina 41

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 info@europanels.org


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:
www.meble.mtp.pl.
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.



EU Furniture Sector Integration and Competitiveness on Foreign Markets

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