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

www.worldfurnitureonline.com
World
FurnitureInternational Markets Review
61 - March 2014 - Year 16
SPECIAL REPORT
RETAILING
SPECIAL REPORT
RETAILING
FOCUS ON
LIGHTING
BUILDING
TECHNOLOGIES
FOCUS ON
LIGHTING
BUILDING
TECHNOLOGIES
INSIDE
150 smart & fast cities of the world
financial analysis of major players
office furniture market in asia pacific
INSIDE
150 smart & fast cities of the world
financial analysis of major players
office furniture market in asia pacific
Cop.WF61 Caffè+arancio:CISL_XPRESS 26/02/14 12:15 Pagina 1

10 EDITORIAL
Larger role for cities worldwide
by the Editor
10 POINT OF VIEW
Italy between export and bonus
by Sara Colautti
11 COUNTRIES
World Furniture Outlook 2014
by Alessandra Tracogna
13 STUDIES
Smart & Fast Cities. Forecasting
furniture demand to 2020
by Jessica Catalano
15 EVENTS
Milan Agenda. Today Salone del
Mobile, tomorrow EXPO
STRATEGIES
Haworth acquires Italy’s
Poltrona Frau Group
16 STRATEGIES
Financial analysis of major
furniture players in Europe
SPECIAL REPORT
RETAILING
17 STUDIES
Furniture flagship stores
by Aurelio Volpe
19 INTERVIEW
The company world in a flagship
store. Talking with Giulia Molteni
21 MARKETS
Best bad retail season in the U.S.
by Jerry Epperson
MARKETS
A new step of Scavolini’s road
map in the United States
23 PROFILE
Ghyczy’s multichannel choice
24 EVENT
EuroShop 2014. Retail for
the future
by Paola Govoni
26 MARKETS
Distribution in India. When
furniture consumption peaks
by Aurelio Volpe
27 MARKETS
Brand strategies to target the
Turkish consumers
by Alessandra Tracogna
FOCUS
LIGHTING
29 MARKETS
Growing market for lighting
fixtures in Russia
by Aurelio Volpe
30 RETAIL
A new home for Fontana Arte in
Milan
31 R & D
Energy Strategy Berlin Adlershof
2020
32 REVIEW
In Stockholm it’s all about
Design, Sound and Balance
by Mauro Spinelli
FOCUS
BUILDING
35 SCENARIO
Windows and Doors World
Market Outlook
by Stefania Pelizzari
36 PREVIEW
Sustainability and performing
comfort at Fensterbau/Frontale
37 PROJECTS
Beneteau headquarters. When
HI-MACS® becomes a work of art
38 MARKETS
Asia Pacific. A high performing
market for office furniture
by Mauro Spinelli
FOCUS
TECHNOLOGIES
41 R & D
Lectra leather solutions help
furniture manufacturers reach
operational efficiency
42 PREVIEW
Acimall. Looking at the global
markets while waiting for Xylexpo
2014
44 PREVIEW
Holz-Handwerk 2014. On the
path of success again
45 MARKETS
United States driving Italian
marble exports
46 FAIRS CALENDAR 2014
World
FurnitureInternational Markets Review
Publisher
CSIL
Centre for Industrial Studies
15, Corso Monforte
I-20122 Milano
tel. 0039 02 796630
fax 0039 02 780703
www.csilmilano.com
Editor
Paola Govoni
govoni@csilmilano.com
Collaborators to this issue:
Jessica Catalano
Sara Colautti
Jerry Epperson
Paola Govoni
Stefania Pelizzari
Mauro Spinelli
Alessandra Tracogna
Aurelio Volpe
Graphic Design
backup8
Printer
CPZ spa
Via Landri, 37/39
I-24060 Costa di Mezzate (Bergamo)
Annual subscription 2014
Euro 100
Frequency
4 issues/year in
March - June - September - December
Subscription Services
Alessandra Cavada
cavada@csilmilano.com
Registrazione nr. 92 del 03.02.1999
presso il Tribunale di Milano
Spedizione in abbonamento
postale 70% - Filiale di Milano
Copyright CSIL
All rights reserved.
No part of this publication may
be reproduced or transmitted
in any form without the prior
consent of the publisher.
CONTENTS
009_CONTENTS_60:prova1 04/03/14 18:36 Pagina 9

EDITORIAL
10 WF - March 2014 www.worldfurnitureonline.com
POINT OF VIEW
Johannesburg, South Africa, hosted
the 5th biennial Summit of ‘C40
Cities-Climate Leadership Group’
Mayors in February 2014.
Established in 2005, C40 is a net-
work of large and engaged cities from
around the world committed to imple-
menting meaningful and sustainable
climate-related actions locally that will
help address climate change globally.
The network welcomed three African
cities, Cape Town, Dar es Salaam and
Nairobi, bringing the total representa-
tion of the continent to 7 member
cities and total C40 membership to 66.
The role of cities in tackling global cli-
mate change is of crucial importance.
More generally, there is evidence of a
larger role for cities worldwide.
We will be talking about that theme in
this issue of the magazine, focusing
on 150 Smart & Fast Cities, which are
expected to be key actors of the world
economic growth and also a promis-
ing marketplace for furniture con-
sumption up to 2020. Companies will-
ing to increase and extend their busi-
ness in a new market cannot disregard
the peculiarities of cities within a
country.There is much to read about
LARGER ROLE
FOR CITIES WORLDWIDE
In the last years of 2013 there were
conflicting signs, and first signals of a
(weak) recovery as well, but all in all
2014 will be another hard year for
Italian economy.
Among the good news for the furni-
ture sectors: the international trade is
recovering and this will further pull
the export growth of Italian compa-
nies. While exports from Italy towards
emerging countries will continue to
growth in 2014, Italian companies
should be ready to capture the signal
of recovery showed by some
European countries.
CSIL estimates that Italian furniture
exports will grow by +3% in real terms
this year. Another good news: the
decreasing gap between the domes-
tic market and foreign markets trend.
The gap reduces because the domes-
tic market stopped falling down. The
‘bonus’ for furniture linked to the
housing renovation has been extend-
ed for entire year 2014. Thanks to
this measure, retailers could witness
a return of consumers to the stores
and yet the last months of 2013
showed the first positive effect on fur-
niture sales in Italy.
CSIL forecasts for furniture consump-
tion in 2014 and 2015 are positive,
but growth is very modest (+0.9% in
real terms for 2014 and +1.2% for
ITALY BETWEEN EXPORT
AND BONUS
by Sara Colautti
CSIL Industry Studies
2015) if compared to the fall over last
years.
Despite better results recorded on
the domestic and foreign markets will
lead to a growth of production (+2% in
real terms), the situation of Italian
companies of the furniture industry
will remain critical. The selection
process is already ongoing and the
level of redundancy fund remains very
high. It is worth noting that perform-
ances among Italian furniture clusters
have been extremely heterogeneous
over recent years. The different per-
formances of Italian districts mainly
depend on differentiation of products
and destination of export markets.
forecasts for Italy and the World
Furniture Outlook 2014 in this issue,
which is also focusing on Lighting
Fixtures, Building and Construction,
Technologies for wood, leather and
marble.
The Special Report is dedicated to
Retailing with highlights on flagship
stores and retail strategies in Italy, the
U.S., India, and Turkey.
Special contributions from Stockholm,
Düsseldorf and the Asia Pacific area
are also included.
Enjoy it!
by Paola Govoni
Editor
010_POINT OF VIEW_Check up:prova1 26/02/14 08:58 Pagina 10

COUNTRIES
www.worldfurnitureonline.com 11March 2014 - WF
MAjOr FUrNITUrE IMPOrTING COUNTrIES. IMPOrTS, 2003-2013.
CUrrENT US$ BILLION
Source: CSIL processing of United Nations, Eurostat and national data 2013: Preliminary
MAjOr FUrNITUrE ExPOrTING COUNTrIES. ExPOrTS, 2003-2013.
CUrrENT US$ BILLION
Source: CSIL processing of United Nations, Eurostat and national data 2013: Preliminary
WORLD FURNITURE
OUTLOOK 2014 by Alessandra Tracogna
CSIL Country Analysis
and Forecasts
orld production of furniture is
worth about US$ 437 billion (in
current dollars). This estimate
is based on CSIL processing of
data from official sources, both national
and international, that cover the 70 most
important countries.
The leading importers are the United
States, Germany, France, the United
Kingdom and Canada. The major
exporters are China, Germany, Italy,
Poland and the United States.
In the 2003-2007 period there was a
very large increase in the imports of the
United States (from US$ 19 billion to
US$ 26 billion in current dollars) and of
the United Kingdom (from US$ 5.3 bil-
lion to US$ 8.6 billion in current dollars),
and smaller increases in France,
Germany and Canada. The recession in
the USA caused a major decrease in fur-
niture imports (from US$ 26 billion in
2007 to about US$ 24 billion in 2008
and 19 billion in 2009), but growth of
imports resumed in subsequent years.
All major furniture importing countries
have seen decreases in their import
flows during the recession of these last
years. By 2013 the USA and Canada
have reached or exceeded the pre-
recession level, while recovery is still
slow in Europe.
The share of import penetration for furni-
ture (measured as the ratio between
imports and consumption), for the entire
world rose from 27.8% in 2003 to 30.6%
in 2007. In 2008 and 2009 it decreased
as a consequence of the recession, and
remained below the pre-recession maxi-
mum thereafter.
The World Furniture Outlook 2014 report
assumes that the international scenario
will be the one forecasted by IMF.
W
011_012_COUNTRIES vs8:prova1 28/02/14 12:20 Pagina 11

In the last ten years world trade of furni-
ture (defined as the average between
total furniture exports from the 70 major
countries and total furniture imports into
the 70 major countries) has grown faster
than furniture production and has consis-
tently amounted to about 1% of world
trade of manufactures.
World trade of furniture amounted to
US$ 94 billion in 2009 (19% below the
previous year) and grew to US$ 106 bil-
lion in 2010, US$ 117 billion (i.e. the pre-
recession level) in 2011 and US$ 122
billion in 2012. If the predicted world
scenario is confirmed, world trade of fur-
niture would be likely to grow in current
US$ to US$ 124 billion in 2013 and to
US$ 128 billion in 2014.
The World Furniture Outlook report by
CSIL contains data on furniture produc-
tion, consumption and trade for 70 coun-
tries. demand forecasts for 2014 and
2015 are also included.
Furniture consumption is expected to
record different growth rates in different
geographical regions of the world, with
mature economies growing at a lower
speed and emerging countries showing
higher growth rates.
A summary of forecasts of furniture con-
sumption in the 70 countries (grouped
by geographical region) is as follows:
Growth of furniture demand for the 70
countries combined is forecasted at
more than 3%.
The outlook at a glance is for:
- extremely limited growth in Western
Europe
- slow growth in North America
- fast growth in many emerging market
economies, particularly in Asia.
COUNTRIES
The following countries are covered in the ’World Furniture Outlook’ report by CSIL (edition November 2013):
Algeria • Argentina • Australia • Austria • Bahrain • Belgium • Bosnia and herzegovina • Brazil • Bulgaria • Canada • Chile •
China • Colombia • Croatia • Cyprus • Czech republic • denmark • Egypt • Estonia • Finland • France • Germany •
Greece • hong Kong, China • hungary • Iceland • India • Indonesia • Ireland • Israel • Italy • japan • Kazakhstan • Kuwait
• Latvia • Lebanon • Lithuania • Malaysia • Malta • Mexico • Morocco • Netherlands • New Zealand • Norway • Oman •
Philippines • Poland • Portugal • Qatar • romania • russia • Saudi Arabia • Serbia • Singapore • Slovakia • Slovenia •
South Africa • South Korea • Spain • Sweden • Switzerland • Taiwan • Thailand • Turkey • Ukraine • United Arab Emirates •
United Kingdom • United States • venezuela • vietnam
For more information about the CSIL report “World Furniture Outlook 2014” please contact: tracogna@csilmilano.com
Online purchase and immediate download of all CSIL reports at: www.worldfurnitureonline.com
Source: IMF, World Economic Outlook, October 2013
EvOLUTION OF WOrLd GdP. ANNUAL PErCENTAGE ChANGE IN rEAL TErMS
2012 2013 2014
World 3.2 2.9 3.6
Advanced Economies 1.5 1.2 2.0
Emerging and developing Economies 4.9 4.5 5.1
WOrLd TrAdE OF FUrNITUrE. CUrrENT US$ BILLION
Source: CSIL *Preliminary ** Projected
FUrNITUrE CONSUMPTION By GEOGrAPhICAL rEGION 2014. FOrECASTS
OF yEArLy ChANGES IN rEAL TErMS
Source: CSIL

STUDIES
for more than a quarter of the global fur-
niture consumption. The selection of the
cities was driven by looking at the growth
rates expected by 2020 in terms of pop-
ulation, economic welfare and consump-
tion (fast dimension), as well as at the
capacity of the city to enhance its
resources through efficient infrastruc-
tures, to improve the quality of life for its
citizens, to create a favorable environ-
ment for doing business, as well as to
offer good investment opportunities
(smart dimension).
Results of CSIL research show that the
selected 150 cities are expected to gen-
erate a potential demand of furniture and
furnishing products equal to US$ 160.8
billion in the year 2020, which repre-
sents an increase of 42% compared to
the value estimated for 2012. Overall,
rising income levels, global economic
exposure of the city, population growth,
development of residential and office
markets, booming of the tourism sector
and the need to be prepared to host
international events are amongst the fac-
tors likely to drive the furniture demand of
these cities by 2020.
150 SMART&FAST CITIES.
FORECASTING FURNITURE
DEMAND TO 2020 by Jessica Catalano,
CSIL Industry Studies
hy focusing on cities rather than
on countries? Today, the world
is more about cities than about
countries. Cities are geographic concen-
trations of people, skills, economic activ-
ities and capital infrastructures, which
are making them the key actors of the
world economy’s growth.
Companies willing to increase and
extend their activities in a new market
cannot disregard the development trend
and peculiarities of the cities within a
country. Population’s growth, citizen’s
economic welfare, quality of life, avail-
ability and accessibility to resources,
quality of infrastructures, political stabili-
ty, consumers’ attitudes are all factors
that should be taken into account, when
selecting a city where to invest.
Which are the most promising cities for
the furniture market in the coming years?
A new research from CSIL titled ‘150
Smart&Fast Cities: Forecasting Furniture
Demand to 2020’ and aiming to answer
to this question has been issued in
February 2014.
The research throws light on 150 cities
located in 72 countries and accounting
W
TALKING ABOUT CITIES
Bangalore and Jinan are two fast grow-
ing cities from the Asia Pacific area,
which are expected to significantly push
the demand for the furniture market. As
a consequence of the population
growth (higher than 30% by 2020),
these two cities are expanding their
geographical borders and putting pres-
sure on housing stocks.
In North America, population is project-
ed to grow at a moderate pace com-
pared to Asian cities. However, the ris-
ing of the immigration rate is making
cities like Denver, Houston, New York,
San Francisco, Kolkota to become
increasingly cosmopolitan.
In Europe, cities such as Barcelona,
Madrid, London, Brussels, Amsterdam
and Athens are increasingly attracting
students, working age people, young
families and migrants. The young and
multi-ethnic profile of these cities is
believed to bring about different tastes,
preferences, needs, purchasing atti-
tudes and disposal income to the furni-
ture markets.
Consumers in Ho Chi Minn City are

increasingly becoming ‘west-oriented’
(especially young people). In Tokyo, con-
sumers are paying much more attention
to high quality and high performing prod-
ucts, while Dalian is an emerging high-
end market.
Overall, the increase of economic wel-
fare of the selected cities is expected to
boost household disposal income and to
increase consumption as well. By 2020,
cities like Moscow, Dallas, Chicago,
Tokyo, Singapore, Hong Kong will see
an increasing share of households with a
disposal income higher than
US$85,000, which makes them appeal-
ing markets for high-end products.
KEY DEMAND DRIVERS
The construction sector will be the driver
of the furniture demand in many of the
selected cities. Constructions of new
houses are planned in Boston, Baltimore
and San Diego in order to face the
increase of immigration and expansion of
middle-income groups. A booming hotel
construction is expected in cities like
Reykjavìk and Lyon in Europe. Lodging
sector development is an important driv-
er of many cities in the Middle East and
South America such as Dubai, Doha,
Lima, Rio de Janeiro, where increased
tourism flows as well as the hosting of
international events are pushing the
lodging sectors which, in turn, will foster
the demand for furniture and the furnish-
ing products, especially in the contract
sector.
There are cities which are economically
booming and are undergoing a radical
transformation of their economy shifting
to more service-oriented sectors,
through the construction of Special
Economic Zones (for instance Tianjin
and Qingdao in China), high tech parks,
implementation of large projects (e.g.
Kochi is going to become the new
Silicon Valley of the State of Kerala in
India), construction of financial and com-
mercial centers (e.g. Riyadh in the
Middle East). These changes are
expected to boost demand for new office
space and in turn for workstations and
office furniture. Cities like Bonn and
Berlin in Europe, San Francisco de Quito
in South America are transforming them-
selves into international business venues
and, by doing so, they are boosting
demand for new business centers.
While some cities are extremely interest-
ing for their economically and demo-
graphically fast growing rate to 2020,
others deserve attention for being out-
performer in terms of quality of life and
ease of doing business and for boasting
advanced transport infrastructure and
strategic geographic position. The
Australian Sydney and Melbourne are
amongst the world’s most liveable cities
along with Vancouver in Canada and
STUDIES
The new CSIL report ‘150 Smart & Fast Cities: Forecasting Furniture Demand to
2020’ (over 360 pages, Edition I, Language: English) has been issued in February
2014.
Comparative tables of 150 cities are provided, showing the expected range of
growth which will be faced in 2020.
150 cities profiles include the performance of each city in terms of quality of life,
business attractiveness and governance as well as the following key forecasts to
2020: Population growth rate, Gross domestic income per capita, Household
growth rate, Household growth rate by level of income, Household’s consumption
growth rate, Furniture demand.
Data and forecasts are summarised in table format and are complemented by
qualitative information which could be of interest for furniture and furnishing players,
such as constructions planned in the city in the coming years, availability and quality
of infrastructures, investment opportunities, booming tourism and international events
to be hosted in the city, etc.
Online purchase and immediate download at: www.worldfurnitureonline.com
For more information about the Report please contact Jessica Catalano:
catalano@csilmilano.com
Vienna in Europe. Monterrey and Tijuana
boast a strategic location for doing busi-
ness, being located in Mexico and very
close to the US market.

EVENTS
peaking at the International Press
Conference held in Milano,
Palazzo Reale, last February, Mr
Claudio Luti, President of COS-
MIT, outlined the crucial role of the Salone
del Mobile within the Italian furniture indus-
try and the worldwide scene, focusing on
the close relationship with the city during
the forthcoming Milan Design Week.
Mayor of Milan Mr Giuliano Pisapia partici-
pated in the press conference, underlining
that the Design Week in April will give once
again its valuable contribution in terms of
city involvement and visibility, being a
model of success for the organisation of a
huge international event, and this matters,
also in the light of the forthcoming Expo
2015 scheduled to take place in Milan
from 1 May to 31 October with leading
theme ‘Feeding the Planet, Energy for Life’.
The 53rd edition of the Salone
Internazionale del Mobile is set for 8-13
April 2014, along with the biennial
EuroCucina-Kitchen Furniture Exhibition
and the International Bathroom Exhibition.
Some 2,400 exhibitors are expected, and
over 300,000 visitors from 160 different
countries. There will also be a major cultur-
al event at the Milan Fairgrounds Rho,
involving eight leading international archi-
tects.
Salone del Mobile will boast not just the
consolidated presence of leading national
and global players, but also the new inclu-
sion of high-end furnishing companies
such as Hästens, Kvadrat, Iittala, Tom
Dixon, and upmarket fashion brands such
as Ferré, Pierre Cardin and Ungaro, mak-
ing the wide range of goods on offer even
more dazzling. Some well-known names
will be back on the stands: Flötotto, Gebr.
Thonet, SCP, Thonet, Treca, Wittmann.
The increasingly close collaboration
between Salone del Mobile and Milan’s
City Council, including the Departments of
Culture and Fashion and Design, will see
two major initiatives designed to strength-
en the promotion of Milan’s heritage and
MILAN AGENDA. TODAY SALONE
DEL MOBILE, TOMORROW EXPO
S
culture: the exhibition ‘Bernardino Luini
and his sons’ (Renaissance painters) and
free entrance to the city Civic Museums
during the Milan Week.
A further innovation at this 53rd edition of
the Salone del Mobile relates to getting
around the city. The Salone del Mobile
and Car2Go, Milan’s car-sharing service,
have signed an agreement enabling visi-
tors to the Salone to “hire” the distinctive
smart cars at the Milan Fairgrounds.
STRATEGIES
he agreement for the purchase
by Haworth of the 58.6% of the
share capital of Poltrona Frau
has been signed, at the agreed
price of Eur 2.96 per share.
Poltrona Frau Group is the Italian leader in
the segment of Luxury and Design furni-
ture, with the iconic brands Poltrona Frau,
Cassina and Cappellini. In November
2006 Poltrona Frau was listed on the
Milan Stock Exchange. In 2012 the
Group’s consolidated turnover reached
Eur 247 million. An increase of +12% up to
276 million Eur is projected on the basis of
the trend of the first nine months of 2013.
Founded in 1948 and headquarteded in
Holland (Michigan, USA), Haworth is
among the top 4 leaders in the worldwide
market for office furniture, with a 2013
turnover of US$1.41 billion, an increase of
+7.3% on 2012. Haworth has been a part-
ner of Poltrona Frau Group for North
America since 2011. Also in the European
market for office furniture, Haworth is rank-
ing in the top 4 positions (even after having
dismissed Castelli in the year 2011). One
first synergy between the two companies is
in the Contract business. Haworth is also
active in segments like Hospitality and
Education, while Poltrona Frau Contract
division weights for a relevant 20% on total
business.
Poltrona Frau will open to Haworth highly
performing markets like the Gulf Countries,
and a primary retail network including 70
monobrand stores. Haworth will open new
B2B opportunities to brands like Cassina
(established in the U.S. since the 70s) and
Cappellini.
Franco Bianchi, CEO of Haworth since
HAWORTH ACQUIRES ITALY’S
POLTRONA FRAU GROUP
T
2005, said: “We are highly motivated to
continue to develop the extraordinary
course that Charme started back in 2003,
maintaining and enhancing the Italian tradi-
tion of design and innovation that has been
characterizing this group for over 100
years”.
Poltrona Frau
iconic Vanity Fair
015_STRATEGIES vs8:prova1 26/02/14 09:16 Pagina 15

ver the past few years, furniture
spending of EU consumers has
been contracting and competi-
tion on the market is increasing.
European furniture manufacturers are
facing this difficult situation, trying to find
their way out of the crisis.
In a recent study, CSIL analyzed over
2,400 balance sheets of medium and
large companies and found that turnover
was +3.7% higher than in 2012 with
respect to the peak down of 2008.
Investments are also necessary to grant
solvency and liquidity when facing diffi-
culties. Shareholder fund were in 2012
+9% higher.
The European average for the solvency
ratio is acceptable (38%) and the same is
true for the current ratio (1.7).
But difficulties remain… Employment
reduced by -2%, ROE passed from
11.9% to 7.6% and EBITDA decreased
from 7.1% to 5.7%. Furthermore, within
Europe, some countries are growing
rapidly and others are lagging behind.
Comparative advantages such as the low
cost of labor, the presence of abundant
raw materials, the technological endow-
ment and the investments in the sector
(made by national or foreign companies
or fuelled by institutional bodies) are key
drivers.
The fast growth of Central Eastern
European countries gives evidence that
labor cost is an important issue. In CSIL
sample it takes a share of 20% of the
company turnover and the average cost
per employee is in the range of Eur
30,000 in Europe, but it is five times
lower in Central Eastern Europe with
respect to Germany. However, this is
partly counterbalanced by the higher
added value generated in the leading
western European countries such as
Germany, Scandinavia and (to a lesser
extent) in Italy, where the added value
per employee is over Eur 60,000 in the
sample of companies considered here.
The reference market is a key issue. The
mattress segment is recording particular-
SAMPLE* BREAkDOwn By SEGMEnT. %
Source: CSIL processing
STRATEGIES
FINANCIAL ANALYSIS OF MAJOR
FURNITURE PLAYERS IN EUROPE
O
Sample* = 660
balance sheets of
companies for which
a more in-depth
analysis was
conducted
ly favourable market conditions and
turnover in the sample increased by over
10% in the period considered (2008-
2012). Operating in niches is also a valu-
able strategy. Companies operating in
the contract segment were fast growing
in terms of turnover and can count on
two digits in the ROE. Value added cre-
ation is also higher in the outdoor and
upper end segments, where EBITDA is
in the range of 8%. On the other side,
mass production of RTA furniture creat-
ed employment (particularly in Central
Eastern Europe) and generated high
returns on assets (ROA is 4%).
Each company’s ability in putting innova-
tion, design, quality and efficiency in the
production process, in gathering money
from the market and from investors and
in making it profitable, is the key issue.
The CSIL analysis conducted at compa-
ny levels ranked the top performers on
the basis of the financial data from bal-
ance sheets.
Good performing results of a group of
100 companies demonstrated that prof-
itability is still possible for furniture com-
panies and this is true not only for large
companies, even if company size still
matters. (A.T.)
For more information about the CSIL
report “Financial Analysis of the Major
Furniture Players in Europe” please
contact: tracogna@csilmilano.com
Online purchase and immediate
download of the report at:
016_STRATEGIES vs8:prova1 26/02/14 09:20 Pagina 16

FURNITURE
FLAGSHIP STORES by Aurelio Volpe
CSIL International
Market Research
SPECIAL REPORT
STUDIES
RETAILING
n February 2014 CSIL published a
brand new market report on
‘Furniture Flagship Stores’ world-
wide. The Report provides 300
case histories on monobrand and
flagship stores managed by trendsetter
furniture players in selected countries.
Most of these stores are located in the
top 100 Megacities and Fast Growing
Cities, that will host a relevant part of the
world population and revenues by the
year 2020 (see also on page 13 of this
issue).
There are different ways to explain what
a flagship store is. Usually it is defined as
a monobrand store (although not all
monobrand stores can be considered
flagship stores) and frequently it is locat-
ed in the very heart of a fast growing city
(but sometimes the best location could
be in a loft of a former industrial site…).
A store having the most trained sales
force, medium to big size, and show-
casing a complete range of the compa-
ny products. These are other criteria to
bear in mind.
Investment in the region of one million
Eur is needed to build a furniture flagship
store from scratch. Furniture in the stock
can easily be worth some 250 thousand
Eur (depending on brand and size of the
store) and the cost for building a store
can be easily in the region of 2000 Eur
per sq.m. So, it is a hard work to do. Not
for ‘common’ furniture manufacturers.
TWO MAIN DRIVERS
In its new report, CSIL could identify at
least two main drivers for establishing
monobrand stores: on the one hand,
there is a urgent need to “explain” the
philosophy and product range of a trend-
setter company, and, on the other hand,
I Kartell Beijing Flagship Store
017_018_SPECIAL REPORT vs8:prova1 26/02/14 09:24 Pagina 17

rents in megacities like London, Tokyo or
Rome are getting more and more expen-
sive. Furniture distribution in the mass
market progressively left the city centers.
The cost of investment to re-launch a
trendsetter furniture store is now fre-
quently shared between furniture manu-
facturers and retailers. The rentability of
the store will be sustained by a high rate
of success in the sales deals (25% is a
good score) and contract sales.
There are also successful alternatives
like shop-in-shops (usually sized 100-
150 sq.m.) or co-branding or showcas-
ing the company range in “real houses”:
Christine Kroncke, 10 Corso Como, and
Lago Apartments are three examples of
different retail opportunities.
Flagship stores may have many and well
located windows (8 windows for Natuzzi
store in Beirut) and they are well
equipped with all kind of new generation
retail software. Frequently, flagship
stores are designed by archistars (Hirsch
Associates for the new Roche Bobois
The new CSIL report ‘300 Furniture Flagship Stores’ offers detailed information about
locations, brand policy, economic data and merchandise mix for flagship stores of
leading international furniture players. Publication date: February 2014, Edition I,
Language: English. The report is available for online purchase and immediate
download at: www.worldfurnitureonline.com
store in Chicago) A flagship store should
not be necessarily big but, for example,
“The Kraftwerk” of Kare Design in
Munich has an exhibiting surface of
some 10,000 sq.m.
Asia Pacific is home of a new wave of
flagship stores run by leading internation-
al furniture players, like, for example, the
new Kartell store (designed by Ferruccio
Laviani) opened in Beijing at Sunlitun
Village, in cooperation with the Chinese
company Gold Bond Enterprises. The
store has a large 400 sq. m. showroom
just nearby, where architects, clients
and contractors can see the whole col-
lection.
SPECIAL REPORT
STUDIES
RETAILING
10 Corso Como in Milan
Casamilano Flagship Store in Vienna
Event at Bulthaup Flagship Store in Milan

THE COMPANY WORLD
IN A FLAGSHIP STORE
Giulia Molteni
Retail Manager Molteni & C spa
SPECIAL REPORT
INTERVIEW
RETAILING
e spoke to Giulia Molteni, a
member of the third genera-
tion of the family that found-
ed Molteni&C in Brianza in
1934. Today the firm has four production
sites in Italy on a total covered area of
161,000 square metres with 800
employees and a 2012 turnover of Euro
225 million.
The Molteni S.p.A. holding comprises
four separate companies: Molteni&C
(home furniture), Dada (kitchen furni-
ture), Unifor (office furniture) and Citterio
(home and office furniture), with nine
commercial branches in America,
Europe, Asia and Australia. The Group is
active on the residential market (62%)
and on the contract market (38%) with a
global presence, although the European
market predominates (60%).
During our interview we discussed the
W
distribution strategies of the Group,
which boasts a direct presence in more
than 60 countries around the world, with
22 mono-brand stores, eight of which
are in Italy and 16 abroad, plus 11 office
showrooms.
Q) What constitutes a flagship store for
Molteni, and what difference is there, if
any, between a flagship store and a
mono-brand store?
A) There is a difference. For Molteni flag-
ship stores are the most representative
stores of the brand. In our case they are
multi-brand stores, because there are
two brands present, Molteni&C and
Dada. These are large stores, from 400-
500 square metres to as much as 800
square metres for the New York store.
The first difference between flagships
and mono-brand stores is the size of the
outlet; the second difference is the loca-
tion. While the mono-brand stores are
located mainly in small to medium-sized
cities, we have flagship stores in Milan,
London, Paris, New York, Singapore,
Brussels and Mexico City (due to open
May 2014).
Q) What must a flagship store communi-
cate?
A) It must represent the values of the
brand and know how to best get them
across, not only as regards the products
on offer, but also the company identity
and philosophy of quality. Naturally, it is
also a showcase for presenting new
products, for organising previews, talks
with designers and architects, and ad
hoc events. The stores are also excep-
tional information receptors to under-
stand what the market is looking for, and
to collect suggestions, opinions and
advice about product integrations, fancy
goods or carpets, for example.
Naturally, to succeed in communicating
the values of the brand in the best way
possible, our personnel needs to be
highly trained and capable of making a
good first impression on the customer
and following him/her in a totally profes-
sional manner in all the steps of the pur-
chase. For this reason we pay particular
attention to training and in 2013 we cre-
ated the Dada Academy to transmit the
philosophy and values that inspire the
firm.
Q) Tell us about the Milan flagship store
A) The Milan store opened in 2005 and
offers a display area of 600 square
metres. Here the windows are dressed
ad hoc by our art directors and inspired
by different concepts during the year,
usually changing three-four times a year,
mainly linked to seasonality and to the
main sector events (e.g. the Salone del
Mobile, autumn, Christmas).
Flagship Store Molteni&C Dada New York
Dedicated event in New York

Q) Do you own your flagship stores, or
are they joint ventures with a retailer or
someone else? Do you have agreements
with other producers?
A) There is no hard and fast rule; it varies
from case to case. In some stores, like
Singapore, Brussels, Milan and Mexico
City, management is shared with the
client under a franchising contract. In
others, like Paris, London and New York,
the firm manages the stores directly and
rents the premises. The cost of samples
may be shared according to specific
agreements.
Q) Have you tried co-branding or alterna-
tive concepts to the flagship store?
A) No, we believe in the philosophy of
mono-brand and flagship stores. But I
would like to mention an event that we
organise in conjunction with Ferragamo
in their store in Via Montenapoleone dur-
ing the Milan Salone del Mobile, which
has been a great success with the Italian
and international public. We share many
SPECIAL REPORT
INTERVIEW
RETAILING
brand values with Ferragamo and again
this year we will be launching an event
together for the Fuorisalone in April.
Q) How important are online sales for
Molteni and how do customers behave
in the store, have they previously visited
your website, do they use Smartphone
apps or do they do what the Americans
call ‘showrooming’ (using your phone to
look for the best price for an article while
you are in the store)?
A) In our stores we monitor access and
analyse the requests from customers
and visitors (type of product, finishing,
markets). Stores are equipped with
touch screens and corporate smart app
to guarantee an interactive presence.
Generally speaking, we tend to discour-
age customers from purchasing our
products from websites, you could say
we put up with e-commerce rather than
benefit from it. For this reason, in mar-
kets where e-commerce is particularly
popular, like in Anglo-Saxon countries,
we try to enhance the degree of service
in our flagship store (in this case, the
London one) to provide the customer
with a useful, personalised and profes-
sional experience, which they cannot get
over the Internet.
.
Q) Is there any one aspect of your prod-
uct range that you would like to highlight?
A) Certainly, the Gio Ponti Collection.
This was a cultural operation, with the
agreement of his heirs, to recover some
designs from the immense archive left by
the architect and give new life to prod-
ucts that would otherwise be lost. We
shall soon be presenting new items in
this collection that is being very well
received, especially at an international
level, where Gio Ponti was famous and
highly appreciated, and also thanks to a
series of dedicated events that we have
organised in Los Angeles, New York and
Paris called ‘Vivere alla Ponti’ (Living
Ponti-Style).
(Interview by Paola Govoni)
Flagship Store Molteni&C Dada Milano

BEST BAD RETAIL
SEASON IN THE U.S. by Jerry Epperson
SPECIAL REPORT
MARKETS
RETAILING
e have read a lot of analysis of
the 2013 calendar year’s
retailing, including the impact
of the internet, changes in
shopping patters, and even
the sustainability of certain American
retailers. For December, overall retail
sales (not just home furnishings) rose
0.2%, and 4.1% year-to-year. For 2013,
retail sales grew 4.2% with inflation of
1.5% for a real gain of about 2.7%.
Overall, non-store retail sales grew 1.4%
in December and 9.9% year-to-year. That
includes the internet, catalogs and home
heating oil deliveries, among other things.
That doesn’t sound too bad, does it? But
that’s not the full picture.
First, the impact of the Great Recession
continues with the American consumer.
Consumers want value and the new nor-
W
mal for many purchases is 50% off.
Looking at Amazon, eBay or most inter-
net sites, the focus is on discounts,
which are supposed to create an
urgency for the purchase. Here lies part
of the problem. The veil of retail mark-
ups has become largely transparent and
in many product categories, the lowest
price or even the vendor price is easily
available to the consumer. Price compe-
tition in an internet world with free ship-
ping becomes a matter of trust and
urgency.
Second, we have seen a move away
from traditional brands. Consumers will
make do with something other than the
most recognized brands if they feel com-
fortable with the retailer. For example,
both Prada and Gucci are leaving a lot of
their department store dealers and going
both online and aggressively opening
their own single brand stores in high
fashion shopping areas. This is done to
enhance their margins, to build direct
consumer relationships, to assure the
consumer a proper buying experience,
and to leverage the value of brands.
There are parallels, of course, in home
furnishings as Ethan Allen, Ashley,
Thomasville, Select Comfort, Bassett,
Norwalk, Drexel-Heritage, La-Z-Boy, and
more recently Tempur-Pedic and Serta
have all utilized the single-brand con-
cept, although most of them did not
abandon other multibrand or multi-prod-
ucts retailers. This has challenged the
independent retailers of all types to
depend more on their own brand identi-
ties, relationship with the consumers
and has created more competition for
the once dominant brands in almost all
merchandise.
Third, during the recession, many of our
brick-and-mortar stores reduced inven-
tories, and in doing so, hurt themselves
in terms of servicing the consumer and
this may work to the immediate benefit of
the internet and its virtually unlimited
assortment. As a result, the rules of
shopping have changed to be a combi-
nation of finding the product, finding it to
be adequate for the need at a reason-
able price, and actually buying it.
Fourth, in 2013 the number of people
walking through stores was greatly
reduced from the levels that had been
expected when the retail real estate was
built. In addition, the consumers went to
the stores and bought what they has
researched, but they did not stay in the
stores and shops. They were in and out.
They are not browsing and buying high
margin impulse goods. Thus, because of
the internet, the consumers are looking
at fewer stores and taking less time while
there.
Fifth, at the absolute core of this problem
is that most of our current prime retail
real estate was built to service the mas-
sive 77 million person post-war ‘Baby
Boom’ generation, now 50-68, not the
much smaller 47 million person
Generation X, aged 35-49 and in the
most important buying age for many con-
sumer products. The good news, of
course, is the much larger 72 to 80 mil-
lion Millennial generation will begin to
move into the key buying ages in 2016.
Speaking of malls, there have been no
new malls built since 2006 and the
vacancy rate in malls is the highest it has
been since recession of 1991, but furni-
ture stores are not typically mall-based.
All in all, holiday sales of furniture were
up in US, but heavy discounting to gen-
erate traffic kept profits very soft. We’ve
also learned that consumers want physi-
cal stores, but not for everything.

he first Florida Scavolini Store
opened in Miami last September,
as a new step of Scavolini’s road
map in the United States, following the
Scavolini Soho Gallery opened in 2010
in New York, that nowadays is reported
to be the largest kitchen showroom in
Manhattan.
Founded in Pesaro (Central Italy) in 1961,
in a few years the family-owned company
turned to be one of the most important
Italian industries and since 1984 the
leading company in the kitchen furniture
manufacturing sector. More recently, the
Consumers want stores that have an
atmosphere, that have decent prices, a
wealth of service, advice and interaction.
Stores either have a good vibe or they
didn’t. To survive, brick-and-mortar
stores must offer an experience that can-
not be recreated online and a merchan-
dise that requires an educated pur-
chase. Furnishings that are sold are not
a commodity. Stores need to remember
other strengths like consumer financing,
decorating assistance, complentary
sales and rapid delivery with recourse.
The Furnishings Digest is published
monthly and is free of cost to anyone in
the home furnishings industry, offered
by Mann, Armistead & Epperson, Ltd.,
the leading investment banker in the
U.S. furnishings sector. To receive the
Digest, please e-mail Jin S. Ko at
jsk@maeltd.com
According to IBM, ‘showrooming’ (i.e.
using your mobile device to look up and
finding a better price for an item while in
store) has not had nearly the impact that
most people expected. In this last holiday
season, 40% of consumers used elec-
tronic devices to find the best price but
only 8% used it to buy.
Consumers value convenience and if
they can find what they are looking for at
a good price locally, they will continue to
buy it.
SPECIAL REPORT
MARKETS
RETAILING
A NEW STEP OF SCAVOLINI’S ROAD
MAP IN THE UNITED STATES
T
company entered the bathroom furniture
sector under the brand Scavolini
Bathrooms. The company’s production
site is located in Pesaro on 204,215
sq.m. with some 550 empoyees.
The new Scavolini Store Miami is located
not far from Miracle Mile in Coral Gables
on a surface of over 300 sq.m. showcas-
ing a whole range of kitchen and bath-
room furniture, from minimal contempo-
rary furnishing solutions to sophisticated
combinations and innovative, high-tech,
ergonomic and multifunctional design, all
expressing Italian lifestyle at its best. The
store is managed by Group 2600, a
company specializing in interior design
projects, and offers a number of free-of-
charge services like: 3D design, trans-
portation, assembling, post-sale assis-
tance.
Today, the Scavolini Store project
launched in 2006 boasts 80 Stores in
Italy and 60 abroad. The company’s
whole retail network comprises over
1000 stores in Italia, 150 in Europe, 50
in Russia and Eastern Republics, 30 in
North America, 15 in Central/South
America and 15 in Asia and Oceania.

SPECIAL REPORT
PROFILE
RETAILING
n an attempt to explain the true
character of his work, Peter Ghyczy
defines himself a “Createur
Fabricant”. “Never totally free to
design what I want, I’am always feeling
closed between the restricted lines of the
right quality/price ratio, but this way of
working finally leads to a discipline, both in
creation and production” he says.
Born in Budapest in 1940, he is one of
those personalities, who in the ‘60s lifted
the furniture design to a whole new level.
End of the ‘60s he started working with
plastic in the ‘Design Centre’ of the Reuter
company. At that time plastic was a brand
new material and a very promising one. It
was ‘modern’ and trendy, until in 1973 the
first oil crisis broke and the initial signs of
shortage of the raw material changed the
feeling of the industry and the consumers.
In the following years, plastic was not ‘IN’
anymore.
Peter Ghyczy began working with glass,
metals (brass, copper, stainless steel, alu-
minium) and wood (sometimes coming
from 200 year old German oak trees).
Self-explaining products were made, with
I
quality materials as a priority choice and
refinements in every detail. Peter’s
design was based on innovations in the
technical industry, combined with a
refined touch for creating customized
comfortable items. Craftsmanship and
industry merged together and created
serene interiors with lasting value
objects.
Peter’s son Felix took over his father’s
company several years ago. He reorgan-
ized it according to the Kaizen principles
of lean production. Collections and
pieces of furniture are mostly sold through
retailers, often as a collector’s item by
well-known vintage retailers and the major
auction houses like Christie’s. The iconic
‘Garden Egg Chair’ designed by Peter
Ghyczy in 1968 is part of the fix collection
of many museums worldwide, such as the
Vitra design museum in Germany and the
Victoria and Albert Museum, London.
The company accounts for a yearly
turnover of 1 million Eur. Main markets are
Germany (60% of total sales), Holland
(30%) and Belgium. Target markets are
Brazil and Italy. Plans about Italy include
an event at ‘Galleria Milano’ during the
Salone del Mobile next April, addressing
retailers and international interior archi-
tects. The big challenge is the search for
new agents, interior designers and retail-
ers for these ‘haut couture’ collections.
Sales and visitors in the Internet are per-
forming well. “We have about 2000
unique visitors per month in our website”
says Felix “and 20% are returning visitors.
We have recorded some 600 search
requests per month for Ghyczy direct in
Google and almost daily new Ghyczy
items or items related to Ghyczy are sold
in e-bay. According to the figures from
Archiexpo, last year 224,653 views of the
brand were recorded, of which 55,000
from Italy”.
Dining table
GHYCZY’S MULTICHANNEL CHOICE
Black shades
Sensual textures and quality details
Personalised interior
023_SPECIAL REPORT vs8:prova1 26/02/14 09:39 Pagina 23

uroShop 2014 from 16 to 20
February has been the largest
edition ever since the exhibition
was launched in 1966. The
World”s Leading Retail Trade Fair taking
place every three years in Düsseldorf
recorded over 2,200 exhibitors from 57
countries and some 109,000 visitors
from 110 countries.
Four exhibition sections in 16 halls
offered a huge platform and a valuable
source of inspiration for companies and
professionals in the fields of:
- shopfitting, architecture and store
design (from innovative materials to floor-
ing, from refrigeration/air conditioning to
lighting)
- shopping experience, visual marketing
and emotional merchandising
- retail technology solutions in customer
service, POS and mobile shopping
- marketing, communications, design and
layout of exhibitions and special events.
According to Michael Gerling, CEO EHI
Retail Institute in Cologne, the global
retail sector is currently facing its greatest
challenges in decades. Profound
changes in consumer purchasing behav-
iour, rapid technological changes, the
ongoing globalisation of the sector and
the emerging of new marketing and distri-
bution models demand from retailers a
high degree of entrepreneurship, creativ-
ity and innovation readiness, in order to
ensure their survival and generate new
SPECIAL REPORT
EVENT
RETAILING
business opportunities in the future.
A recent CSIL study on “The Contract
Furniture and Furnishings market in
Europe” indicates that there were some
2.5 million commercial businesses in
EU17 (EU15+Norway and Switzerland) in
2010, with the number of firms operating
in the retail sector in Europe decreasing
by -3% since 2002. Although the number
of shops reduced and many long-estab-
lished retailers who missed the change
disappeared from the market, the retail
sector still remains a stable pillar of the
overall economic expansion in the medi-
um term, showing noticeable differences
in the retail landscape (depending on dif-
ferent distribution systems in each coun-
try) and with a number of new players
emerging, who will bring innovative prod-
ucts ranges and store concepts into the
markeplace.
The enormous speed of new concepts
conquering the market is going to short-
en the lifecycle of stores, thus accelerat-
ing their renovation, with a high profes-
sional approach to sourcing behaviour in
shop and shopfitting investment.
TRENDS TO KEEP IN MIND
The material mix in shopfitting implies a
sustainable shop design with the increas-
ing use of natural, eco-friendly and recy-
clable materials. Colours from nature,
solid surfaces and wood finishings are
fashionable and wellbeing inspiring.
Being able to create a special ambiance
is one of the priorities if you want to
attract customers.
Trends toward individuality in shop design
and a desire to surprise clients with total
optical and/or tactile enjoyment, fuel the
innovation development climate around
shopfitting and booth construction mate-
rials and structures. Be it painted metal,
veneer made from banana trees, photo-
luminescent granulate or bendable and
rollable plywood, rustic wood, but also
stone or concrete, acoustic boards or
vertical green space and water walls. It”s
all on show at EuroShop.
The lighting sector has been booming
this year with the entire Hall 11 showing
the complete spectrum of modern light-
ing technology and design for store light-
ing, be it emotional light experience for
promoting sales, corporate light con-
cepts, energy-efficient and sustainable
architectural lighting.
LED technology is becoming ever more
established and additional investment in
energy-efficient lighting, refrigeration and
air conditioning is the rule.
MULTICHANNEL RETAILING
No doubt, the online business is boom-
ing. According to data from the US com-
pany eMarketer, the web-based B2C
sales were expected to increase by 17%
in 2013. The hot spot is the Asia-Pacific
region with a growth of 23%. In China
EUROSHOP 2014.
RETAIL FOR THE FUTURE
E
by Paola Govoni
024_025 SPECIAL REPORT vs8:prova1 28/02/14 12:21 Pagina 24

alone online sales are climbing by 65%,
while Indonesia shows growth rates of
71%.
Far-seeing brick-and-mortar retailers are
aware of the change and they are devel-
oping into cross, multi or omni-channel
dealers. A typical entry step into multi-
channel retail is “click & collect”. The
customer buys a product online and then
picks it up at the retailer”s outlet.
“Multichannel retailing is becoming a
standard for retailers worldwide, and it is
a decisive success factor for a growing
number of companies” observes Thilo
Freund, Managing Director of MICROS
Retail Deutschland GmbH.
“Multichannel retailing probably repre-
sents the most radical change retail has
experienced since the establishment of
self-service in the middle of last century.
The synthesis of both worlds, the digital
and the real one, embodies the model for
success for the retail sector of the future”
says Jürgen Berens von Rautenfeld,
CEO of Online Software AG.
VISUAL MARKETING
U.S. and Asia are rapidly adopting digital
signage solutions. “Digital signage allows
us for unusual marketing strategies” says
Klaus Lach, CEO and Vice-President of
the European Visual Marketing
Merchandising Association (VMM).
“These new tools are a necessity in get-
ting consumers’ attention. Nowadays the
merchandiser should always check and
see whether the deployment of digital
design elements might be an option,
keeping the needs of the target audience
in mind”.
For your agenda: next edition of
EuroShop Düsseldorf is scheduled to
take place from 5 to 9 March 2017,
whereas from 13 to 15 May 2015 the first
EuroShop edition in China will be held in
Shanghai.
www.worldfurnitureonline.com 25WF - March 2014
EXPERIENCE THE DIFFERENCE
Under the motto “Experience the differ-
ence” addressed to architects, planners,
designers and retailers, EGGER present-
ed the 2014 ZOOM innovations for the
first time at EuroShop.
The collection has been expanded by 20
decors in 7 striking textures. 6 of the sur-
face textures were newly developed.
Based on highly modern technologies,
the innovations with surface textures that
can be felt, seen and experienced repre-
sent a whole new generation of products
and promise maximum expressiveness
for the user.
“The ZOOM innovations are accompa-
nied by a whole new generation of sur-
faces that combine the best of two
worlds. The special depth of the surface
texture results in an entirely new product
experience that is both visual and tactile.
This is the next generation of melamine
boards in the perfection of appearance”
says Hubert Höglauer, Head of Marketing
EGGER Group.
The new developments follow the innova-
tion in technologies – for example the
ability to press synchronised pore sur-
faces on both sides – and current design
trends.
Verena Michels, Design and Decor
Management EGGER Group, explained
that the innovations integrate the ZOOM
Collection with material and decor char-
acteristics that can be experienced, fol-
lowing the trend of authentic and striking
types of wood and wood reproductions
with the new decors Gladstone Oak or
Jackson Pine. “We are meeting the uni
colour trend for furniture with reddish-
warm grey with a matt look and a warm
feel. With the decor series Tortona and
the Feelwood Elegance synchronised
pore surface, with the Painted Wood tex-
ture on uni colours as well as the discreet
wood reproduction Orleans Oak, we are
responding to the sustained, popular
trend of elegant naturalness”.
With the 2014 ZOOM innovations fitters,
cabinet makers and shopfitters are pro-
vided with a source of inspiration and
great design flexibility. Customer require-
ments can be met with individual designs.
With the product characteristics of
melamine faced boards (such as scratch
resistance, colour fidelity for the entire
lifecycle of furniture, and easy cleaning),
they offer the highest quality with a per-
fect natural look and feel.
At EuroShop EGGER presented a wealth
of solutions for shop fitting and exhibition
stands, such as:
- Compact laminate with a black or white
core, for high-end furniture and elegant
designs with slim dimensions, resistant to
impacts, bending and moisture
- EUROLIGHT lightweight building
boards, that support the integration of
electronic components
- Acoustically effective boards with cus-
tom perforation patterns for wall panelling
or partition walls, ceiling applications and
ceiling systems also equipped with the
LED auriLUX lighting system
- EGGER cork + flooring collection:
silent, warm ecological. Suitable for com-
mercial applications and hotel rooms.
EGGER Press Conference at EuroShop
024_025 SPECIAL REPORT vs8:prova1 28/02/14 12:21 Pagina 25

ndia is one of the main furniture
markets in the world, due to a huge
domestic market of over 1.2 billion
inhabitants. According to CSIL
brand new report “Furniture Distribution
in India”, local furniture consumption is
expanding rapidly and reached a new
peak of US$ 14.8 billion in 2013, over
three times higher than in 2002. A further
4%-5% yearly increase is forecasted for
the coming two years. Market values are
considered at retail prices and include
both furniture and furnishings (decorative
lighting, mattresses, accessories and
other home related items).
Why TO gO TO InDIA?
The first region is that more and more
affluent Indians prefer to buy branded fur-
niture (15% of the market until yesterday,
now around 30%). Branded products and
increasing imports of low-cost furniture
are now challenging India's highly skilled
carpentry industry. The second reason
is: after recent policies to allow 100% for-
eign direct investment (FDI) in single-
brand retail, competition is going to be
intense in the near future for furniture
companies in India. Just to mention
IKEA’s Rs 10,500 crore investment (Euro
1.2 billion). China, Italy and Malaysia are
the main furniture exporters to India. But
also Scandinavian (Bo Concept) and
Americans (Maitland-Smith) are opening
their monobrand stores over there.
The CSIL report focuses on suggested 8
Megacities and 6 Indian States with
expected high growth of household
expenditure by 2020.
Maharashtra, one of the targeted mar-
kets, today hosts around 14% of urban
population and represents 22% of furni-
ture consumption (approximately US$
3,250 million). Future growth for
Mumbai, nashik and Pune metropolitan
areas is given up to 2020. Mumbai (pre-
viously known as Bombay) is the most
populous Indian city and the 4th largest
one in the world. Known as India’s com-
mercial and entertainment capital
(Bollywood), the city generates 6.6 % of
India’s gDP and 30% of tax collection,
and it ranks 7th in the list of "Top Ten
Cities for Billionaires" by Forbes maga-
The new CSIL report ‘Furniture Distribution in India’ offers detailed information about
size of the market, recent developments and future trends, import penetration,
demand determinants. Furniture consumption by market range and product
segment, retail prices, countrywide distribution channels, focusing on 8 megacities
and 6 Indian States. Short profiles of top retailers and importers. Publication date:
February 2014, Edition I, Language: English. The report is available for online
purchase and immediate download at: www.worldfurnitureonline.com
SPECIAL REPORT
MARKETS
RETAILING
zine. Mumbai is the third most expensive
office market in the world, and ranked
among the fastest cities in the country for
business start-up. Among the largest dis-
tributors with headquarters in Mumbai
there are: godrej Interio, home Town,
@home and Durian.
Andra Pradesh today hosts around 7% of
urban population and represents 9% of
furniture consumption (approximately
US$1,330 million). Andhra Pradesh has
the biggest seaport at Visakhapatnam,
with feeder services to Europe, Russia,
USA and the Asia Pacific area.
Bangalore, known as the Silicon Valley of
India, is an IT/software hub. 5th largest
Indian city, Bangalore also is home to
R&D centres of companies like Airbus,
Bosch, Boeing, gE, gM, google,
Microsoft, Mercedes-Benz, nokia,
Oracle, Philips, Shell, and Toyota. The
city is a preferred retail destination after
by Aurelio Volpe
InDIA. FURnITURE COnSUMPTIOn By SEgMEnT, 2013.
PERCEnTAgE ShARES
Delhi and Mumbai. Total operational mall
space (as for 2012) is 7.65 million sq. m.
Mantri Square at Malleshwaram, Phoenix
Market, City at Whitefield and Brigade
Orion at Rajkumar Road are key regional
malls, while The Forum at Koramangala
and Royal Meenakshi Mall at
Bannerghatta Road are prominent com-
munity malls in the city. There are about
25 existing Malls, plus 15 under con-
struction and 15 in the pipeline.
By 2016, Bangalore is expected to wit-
ness additional 5.67 million sq.ft. of retail
space. Luxury retail emerged as a new
concept in the city with the successful
establishment of UB City at Vittal Mallya
Road. Other high street locations are
Lavelle Road and Indiranagar 100 Feet
Toad (Viveks, Veneta Cucine). Bangalore
is expecting to witness the entry of major
brands like Carrefour, WalMart, and
IKEA.
DISTRIBUTION IN INDIA. WHEN
FURNITURE CONSUMPTION PEAKS
I

BRAND STRATEGIES TO TARGET THE
TURKISH CONSUMERS by alessandra tracogna
SPECIAL REPORT
MARKETS
RETAILING
s a result of better economic
conditions and the recovery
after the crisis, turkish con-
sumers started to pay more
attention to their homes and they are
going to increase their spending on fur-
nishings. also they are upgrading furni-
ture, with a substitution ratio that lowered
to 9 years on average. the increasing
number of young people leaving alone is a
further driving force. this resulted in a
higher number of furniture stores all over
the country and in a huge variety of prod-
ucts and brands on the market.
market ranGe and purChaSInG
attItudeS
according to preliminary estimates, total
turkish furniture consumption in 2013
accounted for eur 4 billion (at producer
prices).
abdullah tuglu, Secretary General of
moSder – association of turkish
furniture manufacturers representing
over 50% of turkish furniture exports and
65% of domestic production – stated that
the main criteria of consumer choice
when purchasing furniture are: brand,
customer assistance and post sales serv-
ices, with an increasing attention paid to
quality and product details.
the upper end of the market is dominated
by foreign suppliers, with Italy and
Germany accounting for over 20% of total
imports (around uS$ 150 million), where-
as Chinese companies are penetrating
the market in the lower end. In the middle
and middle-upper end of the market (esti-
mated to be around 70% of the total),
turkish branded furniture chains predomi-
nate (both owned stores and franchising
stores).
foCuS on Store openInGS
turkish companies and the government
are aware of the importance to target the
domestic market (and the export one)
through brand reputation, good quality
product and additional services. on the
public investment side, the turQuaLIty
program should be mentioned, aimed to
create a positive image and branding of
turkish goods in different sectors.
a
among the sector events, ISmoB 2014
Istanbul furniture fair (28 January-2
february) hosting over 300 exhibitors on
120,000 sq.m., was a showcase for lead-
ing sector companies.
When asking companies about their
strategies, the most common answer is:
‘store openings in 2014’. opening a store
in Istanbul costs around eur 150,000.
the investment for opening a store
abroad is in some cases supported by the
government (for example coverage of the
rent cost).
CILek a.S., operating in the baby/chil-
dren/teen bedroom segment, runs over
440 stores all around the world.
aLfemo, a family owned company
strongly convinced of the brand impor-
tance, is also following the trend with a
target of 30 new stores in 2014. Quality is
a must for tepe, sourcing row materials
from Germany and opening 4 new stores
in 2014.
keLeBek moBILya will increase its
showrooms in the kitchen segment (and
continue to invest in its contract division)
and its sister company doGtaS has a
schedule of +20 furniture stores and +15
bedding stores all over the country and
not only in main cities (Istanbul, ankara
and Izmir).
the Boydak Group, one of the largest
turkish companies established in kayseri,
is present on the market through several
brands. among them: Istikbal, Bellona,
mondi.
the mattress segment has been growing
fast with an increasing consumer attitude
toward ergonomy and a higher attention to
quality, when replacing old mattresses.
the spending in the medical sector is also
very high. the offer is diversified with
spring mattresses still prevailing, but latex
and foam are also present.
yatSan, a specialist in the sector,
expects a +15% growth for the year 2014
and operates through 57 owned shops in
the middle to high market end.
most of turkish companies of the furniture
industry are supported and active on the
foreign markets, (mainly in Lybia,
azerbaijan, Saudi arabia) with the same
formula. the export growth of last year
was extremely important for many compa-
nies investing abroad and a stimulus to
continue in the future.
turkey. nomInaL houSehoLd fInaL ConSumptIon expendIture per CapIta. uS$.
2003-2013
Source: CSIL processing on World Bank data

he Russian market for lighting
fixtures totalled Eur 1,488 mil-
lion in 2013, accounting for an
average yearly growth of 5.5%
(in EuR) during the last six years. in
local currency, the average growth is in
the region of 8.6% per year. The
Central District (including Moscow) still
generates most of the lighting fixtures
sales (36%), although its weight is by far
less predominant than ten years ago
(55%).
in 2012, China and italy together
accounted for around 54% of total
Russian imports. imports from italy
were relatively stable during the period
2007-2012, while imports from China
grew 25% yearly on average. germany,
Austria (both growing fast) and Poland
(relatively flat) followed at a distance.
LEDs account for about 12% of Russian
lighting fixtures market for the year
2013. Applications of LEDs in the
Russian market are mainly recorded for
commercial lighting (38%) and outdoor
lighting (38%), followed by industrial
lighting (19%) and consumer/residen-
tial lighting (5%). The Russian market for
commercial lighting is made by a com-
paratively higher share of lighting for
offices and a relatively lower share of
lighting for hospitality. 60 Top compa-
nies control 70% of the Russian market
for lighting fixtures.
Lighting Technologies and Boos
Lighting are market leaders, accounting
for 8%-9% market share each.
in 2013 the emerging Russian market
for LED lighting is expected to grow by
55% (growth in 2012 was 20%). CSiL
estimates that the share of LED lighting
on the total market for lighting fixtures
will be 20% or more by 2015.
LED-based road lighting is one of the
most attractive and dynamic markets in
Russia and one which is showing a fast
developing trend.
FOCUS
MARKETS
LIGHTING
RuSSiA. inDuSTRiAL LighTing. SALES BREAkDown By PRoDuCT, 2010-2012-2013*.
PERCEnTAgES
SouRCE: CSiL PRoCESSing
More on the Russian market by CSIL:
The lighting fixtures market in Russia (2013 edition)
The kitchen furniture market in Russia (2013 edition)
The office furniture market in Russia (2014 edition)
Furniture Distribution in Russia (2012 edition)
All reports are available for online purchase and immediate download at:
T
GROWING MARKET FOR
LIGHTING FIXTURES
IN RUSSIA by Aurelio volpe,
CSiL international
Market Research
(*) PRoviSionAL DATA
A State programme for the moderniza-
tion of road lighting, where the share of
LED lighting will reach 50% by the year
2015, has definitely contributed to the
rapid development of the market.
Any analysis of the prospects for
Russian demand requires a separate
approach for each Federal District, with
particular attention to the main urban
centres. Moscow and St. Petersburg
are considered the main “gateways” to
the Russian market and they are
Russia’s key commercial and trans-
portation hubs. Both Moscow and St.
Petersburg are well connected to the
rest of the country by road, rail and air
transport.
The continuous development of the
transportation infrastructure in Russia
and the overall economic growth in the
Regions resulted in more direct import
flows directed to other areas of the
country, bypassing the two capitals.
029 FOCUS_vs 8:prova1 26/02/14 10:42 Pagina 29

FOCUS
RETAIL
30 WF - March 2014
LIGHTING
he new FontanaArte flagship
store in the very heart of Milan,
Corso Monforte, is a warm,
welcoming space in which
lighting fixtures created by famous
architects and lighting designers from
the past, are showcased together with
contemporary lamps from the compa-
ny’s latest collections made by a new
generation of emerging international
designers.
The furnishings, the floor covering in
vinyl textile made from renewable raw
materials and the pastel walls with pic-
tures from FontanaArte historic archive
are all elements that help create an inti-
mate and private dimension within such
a ‘public’ location as a store. The soft
rounded lines of the niches, housing
the lamps along the walls, give off a
warm light. Designed by architects
Fabio Calvi and Paolo Brambilla, the
store is a connecting space between
past and future and a place showing the
company’s philosophy: real light in a
beautiful home.
Echoes of works by Gio Ponti, who
founded FontanaArte in 1932 together
with Pietro Chiesa, can be seen in the
modern version of folding walls, which
open and close to suit the showroom
requirements.
During the opening days last mid-
November, a totem made of ‘Fontana’
and ‘Uovo’ lamps stood for the compa-
ny’s history: both lamps, in satin-finish
blown glass, are two icons. Designed
by Max Ingrand in 1954, Fontana is a
table lamp, while Uovo comes from a
sketch found in the company’s historic
archive in 1972. A second totem was a
composition of colorful Bloms by the
young Norwegian designer Andreas
Engesvik, reflecting a new international
language.
A NEW HOME FOR
FONTANA ARTE
IN MILAN
T
Founded in 1932 from an idea by
Gio Ponti, FontanaArte is a leading
Italian company of the lighting fixtu-
res industry. Since 2010
FontanaArte has been part of Nice
Group S.p.A., an international com-
pany for integrated home automa-
tion and protection systems. The
new partner represents the opportu-
nity to develop a solid industrial
base for the future and provides the
strategic research needed to deve-
lop a new international language.
The new flagship store FontanaArte in Milan

ajor cities are ‘energy guzzlers’
and responsible for around
80% of worldwide greenhouse
gas emissions. Hence, it is par-
ticularly important that energy consump-
tion be stemmed there.
To this end, Berlin is particularly creative
and pioneering and has come up with a
number of ambitious ideas. One of them
is the ‘Energy Strategy Berlin Adlershof
2020’ at the renowned Adlershof Science
and Technology Centre in the southeast
of the city. Together with partners from
research and business, the operators
want to increase the energy efficiency of
the site through the use of innovative tech-
nologies. The aim is to cut the consump-
tion of primary energy at Adlershof by
30% by 2020.
A challenging target because the project
encompasses 450 buildings, over 900
companies, 16 scientific institutions and
23,000 people, who research, study,
produce and live there. Adlershof is
Europe’s biggest inner-city development
area (467 hectares).
A new ‘Campus Residential Area’ will be
built on 14 hectares of the area up to
2020. Dr Beate Mekiffer of WISTA
Management, the operating company, is
in charge of the entire energy project:
“The demand for primary energy is
expected to rise from 360 at present to
around 825 gigawatt hours if no action is
taken to stop this development. In other
words, the situation is extremely urgent!”
The German government is also aware of
the problem and is sponsoring ‘Energy
Strategy Berlin Adlershof 2020’, a cluster
project that is unparalleled anywhere in
Germany. At Adlershof, the focus is on
building efficiency and intelligent electrici-
ty grids on both existing and new develop-
ments. According to an analysis in cooper-
ation with Berlin Technical University, the
energy consumed by the lighting would be
almost halved if just the lighting systems at
Adlershof were to be modernised.
Therefore, motion detectors with electron-
ic sensors will be used to manage the
lighting in future. Dimmers will be fitted so
the brightness of the interior lighting can
be controlled intelligently in accordance
with the time of day. Particular attention is
FOCUS
R & D
LIGHTING
Light + Building, World’s Leading Trade Fair for Architecture and
Technology from 30 March to 4 April 2014 im Frankfurt am Main presents
market-ready technologies for energy-optimised buildings and districts. At
L+B around 2,300 international exhibitors from 50 countries will show their
latest products and innovations for the fields of lighting, electrical enginee-
ring, house and building automation and software for the building industry.
www.light-building.com
M
ENERGY STRATEGY
BERLIN ADLERSHOF 2020
being paid to the construction of the
planned ‘Campus Residential Area’.
Around 100 of the 1,300 apartments are
to be built in a plus-energy estate where
more energy will be generated than used.
To this end, the plans call for a highperfor-
mance solar plant and cogeneration for
decentralised power supply.
Berlin Technical University and partners
are looking at the integration of a smart-
grid solution for an intelligent power supply
system.
In addition to saving energy, the operators
are also banking on the increased use of
regenerative energies. To date, Adlershof
has primarily used photovoltaic systems.
In the future, they will be supplemented by
geothermal energy, wind energy from the
surrounding countryside or decentralised
cogeneration plants. Dr. Beate Mekiffer:
“We are working closely together on all
these aspects with scientists in Austria
and Switzerland, who are also research-
ing into the energy-saving potential of
model districts. The ‘Energy Strategy
Berlin Adlershof 2020’ will play a pioneer-
ing role in this direction.”
Berlin Adlershof
Credit: © WISTA-MANAGEMENT GMBH www.adlershof.de
Centre for Photonics and Optical Technologies
Credit: © WISTA-MANAGEMENT GMBH
www.adlershof.de

he 63rd edition of the
Stockholm Furniture & Light
Fair took place from 4 to 8
February 2014, hosting about
700 exhibitors, mainly (80%) coming
from Sweden, Norway, Denmark and
Finland. The fair attracted 35,654 visi-
tors and around 6,000 international buy-
ers, architects, designers and journalists
from 90 countries. The 2014 program
was even more extensive with the intro-
duction of “Stockholm Design Talks”, a
new forum dedicated to knowledge and
discussion about furniture and interior
design, and “Twelve” an additional
design area where 12 designers show-
cased their own project philosophy.
A major fair’s highlight is “Guest of
Honour”, where an internationally recog-
nized designer is invited to create the
lounge area at the Stockholmsmassan
Entrance Hall. The Danish-Italian design
studio GamFratesi - this year’s Guest of
Honour - called its installation “Balance”.
A beautiful project made primarily with
metal elements and textile panels sus-
pended from the ceiling. “For us, as for
most people, each day is a struggle to
find balance in life”, said Stine Gam and
Enrico Fratesi.
PRODUCT HIGHLIGHTS
Furniture on show is characterized by
high quality, clean lines, bright wood fin-
ishings, and with a touch of color.
However, this year, the attention to
acoustic themes has been predominant
and the use of fabric represented a
widely shared topic among attending
companies.
Manufactureres in the lighting area indi-
cated “sound absorption” to be a rele-
vant topic, especially for contract and
office projects. Felt covered lamp-
shades could be seen at the fair booths
as well as in the showrooms downtown
Stockholm. One of the most successful
product in this field is “Hood”, a suspen-
sion by the Swedish brand Atelié Lyktan
displayed both by Kinnarps and EFG at
their booths.
Office furniture manufacturers focused
their attention on how to make office
environments more communicative and
REVIEW
IN STOCKHOLM IT’S ALL
ABOUT DESIGN, SOUND
AND BALANCE
T
somehow ‘looking residential’. Visiting
the fair there was evidence that today
customer budgets are partially moving
from super-technical workstations to
more functional surroundings and com-
mon spaces. Furniture producers
responded with the introduction of
upholstered furniture collections, with
integrated high back supports giving pri-
vacy in open-space offices and in large
by Mauro Spinelli
CSIL International
Market Research
Balance by GamFratesi
Offecct booth
Hood by Atelié Lyktan
032_033 REVIEW vs8:prova1 26/02/14 11:06 Pagina 32

public spaces (Resolve from Edsbyn
among the others). Furthermore, low
partitions are becoming flexible design
pieces, coloured, featuring some sound
absorption properties (acoustic panels
in fabric, felt or recycled pressed materi-
al). Notes suspended panels and Wheel
rounded low partitions by Offecct is a
good example.
HANGING OUT IN THE CITY
Started one day before and ended one
day after the fair closure, the Design
Week is becoming a not-to-be-missing
event downtown Stockholm, where city
restaurants, galleries and museums
become spotlights for product innova-
tions, with showrooms organizing public
events in the evening and design studios
opening their doors, proudly showing
their laboratories and prototypes. One of
them is NOTE, a Stockholm-based
Design Studio, which cooperates with
major local brands (Zero, Fogia and EFG
just to mention a few), and designed the
Greenhouse hall at the Fair for the sec-
ond year in a row. The Greenhouse
included specially produced materials
and a large wood tent designed in part-
nership with architects from Nyréns
Arkitektkontor.
THE SWEDISH FURNITURE MARKET
Sweden is the 3rd furniture exporter in
Europe (after Germany and Italy) and the
9th at a world level. The local furniture
industry accounts for approximately
2,300 firms and 16,000 employees.
Medium and small sized companies rep-
resent the largest share, however, some
of the largest Swedish manufacturing
groups are among the well-known furni-
ture brands in the world.
The sector shows strong local roots, as
Swedish companies mostly preferred to
invest in proximity manufacturing basis
efficiency, rather than relocating busi-
ness in the emerging countries. “It is
gratifying to see that the Swedish furni-
ture industry remains strong and that we
go up stream by keeping production in
Sweden, while Western European coun-
tries are moving production to low-wage
countries”, says Cecilia Ask Engstrom,
Director of Industrial Development at
TMF, the Swedish Federation of Wood
and Furniture Industry.
During the first ten months of 2013,
trade activity in Sweden, although weak-
er than in the past, could perform over
the European average. It is worth noting,
that 65% of exports are destined to other
Scandinavian markets and to Germany.
REVIEW
SWEDEN. INTERNATIONAL TRADE OF FURNITURE AND LIGHTING FIXTURES.
TREND 2013/2012, JANUARY-OCTOBER. % CHANGE
Resolve from Edsbyn
Greenhouse tent by Note Design Studio and Nyrèns Arkitektkontor
032_033 REVIEW vs8:prova1 26/02/14 11:06 Pagina 33

recent ‘Windows and doors
World market outlook’ issued by
CSIL contains an overview of the
world industry for windows and
doors and it focuses on the 30 most
important markets for this business
area. data on international trade cover
for a total of 70 countries are also pre-
sented.
International trade of windows and
doors (defined as the average between
the total of windows and doors exports
from the 70 major countries and the
total of windows and doors imports into
the 70 major countries) grew from
about US$ 7.1 billion in 2003 to about
US$ 12.7 billion in 2012. Slow growth
was recorded in 2013 and the same is
expected in 2014.
The main importing countries are the
United States, France, germany,
japan, the United Kingdom and
Switzerland. For the 30 major countries
the imports/consumption ratio is
presently about 6%.
The main exporting countries are
China, germany and Poland. other
major exporters are the United States,
Italy and Canada.
Among these major exporters, the two
countries with the highest propensity to
export are Poland and germany, with
exports/production ratio of 36% and
16%, respectively.
The rankings of exporting countries for
windows and doors made of different
FOCUS
SCENARIO
BUILDING
CONTENTS OF 'WINDOWS AND
DOORS: WORLD MARKET
OUTLOOK' REPORT
PART I. PRODUCTION, CON-
SUMPTION AND INTERNATIO-
NAL TRADE OF WINDOWS AND
DOORS (30 major countries) •
World Windows and Doors trade
matrix (70 countries)
PART II. COUNTRY TABLES (30
major countries) and FORE-
CASTS OF GROWTH OF
DEMAND FOR WINDOWS AND
DOORS IN 2013 AND 2014
PART III. PROFILES OF MAJOR
MANUFACTURER ASSOCIA-
TIONS WORLDWIDE
PART IV. ADDRESSES OF A
SELECTION OF WINDOWS AND
DOORS MANUFACTURERS
For more information about CSIL
report “WINDOWS AND DOORS:
WORLD MARKET OUTLOOK”
please contact:
pelizzari@csilmilano.com.
Edition I, Year 2013, Over 130
pages + list of useful contacts.
Online purchase and immediate
download of the report at:
A
WINDOWS AND DOORS
WORLD MARKET OUTLOOK by Stefania Pelizzari,
CSIL Statistical office
WINdoWS ANd dooRS ImPoRTS, 6 mAjoR ImPoRTINg CoUNTRIES, 2003-2012.
US$ mILLIoN
Source: CSIL processing of official data
WINdoWS ANd dooRS ExPoRTS by mATERIAL, mAjoR ExPoRTINg CoUNTRIES, 2012.
Percentages are processed in value Source: CSIL processing of official data
materials are shown in the following
graph, that refers to the year 2012.
In terms of breakdown of windows and
doors production by material, there are
differences in the various countries of
the world. Regarding Europe, there is a
preference for wooden windows in
Nordic countries and for metal windows
in Southern European countries.
An overview of production shows that
the 30 countries together produce win-
dows and doors for more than US$ 150
billion and they export 7% of their pro-
duction. The largest manufacturing
countries for these products are China
and the United States.

Fensterbau/frontale is also a founding
member of the Global Fair Alliance of
world-leading window exhibitions and is
involved with ift Rosenheim in the
International Strategic Partnership
Fenestration.
FOCUS
PREVIEW
36 WF - March 2014
BUILDING
ensterbau/frontale 2014 will
take place in the Exhibition
Centre Nuremberg, Germany,
from 26 to 29 March.
The product spectrum on show at this
leading international exhibition reflects
the worldwide innovations in windows,
doors and facades. Some 99,000
trade visitors and over 1,200 exhibitors
made fensterbau/frontale in combina-
tion with HOLZ-HANDWERK an impres-
sive highlight for the industry in 2012.
The new hall 3A will provide even more
exhibiting space in 2014.
Every two years Nürnberg is a meeting
point for window and facade manufac-
turers, carpenters, architects and
traders, who can see the latest profile
systems, prefabricated units, architec-
tural glass, fixing equipment, safety
equipment, machines, installations and
many more products on show. The wish
for sustainability and performing com-
fort continues to drive innovation in the
window, door and facade construction
sector.
Experts will meet at fensterbau/frontale
to discuss on how aesthetic and design
trends can cope with energy-efficient
building. The 7th Forum Architecture-
Windows-Facades will take place on
Thursday 27 March (10.00-13.00) at
the Exhibition Centre, NCC Ost, Tokyo
Hall.
Reportedly, 97% of the exhibiting com-
panies in 2012 welcomed international
visitors mainly from Germany’s neigh-
bouring countries, followed by Italy,
Great Britain, Russia, Turkey and other
countries worldwide. “Well over 90% of
the companies involved said they had
reached their most important target
groups at fensterbau/frontale, and nine
out of ten exhibitors showed a new
product or innovation in Nürnberg,”
says Elke Harreiß, Director Exhibitions
fensterbau/frontale at NürnbergMesse.
Visitors attending the 2014 edition will
look forward again to the latest know-
how on the main topics of sustainability,
comfort, automation and energy effi-
ciency.
“For anyone wanting to get to know the
innovations on the international market
in a compact form at one place, there is
simply no way round the display of prod-
ucts from the almost 800
fensterbau/frontale exhibitors in
Nürnberg” Harreiß says.
The organizer of fensterbau/frontale is
NürnbergMesse GmbH. The honorary
sponsors are the association, the
Fachverband Glas Fenster Fassade
Baden-Württemberg, and the two
guilds, the Landesinnungsverband des
Glaserhandwerks Rheinland-Pfalz and
the Landesinnungsverband des
Bayerischen Glaserhandwerks.
SUSTAINABILITY
AND PERFORMING COMFORT
AT FENSTERBAU/FRONTALE
F
The product spectrum at
fensterbau/frontale 2014:
• Structural and profile systems
• Semi-finished materials
• Materials, production aids
• Components, prefabricated ele-
ments
• Shading and ventilating equip-
ment
• Glass, glass products
• Hardware, doors, fixing equipment
• Safety equipment
• Office organization
• Machines, installations and tools
• Operating systems, operating
equipment
• Services, associations, research &
development
• Technical information
More on: www.frontale.de

ocated in Givrand (France),
BENETEAU’s (a major sailing
boat, yacht and motorboat man-
ufacturer) headquarters has a
façade designed using HI-MACS® new
generation acrylic stone designed and
produced by LG HAUSYS and featuring
high thermoformable, multipurpose,
ultra-resistant and non-porous proper-
ties.
The project consists of two different
buildings separated by a patio and con-
nected by a glass gallery. The company
PAD created the project’s initial design
by integrating a perforated mesh-like
façade. Wanting to follow the original
design as closely as possible, BERI 21,
the project manager and in-house gen-
eral contractor for Beneteau, started
looking for different materials used in
FOCUS
PROJECTS
BUILDING
L
BENETEAU HEADQUARTERS.
WHEN HI-MACS® BECOMES
A WORK OF ART
PHOTOGRAPHER: Mathieu Ducros©
other façades while the structure was
being designed. After he discovered
HI-MACS® material in a sailing yacht
shower room, it was officially selected
once its fastening system had been
tested and approved.
The main southern facing façade with
the mesh-like design built in HI-MACS®
identifies Beneteau headquarters. A
remarkable work has been created
thanks to the adaptability and excellent
thermoformability of this new genera-
tion acrylic stone and taking benefit
from invisible fastening systems.
HI-MACS® helps regulate the façade
which is exposed to large amounts of
sunlight and reduce high levels of ener-
gy due to radiation thanks to its perfo-
rated material. The façade has a perfo-
ration rate of nearly 50%.
Its white colour and reaction to light
gives the material a matt and velvety
texture and a nice appearance from
either inside and outside. Designers
were able to reach the desired level of
transparency and to choose variations
in the perforation, in order to incorpo-
rate the logo.

FOCUS
MARKETS
38 WF - March 2014
BUILDING
oRLD’S fASteSt GRow-
InG AReA
the Asia Pacific market for
office furniture in ten coun-
tries Australia, Indonesia, Japan,
Malaysia, Philippines, Singapore, South
Korea, taiwan, thailand, Vietnam
(excluding India and China) is estimated
by CSIL to be worth uS$ 7 billion in
2013. over the last decade, the area
grew by 4% on average, each year.
According to preliminary estimates,
office furniture consumption increased
by 2% in 2013 (in real terms). Around
11% of the market is currently satisfied
by imported office furniture (uS$ 806
million), recording an average annual
growth of +10% since 2003.
office furniture production is mainly
destined for the local market, while just
8% is exported outside the region.
Malaysia is the leading exporter of the
area, with a share of 47% of total office
furniture export. Japan and Australia are
the leading importers, with 37% and
23% of total office furniture import in
Asia Pacific. the leading supplier of
office furniture for all these countries is
China, providing about 60% of total
imports.
ASIA PACIFIC. A HIGH PERFORMING
MARKET FOR OFFICE FURNITURE
w
JAPAn, the LARGeSt MARKet-
PLACe
After the earthquake in 2011, Japan
economy has been experiencing a
recovery. In 2012 and 2013 GDP grew
by 2% in real terms and it is expected to
increase by 1.2% in 2014.
Japanese imports of office furniture are
worth about uS$ 300 million and 83%
of total imports are office seating. China
and taiwan are top two suppliers:
together they provid 84% of total
Japanese imports.
Major customers for office furniture in
Japan are governmental agencies,
industrial firms and trade organisations.
the traditional distribution chain ‘pro-
ducer-wholesaler-retailer’ is increasing-
ly losing ground, due to the existence of
important commercial ties among small-
er local producers (oeM) and large
assemblers/distributors known as
Brand name Makers (okamura,
Kokuyo, Itoki, etc.). these companies
are present throughout the country with
an impressive distribution network.
foreign brands in Japan are mainly dis-
tributed through a large network of local
corporations. Kokuyo controls
wilkhahn Japan Co., Ltd., okamura is
importer of wiesner hager, fora form
and wogg (just to mention a few),
Kurogane Kosakusho has commercial
agreement with Steelcase and
Dauphin.
AuStRALIA to DeVeLoP offICeS
AnD hoteLS
Australia’s 22 million inhabitants are
mainly concentrated in metropolitan
areas like Sydney, Melbourne and
Brisbane. According to the Australian
Bureau of Statistics, in the first ten
months of 2013 the value of total non-
residential building approved (94%
coming from the private sector) rose by
10% on the previous year.
ASIA PACIfIC. GRowth of offICe fuRnItuRe ConSuMPtIon. MILLIon uS$
Source: CSIL processing (*) in real terms
by Mauro Spinelli,
CSIL International Market Research
038_039 FOCUS_vs 8:prova1 26/02/14 16:59 Pagina 38

170,500 sqm. office spaces are under
construction in Melbourne, expected to
be completed by 2015. 68% is pre-
committed. In Brisbane there are three
large office buildings under construc-
tion (totalling 188,000 sqm), reportedly
to be completed not earlier than 2016.
with its estimated stock of 136,000
hotel rooms, Australia is expected to
increase its pipeline both in the tourist
and business hotel premises.
Australian imports of office furniture
amounted to uS$ 185 million in 2012
(+5% on the previous year), coming
mainly from the Asia and Pacific Area
(84% of total imports). Australia’s major
trading partner is China, accounting for
55% of total imports. taiwan, new
Zealand, united States and Malaysia
followed.
office furniture distribution in Australia
is partially in the hand of the largest
local manufacturers, who also act as
major importers of international brands.
the role of local distributors, mainly
organized as interior design studios, is
also relevant. Schiavello, widely known
in Australia as a leading supplier, is the
leading local company with over 1,000
employees, 10 showrooms and 6 man-
ufacturing plants in operation.
SInGAPoRe, the ReGIonAL huB
the office furniture market in Singapore
is highly penetrated by imported prod-
ucts from Malaysia and China. Some of
the largest companies with headquar-
ters in Singapore operate production
facilities in Malaysia, China and
Indonesia. this is particularly true for
the office seating segment.
Singapore is a main hub, not only for
the local market but also for the entire
Asia Pacific region. Some relevant
architectural and interior design compa-
nies are located there and they “speci-
fy” products for major project all over
the Pacific area. office furniture distri-
bution in Singapore mainly passes
through space-planning companies and
contractors, and major office furniture
manufacturers have their own show-
room over there.
MALAySIA, A LeADInG eXPoRteR
over 60% of Malaysian office furniture
production is destined for foreign mar-
kets. exports totalled about uS$ 270
million, increasing +12% yearly on aver-
age since 2003. Main countries of des-
tination are India (15%), Singapore
(13%), united States (9%) and the
united Arab emirates (8%).
FOCUS
MARKETS
BUILDING
ASIA PACIfIC. offICe fuRnItuRe. IMPoRtS By CountRy. uS$ MILLIon AnD AVeRAGe
AnnuAL % ChAnGe
THE OFFICE FURNITURE MARKET IN ASIA PACIFIC
The CSIL report analyses supply structure, market demand, import-export
flows, competitive system, providing statistical data and trends of office
furniture production and consumption, as well as import and export data.
2014 forecasts on office furniture demand by single country are also
provided, and competitive systems of each single country are presented,
with sales figures, market shares and short profiles of selected top office
furniture companies.
10 countries covered: Australia, Indonesia, Japan, Malaysia, Philippines,
Singapore, South Korea, Taiwan, Thailand, and Vietnam. Publisher: CSIL.
Issued: January 2014, V Edition. Language: English
Available for online purchase and immediate download at:
ReAL GRowth of GDP. foReCASt 2014.
AnnuAL % ChAnGe.
Merryfair is the leading office chair
manufacturer both countrywide and in
the whole region. the Canadian
teknion pioneered as foreign investor in
the country taking over in 1999 a lead-
ing Malaysian manufacturer of filing,
storage and seatings with 180,000 sq.
ft. facility in Klang. In 2001 a similar
strategy was adopted by Steelcase,
which established a JV with a relevant
local producer.
038_039 FOCUS_vs 8:prova1 26/02/14 16:59 Pagina 39

oday’s furniture industry is
becoming increasingly like fash-
ion; customers are demanding
more models, more often and
with more customization. For manufac-
turers, this translates into a need for
greater flexibility, the ability to handle
smaller orders, more frequently and
with much shorter delivery times. In
addition, the cost of the raw material,
wet blue, has doubled in the past two
years and continues to rise.
Upholstered furniture manufacturers
using leather today are facing three
main challenges: material efficiency, to
make the best use of each hide in terms
of quality and quantity, operating flexi-
bility to be able to handle small produc-
tion runs, and to mix models and vari-
ants, as well as process optimization to
reduce waste wherever possible,
streamlining and reducing the risk of
human error.
Companies are realizing that just
adding more equipment does not solve
the problem: the key is efficiency, and
this is best achieved by reviewing
processes, stripping away non-essen-
tial tasks and optimizing available
resources.
LECTRA AS A TRUSTED PARTNER
With its 20 years in leather and in-depth
knowledge of its customers’ business,
Lectra is recognized as a trusted advi-
sor. This experience has enabled the
company to develop a unique, end-to-
end offer for the furniture industry, from
design and 3D prototyping to cutting.
Lectra takes a holistic approach, identi-
fying challenges and tailoring the best
solution to overcome them. Lectra’s
teams of experts work with customers
to understand their operations, analyze
processes and identify where improve-
ments can be made. Then, and only
then, can the right solution be pro-
posed.
FOCUS
R&D
TECHNOLOGIES
T
LECTRA LEATHER SOLUTIONS HELP
FURNITURE MANUFACTURERS
REACH OPERATIONAL EFFICIENCY
INTEGRATED CUTTING SOLUTIONS
TO OVERCOME INDUSTRY
CHALLENGES
The challenges faced by the uphol-
stered furniture manufacturers were the
key drivers for Lectra in developing the
VersalisFurniture range, launched in
2012. The result is a combination of
state of the art technology and software,
completely integrated with the produc-
tion process and able to handle all
types of leather and all production envi-
ronments.
The VersalisFurniture is available with
one, two or three cutting heads. This
enables for example furniture manufac-
turers using small pieces, such as
those specializing in recliners and sec-
tionals, to optimize system use. It also
includes an automated hide analysis
solution and accurate, easy-to-use
operation management and optimiza-
tion software.
Customers using the VersalisFurniture
report average leather savings of 5%.
Given the high cost of leather, this
translates into hundreds of thousands
of Euros every year, depending on the
scale of the manufacturing operation.
“There may still be some resistance to
change, but once manufacturers see
the scale of savings they are able to
make, they do not want to be left
behind.” explains Celine Choussy-
Bedouet, Lectra’s Director of Marketing
for Automotive Furniture and Technical
Textiles. Among the other benefits: pro-
ductivity is high; to match just one hour
of VersalisFurniture output could take a
human operator an entire day.
A LONG-TERM PARTNERSHIP WITH
ITS CUSTOMERS
Lectra’s involvement does not stop with
the delivery of a new system. The
Versalis unique on-board intelligence
maximizes production by monitoring its
behavior, offering a real-time interface
with Lectra experts, which ensures
customers are always using the system
to the best of its ability. Predictive main-
tenance, available for customers under
contract, anticipates possible break-
downs, allowing Versalis to maintain one
of the best uptimes in the industry - up to
96%. With this specific service offer,
Lectra takes the leather cutting room to a
new level of excellence, essential for its
customers to maintain and improve their
competitive advantage.

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

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

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

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

Similaire à CSIL - World Furniture International Markets Review - #61 March 2014 (20)

Dernier

Dernier (20)

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