The trend towards globalization Who benefits and who pays the price? Page 8

Good news for TurkeyWood makes a comeback! Page 11

Transparency codes introducedItalians push for clear communication Page 10

InterfaceThe magazine for wooden floor manufacturers worldwide May 2012

Rocky times for CroatiaHow parquet producers find a way forward Page 3 and 5

Interface

2Interface

Dear Readers,

The wood floor industry is

streamlining and innovating

its way through the eco-

nomic downturn with some

success. There is constant

pressure to increase market

share, but the ingenuity

that this has stimulated

may open up new opportu-

nities for all of us.

The wood floor industry’s response to the

downturn has been to be more creative

and agile. Increased flexibility means small

special orders that were once unheard of

have almost become routine; innovation

has led to novelties like brushing and

colour effects that are brightening up the

market in every sense. These competitive

tools not only help differentiate the wood

parquet brands, they may also help the

industry protect and expand its share of

the floor covering market as a whole.

Quality is always paramount since we

can’t afford to have disappointed cust-

omers. The FEP’s Real Wood initiative

makes a significant contribution to quality

assurance, while Italy’s transparency

codes campaign (see page 10) helps

keep consumers fully informed about the

products’ origins. Here at Bona, our Life-

time Support programme helps uphold

the promise of a beautiful wooden floor

throughout its lifetime.

Having said that, not all the parquet

products available today are designed

to last. Some are only designed to live

as long as the current interior trend. Even

such ‘fashion’ floors should be problem-

free, particularly if we want to encourage

the owners to trade up to a more durable

product later. Care is the key, which is why

we at Bona work so hard to make floor

care as easy as possible (see page 4).

I hope you enjoy reading more about

how we and our customers are meeting

current challenges in this latest edition of

Interface.

Yours sincerely

Paul Spångberg

Vice President and Director Division

Industrial Coating

Bona’s mission:

”To bring out the best in wooden floors”

www.bona.com

Bona is a global company. We’re active in more than 70 countries all over the world and have

subsidiaries in 18 countries in Europe, North America, Latin America and Asia Pacific. We have

production facilities in Sweden, Germany, the U.S. and China.

We are specialists in supplying all the products necessary for the installation, maintenance

and renovation of wooden floors. In fact, we supply just about everything except the wood itself.

Our complete system of products includes coatings, UV finishes, sanding machines, abrasives,

adhesives and maintenance products. They meet the needs of contractors, producers of pre-

finished wooden floors, architects, specifiers and homeowners. We create all our products to

work perfectly with each other to bring out the best in wooden floors. From production and

installation to maintenance and renovation – we’ve got it covered.

Inside

4 More floor care products in DIY outlets

5 The Ideal Homes Exhibition

5 Galekovic of Croatia – stands firm on solid wood

9 Portuguese employee wins Carl Gustav award

10 Italian or Chinese products?Check the box!

11 Turkey and wood’s new popularity wave

12 Sun–protection for wooden floors

PublisherPaul Spångberg

EditorAgneta Weimarsson

Contributors listAnette Berglind, Lidija Broström,

Magnus Dellrup, Filip Galekovic,

Joanna Le Pluart, Lorenzo Onofri,

Ivan Pozgaj, Alexandre Pratas,

Pekka Rova, Serdar Saylan

3

About the Pozgaj Grupa:

Customer update

Today’s economy has led

many careers and compa-

nies in unplanned directions,

and some have turned out

to be surprisingly good! Ivan

Pozgaj of the Pozgaj Grupa,

tells his story.

Pozgaj Grupa is a thirty-five-year-old

Croatian wood flooring company, based

in Veliki Bukovec, north of Zagreb. They

sell to customers all over the EU, Turkey,

UAE, Ukraine and Kazakhstan. Ivan Poz-

gaj, grandson of the founder, is one of the

more recent family members to join the

company.

This wasn’t his plan! Although Ivan often

worked with his father during the school

holidays, he sought more distant horizons.

After high school, he went to Dubrovnik to

study tourism and in 2005, set his sights

on an internship in the USA. When this

did not work out, he headed home to the

family firm. “Something happened to me

that summer,” says Ivan, “I fell in love with

the wood business. I realised it was in my

blood, after all!”

Actually, Ivan did go back to Dubrovnik

to finish college. His father strongly dis-

couraged him from joining the family firm

saying, “Do something you like! Try other

things! We’ll always be here if you want to

come back.” Nonetheless, after gradua-

tion, Ivan joined the sales and purchas-

ing department. He started travelling to

see suppliers and clients, and enjoyed

the pace. Even as tougher times slowed

growth, he found that opportunities with

the family business remained more attrac-

tive than alternative careers.

Pros and consWhat does he like and dislike about work-

ing for the family business? The travel is

fun. His family and fellow workers are nice,

decent people. He loves the raw materi-

als, and the constantly changing business

environment. On the other hand, working

where you grew up can sometimes be

problematic – he moved 35 km away “for

his own sanity”!

How are things going today? Ivan notes

the effects of the boom and bust in Croa-

With wood in the blood!

tia since 2005. “Even if business is quite

hard at the moment,” he says, “we’re do-

ing our best to get over the crisis.” The

atmosphere is less relaxed these days,

“Suppliers and customers are worried

and have less time to chat. Everyone is

watching their margins. There are no ‘fa-

vours’ any more. It’s all strictly business.”

This isn’t necessarily bad, he says. “This

situation has squeezed out poor-quality

products an unprofessional people.”

Ivan remains optimistic about the future of

the business: “I’m convinced that those

who survive the crisis will do good busi-

ness again in the coming years.”

Morello Ottimo, lacquered walnut parquet from Pozgaj Grupa.

Ivan Pozgaj

4Interface

Off to a good start!

Based on decades of profes-

sional experience, Bona has

now extended our unique

offer to introduce an all-new

product range adapted for

use by end consumers.

Our new retail range has now been

launched all over Europe. It is geared

towards floor owners and features prod-

ucts for both indoor and outdoor wooden

floors. The range has taken off in Do-It-

Yourself (DIY) stores around the world,

and is now stocked by major players in

the European DIY market such as:

Let’s look at a couple of these in more detail.

Romania: Leroy Merlin

-

ager Daniel Peptea, Romania was the

first in Europe to offer our brand-new

global player in DIY and is opening a

number of stores in Romania.

“Bona’s Retail Program has introduced a

new concept to the market – a complete

system from a single brand, with indoor

finishes, outdoor solutions, cleaning and

maintenance products for both indoor

and outdoor wood floors and garden

furniture,” says Daniel.

Czech Republic: Bauhaus Bona Czech Republic is delighted to report

that our new retail product range has been

adopted by Bauhaus. “We’ve been work-

ing with Bauhaus for fifteen years, which

gave us a good base for introducing the

new range,” says Lubos Hruz, Country

Slovakia. “The wide product range cov-

ers everything end consumers need for

their floors under one brand. We have a

new display that shows off all the prod-

ucts together, and we’re also in the Bau-

haus catalogue, where the range looks

very impressive.”

Boom in the DIY market Recent years have seen a boom in the

DIY market, with a world market turno-

ver of EUR 376.7 billion in 2010. Driven

by consumers who crave the authentic-

ity and satisfaction of renovating their

own homes, this trend offers us great

potential. We are now present in six of

the world’s ten biggest DIY chains, and

the introduction of our new retail range in

Europe provides an excellent opportunity

to expand with the growing DIY market.

Retail roll-out in Europe

Product news

Easy-to-use floor care products make wood a practical option.

5

Founded by Filip Galekovic’s grandfather in the 1950s.

Six years ago the Croatian

company, Galekovic (which

has been producing parquet

floors since 1989) took the

radical decision to focus ex-

clusively on prefinished solid

wood parquet. This went

against the trend towards

multi-layer parquet. Why did

they do this and how is it

working out?

Filip Galekovic explains: “There are several

practical reasons: for a start, there’s no

need for glue which makes solid wood more

ecological. It’s possible to combine lengths,

shapes and wood types and have lots of

different finishes. Also, if you’re renovating

an old house, you can achieve an authentic

look that’s much closer to the original.

“There are commercial reasons too.

Companies which are making multilayer

parquet today face very hard competi-

tion. By contrast, solid wood floors re-

quire specialised equipment, experience

and knowledge... and we have all these.”

Success also depends on the producers’

knowledge of local and regional prefer-

ences. Filip explains, “Some want straight

grains and no knots, whereas others like

plenty of knots and colour variations.”

The ‘feeling’ of exclusivityHe is also confident that there will always

be a market for solid wood floors. “They’re

more affordable than people realise,”

he says. “There’s actually a whole range

of prices depending on quality and

dimensions.” However, ultimately Filip

concedes that the difference between

solid and multilayer isn’t always visible

to the naked eye.

“It’s rather like comparing a gold neck-

lace with a gold plated one. One is gold

all the way through and, if you’re wearing

it, you know the difference!”

Filip Galekovic

“I was born in

sawdust!”

Customer profile

Bona Spray Mop promo at:

London’s Ideal Home Show

Sticking to solids

Bona in the UK is involved in

its first ever major consumer

exhibition where the team

are promoting the Spray

-

ucts to around 300,000 visi-

tors at London’s Ideal Home

Show this spring.

“We are selling lots of mops each day

and most customers are even prepared

to carry home a 4 litre refill,” says coun-

try manager, Jack Weavers. “We were

invited to exhibit by the Swedish Trade

Council as part of their group of Swed-

ish companies trading in the UK. This

was a fantastic opportunity for us to

promote the Bona brand to a huge con-

sumer audience just as we launch the

retail range over here.”

This Oak Fine-line floor by BKB is currently being installed in Apple stores

around the world (over 150 stores in Europe alone!). The unusual design is a

perfect complement to Apple’s minimalist look, but how will it stand up to the

wear and tear of life in these busy stores?

8Interface

Trend of the century:

In the last 40 years, political,

cultural, and commercial

forces have interconnected

our world in a dramatic way.

Carried along on jets and

ships, transmitted by phones,

films, TV, and now the Internet,

millions of thoughts, images,

and objects that originally

sprouted for unique local rea-

sons have been embraced

nearly everywhere. This is

globalization.

No matter where one travels or lives, the

influence of globalization is all around. It

involves a lot of simultaneous changes.

People can travel more quickly and effi-

ciently, information is transmitted rapidly

and cheaply, popular tastes and fashions

have become more diverse and shared.

Let’s take a closer look at some of the

more striking impacts of globalization.

ElectronicsInformation and communication techno-

logy networks and devices are truly

global today, involving research and pro-

duction facilities and supply chains span-

combined with mobile communication

and video technology has provided a

large share of humanity with access to

one another’s knowledge and company

in unprecedented ways.

Wim Wenders’ 1991 film Until the End of

the World, set in a future 1999, shows a

variety of innovative mobile recording and

communication devices. Now, just over

twenty years later, with our smart phones

and iPads and GPS devices, they don’t

calls has become unremarkable… and

there’s an app for everything!

Fashion and lifestylesEven before the Internet, modern times

saw an accelerating cross-adoption of

clothing fashions, accessories, furniture,

interior design, architecture, and all the

other devices and displays of daily life.

The Westernized futon sofa/bed found its

way from Japan and became ubiquitous

in Europe and the UK in the ‘70s, found

their way to global adoption in the ‘80s

combining Californian style and Taiwan-

ese production acumen. Espresso mak-

ers and rice cookers erupted hissing

and steaming from their European and

Asian kitchens. IKEA, the world’s largest

retailer of furniture and home furnish-

ings, promoted its cool, simple, and rich

catalogue of products to the world’s bur-

geoning middle class.

We humans are ever hungry for novelty,

and with the Internet, we’re in a better

position than ever to satisfy that hunger!

Cosmopolitan cities all over the world

carry the same major clothing brands

and their knock-offs. Waves of fashion

still sweep the globe. Thanks to the In-

ternet, they can now blossom virally as

well as through some marketer’s care-

fully planned campaign because so many

people have access to powerful com-

munication technology. Social media,

especially YouTube, bring vast numbers

of strangers into contact, where they can

scrutinize each other closely.

Eating and drinking The globalization of foods, drinks, and

cuisine is not new. It appears that spices,

Industry trend

Globalization – thewinners and losers

olive oil, and wine were among the first

victuals traded inter-regionally in ancient

times. That pattern has been repeated

to the point where we’ve for instance

completely forgotten that pasta – which

we now think of as typically Italian – was

originally borrowed from China, or that

pommes frites – how Franco-Belgian can

you get? – are made of a tuber from South

America? Today, chicken tikka masala is

one of the most familiar British meals and

pizza is everyone’s favourite convenience

food. But who knew that the popular Red

Bull energy drink originated in Thailand,

and was globalized with the help of an

Austrian entrepreneur?

Global contacts, fun and knowledge through online media.

Good coffee for everyone!

9

Winners & losersSo who is gaining from globalization and

is anyone getting a raw deal? It’s pretty

clear that developers, manufacturers,

and operators of IT networks and related

products are potentially the biggest win-

ners, if they get their technology and

strategies right. People who gain know-

ledge, global contacts, and enjoyment

through online media are also winners.

On the flip side, face-to-face, local inter-

action is reduced and people take less

physical exercise if they’re always busy

playing games on-line. In addition, some

would argue that international travel has

become less interesting due to the global

availability of local foodstuffs and other

products once uniquely associated with

a particular place. For example, Ouzo is

a drink that many strongly associate with

holidays in Greece. It can be oddly disap-

pointing to find that Ouzo is now avail-

able in almost every bottle shop on every

street corner of the developed world!

Some producers of manufactured con-

sumer goods in countries with high labour

costs have been pressed by globalization.

They have typically responded in one of

two ways: either by outsourcing produc-

tion to low costs countries such as China

or India in order to compete, or by repo-

sitioning their brands as premium, where

the fact that production takes place in

the ‘country of origin’ signals high and

reliable quality.

However, it’s interesting to note that the

biggest losers today are not suffering as

a result of globalization, but their exclusion

from it. Over 3.2 billion people live on less

than U.S. $ 2 per day and cannot therefore

afford access to telephones, much less

the Internet. These victims of the “digital

divide” are really missing out. We can only

hope that entrepreneurs will be excited

by the potential gains from getting the

remaining 40% of the world’s population

connected, and make it happen.

The Iberian property devel-

opment market has suffered

from the global economic

crisis in recent years. Just

like many other suppliers to

the construction industry,

wood flooring manufacturers

have been adversely affect-

ed. However, thanks to Bona

Lifetime Support, our custo-

mers have proven more

resilient than many.

Alexandre Pratas is responsible for the

commercial market in mainland Portugal

He has been working for Bona for six years.

He explains, “There is no denying the im-

pact of the poor economic climate on Ibe-

rian business. In this situation, of course

the floor itself is still important to Bona’s

customers, but they are more interested

than ever in the service concept around it.”

Bona Lifetime Support, which includes

products for installation, maintenance and

floor care all make the end consumer more

confident about investing in a wooden

floor. Alexandre continues, our customers

are not just buying a good looking flooring

solution; they’re buying one that will remain

beautiful and in good shape for years to

come. It certainly gives peace of mind!”

Winner of the CG Memorial Award, 2011

handed out annually as an inspiration to

Bona employees to maintain the com-

pany’s famously innovative spirit. Alexan-

dre is the latest winner of this prestigious

prize, because of his excellent perfor-

mance in boosting sales in spite of very

Boosting sales in a challenging market

challenging market conditions. Thanks to

his constant energy and resourcefulness,

Alexandre successfully developed new

business with industrial customers, raising

awareness of the Bona Lifetime Support

programme and introducing other prod-

ucts from the Bona system to Iberian

markets.

Alexandre Pratas

10Interface

Industry news

For more information:

codicetrasparenzaparquet.org

Lorenzo

Onofri

Made in Italy, or just finished off there?

If a parquet floor is manufac-

tured in China and finished

in Italy, is it Ok that it carries

Obviously not! It is a clear

case of false advertising, but

apparently not against the

law. When Lorenzo Onofri of

the Italian parquet producer

Stile became aware of this,

he decided to do something

about it.

Lorenzo explains, “There are lots of dif-

ferent types of flooring, all competing for

a share of the market. If the consumers

choose one floor or another that is entirely

their prerogative. However, I believe they

have a right to know what it is they are

buying. The label on the box should ac-

curately reflect the product inside it. That

is not the case today.”

In some instances, he found that prod-

ucts were not only falsely labelled, but

also had false CE stamps and certifica-

tion. A consumer buying such products

in good faith would assume their invest-

ment is covered by warranty and that,

if they have problems with it, they will

is not so. Arguably, the situation is even

worse for contractors who install a floor

that it was made in China, and the cus-

tomer is demanding compensation!

EU laws unclearThe EU laws, which are designed to

protect consumers from this kind of false

information, are unfortunately not that

clear. Lorenzo adds, “Another problem is

that this market is dominated numerous

small suppliers, which makes it very hard

to control.” That’s why he introduced the

idea of Transparency Codes, a voluntary

scheme which sets out the rules and

requirements for parquet manufacturers

and is audited by the Italian association,

Federlegno.

15 companies on boardNow the initiative is up and running with

15 members, a web site and a logo. Is

it making a difference? Lorenzo con-

cludes, “It has certainly opened the de-

bate and is raising awareness. I hope it

will continue to gain strength until this

kind of malpractice has been wiped out

altogether. False advertising damages

the reputation of the whole industry. We

all suffer in the end.”

Transparency codes

Ensuring parquet products are labelled correctly before shipping.

Wood was a commonly used

flooring material in Turkey

right up until the 1990s when

laminate floors first became

available. But now the lami-

nate trend seems to have

passed its peak and sales

of wooden floors are on the

increase again. We asked

Serdar Saylan of Turkish par-rr

quet manufacturer Dendro

why he thinks this is so.

-

ban environment. It helps calm the spirit

if we use natural materials like wood and

stone in our homes.” Does this really

explain the switch back towards wood?

“No, there are more prosaic reasons too.

For example, the growth of a prosperous

middle class in Turkey, which means that

fashionable young people can now afford

to install wooden floors in their homes.”

Low but growing volumesSerdar is the managing director of Dendro

(owned by the Aspen Group) which began

production of engineered wooden floors

in 2008. Says Serdar, “With domestic de-

mand increasing, the time seemed ripe for

such a venture, but volumes are still rela-

tively small. To put things in perspective,

70-80 million square metres of laminate

floors are sold annually and only 2-2.5

million square metres of wood parquet.

So we still have a very long way to go.”

Dendro also exports to several countries,

such as Iran and Georgia, and plans to

expand into European markets.

As one of six parquet manufacturers

active in Turkey today, what differenti-

ates Dendro’s offering from the competi-

tion? “We focus on quality and design.

Our products are advertised in the inte-

riors magazines read by architects and

designers, which is a good forum to

present our quality message. Working

with Bona is an advantage too. They’ve

helped us develop customised products

for special orders, and we hope to do

more of this kind of thing in future.”

Natural materials rule:

Wood is ‘in’again in Turkey

Albidus, engineered wood plank

flooring by Dendro.

Dendro comes from the Greek word for

tree. Dendrology is the study of trees.

Serdar Saylan

Talk to your Bona representative!

floor keeps its original colour

but is especially effective on light wood

species

Bona System, such as Bona Naturale

Following numerous custo-

mer requests and extensive

lab testing, Bona has come

up with a solution for con-

sumers who want to keep

the colour of their wooden

floor as close as possible

to the way it looked when

they first bought it.

All wood is ultimately affected by exposure

to light and air over time, but Sun Block

slows the process down considerably.

The precise effect of Sun Block depends

on the wood species in question. All wood

species benefit, but the lighter ones such

as ash, beech, birch and maple enjoy the

most dramatic and long lasting protection.

Key benefits

a wood floor based on its colour

wooden floors as part of an interior

scheme

Our Bona Sun Block UV System is cus-

tomized for use on our customers’ pro-

duction lines. To discuss the possibility

of introducing Sun Block in your floor-

ing range, don’t hesitate to get in touch

with your local Bona representative.

Bona Sun Block UV System

Contact us today

Head OfficeBona ABP.O. Box 210 74

Tel +46 40 38 55 00

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A-5300 Hallwang bei SalzburgAustriaTel +43 662 66 19 43-0Fax +43 662 66 02 05Jürgen Reissner +43 664 82 49 710

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For other markets, pleasecontact our head office.

Visit us at our website bona.com/interface

Bona and their products are trademarks owned by Bona and their legal entities. All other trademarks belong to their respective owners. Copyright © 2009 Bona. All rights reserved.

Product news

Let the sun shine in! Bona Sunblock protects your wooden floors.