CBI | Market Intelligence Product Factsheet Niche Sportswear in Europe | 2
Introduction
This is a great opportunity to show how good your products are. European consumers and retailers are looking for
exclusive mid- to high-end furniture. Items should be original in design, material, story, craftsmanship and quality. You
should build a brand or product identity around your products by emphasising their South African origin. This will make
them distinctive.
Table of content
Introduction ................................................................................................................................................ 3
Product description ....................................................................................................................................... 3
Quality ............................................................................................ 4
Labelling ......................................................................................... 4
Packing and packaging ...................................................................... 4
What consumer profiles are there in Europe? ..................................................................................................... 5
What level of demand is there for wooden furniture in Europe? ............................................................................. 5
What is the level of demand for wooden furniture in Western Europe? ........ 6
What is the level demand for wooden furniture in Southern Europe? .......... 7
What level of demand is there for wooden furniture in Scandinavia? .......... 8
Which trends offer opportunities for wooden furniture from South Africa on the European market? ............................. 9
Which requirements must wooden furniture comply with to be allowed on to the European market? .......................... 17
Requirements for wooden material ..................................................... 17
Additional standards ........................................................................ 18
What kind of competition can I expect to face if I sell wooden furniture made in South Africa on the European market? 19
Company competition ...................................................................... 19
Position in the supply chain .............................................................. 19
Western Europe .............................................................................. 20
Southern Europe............................................................................. 20
Scandinavia ................................................................................... 20
Which European trade channels and interesting market segments are there for wooden furniture from South Africa? ... 20
Market entry .................................................................................. 20
Market channels ............................................................................. 21
Market segments ............................................................................ 23
What are average end-market prices for wooden furniture in Europe? .................................................................. 24
Useful sources ........................................................................................................................................... 27
Trade fairs ..................................................................................... 27
CBI | Market Intelligence Product Factsheet Niche Sportswear in Europe | 3
Introduction
This product fact sheet answers the question: What opportunities are there on the European market for wooden furniture
from South Africa? In this study we discuss the market situation in nine countries in Western Europe (France, Germany,
the Netherlands and the United Kingdom), Southern Europe (Italy), and Scandinavia (Denmark, Finland, Norway and
Sweden). These countries have the largest furniture markets in Europe and these are all mature.
This study focuses on the mid-high and high-end market segments of these markets, as these offer the most opportunities
for South African suppliers. Moreover, the study specifically looks at small furniture products, such as occasional stools
and tables. Here, required volumes are lower than in lower market segments, and consumers are willing to pay higher
prices for high quality, authentic and innovative design products with an attractive marketing story.
Relatively speaking, low-end market segments are more difficult to enter. Although demand for cheap and functional
products remains strong, so does supply. Competing in this segment means complying with requirements such as high
volume, low prices and short production cycles. Moreover, there are large companies from Eastern Europe and developing
countries, such as China, India and Vietnam. It may be difficult to compete with these established producers, who also
benefit from economies of scale due to their size and productivity.
Product description
Wooden furniture is a very wide product group, including cabinets, beds, seats, stools, and tables of varying sizes. These
can be made of various woods that can be classified as hard, soft or engineered. Examples of wood that are used for
wooden furniture are oak, ash, beech and walnut.
Colours depend on the species of wood and range from white to yellow, pink, red, orange and brown. The wood’s colour
can be changed by staining, bleaching, or any of a number of techniques. Moreover, both mid-high and high-end wooden
furniture is increasingly put on the market in different colours (see examples).
Once the wood surface is prepared and stained, the finish is applied. It usually consists of several coats of wax, shellac,
drying oil, lacquer, varnish, or paint, and each coat is typically followed by sanding. This is finalised by polishing and a final
coat of wax to add a degree of protection.
Wooden furniture can be a product of design and can be considered a form of decorative art. Different raw materials and
technologies (for instance, laminate bending) are combined to meet market demand and satisfy consumers’ needs. In
terms of innovation and design, European manufacturers set the trend at the global level, but significant differences within
Europe remain. In Western Europe, for example, furniture is promoted made from light ecological materials offering weight
reduction, high stability and the option to choose any shape or form. For more information on design, see Market Trends.
Classification of wooden furniture from South Africa:
Harmonised System (HS): within Europe1, the following HS codes are used as indications for trade in wooden
furniture from South Africa:
o 9403.6010: wooden furniture for dining rooms and living rooms (excluding seats)
o 9403.6090: wooden furniture (excluding wooden furniture for shops, kitchens, dining rooms, living rooms,
bedrooms, and seats)
o 9403.5000: wooden furniture for bedrooms (excluding seats)
Prodcom: the following prodcom codes are used to indicate European production of wooden furniture:
o 3109.1230: wooden bedroom furniture (excluding builders' fittings for cupboards to be built into walls,
mattress supports, lamps and lighting fittings, floor standing mirrors, seats)
o 3109.1250: wooden furniture for the dining-room and living-room (excluding floor standing mirrors, seats)
o 3109.1300: other wooden furniture (excluding bedroom, dining room, living-room, kitchen office, shop,
medical, surgical, dental/veterinary furniture, cases and cabinets designed for hi-fi, videos and televisions)
1 Europe: European Union (EU) and European Free Trade Association (EFTA). EFTA members are Iceland, Liechtenstein, Norway and
Switzerland.
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Examples of wooden furniture
Dining room chair Side table
Source: Arper Source: Muuto
Quality
In the mid-high segments, perception of quality is mostly the result of the aesthetic value of furniture products. This
is why the design of wooden furniture is key.
The choice of material is another determinant of quality. In general, high quality furniture is made of hardwood such
as oak, maple, mahogany, teak, walnut, cherry and birch. The type of wood used and the workmanship involved has
an effect on the durability of wooden furniture.
High quality wooden furniture also needs to have a good finish. Sanding, staining and finishing are part of this
process. Carelessness at any of these stages can affect the overall quality of a piece.
The popularity of laminate wood bending is increasing in both the mid-high and high-end segment (see example).
Example of laminate wood bending – His Easy Chair
Source: ifitshipitshere
Labelling
Make sure that the information on the outer packaging of wooden furniture corresponds to the packing list sent to
your buyer. Labels on the outer box should include the following information:
o producer
o consignee
o material used
o quantity
o size
o volume
o caution signs
Look into your options to put a European Article Number (EAN) or a barcode on your product label, as these are
widely used within Europe.
Ask your buyers what information they need on the product labels or on the item itself (e.g. logos, 'Made in ...'). This
forms part of the order specifications.
Use English for labelling, unless your buyer has indicated otherwise.
Packing and packaging
Always consult your buyer for specific packaging requirements and specifications, which are part of the purchase
order. Each importer will have his/her own specific requirements related to the use of packing materials, the filling of
cartons, palletisation, and the stowing of containers.
Properly pack your wooden furniture to minimise the risk of damage through shocks, depending on the fragility of
your products. Make sure that your packing prevents individual items inside a carton damaging each other and the
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cartons themselves when they are stacked inside the container. Packing usually consists of inner and outer cardboard
boxes, with appropriate materials to protect the products inside the inner boxes (this may involve materials such as
bubble wrap or paper, depending on the preferences of your buyer).
Make sure that the packing of your furniture is of easy-to-handle dimensions and weight. Standards are often related
to labour regulations at point of destination and need to be specified by the buyer. Cartons are usually palletised for
air or sea transport, so make sure that you maximise pallet space.
Reduce costs of packing by nesting, stacking or flat-packing the items inside the container.
Balance your packing materials between using maximum protection and avoiding excess materials (waste removal is
a cost to buyers) or shipping ‘air’. Reduce the amount and diversity of packing materials by:
o partitioning inside the cartons with the help of folded cardboard
o better matching of inner boxes and outer cartons and standardising the sizes of each
o considering packing and logistical requirements at the design stage of the products
o asking your buyer for alternatives
Find economical sustainable alternatives to wooden crating and packing, since these are increasingly banned by
importers due to their lack of sustainability and the high costs of the material and disposal. You can also use
biodegradable materials, which may be required by buyers.
Take special care to properly dry the wood after production, since wooden items can mould or crack. Mould can
appear during transport due to condensation inside the container, caused by air at high levels of humidity that
becomes colder and warmer due to day-to-night fluctuations in temperature. To prevent this you need to ensure
proper air ventilation inside the container. Inspect containers for air holes before shipment; products to reduce
humidity are available to place amongst the cargo. Make sure that the importer’s instructions are followed.
Example of packaging
What consumer profiles are there in Europe?
The European markets covered in this product fact sheet (Western and Southern Europe and Scandinavia) are all mature
markets. Consumers are looking for new and different products to match their personal styles. Retailers and brands tailor
products to these specific preferences by providing a clear offer that is differentiated from other products on the market.
As companies all attempt to create an original, distinctive product offering, the market is highly segmented. Wooden
furniture needs to be functional and aesthetic and, especially in the mid-high and high-end markets, must be innovative,
have a high degree of originality and must be made with supreme craftsmanship.
There are some geographical differences in consumer profiles per region:
In Western Europe, consumers are used to buying home decoration and furniture from well-known brands. As
consumers increasingly want authentic products made from natural materials, interest in local craftsmanship is
growing. In this region, Germany, France and the Netherlands have the highest per capita spending, above the
European average.
Italy is one of the global leaders in furniture and the largest market in Southern Europe. Although consumption in
Italy is slightly under the European average, Italian design and production play a big role in this market. High-quality
products and design are a must and the market focuses on innovation, both in terms of materials and design.
Wooden furniture competes with products made from a wide range of materials, such as metal, synthetics, leather
and marble/stone. The concept of “Made in Italy” is an important sales point, as consumers link this label to modern
design and quality.
The four Scandinavian countries in this product fact sheet are known for their specific ‘Scandinavian design’, a
style that becomes increasingly popular throughout Western Europe. This design movement is characterised by
unembellished techniques, simplicity and functionality. Moreover, Scandinavian consumers prefer natural materials,
such as wood, and handmade techniques. In the European Union, consumers in Sweden, Denmark and Finland are in
the top 5 of per capita spending on furniture.
What level of demand is there for wooden furniture in Europe?
(!) Please note that data presented below only give an indication of production, imports, exports and consumption data for
wooden furniture. This is why care should be taken when drawing conclusions based on the figures below.
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(!!) Data below cover Western Europe (Germany, the United Kingdom, the Netherlands and France), Southern Europe
(Italy) and Scandinavia (Norway, Denmark, Sweden and Finland). The figures below include data on “wooden furniture for
dining rooms and living rooms (excluding seats)”, “wooden furniture (excluding shops, kitchens, dining rooms, living rooms
and bedrooms, and seats)” and “wooden furniture for bedrooms (excluding seats)”.
European demand for wooden furniture is divided into three consumer markets: Western Europe, Southern Europe and
Scandinavia.
This study focuses on high end and mid-high end market segments.
According to industry sources, “the European market for furniture can be segmented into high end; mid-high; and low and
mid-low market segments” (see Figure 1).
Figure 1: Segmentation of the European furniture market
What is the level of demand for wooden furniture in Western Europe?
Western Europe is a stable, substantial market for wooden furniture.
Compared to exports, imports and production are considerable.
Exports amount to 20% of combined imports and production of
wooden furniture.
High end; 15%
Mid-high;
35%
Low and Mid-
Low; 50%
Figure 2: Production and consumption of wooden
furniture in Western Europe, in € billion*
* Apparent consumption = Production + Imports - Exports
Source: Eurostat (2015)
Tip:
See the CBI Trade Statistics for Home Decoration for more information.
0
1
2
3
4
5
6
7
2010 2012 2014
Production
Imports
Consumption
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Production of wooden furniture is high in Western Europe, especially in Germany. Production is higher than in the other
three countries (the United Kingdom, France and the Netherlands) combined. After Germany, the United Kingdom and
France are large producers as well. In Germany there are many producers of high-end wooden furniture.
According to industry exporters, “production in Germany has in recent years been taken over by imports from Asia, especially
for the mid-market”.
Currently, consumers are again showing growing interest in upper-middle to high-end products, when they can afford to
replace the mass-replaced products from Asia. As a result, there is increased interest in furniture made in smaller, local
workplaces and designer-made furniture. This trend can be seen throughout Western Europe.
In terms of imports, Germany, the United Kingdom and France are on a similar level. Total imports amounted to €5.4
billion in 2014. On average, 38% of imports originated in developing countries in that year. Importers with higher shares
of developing country imports were the United Kingdom and the Netherlands, at 65% and 42%, respectively. The main
developing country suppliers were China (21% of total imports), Vietnam (6.0%), Indonesia (2.8%) and Brazil (1.6%).
South Africa is a small supplier to Western Europe. In 2014, only €379,000 worth of wooden furniture was exported to
Western Europe.
The total exports by Western Europe stabilised between 2010 and 2014, reaching €2.2 billion in 2014. Germany is the
main exporter, accounting for 61% of West European exports of wooden furniture. The other West European countries are
mostly end markets, exporting a very small proportion of their furniture supplies. Almost 66% of West European exports
were destined to go to countries outside Europe in 2014.
Consumption in Western Europe was stable from 2010 to 2014, amounting to €8.9 billion in 2014. The German market
accounted for the largest share in consumption at 44%, followed by the United Kingdom (30%), France (22%) and the
Netherlands (4%).
What is the level demand for wooden furniture in Southern Europe?
In Southern Europe, Italy is the main market and producer. This is why this section focuses on trade, production and
consumption in Italy.
Italy is a large producer of wooden furniture, the largest from the countries in this product fact sheet. From 2010 to 2014
the country’s production increased by 3% annually, although it experienced a dip in production in 2012. In 2014, Italian
production of wooden furniture amounted to €4.2 billion.
Figure 3: Production and consumption of wooden
furniture in Italy, in € billion*
* Apparent consumption = Production + Imports - Exports
Source: Eurostat (2015)
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
4,5
2010 2012 2014
Production
Imports
Consumption
Tips:
Identify your options to export wooden furniture to the United Kingdom and the Netherlands. These countries
have the highest rate of developing country imports compared to total imports of wooden furniture.
Be aware of competition from European producers, especially those in Germany. Distinguish your products from
locally produced items (see Competition).
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Italy has a strong reputation and tradition of producing high-end furniture. The Italian furniture industry leads worldwide.
Italian design is a global trendsetter, comprising quality workmanship, constant technological innovation and a creative
attitude to the market place.
The country is a small and stable importer, relying mostly on local production. Around 24% of Italy’s imports originate
from developing countries. The main developing country suppliers are China (14% of total 2014 imports), Vietnam (3.3%),
Indonesia (2.1%) and Thailand (1.1%). Most imports originate in Europe, particularly from Eastern Europe (Poland,
Romania and Lithuania) and Western Europe (Germany and France).
Supplies from South Africa to Italy amounted to a value of just €6,000 in 2014.
Around half of Italy’s combined production and imports of wooden furniture is exported: €2.2 billion in 2014, an annual
increase of 3.5% from 2010-2014. Just over 56% of exports are destined for countries outside of Europe. This leaves Italy
with a substantial consumption, topped only by Germany and the United Kingdom. After the 2012 dip in apparent
consumption, it increased to €2.3 billion in 2014.
What level of demand is there for wooden furniture in Scandinavia?
Compared to other regions discussed in this product fact sheet, Scandinavian production and consumption of wooden
furniture is considerably lower. In all four Scandinavian countries, production fell from 2010 to 2014 (Figure 1).
Consumption of wooden furniture decreased in all countries, except in Sweden. In general, declines in production are
covered by an increase in imports.
Figure 4: Production and consumption of wooden
furniture in Scandinavia, in € billion*
* Apparent consumption = Production + Imports - Exports
Source: Eurostat (2015)
Scandinavian imports amounted to €730 million in 2014. Although overall imports from developing countries dropped,
Denmark and Sweden still have the highest imports from developing countries (28% and 26%, respectively). The main
developing country supplier is China, accounting for 18% of total imports in 2014. Smaller developing country suppliers
include Vietnam (1.9%), Indonesia (1.1%) and Malaysia (0.8%). Major European sources of wooden furniture include
Poland (14%), Sweden (14%), Lithuania (10%), Estonia (8.4%) and Denmark (6.1%).
Norway and Finland are minor importers of wooden furniture. Only a small share of their imports originates in developing
countries and it mostly comes from China. The main suppliers are in Scandinavia (Denmark and Sweden) and Eastern
Europe (Poland, Lithuania and Estonia).
South African exports of wooden furniture to Scandinavia amounted to just €15,000 in 2014.
The largest Scandinavian producer of wooden furniture is Denmark, which is especially strong in the middle segment of
home decoration products. Danish consumption of wooden furniture is decreasing, due to increasing exports.
0,0
0,1
0,2
0,3
0,4
0,5
0,6
0,7
0,8
0,9
2010 2012 2014
Production
Imports
Consumption
Tip:
Be aware of competition from Italy, which is one of the largest European furniture producers. Distinguish your
products from local production (see Competition).
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Swedish production of wooden furniture dropped considerably from 2010 to 2014. However, rising imports filled the gap
and consumption grew by 8% annually. Sweden is the largest importer in Scandinavia and it acts as a ‘trade hub’ for the
rest of Scandinavia. Norway and Finland are minor producers of wooden furniture.
Scandinavian exports were stable from 2010 to 2014. In 2014, they amounted to just over €1 billion. In the region,
Denmark is the largest exporter of wooden furniture, followed by Sweden. Sweden is the third largest supplier of wooden
furniture to the region. Exports of Norway and Finland are negligible.
Which trends offer opportunities for wooden furniture from South Africa on the
European market?
This section deals with four different trend developments in wooden furniture, in each of which a distinction is made
between consumer and product trends. Pictures are included as illustrations for the described consumer and product
trends.
Style and design: signature, outstanding, country or monk style
In the mid-to-high market segments, ‘signature’ is leading. Consumers are interested in statement pieces, with a clear
signature by a designer, brand or maker. Design needs to be outstanding, in addition to excellent workmanship, high
quality, and functionality. Besides a differentiated design statement, the innovative use of materials and techniques is also
important (see pictures below).
Examples of
differentiated design
statement, innovative use
of materials and
techniques
Source: Erik Olovsson
Source: Lex Pott
Source: Mischer Traxler
Tip:
Be aware of competition from Swedish and Danish brands, which play an important role in the mid-high and high-
end market in Scandinavia. Distinguish your products from what is already on the market, for example by
focusing on the South African origin of your designs (see Competition).
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In the mid-to-high segments, modern design furniture from the 1950s is still of great importance. Many contemporary
brands and designers create furniture pieces with mid-century references. European consumers are design-savvy and
know design classics. 20th century Scandinavian design is much appreciated, and many new brands and young designers
are influenced by it. Developments in more minimal, sturdy furniture, with historical influences, are described as ‘country’
or ‘monk’ style (illustrations below).
Minimal,
basic shapes,
simple but
with refined
detailing
Source: Arper Source: Garsnas
Mix and match with aesthetic appeal
Consumers no longer buy furniture pieces in a fixed set for a lifetime; they are essentially ‘curating’ their living space –
mixing new furniture with heirloom pieces, designer pieces and vintage finds. Aesthetic appeal is leading. A new piece of
furniture should be a valuable addition to the ‘collection’. Consumers gradually decorate their homes over the years,
instead of buying at specific moments (when getting married, or moving). This also means that furniture becomes more of
an impulse buy than before.
In the mid-to-higher market segments, furniture pieces are purchased mostly because of their aesthetic appeal. Occasional
pieces are important; small tables, stools, benches and storage units that are ‘scattered’ around the house. These pieces
are not ‘room-specific’, as a stool can be used as a bedside table or as an extra seat in the home office, beside the sofa in
the living room, or to put a vase on in the hall. Dining chairs are often bought individually, and do not necessarily match
the dining table. It is a trend to buy 6 or 8 different chairs to go with a dining table. Benches are important, both to use
with a dining table, or to use as a sideboard, in the hall, or as a bedside table. See the illustrations below for more
information.
Occasional
furniture,
small tables
and stools
Source: Arco
Source: Nendo
Tips:
Invest in product development and give your creative team room and time to create your signature, whether you
are working with in-company designers or independent professionals. Allow several rounds of prototypes, and
hold team meetings to discuss results.
Study trends and developments in the European market closely. Trade fairs and magazines often provide good
reports. A list of interesting furniture brands is included in this report.
Producers from emerging economies have the advantage of being able to provide ‘unseen’ materials or techniques
to European customers, for examples see the table above or the pictures below. (Experimentation/innovation with
materials and techniques). Make use of these to differentiate your product.
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Benches -
also to go
with a dining
table
Source: Maruni
Customisation: clever, compact, different purposes
In Europe, especially in urban areas, space is limited and homes are not that big. Even affluent consumers now often
choose to live in small apartments, to ‘simplify’ their life and to ‘de-clutter’. Because of this, furniture must be clever and
compact.
Furniture, especially occasional furniture, ‘wanders’ around the house, so it is important that products are multipurpose.
Modular furniture that can easily be moved, change shape or have different purposes is important to consumers. This
flexibility can even be a design feature. It allows consumers to add a personal touch to a product, by choosing their own
shape, configuration or colour (see the illustrations below for more information).
Clever products for
small spaces, storage
solutions
Source: Design House Stockholm
Source: Umbra Shift
Stackable furniture,
modular units, flexible
use
Source: Arco Source: Cassina
Source: Karimoku
Flat packed – for
transport
Source: Arco
Source: Arco
Tip:
Make sure that your products stand out individually. Be prepared to sell single pieces, even chairs.
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Sustainability: support communities, recycle
As mentioned in the CBI Module Trends for Home Decoration and Textiles, sustainable purchasing is a growing trend, especially in industrialised countries. Consumer demand is also changing in favour of sustainability. Consumers are interested in both the social as well as the ecological aspects of sustainability. People find it important
to know where, and by whom, a product is designed and made. Origin is important, whether it is local manufacturing to
support the consumer’s own community, or an unseen product from far away. They appreciate the authentic
characteristics of a product, with a clear ‘signature’. The hand of the maker needs to be visible in a product. Consumers
care about the circumstances under which products are manufactured; fair trade principles and other social
compliances are valued.
When it comes to ecological aspects, the origin and quality of material is also of great importance to consumers. They
expect wood to come from sustainable sources and some of these aspects are covered by regulations and certifications.
Emphasising the origin of material can also be an important way to differentiate your products; wood from a certain
location or with special characteristics (see picture below). Clean manufacturing to minimise the use of materials,
energy and chemicals is also appreciated. Natural treatments such as oils, dyes and stains are available, and match the
trend of a more natural looking wood with a visible grain. Recycled materials can be used to create an original quirky
product (see picture below).
Source: Arco, table made of 1 tree from a
specific location
Source: Henry Baumann – bench made of
recycled fruit crates
Different product trends
The pictures below reflect the different product trends that come from the consumer trends described above in terms of
shape, construction, material combination, colour and finishing.
Tips:
Furniture also needs to be flexible and space-saving for transport and distribution. This is why looking into
possibilities to flat-pack your products could be an advantage (cf. IKEA). You can even use space-saving elements
as a design feature.
Products will be used for different purposes, so make sure that people can also sit on a coffee table, or that the
top of your stool is level to allow consumers to put a book or a vase on it.
Consider size of furniture carefully. Dimensions of chairs, stools and dining tables are often standardised, but do
not forget to look at proportion, too. Lighter, flexible furniture is preferred, without compromising on design and
quality of course.
Tips:
Make use of materials and techniques that are original to South Africa, and use these to differentiate your
product. In your marketing materials, describe these materials and techniques, and how they are original to
South Africa.
Communicate clearly how your products are made and by whom. Have information on labour laws and your own
social standards ready.
Consider using more sustainable materials and treatments, and see whether this can add value to your product.
Give buyers options, and communicate clearly on benefits.
See CBI Sustainable Design for more information.
See CBI Trend Special Sustainability in Home for more information on sustainability.
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Shape
Geometrical
shapes, basic
shape of circle,
square, triangle
Source: Arper
Source: E15
Layers, in 1
product or
created by
combining
products
Source: &Tradition
Source: Arco
Open/closed
Source: Pastoe
Playful
Source: Cassina - Jaime Hayon
Construction
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Joints, dovetails,
connections, also
used as a design
feature
Source: Nomess
Leaning &
balancing pieces
Slanting legs,
related to the
trend of triangle
shapes
Source: Arco
Source: Hay
Bent wood, in a
refined and
sophisticated way
Source: E15
Source: Muuto
Combinations of materials
Wood combined
with marble or
stone
Source: Normann Copenhagen
Source: Cassina
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Wood with metal,
either metal
sheet or metal
frames
Source: Muuto
Source: Moroso
Wood with woven
elements; leather
straps, fibres or
cord, basketry
Source: Cassina
Source: Very Wood
Colour
Very light, blonde
wood
Natural wood –
cooler/ greyish
tones rather than
warm/reddish
tones
Source: Hay
Arper
Pastels/ Pale/
greyish pastels
Shades of grey
and black
Arco
Tradition
Very light natural
wood combined
with a pop colour
accent
Source: Sancal
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Very light natural
wood combined
with white
Source: Nendo
Decorative finish
Stains, creating a
matt effect,
visible grain
Oils, creating a
satin effect
Source: Menu
Handcarved,
chiselled
Source: Pols Potten
Source: Zanat
Structures,
surfaces made of
pieces of wood
Morten& Jonas
Petit friture
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Experimentation/
innovation with
materials and
techniques,
special effects.
Mainly by young
designers
OFS
Steven Banken
Which requirements must wooden furniture comply with to be allowed on to the
European market?
The General Product Safety Directive applies to all consumer products. It states that all products marketed in the
European Union should be safe to use and forms a framework for all specific legislation on specific products and issues.
To market your wooden furniture in the European Union, you need to make sure that that they do not contain hazardous
substances as defined by the Regulation on Registration, Evaluation, Authorisation and Restriction of Chemical
(REACH). This regulation lists restricted chemicals in products that are marketed in the European Union and includes the
use of arsenic and creosotes as wood preservatives. Whether REACH applies to your products depends on the chemicals
you use.
Requirements for wooden material
European companies that sell timber or timber products (such as wooden furniture) on the European market need to
ensure that the timber is harvested and traded legally. In turn, your European buyers will expect you to give sufficient
information and documentation so that they can comply with this legislation. Consequently, you need to be able to trace
the timber you use back to the source and prove this with documentation. Traceability can be achieved with certifications
(for example, Forest Stewardship Council - FSC) or by providing your buyers with documentation on the origin, species and
legality of the timber you use.
The volume wealth of information you need depends greatly on the country of origin of your timber. For countries with a
high risk of illegal harvesting, you need to provide more documentation to demonstrate that timber has been harvested
legally.
Under the EU Timber Regulation (EUTR), you need to prove that the timber you use in your products is harvested
legally before it can be imported into the European Union. Wood carrying a FLEGT license or a CITES permit is
considered to comply with the EUTR.
Tips:
Study specific legal requirements, but also use your common sense to ensure that the product does not cause any
danger in normal use. Most buyers will require proof of the developing country exporter of compliance to legal
requirements. You can read more about the General Product Safety Directive in the EU Export Helpdesk.
For a full overview of legislative requirements for wooden furniture, please consult the EU Export Helpdesk.
Check the rapid alert system for non-food dangerous products (RAPEX). This database provides information on
safety risks in consumer products notified by European countries and the measures taken to alleviate these risks.
Tips:
Use safer alternatives to creosote or arsenic compounds as wood preservatives (e.g. heat or vacuum treatments).
For more information on the use and restrictions of chemicals on the market in the European Union, please see
Annex XVII of the REACH legislation EC Regulation 1907/2006.
Cooperate with South African companies that are specialised in wood preservation to prevent the use of creosotes
or arsenic.
See the EU Export Helpdesk for more information on REACH.
CBI | Market Intelligence Product Factsheet Niche Sportswear in Europe | 18
The Convention on International Trade in Endangered Species (CITES) regulates the trade in endangered
plants collected in the wild (among other things) and derived products, such as wood. CITES provides a detailed list
of species for which trade is prohibited, restricted or bound by certain rules. If your product is listed on Annex A or B
of Regulation (EC) 338/97 you must obtain export and import permits before you can export it.
Timber that is imported into the European Union needs to have a Forest Law Enforcement, Government and
Trade (FLEGT) license to show that the timber has been legally harvested. This action plan is designed to control the
entry of timber into the European Union.
Social and environmental sustainability offer ways for companies to differentiate their products on the European
market. Opportunities range from sustainable raw materials, production, certification and use of labels (see Additional
Standards below). The following certification schemes are increasingly demanded by buyers:
The Business Social Compliance Initiative (BSCI) has been developed by European retailers to improve social
conditions in sourcing countries. Suppliers of BSCI participants are expected to comply with the BSCI Code of conduct,
which can be proved with an audit at the request of the importer.
The Ethical Trading Initiative (ETI) is a code of conduct developed to improve the working lives of people across the
globe that make or grow consumer goods. ETI is particularly common in the United Kingdom.
Standards such as ISO 14001 and SA 8000 can be used to meet buyer demands for sustainability. However,
compliance will only be demanded in niche markets.
Additional standards
For sustainable wooden products, Forest Stewardship Council (FSC) is the most common label to certify timber.
This standard is used to certify forests that are sustainably managed. Wood from certified forests is labelled
throughout the value chain and as final products. FSC-certified products are especially popular in West European
markets, such as the Netherlands, Germany and the United Kingdom.
Besides social and environmental aspects of production, there is a growing interest in the ‘fair trade’ concept of
consumer products. Fairtrade certification is not common in the home decoration segment, although certain brands
(e.g. FairForward) and shops (e.g. The House of Fair Trade and Traidcraft) specialise in fairly traded products.
FSC and Fairtrade International developed a project on dual labelling of timber. The first furniture of dual-certified
wood was launched in 2012 and is now being tested. Dual-certification is particularly interesting in the United
Kingdom, since that country has the highest consumer recognition of the Fairtrade label (72.5%).
Tips:
Gather information on your product, such as product’s details, species used, origin, legality, etc., and be ready to
provide your buyers with this information.
Check in the Annexes if import and export permits are required for your product. Another resource is the Cites
Checklist. You can also contact your local CITES authority for more information. The EU Export Helpdesk offers
more information on the CITES requirements and procedures in Europe.
Tips:
Anticipate the increasing importance of the BSCI Code of Conduct by performing a self-assessment to find out
how far you are from complying with this initiative. As more and more European importers participate in BSCI,
especially in the United Kingdom, compliance with this code of conduct will be seen as a basic requirement.
Look into the possibilities for improving your performance in sustainability. Even if immediate compliance with
certifications is beyond your scope, familiarising yourself with issues included in these certification schemes will
give you an idea of what to focus on regarding sustainability.
For more information on sustainable design, please see CBI’s Tailored Intelligence on the market for Sustainable
Design Home Decoration and Textiles.
For more information on sustainability, please see CBI Trends Special Sustainability for Home Decoration and
Textiles.
CBI | Market Intelligence Product Factsheet Niche Sportswear in Europe | 19
What kind of competition can I expect to face if I sell wooden furniture made in South
Africa on the European market?
Company competition
Importers in the middle segment are consolidating, leaving room for fewer, but larger exporters. This is the result of the
pressure on this market segment, as consumers want more value for their money.
In high-end segments, however, competition is less fierce. To target this segment, you will need to be able to
differentiate yourself with outstanding design, special techniques or interesting stories (see Market Segments).
South African suppliers of wooden furniture face competition from various European sources, especially from the countries
covered in this product fact sheet. These European producers have a competitive advantage over South African suppliers,
as they are close to both the end-markets in Europe and sources of wood for the production of furniture. This proximity to
the market is increasingly important as demand cycles are shortening.
“The concept of ‘Made in Europe’ is becoming a selling point”, according to European companies.
You need to distinguish yourself on the European market from local producers to show what your competitive advantage is
over these producers. You can focus on various aspects, such as innovative design, high quality products showing
craftsmanship, fair trade values and/or building an attractive marketing story around South Africa. In such a marketing
story you can also bring other elements together.
European companies are very positive about working with South African suppliers. Compared to other African countries,
the South African (business) culture is considered as much closer to norms in Europe. There are also few language barriers
with South African suppliers, as many speak English.
Position in the supply chain
In general, power of buyers is strong in the mature European market for furniture. However, this buyer power is less
strong in higher segments and for products with a strong and new identity. This is where you have most potential to enter
the market.
In the mid-high and high-end segments, there is a greater interdependence between exporters and buyers than in
lower segments. This is the result of a smaller pool of suppliers than for lower segments and the strong role that value-
addition plays. In this segment, buyers are less inclined to switch suppliers.
South African suppliers have an opportunity to improve their competitive position by developing attractive brands or
product identities and products. Consumers are increasingly interested in new and authentic concepts and European
Tips:
Demonstrate how you implement fair trade values if you want to target this sector. Compliance to fair trade
norms will also make it easier to acquire other social and environmental norms, as it is the most integrated
system for sustainability.
Build trade relationships with your buyers of fairly traded products. Often, brands and shops in this segment want
to have a close relationship with their suppliers.
Build values of standards such as FSC into your offer, to anticipate future demand. These norms are voluntary at
the moment, but will likely increasingly adopt a legal character or become a way to influence consumer choice.
Please see the ITC Standards map database for more information on these and other voluntary standards and
their requirements, including fair production.
Tips:
Differentiate your products on the European market to target the mid-high and high-end segments for wooden
furniture. Focus on special techniques, wood types, values (for example, social or environmental sustainability, or
fair trade) and design. Products with emotional extras (gifts, seasonal products, products with a story) are less
easily replaced than functional basics.
Also differentiate yourself as a producer from other suppliers outside of Europe: focus on communication (also in
case of problems!) and timely delivery.
CBI | Market Intelligence Product Factsheet Niche Sportswear in Europe | 20
companies respond to this trend. This could lead to a new balance of power between exporters who can offer such new
concepts and European importers who need these new concepts.
Western Europe
In Western Europe, brands have a strong competitive position. “Designs for these brands are created in Europe, but may be
produced in and outside of Europe”, according to manufacturers, “for instance, in countries in the Far East” (see Market Channels).
Compared to Southern Europe and Scandinavia, the West European market is less innovative in its designs. Demand for
quality is high, especially in terms of production quality. In this market, South European and Scandinavian products are
popular for their design and quality as well. Moreover, consumers are increasingly interested in locally produced furniture.
Consumers who can spend a little more are more willing to support local manufacturing and move away from mass-
produced furniture products.
Southern Europe
Italy has a strong reputation of manufacturing high-end furniture and is the largest producer of wooden furniture in
Europe, closely followed by Germany. As a result, you can expect strong competition from Italy, a country with innovative
designs. The country is also a strong competitor in furniture from different materials, such as metal and high-quality
plastics, which also compete with your wooden products. Furniture production in Italy mainly takes place in small
companies, with a long tradition of furniture making.
Scandinavia
As indicated in the consumer profile, Scandinavian design plays a major role in these countries and you will find strong
competition from local producers. The largest producers in this region are from Denmark (mid-high segment) and Sweden
(high-end segment).
In Scandinavia, wood is an important material for furniture, especially for smaller objects (e.g. occasional stools and
tables). Scandinavian design and the love of nature will continue to drive this interest in wooden furniture.
“Scandinavian consumers greatly value sustainability in their furniture and home decorations”, according to manufacturers
(more than in other regions discussed in this product fact sheet).
Which European trade channels and interesting market segments are there for wooden
furniture from South Africa?
Market entry
There are two main ways to enter the European market: contract manufacturing or with your own design and branding.
Tips:
Consider niche markets, such as hand-made and fair trade. Although volumes are smaller in these markets,
importers have a greater need for you to tell your story and establish a long-term trade relationship.
Dare to be different: build a distinctive identity based on your own history of producing furniture in South Africa,
skills, inspiration and values.
Include authenticity in your marketing concept and product offering. If you can differentiate your product, you
become attractive for importers looking for new and differentiated products.
Offer products created with authentic techniques that are not available in Europe.
Build strong relationships with your buyer. Demonstrate that you are reliable in terms of quality consistency,
communication, delivery and service delivery. The more effective your relationship, the less inclined your buyer is
to find alternative sources.
Tips:
Find a sustainable source of wood for your furniture production.
Identify your options to develop a concept based on social sustainability, for example: benefits to carpenters,
craftsman and designers in South Africa.
CBI | Market Intelligence Product Factsheet Niche Sportswear in Europe | 21
For African producers of furniture, contract manufacturing is the most common way to enter the market, according to
industry sources. Here, European brands create designs which are produced according to specifications by their suppliers,
which are often located in Asia. This is an option for companies that lack the capability to create their own designs and who
have the capacity to produce big volumes. Moreover, products made under contract manufacturing are often pushed down
to middle segments when they are positioned in Europe.
However, “South Africa has an advantage over other African countries, because the country is strong in design,” according to
industry sources, as shown in initiatives such as Design Indaba.
You can use this to market your products on the European market with your own brand, product identity or signature.
To enter the market in this way you need to invest in the design of your products. Branding your own furniture in Europe is
difficult, but can be worthwhile. If you can create original, interesting designs, you can position your products at the higher
end of the market. What’s more, you do not require the large volumes that are common for contract manufacturing. Be
aware that you will need to build your brand or product identity thoroughly since you are competing directly with European
producers of mid-high and high-end furniture. These companies have a strong position in their local markets.
Another option in building your brand or product identity is to develop a collective marketing strategy. If you are new to
the market, it may be difficult to build a strong brand by yourself. However, if you can develop a brand with other furniture
producers from South Africa and show at international exhibitions, you can save costs and ease market entry.
Market channels
The figure below gives an overview of the relevant market channels for South African exporters of wooden furniture.
Figure 5: Market channels wooden furniture from South Africa to Europe
Source: ProFound
Trends in market channels
Tips:
Develop your brand/product identity if you want to enter the market with your own designs. Most importantly,
your brand needs to show the originality of your company, designs and products. What is your original selling
point when compared to European designs? What makes your product different? Options to build a brand/product
identity include:
o Using the South African origin of the product, by creating a marketing story around the origin
o Creating products with a handmade component
o Products with original, contemporary design
o Using original materials or sustainable materials, for example recycled or upcycled woods
o Using special craftsmanship/techniques
o Building a brand around designers, which is what many European brands do by linking their designers
to specific products they created. Show where your designs come from and who created your
products.
Tip:
For a comparison of market channels and players, please see CBI Market Channels and Segments for Home
Decoration.
CBI | Market Intelligence Product Factsheet Niche Sportswear in Europe | 22
E-commerce in home decoration is increasing, often as a multi-channel approach combining online and offline retail.
Consumers increasingly research and purchase products online. They shop around and compare prices on home decoration
items. Consumers use e-commerce as a source of information and a means of comparing offerings. From 2012 to 2017, e-
commerce for the consumer market is expected to rise by 123% (CBI, Trend Special E-Commerce). Western Europe, which
includes the markets in this study, is the third market for e-commerce and it is growing rapidly. However, most sales will
still take place in actual shops. For example, in the United Kingdom around 90% of shopping is done in physical shops
(BBC, 2013).
In Europe, customisation of furniture is increasingly important. Customisation options can vary from limited to no
customisation for products that are kept in stock to extensive customisation when products are made to order. The latter is
especially important for large furniture in the mid-high and high-end market segments. For this purpose, showrooms or
retailers are especially important. They will have a few samples for their customers, but specific products will be made
completely to order, maximising customisation. These companies generally do not keep stock.
“Whether customisation is possible is determined by both the manufacturer and the buyer of furniture products.” (according
to European buyers)
Importers try to work with products as they are manufactured without customisation (for instance, material, colours, etc.).
However, if it is possible to adapt products to meet the needs of the European market and if you offer customisation
options, you can gain a competitive advantage.
“Many furniture companies are reducing their stocks, to decrease risks of leftover stocks that are not sold”, according to
European manufacturers.
For example, some importers consolidate orders (for example, at trade fairs) and buy on demand, so that they do not
need to keep stock. In addition to reduce stocks, lead times are getting shorter. This means that consumers and retailers
will expect fast production cycles and deliveries.
The actors on the European market for furniture have different approaches to dealing with the trends described above and
add a mark-up accordingly (Table 1). To compare, importers tend to keep larger stocks. Moreover, European companies
indicate that they are willing to offer a period of advance payment: the time between paying their suppliers and receiving
payment from their clients. Retailers are less willing to take this risk and accept shorter advance payments.
In addition, if you want to sell to retailers you need to accept more liability during the shipment of your products. You are
always responsible for the costs of shipping, but, if you sell to importers your liability stops when products are on board of
the ship/aircraft (FOB). Alternatively, when you sell to retailers/e-tailers, you are also liable for the products when they are
in transit, for instance if they are damaged.
Finally, retailers and e-tailers tend to expect shorter processing lead times than importers. However, this greatly depends
on the type of retailer involved.
Table 1: How do trends in market channels impact the different players?
Actors Stock
manage-
Terms of
delivery/fulfilment
Processing lead time Customisation options Mark-up
Tips:
Make use of the increased consumer interest in online sales by targeting online retailers or setting up online sales
yourself. Be aware that the latter requires thorough planning and a sophisticated website and online sales system.
For more information on E-commerce, please see the Trend Special Home Decoration and Textile: E-Commerce.
Find out what options there are to customise your products. Can you produce them made-to-order, given the
short production cycles that are required?
Create shipment solutions for your (prospective) buyers. Find out how you can ship small volumes, at a
competitive price and short delivery time, and determine what the minimal volumes would be for transport. You
need this shipping information, together with your options for packaging, to address prospective buyers,
especially when talking to retailers.
Tip:
Always discuss with your buyers what their expectations and requirements are when it comes to stock
management, terms of delivery, processing lead time and customisation options.
CBI | Market Intelligence Product Factsheet Niche Sportswear in Europe | 23
ment
Importers 2 to 3
months
advance
payment
To be organised by the
exporter as Freight-On-
Board (FOB)
6-12 weeks, plus
shipping times
Depends on what
products are produced
Limited customisation if
products are stocked in
warehouse, but small changes
are always needed
Customisation in case of made-
to order
At least
+ 100%
Retailers
and e-tailers
1 to 2
months
advance
payment
To be organised by the
exporter:
Cost and Freight (CFR)
Cost, Insurance and Freight
(CIF)
Max of 6-12 weeks,
plus shipping times
Depends on what
products are produced
Limited customisation if
products are stocked in
warehouse, but small changes
are always needed
Customisation in case of made-
to order
At least
+ 200-300%
Agents No physical
stock
Depending on where in the
value chain, organise
delivery up to, at least, FOB
n.a. Give orders on to manufacturer At least
+ 2-5%
(depends on
product)
What does this mean for South African exporters of wooden furniture?
The best way to enter the European market is to export through importers or retailers. If you can set up the logistics to
sell directly to European consumers with online sales, this may be even more attractive.
You can sell through a retailer or an e-tailer. Retailers are increasingly willing to source directly from suppliers,
instead of through importers. Due to the increasingly competitive market, importers may be reluctant to take big
risks in purchasing stock from new suppliers. However, retailers are looking for exciting new products to meet
consumer needs in terms of design and originality. Moreover, they generally require lower volumes than importers.
You can look for retailers by participating in trade fairs (e.g. IMM Cologne) to show off the design of your products.
It can also be interesting to sell through importers if you can have larger volumes. However, you need to be aware
that margins may be lower.
The third option is to sell directly to consumers, via online sales. This can be an interesting option if you can handle
the logistics of selling online. For this option you can also make use of providers of fulfilment services. These
companies can take care of activities such as storage and handling of goods, invoicing and returning products.
Agents can be involved at various stages of the value chain. Between exporters and retailers/importers, buying
agents can help you sell your products, which is especially interesting if you don’t have a strong sales network.
Market segments
The market for home decoration and furniture in Europe is highly segmented (see CBI Channels and Segments for Home
Decoration). It’s a highly saturated market with savvy, well-informed consumers.
Figure 7: Market segments for the European home decoration and furniture market
Tips:
Consider participating in a trade fair. For example, see the Useful Sources at the end of this fact sheet. Make sure
that that you have an original product that will attract buyers.
Identify options for working together with other South African exporters. This can help with market entry, for
example in terms of transport and online sales.
Have a look at the Trend Special Home Decoration and Textile: E-Commerce for tips and information on
requirements to sell online.
If you plan to sell products directly to consumers, consider using fulfilment services in Europe and find out how
much they charge.
You can look for commercial agents at the website of Internationally United Commercial Agents and Brokers
(IUCAB).
CBI | Market Intelligence Product Factsheet Niche Sportswear in Europe | 24
In the low market segments, there are mainly functional products: practical, affordable furniture pieces that provide a
‘solution’ for a consumer. In the mid-market segment, style preferences play a crucial role. For exporters and producers it
is very important to know which consumers they are targeting and what their style preferences are. These range from
contemporary and minimal to classic and romantic style.
This study focuses on the mid-high market segments, because these offer most opportunities for South African exporters
(Product Description). In the mid-high and mid-low market segments emphasis lies on ‘value-for-money’ products with
some added value (to distinguish products from those in the low-end market segment). This middle market segment still
requires relatively high volumes, although lower than the low-end market segment. Moreover, products in the mid-market
segment need to be both functional and trendy, and sold at competitive prices.
Alternatively, in the high-end market segment the aesthetic value of products is much higher. Here, products are
positioned with supreme craftsmanship, a luxury feel and brand. Consumers buy such pieces to express their identity.
What are average end-market prices for wooden furniture in Europe?
Prices for wooden furniture vary give considerably, as this product group is very broad. This section compares prices of
wooden dining room chairs and side tables, which are representative of what South African producers are supplying to
European customers. The tables below provides an overview of prices for the mid-high and high segments.
Table 2: Indicative consumer prices for wooden furniture: occasional table
Mid-high High-end
Product: exclusive (one-off or limited edition) and innovative (hand-made,
custom-made), statement pieces providing status
Price: premium, consumer price-insensitive
Place: brand stores, design stores, department stores
Promotion: brand communication, personalized communication
Product: mass, but some design added; functional as well as decorative, trendy; aspirational consumer
Price: good value for money, consumers shop around for alternatives
Place: general retail, private label and retail brands, gift shops, retail brands, malls
Promotion: focus on trendiness and lifestyle, affordability, via Home magazines
Product: everyday basics, seasonal products, inexpensive gifts
Price: good value for money, not much mental or physical effort made by consumer
Place: always around the corner, general retail and retail chains, garden centres
Promotion: offered in sets/volume, seasonal sales
Product: everyday basics, functional but not always durable (no originality)
Price: available to all, discounted, price sensitive consumer, cheap impulsive purchasing
Place: always around the corner, supermarkets and hypermarkets and other one stop shopping places, discounter outlets
Promotion: door-to-door leaflets and direct mail (discounts and sales events)
High-
end
Mid-High
Mid-low
Low-end
Tips:
Differentiate your wooden furniture from products on the European market. You can position your products by
focusing on:
o novelty shapes
o luxury materials (or those with a luxury ‘feel’ to them)
o fun (in design)
o supreme craftsmanship
o timeless design
o urban, industrial looks
o origin (cultural traditions in a contemporary styling)
o values (for example, green, fair trade)
Please see the CBI Market Channels and Segments for Home Decoration for a general overview of market
segments.
CBI | Market Intelligence Product Factsheet Niche Sportswear in Europe | 25
Western
Europe
Source: Ethnicraft
€120 - 350
Source: Pols Potten
€350 and over
Southern
Europe
Source: Calligaris
€200 - 400
Source: Arredaclick
€400 and over
Scandinav
ia
Source: Litalla
€100 - 400
Source: Artek
€400 and over
Sources: Made in Design.com, Design-ikonik.com, Connox.de, fonq.nl, Callegaris.it, Made.com, Amazon, Rum21.se, Habitatstore,
Lannamobler.se
Table 3: Indicative consumer prices for wooden furniture: dining room chair
Mid-high High-end
Western
Europe
Source: WOUD
€85 - 300
Source: Casamania
€300 and over
CBI | Market Intelligence Product Factsheet Niche Sportswear in Europe | 26
Southern
Europe
Source: Made.com
€55 - 200
Source: Moroso
€200 and over
Scandinavia
Source: Hay
€55 - 425
Source: Hans J. Wegner
€425 and over
Sources: Made in Design.com, Design-ikonik.com, Connox.de, fonq.nl, Callegaris.it, Made.com, Amazon, Rum21.se, Habitatstore,
Lannamobler.se
Consumer prices depend on the value perceived by the consumers in a particular segment. This is influenced by the
marketing mix: product benefits, promotion (brand or not, communication of product benefits), points of sale (reseller
positioning), and a matching price.
You need to ensure that you can offer products at a competitive price on the market (see overview above). Also take into
account that the different trade channels involved will add a margin to your product (see Figure 7 below).
“If products are sold both through importers and retailers, the final consumer price will be around 4.5 to 5.5 times the FOB
price”, according to industry sources. “However, when selling only through retailers, this price will be around 3.5 to 4.5 times
the FOB price.” (see price breakdown below).
Figure 8: Indicative price breakdown for wooden furniture from South Africa, mark-ups in %
Source: ProFound, 2015
The price breakdown for your specific products depends on the transportation and market channels you use. To illustrate
this, if you ship your products as sea freight, the mark-up for shipping will be closer to 25%. Moreover, if you supply a
retailer directly, the mark-up for wholesalers can be omitted.
Wholesaler Retailer Shipping, import, handling
+100% +100% +200-300% FOB price
CBI | Market Intelligence Product Factsheet Niche Sportswear in Europe | 27
Useful sources
UEA, European Federation of Furniture Manufacturers
EFIC, European Furniture Industries Confederation
FENA, European Federation of Furniture Retailers
UNECE, interesting source for marketing info and general links about the wood industry
ICC, chamber of commerce for international trade and business
WFTO, European branch of the World Fair Trade Organization
Trade fairs
Visiting and especially participating in trade fairs is highly recommended as one of the most efficient methods for testing
likely market responses, obtaining market information, and finding prospective business partners. The most relevant trade
fairs in Europe for exporters of wooden furniture from South Africa are:
Maison et Objet, Each January and September; Paris, France
IMM, January; Cologne, Germany
Salone Internazionale del Mobile, international salon of furniture; April; Milan, Italy
Stockholm Furniture Fair, February; Stockholm, Sweden
100% Design, September, London, United Kingdom (mainly project business)
Tips:
Study the range of consumer prices in your target segment and adjust your costing accordingly.
Offer a correct marketing mix to meet consumer expectations.
Adapt your business model to your positioning in the market.
Offer what is expected in the market segment you have chosen, in terms of design and other values, at a price
that matches similar products.
Make sure that your Terms of Trading and Payment reflect the different realities of wholesalers and retailers,
whose value chains are shorter if you export to them directly. Different price lists may be needed for both types
of importers (see price breakdown included above). Some buyers may combine different orders in your country
and will then require a different set of terms, based on ex-works (where the seller is required to make goods
ready for pickup at his/her place of business, buyer assumes transportation costs and risks) or other
arrangements.
In your pricing, also take into account that agents, if they are involved, typically receive a commission of a few
(2-5) percent. However, their actual profit margin strongly depends on volumes sold and gross margin. They will
normally reduce their gross margin for big volumes.
CBI Market Intelligence
P.O. Box 93144
2509 AC The Hague
The Netherlands
www.cbi.eu/market-information
This survey was compiled for CBI by ProFound – Advisers In Development,
in collaboration with CBI sector expert Irene Vermeulen, Solly Levy and Mark Kwami
Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer
January 2016