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French
Furniture sector
Furniture
Imports
Over
the last six years French imports of furniture increased by an average
10%. Some 67.4% of France's furniture imports come from other European
Union countries, almost 14% from Eastern Europe (with growth of 25% last
year). There was also a sizeable amount of imports originating in Asia
which accounted for 11% total imports.
France's
leading supplier remains Italy, which provided home furniture. Italy
provided 24% of total French furniture imports followed by Germany with a
share of 13% of the total. Imports from Germany are, however, declining.
Imports
from Belgium and Spain increased in value by 2% and 14% respectively. The
highest increase in the growth of imports was recorded for imports
originating in Poland which grew by 70% over in the last two years.
Economic
Outlook
The
latest economic data out of France seems, say analysts,
to offer some reasons for a moderate optimism going forward.
The
French economy grew by 0.8% in the second quarter (April-June) 2004.
According to the INSEE Institute this could result in an annual growth of
between 2.4 - 2.5% for the whole year.
While
private consumption came in at a slower rate of growth in the second
quarter in comparison with the first, growth in the residential building
sector increased by a good 1.6% in the second quarter (it was 0.9% in Q1).
The
furniture sector is expected to benefit from the growth in the building
industry. Furniture
consumption will also benefit from a slight decline in average prices of
furniture to the final consumer. The other postive news is that the
business confidence index in France is increasing as is the level of
business spending.
Lively
trade
According
to the Ministry of Foreign Trade, French exports increased by 3.1% and
imports by 3.8% in the first quarter of 2004.
These
figures reflect some interesting market trends. French exports to Asia, China, the old EU as well as the ten
new EU countries grew noticeably, whereas exports to the United States
recorded a negative performance as exports fell by 1.9%.
RTA in
France
In
2003 the French ready to assemble (RTA) furniture market was Euro 1.6
billion at factory prices and was equivalent to a 23% share of household
furniture production value.
Roughly
70% of the market is met by domestic manufacturers and 30% by imports.
About 65% of RTA furniture imports come mainly from within Europe and 35%
from other countries. Among the main extra-European countries which export
RTA furniture to France are Hong Kong, Malaysia and Thailand.
Distribution
of RTA furniture in France takes place primarily through specialist
furniture distributors as well as through furniture chains. Both the Young
Living chain (25%) including Ikea and Fly but and also chains like But and
Conforama which are typical of the "equipement du foyer" sector
(25%) handle RTA furniture.
Independent
sales outlets account for about 15% of the market, as do purchasing
groups. As regards non-specialised distribution, Do It Yourself outlet
have about 7% of sales and hypermarkets account for another 4%. Department
stores and mail order have a 9% share of the RTA furniture market. CSIL
estimate that the French RTA furniture market is serviced by around 600
sales outlets.
Office
Furniture
In
2003 France exported office furniture worth Euro 140 million (-15% on the
previous year) and its imports totalled Euro 267 million down 5%. Both
exports and imports were mainly of desking, 85% and 75% respectively of
total office furniture sector.
Imports
fell in 2003 and imports of seating fell by 3% yearly between 2000 and
2003, while the other segments were characterized by an average annual
slowdown of around 6 - 7%, bring the level of trade back to 1998 levels.
Exports
of desking were mainly to Belgium (21%), followed by the United Kingdom
and Germany. As regards exports of seating, Spain overtook Belgium but
exports to Belgium fell by 12%, while exports to Spain rose by 40%.
Imports came mainly from Italy and Germany for both segments. After
dropping in 2001 and 2002, imports of desking from Italy and Germany
recovered slightly.
Source:ITTO
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