CBI Product Factsheet:

Wooden furniture from South Africa

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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

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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

marketintel@cbi.eu

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