Furniture sector off to a cracking start
By thinking holistically and pursuing a strategy a company can still be successful in the tough furniture business. imm cologne 2006 gave a number of grounds for hope.
Anyone who was in Cologne will be familiar with the trends for 2006", was how Wolfgang Kranz, managing director of Koelnmesse summed up imm cologne 2006. "I am sure", Kranz continued, "the very good overall result will send out a signal - especially to the German furniture sector."
The positive mood was also confirmed by Dirk-Uwe Klaas, general executive manager of the German Association of the Furniture Industry (VDM): "We view the remainder of 2006 with realistic optimism. There are four reasons for that. Firstly, we were able to complete 2005 with a turnover boost of 1.8 %. The positive order situation has continued so that we can forecast the same growth for this year, too. This is also borne out by the second reason, namely the very successful imm cologne, the world's biggest and most important furniture fair that was held in January. It got our sector off to a cracking start this year. Thirdly, we have every reason to assume that export sales of our furniture will continue to grow. Already today, every third item of furniture made in Germany is exported. The ‘emerging markets will contribute this year and next to unremitting demand for high-quality furniture. And there is a fourth reason which is often forgotten amongst all the consideration given to the economic conditions: The furniture itself stimulates demand. Our innovative, top-quality furniture with good design gives our sector in Germany a good chance of survival against globalised competition."
"The sector has lost several companies over the past few years and quite a number of jobs along with them", Klaas continued on the economic situation. "This process has still not run its course. There will still be winners and losers and the sector as a whole will continue to shrink. What experts call market rationalisation, can only be stopped by a considerable effort in each company. Today, the successful furniture makers are those that think holistically and pursue a strategy. There are quite a number of these. They give equal priority to their product, their customer target group, their export strategy, their operating costs, their staff, their machines, their trading partners, that is, their entire corporate philosophy."
For example, there are a number of big names in the sector who even report way above average turnover: Interlübke boasted two-figure order growth at the end of 2005, Kettnaker announced turnover growth of 12 % and COR, 9 %, or even 12 % in Germany alone. So, what sets a successful player like COR apart from the crowd? What is this success based on?Marketing director Berthold Strüve: "The COR brand stands for high-quality seating and upholstered furniture that is made exclusively in Germany and distributed to 54 countries throughout the world. Its continuing success is based on a combination of innovativeness, design and high-quality workmanship. Unlike many other manufacturers, COR has the full vertical range of production - from raw woodworking in the production facilities to delivery of complete furniture - with their own fleet of vehicles. New models are developed in close co-operation between designers, technicians and craftsmen. Brand management is based on a clear principle: creating value and contemporary design, irrespective of short-lived trends or fashions. Trade fair appearances remain an integral part of our marketing, including imm in Cologne, but also the trade fairs in Milan, Vienna, Amsterdam and Belgium."
m+a report Nr.2 / 2006 vom 24.03.2006
m+a report vom 24. März 2006