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    The Chinese Furniture Industry DETAIL
    The Chinese ...

    The Chinese furniture industry is the biggest of its kind in the world. China is the number one furniture producer, consumer and exporter. The industry maintained an astonishing growth rate of 17% between 2006-2016.The Chinese furniture industry is mainly driven by real estate sales. The real estate industry, an industry that is one of the backbones of the Chinese economy, had a similar remarkable growth. Therefore it is not surprising that the revenues and profits in the furniture industry in China have increased so much. Production in the Chinese furniture industry As mentioned before the income of the furniture industry in China has been rising steadily over the last years. The production side of Chinese furniture industry accounts for around 39% of the world’s furniture production. Chinese furniture manufacturers produce various types of furniture from house furniture to office supplies. Mainly the Greater Bay Area plays an important role in production. Over 70% of the country’s furniture manufacturers are headquartered in the GBA area, because the GBA has a lot of technical and labour resources. It is no surprise that the GBA’s capital of technology, Shenzhen, is where the majority of innovations within the furniture industry are developed. The technological innovation of furniture in China will have a far-reaching impact on the global furniture market. However, recently a shift is taking place in where the furniture itself is being produced. The Chinese furniture industry is slowly moving from the Eastern and Southern coastal regions to the central region of China. Most of the furniture enterprises in Beijing and the GBA have moved their production to Hebei, Henan, Jiangsu, Shandong, Anhui and other provinces. This trend of transferring production and manufacturing bases from large cities to small and medium-sized cities or counties and keeping R&D and headquarters in larger cities, is not limited to the Chinese furniture industry only and can be seen in other industries as well. Domestic Consumption There are a variety of reasons why China is the number one consumer of furniture in the world. Furniture is a basic need in every household. Within the Chinese market consumers between the age of 25 and 35, people who mostly just started living on their own or are newly married have the highest demand for furniture. Furthermore, the Chinese middle-class has been growing rapidly and has led to an increased demand for higher quality products. Moreover, urbanization is a major cause for demand. According to the latest data released by the National Bureau of statistics; at the end of 2017 the urbanization rate in China was 58.52%, an increase of 1.17% from the previous year. People moving to cities from rural areas often leave behind a majority of their belongings and buy new things in the city. This means that a lot of new furniture is needed.   Trends Within the Chinese furniture industry three main demand trends can be seen. First of all, Chinese consumer have an increasing taste for environmental friendly furniture. They prefer furniture made from natural and eco-friendly materials. This demand is not only caused by caring for the environment, but also out of fear for chemicals harming the well being of the customer Another demand trend that can be identified is the trend of custom made furniture. Of course this trend is mainly seen in the more high end customer segment. However with the rising middle and upper class in China it is definitely a trend worth looking into. Lastly, intelligent furniture is becoming a trend. According to IDC’s quarterly tracking report on the smart home equipment market in China, shipments of smart home devices in China are expected to reach 150 million units in 2019. The intelligent furniture trend is not only popular in the Chinese furniture market. Mobile phone manufacturers, like Huawei and Xiaomi, and Internet Giants, such as Baidu and JD.com,  are actively promoting intelligent furniture.   Sales Channels There are several distribution channels used in the Chinese furniture industry. Firstly, there are the traditional sales channels. Furniture manufacturers sell their good through distributers or they set up their own shops selling directly to the consumers. Examples of these channels are furniture malls, high-end furniture markets, and warehousing type markets like IKEA. More modern sales channels are e-commerce channels. E-commerce is growing trend in China. You can buy anything online, furniture is no exception. Furniture producers either sell their furniture through established web shops, such as Aliexpress or Taobao., or they have their own dedicated online shop. The Chinese e-commerce trend and the trend of custom furniture work really well together. Online furniture shops often have the option to customize the products to a customer’s liking. International brands penetration of the Chinese furniture market In 2017, the total amount of imported furniture grew with 15.65% to 30.52 billion USD. There are three ways how a foreign furniture company can enter the Chinese furniture industry: by exporting furniture to China in their original packaging, through manufacturing consignment agreements, and by establishment of a local company. The furniture that is imported from abroad has a relatively low market share in China, because it is often sold for a high price and is seen as a more high class product. In manufacturing consignment agreements foreign furniture brands entrusts Chinese factories with the production of their goods. However, if the furniture brand is not registered as a company in China, it cannot sell the produced furniture in China. Therefore, all produced furniture has to exit the country first, before returning China to be sold. This is the only way for unregistered companies to legally sell their products in China, even though the furniture is produced in China. Finally, foreign brands and companies can establish a wholly foreign owned enterprise (WFOE) to enter the Chinese furniture industry. After the registration of a WFOE, the Chinese factory is allowed to handle the production and processing of the furniture, and sell directly to the Chinese market. can be sold in home directly. If you want to learn more about the registration of a WFOE and establishing your own company in China, you can request our white paper here. China International Furniture Expo The largest furniture exhibition in China is the China International Furniture Expo, held 9-12 September 2019 in Shanghai. The China International Furniture Expo, better known as Furniture China, has been leading in the industry for over two decades. As one of the world’s leading B2B trade fairs, over 100,000 participants are involved in the show every year. 300,000 square meter of exhibition area and 3500 high quality suppliers. If you are interested in doing business in China and you want to know more about the market you operate in, feel free to contact us!   MARCH 29, 2019   www.1421.consulting  

    STUDY ON IKEA DETAIL
    STUDY ON IKEA

    History of IKEA: IKEA's history began in 1931, when its founder Ingvar Kamprad was 5 years old, selling matches to his close neighbors. In the 1940s - 1950s, when he was 17 years old, he continued to his own business called IKEA with the money her father gave him as a reward for his success in his studies. When IKEA was  established early on, it sells low-priced pencils, wallets, picture frames, tablecloths, watches, jewelery and nylon socket. The production of furniture by local furniture in the forests near the home of Kamprad has yielded positive results and the product range has expanded gradually. In 1951, Ingvar thought to sell more furniture by making a catalog and the IKEA catalog that we know today has emerged.  In 1953 the first furniture gallery was opened in Sweden Älmhult. This opening was important for the concept development of IKEA .Customer will be able to see the product in the gallery before buying. This idea came from the price competition with IKEA's main competitor. This innovative idea was successful and people had the chance to products from the gallery according to their economic conditions. In 1956, Unassembled design idea has emerged as a result of the pressures by the Ikea's competitors on the suppliers of Ikea to boycott it. The concept of “flat box invention, was included when one of the first employees of IKEA removed legs of  Lövet table to fit into the  vehicle. In 1958 the first IKEA store opened in Sweden on an area of 6,700 m². It was the largest furniture store in Scandinavia during those days. Gillis Lundgen Tore was one of the first designers of IKEA with its chest of drawers. The first IKEA restaurant opened at the store in Swedish Älmhult in the 1960s-1970s. First IKEA store outside Sweden opened in Oslo. Inexpensive, non-aging and easy-to-process materials took place in stores with the logic of being very suitable for IKEA. In the 1980s and 1990s, developments continued in the same direction. In the 1990s, an environmental policy was developed to ensure that the company's employees take on environmental responsibility in all activities carried out within the enterprise. In the 1990s, IKEA acquired its own sawmill and manufacturing factory and established the Sweedwood industrial group to produce wood-based furniture and wooden elements. Also PS (POST SCRIPTUM) collection brings form and functionality at a low price. IKEA liberated PS series designers in their new creations to emotional, fun products for those who consider personal tastes superior to general tastes. In 1956, Unassembled design idea has emerged as a result of the pressures by the Ikea's competitors on the suppliers of Ikea to boycott it. Sweden and Denmark started e-shopping in the 2000s. Nowadays, many IKEAs have online shopping. The IKEA Group has established its own railway business by way of the IKEA Railway Company. The train travels  between Sweden Älmhult and Germany Duisburg once a week. In 2004, the railroad business was taken over by an external company with the continued use of this route by IKEA. Using the railway improves the sustainable transport of IKEA materials and products and is still an important part of IKEA. IKEA has been one of the first manufacturers of direct model furniture on duralite and chipboard at its Polish plant. This technique is called “printing on wood ”. In 2002, the global conservation organization WWF (IWA) and the IKEA Group joined forces to promote responsibility for priority forest regions around the world. These two foundations set into a series of global and regional forest projects to support the development of forest responsibility. The first IKEA store was opened on 5 May 2005 in Ümraniye, Istanbul. 2 store in Istanbul, 1 store in Ankara, Izmir and Bursa IKEA has a total of 5 stores in Turkey. As it is seen, the founder of IKEA which makes it a world brand today is a good entrepreneur, innovative approach, pioneering design, brand identity, working with designers, creating new business opportunities in the face of difficulties and conducting activities within the social responsibility projects imposed oneself  on the world. IKEA has 225 stores in 43 countries. It has stores in the USA, Russia, Canada, Asia and Australia, most of which are in Europe. When we look at the places where the stores are located, they are usually the capital or important cities of the countries where they are located. Concept of IKEA In the 1940s, it aimed to offer well-designed, functional, low-cost and cheap-priced home furniture without compromising quality. In line with these goals, Ingvar has taken every opportunity to reduce costs and this business has been the beginning of the IKEA concept. The idea of this business has spread to all over the world without changing. Benefits • IKEA is a place where you can reach well-designed, functional furniture that many people can pay at cheap price, • IKEA has a well-thought-out store concept that offers a lot of ideas to the customers in the exhibition area and allows customers to make the right choice, • Having the display areas where the customer can find the product he wants to buy according to the area of use, paves the way for the customer to buy new products besides the product he wants to buy, • With its rich , IKEA does not have a specific audience, it targets every segment, and IKEA's vision is based on the idea of  creating a better  life for more people. Presenting products that appeal to all segments with this system of thinking, • Purchased products by testing them at the place of use, • Access cheaper to modern, aesthetic, stylish and functional products than the market, • Design support from the store, • While shopping, was able to easily access the services like also , food, entertainment, social facilities, etc. • Having the potential to spend more due to the design so that the costumers cannot leave the store without seeing all the stands when they enter the IKEA store, • Producing more economical material than the market, Disadvantages • The customer is able to take the purchased product to the area of use with his own means or to receive this service from IKEA for a price, • In case of any breakdown or other problem, the product should be taken back to the store, • In case of any breakdown or other problem, the product should be taken back to the store, • When you enter IKEA, instead of the Turkish lifestyle, it encourages you to the Swedish lifestyle and leaves you under the influence of its own culture. • The presentation of Swedish cuisine and products in restaurants and food departments is a relative point of view for customers.          

    4 Reasons Why the Furniture Industry in India Needs to Shift to Space-saving Options DETAIL
    4 Reasons Why the ...

    4 Reasons Why the Furniture Industry in India Needs to Shift to Space-saving Options Instead of searching for more spaces and expanding cities to suburban areas, we need to think in terms of using the existing spaces to the best advantage of using utility furniture India offers a large workforce a majority of which is now shifting to big cities.  An article published on a leading website said that more than 50 per cent of India’s population would start to live in urban areas by 2030.   There are three factors that are posing a challenge in Indian urban areas – 1] Cost of renting or buying a house: It is becoming increasingly difficult to get the best amenities and maintain a certain standard of living in Indian metro cities such as Mumbai, New Delhi or Bengaluru. For instance, in a Tier-2 city, you may be able to buy or rent a 3BHK apartment but the same price can get you a 1BHK in the metros. 2] Cost of living: When one sets up the house or an office in a metro city, it comes with the additional cost of buying basic facilities such as furnishing and maintenance. This further adds to the annual housing expenses while living in a city. 3] Scarcity of resources: According to McKinsey, the country’s cities are expected to grow from 340 million people in 2008 to a whopping 590 million in 2030.  Moreover, meeting the demand for urban services in these cities will require US$ 1.1 trillion in capital investment over the next two decades. The urban growth has also led to existing problems related to pollution, traffic congestion and water scarcity. Working in various industries in India for a couple of years and observing demographic changes, the demand for certain products is or would be far higher than the ability of suppliers to deliver the products. The furniture market is mostly unorganized, lacking product variety, quality standards, and supply power. Statisa reported that the revenue in the furniture and homeware segment is currently  US$ 1,399 million in 2018 and is expected to show an annual growth rate (CAGR 2018-2022) of 17.2%. This would make the market volume of US$ 2,636 million by 2022. In India, it’s not just home-owners who need to think of space-saving modern furniture solutions. A large network of hostels and sharing apartments are mushrooming in major cities here apart from hotels and hospitals that need to opt for space-saving options today. Instead of searching for more spaces and expanding cities to suburban areas, we need to think in terms of using the existing spaces to the best advantage of using utility furniture. Here’s why – 1] Cost effective Space-saving furnishing solutions are extremely cost-effective. Such furniture uses bare minimum yet essential raw material to make robust products. This reduces the overall production cost and makes it more affordable for people living in cities. For instance, a 100% wooden coffee table costs anywhere between Rs 12k to 30k depending on the size and build. However, a space-saving foldable coffee table would use l legs and a wooden top which reduces the price to Rs 5k to 15k.   2] Practical utility Space-saving furniture options often have more practical utility than traditional furniture. For instance, a traditional dining table may have a wooden or a glass top. It’s extremely hard to move and requires maintenance of the glass or wood. However, space-saving options such as a foldable bed or wall dining table extra utility as they can be used for more than one purpose. 3] More volume in less space Needless to say that the whole point of space-saving furniture is to be able to do more in less space. Hostels and hospitals, therefore, must opt for bunk beds that save a lot of space and are able to accommodate more people. Similarly, educational institutions can opt for foldable benches, chairs or tables in order to space whenever needed. 4] Mobility Shifting of furniture while changing houses or office is another challenge with traditional options. Space-saving furniture is often put together with nuts and bolts and can be assembled or de-assembled as per need. This saves it from damage and increases its durability, thus giving a better ROI than traditional furniture. Space saving furniture today is the need of Indian furniture industry.   www.entrepreneur.com  Kamil Pawlowicz  Co-founder, Camabeds  

    History of an Industry; Iran Furniture Museum DETAIL
    History of an ...

    History of an Industry; Iran Furniture Museum   The museum has been established with the goal of creating a permanent place for gathering antique furniture. The Furniture Museum of Iran reveals the long history of the industry in the country, and opens a window for the visitors to thousands of years of art and industry in the Iranian territories. It also provides researchers with an opportunity to conduct studies on the history of furniture in Iran as well as other countries of the world. Iran Furniture Museum was established in 2011 in southern Tehran. The beautiful art of Iranian furniture makers are famous and amaze every visitor, if you want to enjoy the magnificent wood works and beautiful furniture such as table, desk, chair, armchair and any other items used in decorating the house just take a short journey to Yaft Abad in Tehran. There are many stores, malls and shops that offer a wide range of choices and ions with different sizes, colors and designs. The variety of their works would fulfill every demands and tastes of the shoppers. In addition to the malls and furniture shopping centers, the also is a nice place called Furniture Museum which has been established recently, many different sofas and chairs as well as other items which were used by the previous generations are available there so people could watch and enjoy them.  Year of construction Furniture Museum of Yaft Abad in Tehran: 2010    Historical period Furniture Museum of Yaft Abad in Tehran: Islamic Republic  Entry price Furniture Museum of Yaft Abad in Tehran for Iranian: Free  Entry price Furniture Museum of Yaft Abad in Tehran for non-Iranians: Free   Hour of visit Furniture Museum of Yaft Abad in Tehran: 10:00 to 19:00  Attarction accountability phone: 02166656020   Address Furniture Museum of Yaft Abad in Tehran:    What follows are Tehran Picture Agency’s photos of the museum:

    These Founders Arent Selling Furniture, Theyre Telling a Story DETAIL
    These Founders ...

    These Founders Aren't Selling Furniture, They're Telling a Story Ted Esselstyn was a carpenter, an artist and a med-school graduate in 2009 when a friend told him about Urban Hardwoods, a company that reclaimed old or discarded wood and made furniture from it, he checked its website and “that’s when the lightbulb went on,” he says. Urban Hardwoods was in Seattle. Ted, then 35, lived in Connecticut. Trees were everywhere -- 67 percent of his state’s land mass -- but he found no company in the Northeast that was reclaiming them. He called his brother, Zeb, and told him about his idea.  The Esselstyn brothers are idiosyncratic. Ted had spent 15 years making massive, whimsical pieces for public institutions -- a 30-foot dragon in a children’s library, a pirate ship kids can climb on. Zeb had been in construction, a guide for Outward Bound, a music festival producer, a Hollywood-film-set grunt and more -- but when Ted called, Zeb had just graduated, at 40, from the Columbia School of Journalism. He’d gone to journalism school because he wanted to tell stories, but 2008 was a bad time to graduate with any degree, let alone one in media. So Zeb agreed to help in the new venture, and he moved from New York to Connecticut in 2010. This Entrepreneur Shows How to Paint a Picture of Success Three stools, three stories to tell.   They called their startup City Bench. The first relationships took time to build: They asked the City of New Haven and Yale University for their discarded trees and got eventual yeses. Zeb noticed that people took pride in the notion of something old becoming new again. They wanted City Bench to succeed. And he realized that the pieces themselves could be a narrative medium. “They could say something really powerful,” he says. Through park benches and coffee tables, Zeb and Ted and their clients could reveal their personalities and describe what mattered to them. So they became marketers, contacting media outlets about their furniture with a backstory, and together the brothers began shaping the raw lumber they acquired. The Secret to Marketing to Busy People Who Don't Have Time to Read (Infographic) None of this was easy. “We didn’t have any equipment when we started,” Zeb says. And even after the brothers secured resources from a kindhearted local arborist, Ted realized that his decades of experience with wood wouldn’t help him. Lumber is a living organism that needs to be dried for a year, and it responds to the saw in different ways. Crafting a piece from young maple is a completely different experience, Ted says, from working with mature maple. He had to learn the distinctions on the job, and some of City Bench’s early pieces suffered. “The wood,” he says, “humbles you.” Business was slow the first couple of years: Neither Ted nor Zeb drew a salary, because mills, staging areas and shipping costs are expensive. In 2011, they had $100,000 in revenue but fed it all into their company and relied on family members to get by. “It was just stringing things together. Neither of us had started a business like this before,” Zeb says. But the Esselstyns learned from their mistakes, and the story of City Bench prevailed. The second life of discarded trees, that transmutation of weathered trunk to varnished table, lured an ever-growing number of customers to the company: Clients who wanted a table shaped from the limb of a beech tree they adored, and a big contract with Denver Public Schools to transform a lobby into “a place of vitality and whimsy,” as Zeb says, with columns of mixed wood, furniture with swooping backs and a graffiti bench. How History and Adversity Pushed an Entrepreneur to Shark Tank Success “Furniture is ubiquitous and a commodity, but if you have something where the story is embedded in the piece, it can speak a lot louder,” Zeb says. In late 2014, the brothers felt like they’d made it when they heard from Newman’s Own, which wanted a 20-foot boardroom table cut from a single log, and then a large feature wall for its headquarters in Westport, Conn. Perseverance and belief in their idea got them to these better days. “We knew that we had a good idea,” Zeb says, “and whenever we told people about it, they got excited. That’s what kept us going.”  Today City Bench, based in Higganum, Conn., has five to seven full- and part-time employees and finishes 80 to 100 pieces a year for people throughout the Northeast. “This year, we’ll probably do something like $500,000 in sales,” Zeb says. “They all find us through word of mouth.”  Good stories, after all, have a tendency to spread far and wide.  Paul Kix  Magazine Contributor  This story appears in the September 2016 issue of Entrepreneur.    

    How the Indian Leather Furniture Market is Going Global DETAIL
    How the Indian ...

    How the Indian Leather Furniture Market is Going Global A substantial progression in leather applicability has evolved within the Indian society. The journey of the Indian leather industry can be traced back to time immemorial. Right from the dawn of the primitive man to the middle ages, from the ancient history to the 21st century, leather has been creating its own prominent place in the country explains,Vikash Gupta, from Three Sixty- the leather life.  Noticeably, within the last decade, a substantial progression in leather applicability has evolved within the Indian society. From being a predominantly luxury item that was utilised in manufacturing some of the most distinguished luxury centric, bags, belts, handicrafts, apparels and shoes;  leather has now gained momentum to being a viable and prestigious furniture item. An anticipated mindset that imagined leather furniture being difficult to maintain, exorbitantly priced, owing to the fact that such an item can only be sourced from of the finest cities in the world, Italy and Spain; has transformed a wide range of consumer perceptions. Consumers are rapidly demanding influential leather furniture with a desire to enjoy luxury. The international upholstery sub-sector has changed the dynamics of the Indian leather industry which is seeing prospects and positive opportunities in manufacturing traditional, transitional and modern furniture, that oozes comfort and opulence like no one else, right here in India. With a growing exposure to the West as well as to reap the benefits of an open market, people everywhere aspire to own luxury items. There was once a time when many suppliers would prey upon the fact that consumers did not know anything, therefore would dupe them by selling low-quality items at high prices, but there were many who thought otherwise. Today, India is at forefront of functioning as a thriving leather market. The quality and craftsmanship that was once expected from international countries are now pretty much gaining an appeal within the country. This is majorly because brands are creating a seamless blend of luxury and affordability to ensure desirable products are no longer left a dream. We may not be yet at par with Italian tanneries, but Indian tanneries are definitely not far behind. You really don’t have to burn a hole in your pocket by purchasing an Italian leather sofa or a lounger. Neither do you have to just whine over the desirable attributes of this material just because you think it’s out of your reach. Today, people are able to own products that don’t come with hefty and unfounded price tags. You can just head over to Indian leather furniture market to get a high-quality fashion-oriented leather sofa at an affordable price. Every leather item is crafted painstakingly in India and supplied to the world over. Right from the initial frame, to the leather upholstering, to the detailed finishing, artisans work tirelessly to give clients a product that they can proudly call their own. From delectable seating options to eye-catching leather clad bars, everything is being produced and sold in India.  With still a large society of talented craftsmen thriving in the country, the consumer can procure premium leather home and lifestyle furniture items which are a piece of beauty and grace. It is no kidding, that the leather industry is giving more employment opportunities, especially to women that are helping our proud design traditions take centre stage. The potential of the Indian leather furniture is as versatile as leather itself. When the same quality, craftsmanship and durability are available right here then owning leather furniture is no longer a far-fetched dream. < frameborder="0" height="250" id="google_ads__/6280/Entrepreneur/article_5" name="google_ads__/6280/Entrepreneur/article_5" scrolling="no" title="3rd party ad " width="300">Another interesting factor that is impacting the performance of the leather furniture industry is that consumers are looking forward to breaking the monotony of wooden furniture with a new design paradigm. Unlike fabric, it improves with age, and unlike wood, it retains its shape over the years and is not even high maintenance. The kind of life and charm leather furniture brings to any corner of your room, is not something wood always gives. People are excited about leather. They have broken myths about leather. It is a material that is durable, flexible, strong, friction resistance and with the possibility of being prepared resistant to heat and water. The leather is out there revolutionising the industry by combining quality with good value for money. As a consequence, we believe the industry and demand for leather furniture are very much steered towards an upward growth. Today, Tamil Nadu exports more leather products then the other states of India. Therefore, India earns more annual turnover through the leather industry, becoming a major centre of focus. With the state and its capital getting identified with the modern segment of the leather industry in India, the rest of the country will soon emulate. Vikash Gupta Founder and Managing Director, ThreeSixty  www.entrepreneur.com April 18, 2018