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Haleywood Expands Operations In China

Singapore: Haleywood Industries Pte Ltd signed a multi-million dollar deal to purchase 50,000 sq m of land from the Chinese government, to build its China offices, showrooms and factories. This piece of land is located at Benxi, a prefecture-level city located in the Liaoning province of China, southeast of Shenyang.

This new venture will allow Haleywood to construct larger factory spaces. At the same time, Haleywood will build showroom spaces in excess of 4,000 sq m and will showcase more than 200 product ranges, for buyers to choose from.

The 30 year-old company produces a large offering of quality solid Oak furniture, ranging from finger-jointed to straight laminated pieces. In recent years, it has branched out into using Ash, Elm, Birch, Chinese Walnut and other tropical hardwoods. These woods are made into collections for the home according to in-house designs.
This strategic initiative will also allow Haleywood to establish for the first time a logistics centre to reach out to an even wider variety of customers, with a shorter lead-time and a lower mandatory order quantity for each item, the company added. This could help it increase revenue by at least 30 percent this year, as the company benefits from a faster turnover.

Picket & Rail To Enter US Market

Singapore: Picket & Rail, a Singapore-based producer and retailer of case goods and upholstery, is set to enter the US market. It has hired case goods veteran Eduardo Herscovitz to help it do this, according to a January 11, 2010 report by Furniture/Today.

Herscovitz joined the company in November 2009 as executive vice president of its Americas operations. The position is based in southern California, where the company is setting up a sales, marketing and customer service office and a small warehouse.

Herscovitz was a consultant for International Enterprise Singapore, an agency under the Ministry of Trade and Industry spearheading the development of Singapore’s external economy. Before that, he worked at Accentage Furniture, American Dream Rooms, International Furniture USA and Brazil Furniture Group.

Given the global economic shakeup, both Picket & Rail Chairman Syed Faisal Alsagoff and Herscovitz said the time is right for Picket & Rail to enter the US market.

"People are learning how to do the business with new suppliers and new product at competitive prices," Herscovitz told Furniture/Today.

"Everything is changing very fast, and I think 2010 will be a year of opportunity that would not have happened if this (economic) crisis had not happened."

Picket & Rail plans to offer promotional casual dining, bookcases and home entertainment items such as consoles and flat-panel TV stands in the US. It targets to sell five-piece casual dining sets at US$99 to US$499, to furniture retailers and mass merchants along with Internet and catalog retailers.

Herscovitz is putting together a sales rep force that will have specialised salespeople for various retail segments. He also will work with US designers who will coordinate product development efforts with three in-house designers in Guangzhou. These new products should be ready by Septemer.

Malaysian timber products to use 'green lane' to EU

Kuala Lumpur, Malaysia: Malaysian exporters of timber products will have easier access into the EU soon. According to a Business Times report on January 26, 2010, Malaysia is currently undertaking a bilateral voluntary partnership with the EU under its Forest Law Enforcement, Governance and Trade (FLEGT) Action plan to ensure that only licensed and certified timber enter the EU markets.

Malaysian Timber Certification Council (MTCC) chairman Datuk Dr Freezailah Che Yeom said negotiations will come to an end possibly by March 2010.

"We have made substantial progress and hope to conclude (talks) fairly soon," he told a media briefing after the launch of FLEGT Asia in Kuala Lumpur January 25, 2010.

These talks involved over 100 stakeholders, including industry players, the government and non-government organisations. According to Freezailah, some of these stakeholders felt the FLEGT was too exacting while others thought it was not stringent enough.

"Malaysia has to strike a delicate balance but nonetheless, we have a strong commitment (to the plan) and where there is a will there is a way," he added.

The programme would prepare the region for the advent of EU market legislation by end-2011 pertaining to legality of timber sold in EU, Vincent van den Berk, coordinator of FLEGT Asia said, according to Bernama.

"The new EU legislation involves a set of procedures aimed at avoiding trade in illegally-harvested timber," he said. Wood product exports to the EU reached RM 3.3 billion (US$963.51 million) in 2006. Wooden furniture in particular accounted for RM 1.1 billion.

Over the last five years, there has been particularly strong growth in European imports of Malaysian wood furniture, plywood and mouldings. Peninsular Malaysia was the main source of the wood furniture, while Sabah accounted for sawn timber and Sarawak mostly for plywood.

M’sian, Indian Companies Urged To Form Partnerships

Kuala Lumpur, Malaysia: Malaysia Prime Minister Datuk Seri Najib Razak is urging locals to collaborate with Indian companies, according to a Business Times report on January 23, 2010. He said this is because both countries have developed strengths in different sectors. This creates opportunities for mutually beneficial exchanges.

"Through collaboration, both countries will be able to expedite our national development programmes,” he added.

The government has launched a new economic model early this year to upgrade the country’s output from a low-cost to high-income one. This will expand the areas in which Malaysian and Indian businesses and investors could work together, he said.

Some growth areas with incentives offered currently were advanced electronics, information and communication technology, machinery and equipment, biotechnology, medical devices and renewable energy.

Malaysian construction firms can become good partners for Indian companies.

Najib also emphasised green technology and renewable energy as presenting opportunities after Malaysia committed to reducing 40 percent of its carbon emissions by 2020.

Between 1998 and 2008, Malaysia-India trade increased four-fold, with India now Malaysia's 12th largest trading partner.

Indians have invested in 45 manufacturing projects valued at US$1.2 billion (RM4.08 billion) from 2004 to October 2009. These were mainly in food manufacturing, textiles and textile products, wood and wood products, furniture and fixtures and chemical and chemical products.

Homeritz aims to raise RM 8 mln from IPO

Muar, Malaysia: Home furniture designer and manufacturer Homeritz Corporation Bhd has been given the nod to list on the Main Market of Bursa Malaysia. According to Bursa Malaysia’s website on January 27, 2010, the tentative listing date was slated for February 19, 2010.

The IPO period runs from January 27, 2010 to February 5, 2010. The company hopes to raise RM 7.87 million through the IPO, which also includes a proposed rights issue, according to The Edge Financial Daily on January 14, 2010.

Homeritz is parent company to Home Upholstery Industries Sdn Bhd and US Furniture Manufacturing Sdn Bhd. As an integrated ODM and OEM, Homeritz offers a complete range of upholstered home furniture products. Its products are mainly for the markets from mid-end and up, and 99 percent of its sales revenue is accounted by exports to more than 40 countries worldwide.

In its prospectus, the company also listed its major achievements since 2008. Most recently, it won the ‘Product Excellence Award’ in the Malaysian Furniture Leadership Awards (MFLA), as well as the Asian Furniture Leadership Award (AFLA) in 2009. The MFLA and AFLA are organised by Furniture & Furnishing Export, International magazine.

The company plans also to increase production capacity by expanding locally and overseas. According to a report by Bernama on January 27, 2010, Homeritz is already in the advanced stage of negotiations to lease two factory buildings in Binh Duong province in Vietnam, Homeritz executive director Tee Hwee Ing said.

In terms of export markets, it will focus on North and South America, and Africa. Other growth prospects in the future include introducing new products and new designs to the existing product range, as well as to increase production and sales of its ‘Eritz’ branded upholstered home furniture products.

Thailand To Drive Exports To ASEAN, India, Africa

Bangkok, Thailand: Thailand’s Department of Export Promotion (DEP) expects a 14-percent growth in 2010, estimating the value of exports at US$172.27 billion (Bt5.72 trillion).

To achieve this, it plans to drive exports in five emerging markets: ASEAN, India, China, the Middle East and Eastern Europe, especially Russia, Director-general Srirat Rastapana said to The Nation in a report dated January 5, 2010.

Exports to ASEAN could grow by 4.58 percent to US$29.28 billion this year.

India is a second-priority market following its significant economic growth over the past five years. Products with potential for export success in India include electronic goods and electrical appliances, toys and other items for children, furniture, jewellery and ornaments and Thai handicrafts, she said.

African countries will also play a more important role in Thai exports. These markets have high demand for Thai products, particularly rice, consumer goods, electrical appliances, garments, cosmetics, furniture, automobiles and auto parts and construction materials.

Index Plans Wide Scale Expansion

Bangkok, Thailand: Home furniture and furnishing retail giant in Thailand, Index Living Mall Co, plans to invest THB 2.2 billion (US$66.36 million) from 2010 to 2012 to develop new stores, upgrade facilities and renovate current stores, according to The Bangkok Post.

By mid-2010, Index will spend another THB 60 million to renovate its Bang Yai branch and THB 40 million to revamp all Index Living Mall stores in shopping centres under a new image.

Next year, about THB 500 million will be used to develop a 16,000 sq m branch on a 10-rai plot on Ratchaphruek Road to cater for customers in Pin Klao, Petchkasem and Ratchaphruek.

After opening the Ratchaphruek branch, Index will have four stand-alone outlets to cover the four Bangkok zones of Rangsit, Bang Na, Bang Yai and Ratchaphruek.

In 2012, another THB 1.1 billion will be spent to develop two new branches, bringing the number of Index Living Malls to reach 20-22 outlets within four years.

Baswell Wins US$100 Mln Contract

Selangor Darul Ehsan, Malaysia: Baswell Resources Bhd, an investment holding company with several furniture subsidiaries, has won a US$100-million subcontract for the entire manufacturing and installation of furniture and fittings for the Al Reem Island project in Abu Dhabi.

The estimated contract value of US$100 million is derived from the total estimated cost of manufacturing, and installation of customised kitchen cabinet, wardrobe, doors and customised loose furniture for Al-Reem Project, the company announced on January 20, 2010.

The project is managed by Metroplex Resources Ltd, a Hong Kong-based company. A Memorandum of Understanding (MOU) was signed on January 20, 2010.

“The MoU is consistent with Baswell’s market development plans as the company intends to enter into various collaborative agreements with other parties to enhance its international furniture manufacturing status,” said the company, The Edge Financial Daily quoted in its January 21, 2010 report.

FSC Seminars Held In SEA

Cheras, Malaysia: Five seminars on FSC certification were held in Bangkok, Kuala Lumber, Jakarta, Semarang and Surabaya in December 2009.

Suppliers from Brazil, Chile and Uruguay attended these five half-day seminars facilitated by APP Timber.

“We believe this is a first” said Michael Hermens, Managing Director of specialist importer APP Timber. “We think that there is a good future for wood industries in Southeast Asia, but not without additional supplies of timber,” he added.

APP Timber provides imported timber solutions to the Asian woodworking industry and has a wide range of products for various applications.

With personal presentations from representatives of each producer, delegates were able to understand the resources and production of certified Chilean Lenga from Ignisterra, Uruguayan eucalyptus from Urufor and lumber and logs from the Floresteca – the largest private teak plantation in the world.

The seminar in Malaysia was held by invitation of the Malaysian Timber Council at their headquarters in Cheras. In each location APP Timber members of staff were on hand to discuss local market conditions.

Indonesia Trade Department To Bolster Exports

Jakarta, Indonesia: Indonesia’s Department of Trade is keen to bolster its exports of non-oil products and some 100 local product groups are prioritised.

Minister of Trade Mari Elka Pangestu said: "To bolster competitiveness, we have macro-economic programmes, such as infrastructure improvement, logistical system improvement, high-cost economy cut, and other programmes. All of the products are potential to become major products in the global market."

According to the Bisnis Indonesia report on January 5, 2010, Pangestu admitted recently the export destination markets didn't only focus on big countries like the US, Japan, and the EU, but had switched to Russia, East Europe, and Asian countries, such as Korea, China, and India. But assured that traditional markets will still be maintained.
In addition, the government this year would also focus on securing domestic market and domestic products. This includes ensuring a ready supply of raw materials.

This would be done by tightening the implementation of the Certificate of Origin, imposing anti-dumping tariff, applying safeguard policy, eradicating smuggling, and promoting local products.

Chairperson of the Indonesian Furniture and Handicraft Association (Asmindo) Ambar Tjahyono said furniture and handicraft export, which slumped by 15 percent last year, would recover and increase by 15 percent. To meet the target, according to Tjahyono, his industry needs support from the government and the stakeholders.

Indonesians Fear Negative Impacts Of ASEAN-China FTA

Jakarta, Indonesia: The ASEAN-China Free Trade Agreement (FTA) has fuelled strong reactions from the Indonesian public who fear that this would mean an influx of cheap Chinese goods of all kinds, driving companies to go out of business. Employees on the other hand are worried that this would cost them their jobs and livelihood.

Industry Minister M S Hidayat said the "most serious impact" would fall on the steel, textile, unorganic chemical, furniture and energy-saving lamp industries, according to AFP’s report on January 19, 2010. He also called for the pact to be renegotiated to cushion Chinese competition.

"If there aren't any protective steps taken for these industries we're afraid that there KLCCwill be ... layoffs and even the closure of those industries," he added.

However, President Susilo Bambang Yudhoyono had said: “Don’t think that with the agreement we will be flooded by goods exported by China. We can export many of our products. This is not a threat, but an opportunity. We can expand, and raise our exports.” He said at the Indonesian Military headquarters in Cilangkap, East Jakarta, according to the Jakarta Post’s report on January 22, 2010.

He added the government would strengthen the competitiveness of local industries against cheaper Chinese products flooding the local market, while pursuing renegotiation of some tariffs with China.

To help protect local industries, the House of Representatives’ commission VI overseeing industry and trade has demanded that the government renegotiate 228 tariff posts covering garments, furniture and footwear, among others. It has given the government six months to do this.

President Susilo Bambang Yudhoyono ensured that the government would protect businesses, while pursuing talks with China to avoid negative impacts of the FTA.

Indonesia, Egypt Foster Trade Ties

Jakarta, Indonesia: Indonesia hopes to increase non-oil exports to Egypt by 10 percent in 2010, according to a report by Antara News on January 13, 2010.

Total trade between the two countries increased by 45.2 percent from 2004 to 2008 to reach US$1 billion with Indonesian exports valued at US$790.7 million.

Furniture counts as one of the main products exported to Egypt.

Egyptian Trade and Industry Minister Rachid Mohamed Rachid said he was optimistic the two countries would be able to increase their trade and investment cooperation.

"We have agreed to jointly study the barriers hindering trade and investment so far with regard to overcoming them," he said.

One such project to foster trade is already underway. Indonesian entrepreneurs will be establishing a water hyacinth processing factory in Egypt, the VIVAnews reported.

Indonesian Furniture and Handicraft Association (Asmindo) Chairman Ambar Tjahjono said on January 14, 2010 that this project was outlined six months ago and is facilitated by the State Minister for Coop and Small and Medium Enterprises.

“Asmindo and Baraka Group from Egypt are currently working on the business agreement. Hopefully it will be done in two months,” he said.

Indonesian furniture entrepreneurs will partner Baraka Group in this Rp 10-billion (US$1.07 million) development, which will be split equally among both parties.

Harvey Norman Happy With Christmas Sales, Targets Online Sales

Sydney, Australia: Harvey Norman Holdings Ltd, Australia’s biggest furniture and electronics retailer, is planning to beef up its online sales and is looking for an Internet marketer to join its senior marketing team, the mUmBRELLA media reported in January 2010. The new manager will be tasked to integrate existing marketing campaigns into new ones which he or she also has to create. The new role will also have to develop new markets and clients.

The marketing manager’s core accountabilities will be to integrate offline and online marketing initiatives for internal and external advertisements; implement a cross-channel media buying and placement strategy and tactical plan; provide customer and market information to feed into the overall marketing mix; and be the driving force for opening new online and digital advertising channels.

On January 7, 2010, Bloomberg reported that the retailer is “pretty happy” with Christmas sales at its stores. Gerry Harvey, executive chairman of the Sydney-based retailer, told Bloomberg that the retail sector has been on a strong recovering since April 2009.

The revenue figures were not yet released, but Harvey was reportedly quite satisfied.

With more than 195 stores (166 Harvey Norman, 15 Domayne and 14 Joyce Mayne) across the country, Harvey Norman offers a huge range of home, office and mobile products. The Franchisees retail products in the following categories: Electrical; Computers & Communications; Small Appliances; Furniture; Bedding & Manchester; Home Improvements; Lighting; and Carpet & Flooring.

Rossano Holding Strong In Vietnam

Ho Chi Minh, Vietnam: Vietnam’s export of wood and wood products to the US inched up 1.91 percent to reach US$979.46 million in the first 11 months in 2009. Vietnamese Ministry of Industry and Trade released these figures on January 15, 2010, adding that export of these products were the only category experiencing growth that period.
Vietnamese furniture factories such as Rossano Joint Stock Company have been successful at maintaining and stabilising production during the lull times.

Established in 1999, Rossano Joint Stock Company is a 100 percent Singaporean-owned enterprise in Vietnam and is renowned for its upholstery in the region. Founded by Eric K M Ong, it specialises in premium quality upholstery items for homes, offices and hotels.

Ong said in a statement: “In previous times, due to the negative effects of the economic recession, orders for exports as well domestic consumption fell dramatically. However, Rossano still made efforts to maintain and stabilise its production as well as workers’ rights.”

Rossano products are exported directly from its factory to markets such as the EU, UK, Japan, the Middle East, etc.
With a workforce of approximately 1,000 employees, Rossano owns a warehouse measuring some 2,500 sq m and a manufacturing plant that spans 8,000 sq m at Tan Tao Industrial Park in Ho Chi Minh City.

According to the company, it uses the latest technology in its sewing equipment imported from both Japan and Germany for all its upholstery.

“Rossano places great emphasis on quality as well as rapid delivery of its products, ensuring that consumers will always find the highest quality and the best services available,” Ong said.

Rossano also targets the domestic market.

According to a report by VietNam Net on January 11, 2010, surveys show that expatriate consumers have grown very receptive towards locally made products. Vietnam products received 3.7 in quality (one score is the lowest, while five is the highest level).

Home furniture was listed as one of the products that they saw “considerable improvement” in.

By the end of 2009, Vietnam had a population of some 86 million people and some four million Vietnamese living and working in foreign countries.

This is why Rossano has continually sought and developed new consumer markets via the establishment of new sole agents in large cities and provinces in Vietnam.

“With the aim of maintaining and stabilising its turnover to create the conditions for consumption during this time of economic recession and to attract new consumers, Rossano has also conducted care programmes for consumers, presented discount cards and conducted numerous marketing and promotion programs to establish itself in the country,” the company stated.

Today, Rossano has three showrooms in Ho Chi Minh City, three in Hanoi and more than 20 franchise dealerships throughout Vietnam and Cambodia.

Rossano has received several awards, including: “Gold Medal for Trademark”; “Gold Medal for Prestige and Quality”; and “Golden Dragon Award” (2006-2009).

30% Of Chinese Furniture Tested Not Up To Standard

Beijing, China: A survey published by the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) said that up to 30 percent of furniture products it tested were substandard.

The types of furniture tested this time were limited to wooden cabinets and samples were picked in Beijing, Tianjing, Hebei, Liaoning, Heilongjiang, Shanghai, Jiangsu, Zhejiang, Anhui, Jiangxi, Shandong, Henan, Xiaxi, Guangdong, Hunan, Chongqing, and Sichuan provinces.

It inspected 400 types of wooden cabinets for standards consistency on parts such as the base (for stability), raw materials, woodworking, finishing, paint, ergonomics, harmful substances and others.

The AQSIQ named and blacklisted at least one Shenzhen company and 35 other in Guangdong. Another 10 in Sichuan also failed the tests. About 41.2 percent of the samples drawn from Guangdong and Sichuan did not meet the requirements.

Real Estate Rebounds, Fuels Furniture Sales Growth

Hefei, Anhui: Retail of consumer products grew by 19 percent to reach RMB 352.78 billion (US$51.64 billion) in 2009 in the province of Anhui. According to the Ministry of Commerce, this is 3.5 percentage points higher than the national average standard.

The ministry’s announcement on January 26, 2010 included a breakdown of the main factors contributing to this economic performance. One of them was the improvement of the consumer structure in China. The rebounding real estate market brought about an increase in outfitting and furniture orders.

Sales of furniture products doubled. Building and furnishing materials grew by 89.1 percent.

Wholesale prices (based on survey on 486 enterprises) for furniture, and building and furnishing materials grew by 41.5 percent and 68.4 percent, respectively.

Retail Sales Growth At 26.9%

Beijing, China: The growth of market sales in China was steady and fast, sales of selected products increased rapidly.

China’s retail sales grew by 26.9 percent in 2009 in real terms, adjusted for inflation, the National Bureau of Statistics (NBS) announced at a press conference on January 20, 2010. The growth rate was 2.1 percentage points higher than that in 2008.

Urban retail sales climbed 15.5 percent year on year to RMB 8.51 trillion (US$1.25 trillion), while those in counties and areas under county-level rose 15.7 percent to RMB 4.02 trillion.

Products that enjoyed the biggest growth include furniture at 35.5 percent and automobiles at 32.3 percent.

Property Prices Posts Highest Growth Rate Since 2008

Beijing, China: December property prices across China’s 70 largest cities grew at a rate of 7.8 percent – the highest since 2008, The Times reported on January 14, 2010. This growth rate includes both residential and commercial properties, according to the National Development and Reform Commission.

The rise in November 2009 was only 5.7 percent year-on-year. Many are worried that this could a speculative bubble in the making, the report said.

Although Beijing clearly communicated that it is keen to prevent a housing property bubble from running out of control, it has to balance this against related industries such as furniture.

“Housing is an important asset for China’s middle class. Allowing prices to rise is a good way for Beijing to placate that group and that is why the calming measures are, for now, only going to be tweaks,” Ben Simpfendorfer, chief China economist, at RBS said in the report.

Fujian Furniture Exports Up 17%

Fuzhou, Fujian: Fujian’s furniture export rose 16.9 percent to reach US$1.86 billion for the whole of last year, according to the official figures from the Customs.

By August 2009, the province’s monthly furniture export had exceeded US$160 million. It has been sustaining double-digit growths since then. By November, furniture exports totalled US$190 million, up 46.8 percent from same month in 2008. In December, this figure exceeded US$260 million, up by 72.5 percent.

Export by processing trade was reduced significantly as the general processing segment improves. The latter accounted for 84.2 percent with US$1.57 billion in export value, up 26 percent.

Export value posted by foreign companies operating in the province fell by 11 percent. Local enterprises fared a lot better with a growth of 76.7 percent and contributed to 44.7 percent of total export values. Fujian manufacturers shipped furniture worth RMB 830 million (US$121.56 million)

Fujian’s major export destinations were the US (US$710 million, up 2.4 percent), EU (US$480 million, up 7.4 percent), and Eastern Europe (US$140 million, up 3.2 times), which altogether account for 71.8 percent of total export value.
The Custom authorities said one of the reasons that contributed to this growth was the export tax rebate, which was increased to 15 percent since June 1, 2009. This has helped to lower operating costs and improved China’s furniture export competitiveness in the world.

The authorities also drew attention to the challenges ahead, besides the barriers of entry via environmental regulations; local manufacturers also have to work around the restrictions of raw material supply. Most of China’s timbre is imported from Russia. But since 2007, Russia has raised tariffs on wood from the initial level of 6.5 percent. In July 2007, this was increased to 20 percent, and in April 2008, 25 percent.

China Likely To Have Become World’s Largest Exporter

Beijing, China: China is very likely to have surpassed Germany as the world's largest exporter in 2009, China's Vice Minister of Commerce Zhong Shan said. A People’s Daily in a report dated December 28, 2009, also quoted Zhong saying that although China faced an extremely difficult foreign trade situation, it still successfully achieved the goals of "solid external demand, capital markets, and share capital".

In 2008, China's exports accounted for an 8.86-percent market share internationally. In 2009, this would exceed nine percent, the report said. It is expected that last year’s decline in exports will be more than 16 percent with imports falling by less than 15 percent.

Sichuan Furniture Posts 40% Growth In 2009

Chengdu, China: Sichuan has risen to become the market leader in second and third tier cities in China, and its capital Chengdu is today the commercial centre for furniture in western China, Jia Qingwen, Chairman of the China National Furniture Association said at a function hosted by the Sichuan Furniture Commercial Chamber on January 26, 2010.

Despite the economic meltdown, the province posted a 40-percent growth in 2009, he said. This proves that the manufacturers here had great foresight in targeting these markets.

Jia added that Sichuan had used to post an output worth just RMB 2 billion (US$292.76 million), employing less than 50,000 workers. In 2009, production value grew to about RMB 40 billion, supporting the livelihood of more than 800,000 people.

2009 Furniture Exports Slip 6%

Beijing, China: Furniture exports in 2009 fell marginally by six percent year-on-year to post US$25.33 billion, official figures from China Customs show. Numbers in the month of December however grew by 10.8 percent from same month in 2008, and up 26.56 percent from November 2009.

In December 2009, Guangdong’s furniture exports rose by 23.5 percent to US$39.97 billion. Jiangsu, Shanghai and Zhejiang also saw double-digit growths month-on-month to reach US$20.35 billion, US$15.21 billion and US$13.61 billion, respectively.

On the other hand, Shandong, Fujian and Beijing exported furniture worth US$8.09 billion, US$5.71 billion and US$5.01 billion, respectively.

Industrial sales value, rose 13.36 percent the same year. And for the month of December, the value grew by 18.78 percent from 2008 month-on-month.

Mattress Manufacturers Going Green

US: The entire furniture industry is moving towards sustainable development and that includes mattress manufacturers as well. The mattress industry is worth US$9 billion annually and most used mattresses end up in dump sites. Increasingly, municipalities and states are pressured to reduce waste and recycle more, but the economics of mattress recycling is tight.

American-made mattresses are very difficult to completely recycle because the steel springs tend to jam shredding machines. In Europe and elsewhere in the world, mattresses often are made without springs and thus are more easily recycled. An estimated 10 million mattresses are disposed of annually in the US, according to industry figures, and each mattress ranges in size from 27 to 60 cubic feet.

Pala Casino Spa & Resort decided to take the lead by bringing its unwanted mattresses to be sanitized, then rebuilt and resold, according to NC Times. Many of the mattresses will go to MBC Mattress Co in Corona, which reckons it gets up to 500 used mattresses a day from various sources. The used mattresses are baked at 205 degrees for 90 minutes to kill germs, bedbugs and other possible invaders. Stained mattress covers are removed and replaced; foam layers also are replaced if stained or damaged. Old foam goes on to become carpet padding, pet bedding or insulation. MBC sells its remanufactured mattresses under its own label at retail stores, disclosing the fact that these mattresses are remanufactured.

Consumers Are In The Dark About Green Products

US: Despite all the buzz about the furniture industry turning green, consumers are still in the dark about what that really means. According to Suzanne Shelton, president and CEO of the Shelton Group, a specialist in researching environmental issues, her recent findings showed that they're still pretty confused about what exactly "green" means and aren't dying to rush out and be green.

The findings are aimed at aiding green marketing messages as carried in Furniture/Today. The average consumer knows only enough about green to get through a cocktail party conversation, Shelton said. She said that when mainstream consumers were asked to name a feature of a green home, only 53 percent could. For furniture items, 24 percent of consumers recognise Rainforest Alliance labels, followed by Sustainable Forestry Initiative and GreenGuard certifications, Shelton said. But 60 percent didn't know any of the labels shown to them.

She said companies hoping to market green claims need to understand their audience, and must realise that it will take significant marketing dollars to inform their consumers. Green features, however, can serve as a tiebreaker in mature industries, she said.

Also, she said, 97 percent of consumers didn't know that the biggest cause of global warming is coal-fired power plants and that most believed cars and trucks were the biggest contributors. Some of the most effective green marketing messages appeal to what consumers aspire to, messages such as comfort, control and beauty.

Appealing to consumers' humanity or sense of what's best for the planet and themselves might not win sales because people do bad things to themselves and know they are bad, she said. When asked why companies "go green," findings showed that consumers don't really trust manufacturers' motives. She reported that most consumers believe it's an act, while other believe it's to make money or because of government regulations. However, she said that a third of customers trust manufacturers' label claims on why their product is green.

Forestry Industry In Hot Soup

US: The forestry industry is the top manufacturing sector in North Carolina and recently they have just shed thousands of jobs, according to the state Forestry Association. In 2007, the industry had 103,168 employees in forest manufacturing areas that include logging, wood products, furniture and paper, according to a forestry association release. That number decreased to 82,780 in 2009.

As reported in Daily Advance, this industry accounts for US$6 billion of the state’s gross product and went from supplying US$3.6 billion of the state’s wages in 2007 to US$3.1 billion in wages in 2009. Loggers all over the state are facing low demand for their services as well as the lower prices that mills are willing to pay for logs.

The layoffs are the result of the decline in the housing market and furniture manufacturers moving overseas. As the economy slowed, goods producers had less use for packaging materials, so that area of forestry production has also lagged behind. Though the news on the job front in the industry isn’t positive right now, the association believes that the forest industry will come back as the economy improves and the need for building materials and packaging rises.

USAID And Furniture Sector Cooperate For the Better Good

Jordan: In a press statement, under the patronage of His Excellency the Minister of Industry and Trade Eng Amer Al Hadidi, the Jordan Furniture Exporters and Manufacturers Association (JFEMA) in cooperation with the USAID Jordan Economic Development Programme (SABEQ) held a workshop to announce the findings of a survey conducted on the furniture industry in Jordan.

The workshop was held at Le Meridian Hotel and attended by USAID and Ministry of Industry and Trade officials, and JFEMA members. Approached by JFEMA for a grant to conduct a survey of the furniture industry in Jordan, the Economic Development Program (SABEQ) supported the project that will help identify points of strength and weaknesses to enable the industry sort out its problems and get out of a period of recession it has been suffering from since 2009. The study assessed the furniture sector's capability and classified its export mature products and components.

"I would like to impress upon the importance of invigorating the private public sector partnership. Equally I would like to impress upon the importance of Arab and foreign partnerships that will develop industrial sectors. Such partnerships will no doubt increase the opportunities of using advanced technologies and be a value added element to this sector," said the Minister of Industry and Trade in his remarks at the opening ceremony.

The survey established that 90 percent of the exports are made by 20 companies, and that local demand is met. It advised of a re-visitation, re-evaluation and preparedness for re-negotiating the next WTO round. It also recommended capacity building of sector entities by deploying market analysis research techniques which will help identify markets for exports. Other findings were also presented and discussed.

The USAID Jordan Economic Development Program (SABEQ) is a five year broad economic development initiative implemented by Deloitte Consulting LLP and a sizeable team of international and Jordanian partner firms. By supporting improvements in the business environments and providing assistance to expand innovation and productivity in Jordanian businesses, it supports the main objective of building up the private sector as a powerful engine of economic growth.

Improving Wood Sourcing

Las Vegas, US: The Sustainable Furnishings Council and World Market Center Las Vegas, in cooperation with World Wildlife Fund, Rainforest Alliance, Forest Stewardship Council and other governmental, environmental, academic and trade organisations is working to improve wood sourcing in the US furnishings industry, according to Procurement Leaders.

The groups came together at the first cross-disciplinary ECOngress on that took place on January 31, the day prior to the opening day of the February Las Vegas Market. The event aims to inform "every point in the supply chain" as to the importance of known legal origin and responsible forestry for wood products.

High on the event's agenda will be the Lacey Act, a US law amended in 2008 that bans commerce in illegally sourced plants and their products, including wood and paper products. The event organiser points out that, in April, furniture items will be included in Lacey declarations requirements reinforcing grounds for legal prosecution of entities importing, transporting, selling or purchasing products using illegally harvested or traded wood from the US or abroad.

Organisations represented include WWF's Global Forest & Trade Network, UN's Intergovernmental Panel on Climate Change, US Department of Justice, Yale School of Forestry & Environmental Studies, Weyerhaeuser, Savannah College of Art & Design, Century Furniture, Oregon State, Williams-Sonoma, Architectural Digest and a noted ASID-LEED design practitioner. Major environmental organizations World Wildlife Fund, Rainforest Alliance, Forest Stewardship Council and Tropical Forest Trust will also be participating and collaborating in planning for the event.

Fashion4Home Launches Social Furniture Site

US: Furniture site Fashion4Home, which launched in Germany in November of last year, just debuted in the US, according to a press statement. The site will offer US shoppers 80 models of contemporary furniture across 12 categories, including exclusive designs, at 50 to 70 percent lower than traditional retail prices. The launch comes just a few days after China-based on-demand furniture maker Myfab announced its own US launch.

Cofounder Just Beyer believes Fashion4Home’s emphasis on social networking integration, specifically feedback and comments, sets it apart from competitors in the space, such as Myfab and traditional retailers with an online presence, such as Design Within Reach and All Modern. The comments are collected manually at this stage, but designers are excited about having nearly instant feedback, allowing them to create new iterations of their designs.
The US site will be very similar from a technology perspective to the German site, with a few differences in assortment and layout. The emphasis is on setting up a fast supply chain and “getting good ideas from concept to prototype to shop as fast as possible. The German site has seen sales growth of 200 to 300 percent month over month since its launch.

Fashion4Home pays designers monthly, as opposed to the traditional model, in which a provision is paid a year after the product launches. Fashion4Home is also working on letting designers freely upload sketches and letting non-designers upload photos, with the opportunity for others to comment and vote on them.

Beyer would like to see a seasonal furniture market, similar to that of the fashion industry, evolve, and he believes the site helps by offering lower prices and innovative designs. Fashion4Home is working on a sustainable, eco-furniture range, including pieces made from bamboo, which will be available for the launch of the US site.

The company is backed by Rocket Internet, an affiliate of the European Founders Fund and the three Samwer Brothers, who have invested in Facebook and LinkedIn, with secondary investments from Holtzbrinck.

Acne Launches Furniture Range

Paris, France: The Swedish fashion brand has introduced its first furniture designs during haute couture week in Paris, according to its press release. Having previously added jewellery, shoes, and leather goods to its range of clothes, in addition to publishing the popular Acne Paper, the move represents a further move towards diversifying the brand.

Diane von Furstenberg’s own furniture range is due to be out in 2011, joining other couture labels trying their luck in interior design: Vivienne Westwood recently launched a range of wallpaper with British label Cole & Son, while brands such as Diesel and Bottega Veneta have full-blown home collections.

Acne's new line of velvet chairs and sofas in pastel colors - with their aesthetic being inspired by Swedish design guru Carl Malmsten and executed by Acne head designer Jonny Johansson - can be ordered online. Prices range from EUR 4,000 to EUR 15,000.

Furniture Index Falls Another 7%

UK: Hopes of a recovery in the value of antique furniture have been dealt a blow after the Antiques Collectors’ Club’s Annual Furniture Index (AFI) saw prices fall by seven percent during 2009, the biggest ever 12-month drop in the index. The AFI, which stood at 100 at its inception in 1968 and reached a historic high of 3492 points in 2003, moved downwards from 2942 to 2736, due to falls in all seven of its constituent indices. This report was carried in the Antiques Trade Gazette.

The results are disappointing after two years when, as the index remained static, some kind of recovery was anticipated. The AFI is derived from a variety of 1,400 typical, rather than exceptional, pieces of antique furniture from seven distinct periods or categories illustrated and charted in the ACC book, British Antique Furniture. The number crunching is based on both auction and retail prices recorded across the country, although, more than ever, compiler John Andrews observed the greatest number of transactions taking place at auction.

As usual, there were some spectacular sales at the ‘top end’, but as the quantity of high-quality pieces brought to the market diminished, even these ‘exceptions to the rule’ were less abundant than in the previous year. By contrast, the financial and property indices, for many years bettered by the Index, showed some recovery. There is hope the furniture market may benefit from any return of economic confidence in the longer term.

Financial Crisis Boosts German Furniture Sales

Germany: As the Cologne furniture fair gets underway, the industry is cautious but hopeful. The international furniture fair IMM Cologne is one of the few consumer goods conventions in the world that has been able to buck the trend and stay stable, Gerald Boese, head of the city's convention center told DW World.

This is the first major trade fair of the year in Germany and, considering that it comes on the heels of an economic crisis, it is doing quite well with 1,053 exhibitors representing 51 countries. That is an increase of one percent from last year. Furniture, kitchen and other design specialty shops did surprisingly well last year, despite the global finance woes. Germans spent almost EUR 30 billion (US$42.09 billion) on furniture and kitchens in 2009.

While those selling their products did well, the German furniture and kitchen manufacturers themselves suffered a 10 percent cut in profits last year. The sector had been experiencing record growth from 2004 to 2008 but the force of the financial crisis put a stop to that, said Dirk-Uwe Klaas, head of the German Furnishings Industry Union. However, Klaas said that in comparison to other industry sectors, which have suffered an average loss of 20 percent, the furniture manufacturers got off relatively easy.

The demand for office and shop furnishings has decreased by 17 percent, which is typical for a recession. Demand from abroad has also decreased by about the same amount.

IKEA Is Unstoppable

Europe: Swedish furniture retailer IKEA is spreading its wings to the municipality of Paterna in Italy and Furuset in Norway. Large expansions are also planned in Trondheim, Oslo, Kristiansand, Stavanger, Bergen and Larvik in Norway.

In Paterna, the company has negotiated the opening of the new facility with the local authorities for two years. The project requires an investment of EUR 220 million (US$308.65 million) and it is expected to create 2,000 direct and another 2,000 indirect jobs.

As for Norway, IKEA plans investments of over EUR 307.15 million for its store expansions and new store. The new store in Furuset will be 40,000 sq m, replacing the existing 20,000 sq m building. The opening is planned for 2012. IKEA has 35 percent of the furniture retail market share in Norway.

In other IKEA-related news, IKEA Israel reported an eight percent growth in sales at its Netanya store in 2009 to NIS 496 million. Sixty four percent of turnover was from furniture sales, and rest from sales of housewares and other items. IKEA Israel CEO Shlomi Gabbai said that despite a drop in prices last year, the store's operating profit margin improved, thanks to streamlining measures in operations and logistics. IKEA Israel is also due to open its second store at Me'uyan Soreq in Rishon LeZion in March. There are also plans to eventually open a third store in Haifa.
Lastly, Ingvar Kamprad, founder of Swedish furniture chain Ikea, has purchased 1.3 percent of Swedish industrial management company Skanditek. The purchases were made during Q4 of 2009 and Kamprad is now the 14th largest owner of the company.

Boyles Emerges From Bankruptcy

High Point: US: Seven months after filing for Chapter 11 protection to reorganise and shed debts, the parent company of Boyles furniture stores emerged from bankruptcy. Hendricks Furniture Group, based in Conover, near Hickory, plans to focus now on its remaining Boyles stores in North Carolina. Boyles has stores in Pineville, Hickory, High Point and an outlet/clearance center in Mocksville.

Like most companies suffering these days, Hendricks’s collapse is caused by the flailing housing market and declining home furnishings spending. Sales at US furniture stores were down 11 percent in 2009, according to the US Department of Commerce. Privately held Hendricks said the bankruptcy enabled it to reduce debts and lease obligations associated with closed stores.

In a court filing, the company projects sales of about US$40 million for 2010 and incremental growth in the years ahead, assuming the economy improves. The company's debts and how much bankruptcy reduced them, remained unclear. Throughout the bankruptcy, Boyles customers received the furniture they had ordered, company spokesman Matt Ferebee said, though he acknowledged delays.

While in bankruptcy, the company was prohibited from refunding money to customers who asked for a refund instead of continuing to wait for delayed furniture, he said. Among the changes is a slightly modified name, Boyles Furniture & Rugs, that places new emphasis on the stores' rug selections. The stores will also focus on offering more value-priced products, Ferebee said.

James Comes To Manhattan

New York: Despite the economic slump, several big-name hotels are opening in Manhattan. Some of them include the Trump SoHo, the Mondrian and the James New York, according to The New York Times. The James New York is a part of a mini-chain of boutique hotels.

Expected to open this summer, the hotel rises 20 stories at the corner of Grand and Thompson Streets in SoHo. The 114 brown and turquoise rooms will have built-in bars made of reclaimed wood and peek-a-boo bathrooms with privacy screens. Its lobby is housed on the third floor, can be reached via a glass elevator and overlooks LentSpace, a public art park across the street. On the second floor, there will be a garden and rooftop pool lined with cabanas and a lounge.

Fairmont To Open Seven Hotels

World: Not feeling the effects of the burgeoning economy, Fairmont Hotels & Resorts announced that throughout 2010 it will open seven new hotels in growing markets around the world, according to CPI Financial. While most are newly developed properties, Fairmont will also throw open the doors at two of the world's most celebrated addresses: The Savoy in London and the Peace Hotel in Shanghai. Other places are in Saudi Arabia, Pittsburgh, Beijing, Vancouver and South Africa.

The Savoy will be paying homage to its original Edwardian and Art Deco design. A culmination of a nearly two-year, GBP 100 million (US$162.69 million) restoration programme, Fairmont described the renovation as a “top to bottom endeavour”, including 268 guest rooms and suites, the courtyard and famed American Bar, the public areas and guestrooms. The extensive restoration includes a luxurious new Royal Suite and the complete remodel of the legendary River Restaurant. New additions include The Beaufort Bar and the Savoy Tea Shop.

Opening Q2 2010 in the newly restored Peace Hotel, a Shanghai landmark for over a century. Situated on the Bund, the 12-story, 269-room property is facing the Pudong area over the Hangpu River. The new hotel will resurrect the Jazz Bar and the famed Peace Hall.

Also opening in the second quarter, the Makkah Clock Royal Tower will include seven towers, 858 rooms, numerous dining outlets and conference facilities. The 76-storey hotel tower, at 577m high, will be among the world's tallest and features a 40m clock. A Lunar Observation Center and an Islamic Museum will add to the one-of-a-kind hotel.

Fairmont Pacific Rim in Vancouver will open the doors in the third quarter and boasting 377 rooms and 175 residential condos. The hotel will be located adjacent to the Vancouver Conference Center with views of the Stanley Park, the Burrard Inlet, the North Shore Mountains and the city of Vancouver.

As for Pittsburgh, the hotel has 185 rooms and suites at the heart of Pittsburgh's newest cultural district. The hotel has views of PNC Park and the Pittsburgh skyline on one side and Mount Washington and the historic downtown on the other. It is slated to open in Q1 2010.

Fairmont Beijing, also opening in the first quarter, is home to 222 rooms and located near the city's major cultural, shopping and business areas, including The Forbidden City. Lastly, the Fairmont Zimbali Resort sits along South Africa's east coast with 154 rooms and views of the Indian Ocean. It will open its doors in the second quarter.

Furniture Brands International Reduces Debt

US: Reported in Kids/Today, Furniture Brands International stated that it expects its Q4, 2009 sales to reach US$290 million, about 30 percent lower compared to Q4, 2008. With that projected earnings, the company is hoping for positive cash flow in 2010. It ended 2009 with about US$83 million in cash and debt of US$95 million.

Furniture Brands didn’t release earnings projections, but said the quarter will include several one-time charges for severance, store and plant closings, inventory write-down, plant downtime, and asset impairment.

In the fourth quarter of 2008, the company had sales of US$403.4 million and net loss of US$40.7 million, or 84 cents per share. The sales estimate fell below the US$312.5 million that Wall Street analysts were expecting on average, according to Thomson Reuters.

Bassett Furniture Rebounds

US: Virginian Bassett Furniture Industries reported a profit of US$2.6 million in Q3, 2009, according to Furniture/Today. Sales slid 3.5 percent in the same period in 2008. Its profits report ended a five consecutive quarterly loss. In the same quarter in 2008, Bassett reported a net loss of US$37.8 million or US$3.24 per share.

"The company's ongoing focus on expense reduction and working capital management began to bear fruit in the fourth quarter," said Rob Spilman, president and CEO. "More importantly, perhaps, we produced US$6.1 million of operating cash flow for the quarter. This marks the company's third consecutive quarter generating positive operating cash."

Sales for Bassett's wholesale category fell 12.7 percent in the quarter, while sales at company-owned Bassett Furniture Direct stores increased 21.4 percent. The retail increase was due to the acquisition of nine stores earlier in 2009, bringing the total to 36 corporate stores.

Gum Tree Fabrics and Culp Embroiled In Copyright Infringement

US: Gum Tree Fabrics has denied knocking off a popular leather-look fabric by competitor Culp Inc. call into question Culp’s copyright, according to Furniture/Today. Culp is engaged in copyright enforcement procedures against Gum tree, Global Textile Alliance and Hamilton Fabrics. However, only Gum Tree has responded.

"The design asserted as being copyright by Culp, however, although it has been registered with the US Copyright Office, is very questionable because it looks like a very common item that has been available from many sources for many years. This look was developed by the apparel industry previously to the furniture industry," the company said in a written response.

Gum Tree said it was important that they have access to information about the fabric "because the specimen submitted by Culp to the copyright office to support its registration is no longer available, and the copyright office approved the copyright only based on the exact design submitted in that specimen. Accordingly, in part because of Culp's lack of cooperation it is impossible to determine whether our product even is the same as what Culp claims to be copyrighted work, or if what Culp claims to be its copyright work was actually reflected on what it provided to the copyright office."

Gum Tree also mentioned that the matter can be resolved on a reasonable basis, however it is also wary that Culp or anyone else would abuse the copyright laws to limit legitimate competition and increase prices for consumers.

Culp said it had reached confidential agreements with other customers and fabric suppliers over infringement on copyrighted designs, including Palomino, Wrangler, Stampede, Congo, Gunslinger, Nabuck, Bonanza, Lambskin, Nabook and Buckskin.

Haverty Positive Comparable Store Sales Inches Up

US: According to PR Newswire, Haverty Furniture Companies Inc reported sales for the period ended December 31, 2009. Havertys' sales for the fourth quarter 2009 increased 0.4 percent to US$162.4 million, compared with US$161.8 million for the fourth quarter of 2008.

On a comparable-store basis, sales for the quarter increased 2 percent but sales decreased 14.2 percent for the twelve months. Sales for the twelve months of 2009 totalled US$588.3 million, compared with US$691.1 million in 2008, representing a decrease of 14.9 percent.

"We are pleased to return to positive comparable store sales territory for our fourth quarter. Total written sales during the quarter were up 1.4 percent. Gross profit margins have held up well even in this promotional selling environment. We are off to a good start in 2010 after a successful New Year's sale and look forward to top line improvements for this year as we celebrate Havertys' 125th year in the retail furniture business," said Clarence H Smith, president and chief executive officer.

Wintry Cold Hits Store Sales

UK: Retailers in Britain saw their worst sales performance in January 2010, the lowest since August 2009.

The wintry weather held consumers home and the end of the temporary VAT reduction did not help motivate sales. January is traditionally a buoyant month as clearance sales are usually held at this time.

At the height of the adverse weather between January 4-15, sales fell 36 percent while 28 percent reported a rise to leave a balance of minus eight.

Andy Clarke, chairman of the CBI distributive trades panel and chief operating officer of Asda, said: “The big freeze kept many shoppers away from the January sales and the VAT hike has hit bigger purchases like furniture and electricals”.

He said that despite 2010 opening on a “weak footing”, the picture should stabilise in February.

Vicky Redwood, UK economist at Capital Economics, said: “Overall, this survey underlines our view that we shouldn’t expect much from consumers this year.” After all, the UK’s GDP grew by only 0.1 percent in September-December 2009.

Rooms To Go Expands Credit Card Programme

Florida, US: Rooms To Go, the furniture retailer, has expanded its private label credit card programme with TD Retail Card Services (TDRCS) to include 53 stores in three Southeastern states.

Under the agreement, the Mahwah, New Jersey-based business unit of TD Bank, will now direct all facets of the programme for the 130-unit chain's showrooms in metro Atlanta, northern Florida and Louisiana. TDRCS began serving the retailer in 10 test stores in July, taking over the private label credit card programme administered by another provider. The conversion to TDRCS was expanded to other locations in stages over subsequent months to reach the current level.

Rooms To Go introduced the concept of displaying and packaging furniture in complete room settings. The company's designers coordinate each room's colours, fabrics and accessories.

The Rooms To Go credit card from TDRCS will offer consumers a full menu of same-as-cash and equal pay programmes.