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Furniture Leadership Awards Returns With Asian Edition And Larger Format

Singapore: The Furniture Leadership Awards (FLA) returns after the jubilant debut of FLA Malaysia last year.

FLA Malaysia 2008 gave out 12 awards altogether, including the Gold, Silver, Bronze and Entrepreneur of the Year awards. At the Award Ceremony/Gala Dinner held on 8 December 2008 in Kuala Lumpur, Malaysia, the Guest-of-Honour, then Minister of Plantation Industries and Commodities, YB Datuk Peter Chin, commended the organisers’ efforts and expressed his hopes to see an even grander event in the coming year.

This year, FLA will indeed take on a grander scale: the 2nd FLA Malaysia will run alongside the inaugural Asian FLA (AFLA).

Organisers aim to recreate the buzz, encouragement and goodwill arising out of the successful FLA Malaysia 2008, in Asia, through AFLA. Select manufacturers from the region have been invited to vie for the AFLA Leadership Excellence Awards 2009.

Dr Casey Loo, Programme Director for the FLA and publisher/editor-in-chief of Furniture & Furnishing Export International and Office & Contract International said: “We received excellent responses for AFLA, judging by the high quality of nominations from across the region”.

Winners of the AFLA will enjoy the same publicity as FLA Malaysia winners. AFLA, FLA Malaysia 2009 as well as eventual winners will be promoted both locally and internationally through various channels including: FFE magazine; FFE website; FLA website; international furniture trade media; nine international trade fairs and local newspapers.

Results for both FLA Malaysia and AFLA will be announced in the third week of November after the second around of selection by the judging panel.

The award presentation ceremony cum gala dinner will be held in December gathering winners, VIPs, representatives from regional associations, invited international buyers.

FLA Malaysia 2009 Judging Panel

Michael Buckley
International Furniture Design Advisory Committee Member, Singapore Furniture Industries Council
Director, Turnstone Communications
MPhil FIWSc FRSA

Byun Sang Joon
Publisher of GaGu Guide
Chairman, Korean Living Furniture Association

Brian Casey
President and Chief Executive Officer, The High Point Market Authority

Professor KC Chan
President, Wholistic
Learning Consortium
Founding Director, Centre for Professional Training and Development

Helmut Max Merkel
Editor-in-chief of Moebelmarkt
Director, CRP Consulting (Ritthammer & Partners GdbR)

Takayoshi Nagashima
Executive Director/Chairman, International Relations
Committee Of Japan Specialized
Newspapers Association
Vice President, Japan
Specialized Newspaper Association Federation
Editor-in-Chief, The Home Living
President, AIK Co Ltd

Professor Xu MeiQi
Vice Director, Science & Technology Committee, China National Furniture Association
Dy Chief, Shanghai Furniture Research Institute
Vice Chairman, China Wood
Drying Institute

The same panel and in addition, Au Leck Chai, CEO of Malaysian Furniture Promotion Council will be judging for FLA Malaysia 2009.

Haleywood Re-brands

Singapore: It’s a common advice from management gurus: upgrade product offering and enhance brand communication when the market is quiet. Heeding counsel, hardwood furniture specialist, Haleywood Industries Pte Ltd’s brand image went through a complete makeover over a yearlong period.

The Singapore-based company began brainstorming in October 2008 and planned for works through the year-end.

“Because of the fact that the economy was starting to pick up, this was the best time to revitalise the brand after the recent economic depression,” said the company’s Sales & Marketing Director, Ong Shih Lin. She added that Haleywood spent nearly US$250,000 in total, including man-hours involved. Statutory board Spring Singapore’s Brandpact grant allowed it to engage an external design consultant for this exercise.

Design works and application trials started in January 2009. These included changes made to the logo, website and company collaterals. The new look was officially launched during Furniture China fair in Shanghai on September 9, 2009.

The refurbished logo spots a tree motif; its silhouette made up of several circles each symbolising: Design; Environmental consciousness; Quality assurance; Detail oriented; Dedication; Geographic coverage and; Unsurpassed results.

“These symbolisms were inspired by the angles and geometry of Haleywood's furniture. Each of the seven circles represents qualities that Haleywood espouses,” Ong explained. The tree protrudes from the company name, signifying its close relationship with wood.

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.

Most of Haleywood’s products are exported to Europe from the factories it co-owns in China. These clients have responded positively to Haleywood’s move, Ong said. “Many customers remark that it is a large improvement over the previous brand image and portrays a higher-class of image.”

Singapore, Italian Furniture Industries Sign MOU

Singapore: The Singapore Furniture Industries Council (SFIC) and the FederlegnoArredo (FLA; the Italian Federation of Wood, Cork, Furniture and Furnishing Industries), on September 8, 2009, signed a memorandum of understanding (MOU). The MOU will promote better understanding, encourage knowledge sharing and create further partnership opportunities between Singapore and Italian furniture players and designers.

The MOU was signed by SFIC President, Andrew Ng and President of FLA, Rosario Messina; witnessed by Dr Massimiliano P Sponzilli, Trade Commissioner, Italian Trade Commission in Singapore and Chong Lit Cheong, CEO of International Enterprise (IE) Singapore. This is the first agreement of its kind between the local furniture council and a European counterpart. It builds upon the MOU signed by IE Singapore and the City of Milan in April this year to promote economic cooperation in areas such as design innovation.

Said Ng: “In April, Singapore Mozaic, the local furniture industry brand, participated in the prestigious Salone Internazionale del Mobile held in Milan, Italy. This was led by SFIC and IE Singapore, and supported by SPRING Singapore and DesignSingapore Council. Our participation was mentioned by Prime Minister Lee Hsien Loong in his National Day Rally speech as an example of how Singapore companies are aggressively spreading its wings overseas. Italy is the world’s centre for top quality furniture and stylish designs. Our local players will have much to learn from their Italian counterparts. With the signing of this MOU, we are very proud to actively expand upon the relationship we have built with FLA, the parent organisation of the Milan fair, over the course of our participation in the past two years.”

Messina said: “The rapid consolidation of the world furniture market is now demanding for FLA to take part in worldwide projects such as the organisation of international furniture fairs, design exhibitions and other seminars and conferences which could strengthen our competitiveness. Our international strategy is to promote Italian wood furniture through global events and in close cooperation with fellow furniture associations such as SFIC that will result in ‘win-win’ situations for everyone. We are impressed by Singapore’s well-designed quality furniture and the reliability and effectiveness displayed by these companies when doing business. We are very happy to be working with SFIC, a highly regarded furniture association in Asia and we are certain that this cooperation will bring mutual benefits. “

Under the scope of the MOU, SFIC will work together with FLA to facilitate collaborations and ‘match-make’ suitable Singapore and Italian furniture companies that possess capabilities which complement each other’s businesses. For example, Singapore manufacturers can team up with Italian retailers to bring its products into the competitive market in Italy. Similarly, Italian manufacturers can partner Singapore companies to value add to existing products and penetrate emerging markets in Asia such as China and Vietnam. Local companies can also take on distribution or franchising of Italian brands in Asia or the ASEAN region through their extensive contacts.

SFIC and FLA will also link up companies with furniture designers or architects to jointly undertake projects in Asia, Europe and internationally. They will also actively search for suitable marketing opportunities and look to provide support to companies from each country with contacts in the sourcing of raw materials, technology and production-related services.

SFIC and FLA will hold regular meetings to share experiences, discuss joint initiatives and provide updates on the latest market trends and data, legal issues on quality certification standards as well as industry trends in design, technical aspects and management. They will also promote trade exchange by leading delegations to reputed global trade fairs in each country, especially the Salone Internazionale del Mobile in Milan and the International Furniture Fair Singapore/ASEAN Furniture Show here in Singapore.

Singapore’s Prime Minister Lee Hsien Loong recently singled out the Singapore furniture industry for its successful transformation from its roots as a labour-intensive trade to one that is now known for design excellence and high quality. Comprising 2,020 companies and creating jobs for 14,000 people in 2008, the Singapore furniture industry is today a global player with operations in more than 16 countries worldwide. According to latest compiled figures, Singapore’s total furniture trade hit S$4.2 billion (US$3.02 billion), with exports amounting to S$3.2 billion.

The Italian woodworking and furniture-making sector has a turnover of over EUR 38 billion (US$27.29 billion), and employs around 410,000 people. Exports represent more than 30 per cent of the total production.

Singapore Reports Retail Sales Drop

Singapore: Retail sales have dropped for a 10th consecutive month in July for Singapore, by 9.8 percent, reported the Associated Press.

The figure, announced by the national statistics board, follows a series of declines year-on-year, with drops of 8.4 percent in June and 10.4 percent in May. Sales also fell 1.6 percent from June to July. Sales of furniture and home furnishings declined by 2.1 percent. These declines were attributed mainly to the cautious spending habits adopted by Singaporeans in the current economic climate, which is turning to investing in stock markets instead of buying big-ticket items. In addition, a weak labour market and lower tourist numbers have also contributed to the lower retail sales.

Singapore’s GDP, however, grew by 20.7 percent in the April to June period, the first growth in a year. Comparisons in retail sales will also benefit with the lower numbers from 2008 as the recession had hit the hardest during the fourth quarter. The government expects GDP to shrink between four and six percent.

Green Furniture Can Drive Exports

Bangkok, Thailand: Thai furniture exports need to be more eco-friendly to meet strict environmental regulations in key markets, according to a report by the Bangkok Post dated September 30, 2009. Demand for green products have increased, and more efficient manufacturing processes have help to lower costs, said Somchai Chatratana, deputy executive director of the Technology Management Centre, a state agency that provides technological assistance to the private sector.

"Five years ago, promoting the concept of eco-friendly products would have been impossible because manufacturers were scared of higher costs. But now we have to give more importance to it," said Dr Somchai, at the sidelines of the Woodworking Forum 2009.

Products with large carbon footprints are under ban threats and international standards of environmental friendly furniture, such as the Green Label, are growing more popular as a benchmarking tool. These will become non-tariff barriers to those manufacturers who cannot keep up with the requirements.

Thailand's main furniture export markets are Japan, the US and Britain, according to the Thai Furniture Industries Association.

The sector's export figures for the first seven months to July dunked to US$500 million from US$1.2 billion in the same period last year.

Nudjarin Ramungul, a researcher with the National Metal and Materials Technology Centre, said the economic crisis has made consumer more prudent in their shopping choices, eco-friendliness being one of them.

"We are seeing pollution controls on products to ensure they contain the least amount of resources and that they create the least damage to the environment. This is what we call sustainability," she said.

Many countries are in talks among their own agencies to discuss green taxes levies. Products would be taxed according to the amount of carbon dioxide emited throughout the manufacturing process. If producers cannot show improvements, they will be taxed heavily.

"Japan, for instance, has a policy to eliminate waste at the very start of the production cycle, whereas European countries include waste fees in products that cannot be destroyed," said Dr Nudjarin.

"By adjusting the production cycle to become more efficient on waste management and energy costs, the product's overall cost will be lower," said Dr Somchai.

But this green future seems too far yet as there are few specialists in eco-design and most firms are not interested in this trend, said Prin Boonkanit, and engineering manager at Eco Design Consultant Co. Only about 20% of Thailand's furniture products are considered to be eco-friendly, said the TFIA.

"The Thai government has no business paradigm, even though the country shows high potential to develop towards the trend given the strong skills of its [furniture] designers," Dr Prin said.

Thai Maker Develops Synthetic Water Hyacinth For Furniture

Bangkok, Thailand: Thai designers have long been known as the forerunners in the use of natural and new materials. Water hyacinth is one material abundant in the country and the use of it in furniture is not unusual in Thailand.

One of the country’s designer/producer, Hawaii Thai Export Co, launched its latest Durawera furniture made from synthetic water hyacinth, which it believes will be popular in the US and Europe. Managing director Vivat Viphavaphanich expect it to bring in at least BHT 40 million (US$1.2 million) next year, according to the Bangkok Post in a report dated October 16, 2009.

Durawera was formally launched at the International Casual Furniture & Accessories Market in Chicago in September. Besides making its own, Hawaii Thai is also in talks with some US designers to buy synthetic water hyacinth as a material for other furniture brands.

The company invested BHT 6 million on the R&D of the material between 2005 and 2007. Synthetic water hyacinth will be a key material to help boost business next year.

Durawera furniture lasts in all weather conditions and for more than five years. Synthetic water hyacinth also looks very similar to the real item, which costs lesser than those made using the real material. But Hawaii Thai is confident of its potential.

The company plans to launch five new synthetic water hyacinth products designed by famous international furniture designers. The new furniture will be presented at shows in Las Vegas and Germany in the future.

Hazelwoods Announces Closure

Hutt Valley, New Zealand: The effects of the recession have sent another company reeling, reported NewsTalkZB on October 2, 2009. Hazelwoods, which is based in Hutt Valley, has announced its closure after being in business for more than 100 years.

The store, which has branches in Upper Hutt and Tawa, sells furniture and beds. Employee Laurie Marks does not place the blame on any particular party, commenting that it was just a sign of the times. He also believes that it will leave a gap in the market, as the store has many customers who have been patronising it for years.
Hazelwoods had some 50 stores all over New Zealand and overseas.

Godrdrej Shifts To Furniture Only

Mumbai, India: The Godrej Group has announced its decision to reformat its lifestyle retail chain Godrej Lifespaces to one that sells only furniture. The Financial Chronicle reported on September 30, 2009, that the chain, which previously sold everything from consumer appliances to home fittings and furniture, would be rebranded as “Godrej Interio”.

This exercise is planned to refine the focus of the furniture retail branch of the company, as Interio is also the brand used for its home furniture business. It will allow the company to display a wider selection of its furniture at its 51 stores, where space will be freed up for the exclusive display of its growing furniture collection. This is especially important as the company has released a new range of designer home furniture in its Godrej Interio stores.

The furniture retail business has seen an increase of 25 to 30 percent in its same-store sales recently, a big contrast to other home solutions-focused retail stores run by the Future Group and Shoppers Stop. There are also plans by Godrej to expand its retail chain over the next three years with a combination of company-owned and operated stores as well as diversifying into franchised outlets. The group also attributed the smaller impact of the financial slowdown to its wide sales network in B and C class towns in the country, which were less hit compared to the bigger cities.

The company on August 17 launched a new range of home furniture products in the city. This new range, the company said, is targeted at the connoisseurs, who are young and active. The range consists of the Flute bedroom set, Kreation wardrobe and Urban living room furniture.

Chinese Industrial Figures Show Growth

Beijing, China: Official data released in September revealed soaring industrial activity, bank lending and investment, according to the Times. Industrial production in August grew by 12.3 percent compared to 2008, which is substantially higher than figures from June and July and well ahead of expectations. Fixed asset investment growth also jumped 33.3 percent, and included an especially strong result for property investment.

These glad tidings were, however, tempered by poor trade figures and falling exports, which do not lend much confidence to the optimistic numbers. Jing Ulrich, head of China equities at JPMorgan, said that the numbers were a result of the country’s investment-driven recovery and would give way to efforts by Beijing to shift to a more domestic-based model of growth, while overcapacity would keep inflation under control. Figures posted by various sectors mostly support the idea that China is steadily recovering – August furniture and construction materials sectors reported increases of 41.6 percent and 36.6 percent respectively. Property investment also rose by 14.7 percent in the first eight months compared with the same period last year, while the consumer price index reported its first month-on-month rise since March.

However, some analysts are adopting a more cautious approach, as the financial crisis and the resulting poor figures from the end of last year mean that year-on-year comparative data will look exceptionally good and potentially misleading. In addition, rising food prices and disappointing export figures were both identified as new sources of uncertainty for China.

China exports on a decline while imports rise

Hong Kong, China: Economist Marc Faber, who spoke at the CLSA Asia-Pacific Markets investor conference in Hong Kong, is cautiously optimistic about China’s economy, reported MarketWatch on September 28, 2009.

While stocks might not see much growth for this year, even falling as much as 20 percent, Faber does not detect the same patterns that brought many Western economies down the previous year in the Chinese real-estate sector. There are few signs of a mismatch between supply and demand in his opinion, and he believes that high-quality stocks are good long-term options for investors to reduce the impact of currency debasement and the inflation that might result from money printing by the central bank. In fact, he sees a problem of oversupply in industries like export and, in some cases, real estate. Bank Credit Analyst data have also shown that Chinese house prices relative to per capita income have been declining since 1994, meaning that real estates are actually more affordable now.

This has given rise to a more optimistic outlook for China and the region, where growth has slowed but not stalled as a result of the recession. With more rural residents moving to the big cities, Faber also foresees a larger demand for housing in the future in still-developing populous countries like China and India.

Faber, better known by the name Dr Doom, operates a Hong Kong-based fund management company and is also the author of the investment newsletter Gloom, Boom & Doom report.

Chinese Govt Does Not Support High Property Prices

Beijing, China: A Vice Minister has said that the government does not support high property prices, reported Dow Jones Newswires on October 1, 2009.

Qi Ji, a vice minister at the Ministry of Housing and Rural-Urban Development, stated this when asked by reporters regarding concerns about a possible price bubble in the domestic real-estate market. Pent-up demand and easy credit have succeeded in raising sales and prices of housing this year, which have elicited concern about whether price bubbles will form and make real estate unaffordable for ordinary people. But Qi allayed such concerns by stating that the government will not support high property prices, and also urged local-level authorities to provide more low- and mid-price housing to help people form reasonably expectations of housing supply.

Qi was speaking at a press briefing on Monday, September 28.

Aberdeen Cuts Back

Hong Kong, China: Amid concerns that the property market is bouncing back too fast, Aberdeen Asset Management Co has cut back its holdings of real-estate developers, reported Bloomberg on October 3, 2009.

Head of Hong Kong and China equities Nicholas Yeo said in an October 2 interview that the market has been recovering too fast since March, adding that in terms of property stocks, “we’ve done what we wanted to do.” The company manages US$38 billion in Asian equities, and is concerned that surging prices in China, Hong Kong and Macau are signs that the market is overheating. However, Kevin Lai, an economist at Daiwa Institute of Research in Hong Kong, begs to differ. He agrees that there is speculation, but believes that the bubble is not going to burst as “liquidity and interests rates are still very supportive.” In fact, he sees more potential for growth in China’s property prices.

The recovery in China’s real-estate prices has been boosted due to the government’s timely implementation of stimulus plans worth RMB 4 trillion (US$586 billion).

Greater Business Ties For Italy & China

Rome, Italy: Italian companies are looking towards greater cooperation and link-ups with Chinese firms, said Italian Industry Minister Claudio Scajola to China’s Xinhua News.

Despite the economic downturn, the business ties between these two countries keep growing, commented Scajola. The recession had affected China less severely than Italy, as seen from the difference in relative imports compared to 2008. Italian demand for Chinese goods dropped, with imports decreasing by 9.3 percent, while Chinese imports from Italy grew 2.8 percent in contrast, revealed data from the Italian Statistics’ Office. This has led to the reduction of Italy’s commercial deficit to China from EUR 7.63 billion (US$11.13 billion) in 2008 to EUR 6.52 billion this year. This trend is probably due to the increased consumption of the Chinese as well as the effective measures by the Chinese government to achieve a commercial balance with its trading partners, said Scajola. Demand for Italian quality and brands in fashion, food, design and furniture, and industrial machinery, especially, has also been on the rise in China from its new upper-middle class. Frequent high-level business meetings are also building more commercial ties between the two countries.

These ties provide linkages towards a strategic partnership, and Scajola anticipates increasing alliances between Chinese and Italian firms. “Chinese industrial progress has pushed industries in Italy to specialise, innovate and expand abroad, leading to significant changes in industrial organisation, production and cultural identity,” he said. Chinese injection in the Italian economy is crucial, especially in this period of recovery from the downturn. There is also talk about a joint project between the Italian Industry Ministry and the Chinese Commerce Ministry to locate an Italian port as a strategic hub and an entry point for all Chinese goods entering Europe.

Stokers Take National Award

Ormskirk, UK: Stokers Fine Furniture was presented with a national honour, reported the Omskirk Advertiser on October 1. It was presented the top award at the Associated Independent Stores gala dinner at the Belfry Hotel in the West Midlands, UK.

Reasons for the win included good customer service by the store, which voters said provided customers with quality products and professional services. Voters included some of the largest furniture suppliers in the UK like G Plan, Duresta, Vi-Spring, Slumberland, Sealy and Parker Knoll. Responding to the award, Phil Sanders, advertising and promotions manager said, “We are very proud because it is a very prestigious honour. And it’s very special because it is voted for by the suppliers.” He also attributed the honour to the store staff, saying, “The staff deserves applause because they are the company. They provide complete customer satisfaction in helping them furnish their home. Everyone has pulled together in difficult times.”

Stokers Fine Furniture is one of the oldest furniture retail businesses in Northwest UK and was founded by Alfred Stoker in 1895. The family-owned company has since expanded to include stores in Ormskirk, Southport, Leeds, Halifax, Wakefield and Chester in the UK.

Natuzzi Posts Q2 Profit Growth

Santeramo, Italy: Leading leather-upholstered furniture manufacturer Natuzzi S.p.A. announced net sales increase for its second quarter compared to the previous year, reported the Furniture World Magazine on September 29, 2009.

The Italian company reported a total of EUR 133.6 million (US$196.5 million) in sales for the recently concluded quarter, which was a decrease from the EUR 168.8 million last year. However, gross profit increased by 4.7 percent to EUR 50.5 million. The drop in sales was attributed to the general downturn of the international economy, especially in the US. However, there was an increase by 20.1 percent in sales from the first quarter of the 2009 fiscal year.

Upholstery made up the bulk of the sales for the second quarter, amounting to EUR 116.9 million, or 87.5 percent of total sales. It was, however, a drop from the previous quarter, which saw a total of EUR 147.9 million worth of sales. Majority of the upholstery went to European countries (61.8 percent), while the Americas received 28.2 percent of these products. Operating income was EUR 1.1 million, a surge of 121.5 percent from the same period in 2008, which reported a EUR 5.1 million loss. However, net group result for the second quarter 2009 saw a loss of EUR 3.9 million, compared to a loss of EUR 2.4 million last year.

Despite the net sales decrease, chairman and CEO Pasquale Natuzzi is positive about future results as the company had put in place many initiatives to increase profitability during the first six months of 2009. He also says, “My goal is to lead the company into a process that will strengthen our organisation credibility and set the stage of competitiveness for sustained long term growth. We are increasing our orders flow and so we are confident for the year-end target of breakeven in terms of EBIT.” The first six months of 2009 ended with a loss of EUR 14.3 million, an improvement from the same period last year, which posted a loss of EUR 26.5 million.

Furniture Made With Recycled Paper

Orange County, US: Environmentally-friendly becomes a way of life with Way Basics, a furniture company in Orange Country, reported the OC Register.

The furniture produced by Way Basics are all made out of boards that consist of 99 percent post-consumer recycled paper. The zBoard, as it is named, is touted to be as strong as a particleboard, but much lighter. It also feels as solid as wood and comes with adhesives attached to the edges, which serve to attach the boards to each other to build a piece of furniture. These boards come in various sizes and can be used to make any kind of boxes, shelves, bookcases, and even desks.

Way Basics is operated with the aim of taking things back to the basics and simplifying it as much as possible while being committed to sustainable practices. The whole range of products it sells can be viewed on its official website.

Ikea Complex For Alicante

Alicante, Spain: Ikea presented its new project for Alicante, which looks set to be one of the company’s largest centres in Europe, said Typically Spanish.com.

The Alicante project will feature a complex to be built as part of the Rabasa development project to the north of the city, where it will include the store itself as well as a commercial centre for other stores and businesses, and a hypermarket. It will occupy more than 130,000 sq m in total. This proposal was presented to Alicante mayor Sonia Castedo and Alicante business association president Pedro de Gea on September 30, 2009, and will be similar to the current Ikea complex in the city of Oporto in Portugal. However, some local furniture businesses and other stores, prompting a meeting of local business associations in the first week of October, have raised oppositions to the hypermarket portion.

The complex is believed to take around three years to complete, according to Castedo.

Q2 Loss for Hooker Furniture

Virginia, US: Hooker Furniture has reported a loss for its second fiscal quarter ended August 2, reported the Associated Press. The company suffered a loss of US$463,000.

The loss was mainly attributed to the economic downturn, and revenue amounted to only US$46 million, 29 percent down from last year’s US$64.6 million. The company also added that this time of the year is usually the weakest period for furniture sales, and is optimistic about sales for the next quarter. It pointed to positive signs like an improving housing market, fewer job losses, and greater consumer confidence. In addition, it saw the highest order volume for August in ten months.

Headquartered in Martinsville, Virginia, Hooker Furniture sells home office furniture, entertainment centre furniture, TV consoles, youth furniture and young adult furniture, leather sofas, upholstered chairs and accent chairs, dining room furniture, bedroom vanities and bedroom furniture.

Decline in Romanian Retail Sales

Romania: Romania has reported the highest drop in sales among Central and Eastern European countries so far for 2009, where it has decreased by 20 percent year on year. The sectors that are hardest-hit include the furniture and fashion industries, reported the Romanian Times on October 1, 2009.

While merchants say that rents are too high, developers put the blame back to them by claiming stores lack the right kind of merchandise and qualified staff. However, developers say that some stores have not adapted to the current market and thus suffered lower sales.

Samuel’s Shifts To Value-Added Forest Products

Stabroek, Guyana: Value-added forest products will be the new focus for Samuel’s Wicker, Rattan and Upholstery Works, reported the Stabroek Times on September 27, 2009. This project follows a successful attempt at exporting wicker furniture to the international market and aims to increase the level of value-added products from Guyana’s forest resources.

Objectives for the project include trying to stop the export of raw materials and to create more jobs for people. Markets the company is also looking to target would be the Caribbean region and North America, where doors and shingles, as well as products made from greenheart, purplehear and Kabacalli are in demand. The manufacturing plant located in Eccles will be assigned to the moulding and assembling of the wooden doors, shutters and roofing, and future plans also include upholstery works. The company also intends to employ more people and to extend the value-added line of wooden products.

Samuel’s Wicker was started by Praimroop Prasad in 1997, to export wick and rattan furniture to Barbados, and eventually became one of the country’s leading manufacturers of such furniture, with clients in the Caribbean and Europe.

Stanley Furniture Reports Q3 Losses

Virginia, US:Stanley Furniture does not seem to have hit rock bottom, contrary to previous forecasts, as it expects its third quarter operating loss to widen, reported the Dow Jones Newswires.

The company, which produces wood furniture, have reported lower sales in its third quarter, partly due to a disruption that result from moving about one-third of its Young America production back to the US facilities. This will amount to a total of US$900,000 for warehouse consolidation. While initial predictions expect the drop in sales to peter out, a recent company statement retracted this and expects sales to fall from the US$42.3 million reported for the second quarter. This would be a bigger decrease year-on-year as well, compared to US$54.5 million from last year, which was already a drop of 26 percent from 2007.

The furniture market in the US has been adversely affected by declines in the housing market and credit availability for an extended period of time as it began to feel the effects quite early on. This has even resulted in a handful of retailers filing for bankruptcy protection.

Dams International Closes Down

Liverpool, UK: The recession has claimed another victim in the UK, as Dams International, once seen as one of Merseyside’s fastest growing family businesses, collapsed, reports the Liverpool Echo.

Over a hundred jobs are at risk with the failure of the firm, unless a buyer is found quickly. The office furnishing and furniture distribution company had enjoyed annual sales of 42 million pounds (US$67.1 million) but met difficulties this year when it expanded into logistics. The Knowsley-based firm has 327 people around the UK in its employ, and approximately 180 cuts are expected to be made at its headquarters.

Dams International is owned by the Scott family and was founded by Barry Scott in 1967, operating from its manufacturing base in Kirkby with a showroom in central London ad regional distribution centres.

Homag Expects 2010 Recovery

Frankfurt, Germany: After suffering job cuts this year, Homag AG looks to a more positive forecast for 2010, where it expects to return to profit, said its CEO to Bloomberg.

CEO Rolf Knoll predicts “a break-even mark or even to make profit” the next year even as this year’s sales decline will bring the company its first loss since 2005. The company will break even once its sales exceed the EUR 600 million mark (US$878 million), based on current costs, while revenue this year is expected to fall to around EUR 513 million. Knoll also did not dismiss the possibility of cutting its workforce of 5,400 to around 4,350 by the end of the year. All of the 14 Homag production plants, however, will be kept open, barring any further cost-saving actions that might be taken if the economy worsens.

For the second quarter, Homag’s orders have rebounded, growing to EUR 101 million from the EUR 75 million earned in the first quarter of the year. Knoll expects a small decline from the second quarter for the next three months ending September 30, due in part to traditional summer shutdowns in Europe, and thus expects more time to observe if the rebound in sales translates to a recovery. He also said, “Our goal for the next three years is to steer sales above the 600-million mark – well above 600 million – and leave the break-even zone way behind. In the next two or three years we will return to an acceptable profit level – acceptable but not excellent.” In fact, he sees predicts that the company will take five years to exceed EUR 800 million in sales after last year’s record revenue of EUR 856.5 million.

Homag AG is a German machinery maker for the furniture and timber-frame housing industries. In total, German machine-makers cut 18,000 jobs in the first half of 2009, with further cuts a possibility in light of the continued low demand.

Recyclable Armchair Launched

London, UK: A French designer of decorative products for the home has launched an environmentally friendly designer armchair that is 80 percent recyclable, said its press release.

My Note Deco has produced the Air Concept armchair, which is made of an inflatable structure of a contemporary design, and, being 80 percent air, is very comfortable. The structure, together with its cover, can be stored inside a small, recyclable box once deflated. It is also very light and can be easily moved around the home. The cover of the chair, which comes in contemporary colours and patterns, is made of 100 percent organic cotton, is also fully removable and washable. The design of the product fully meets eco-design principles, as the customer can return the used product to the manufacturer, who can then recycle it. It was even voted Product of the Year 2009 in the TNS SECODIP survey conducted on French mass retail brands in September 2008. It was also awarded the Janus of Industry 2009 by the French Design Institute, which honours products that have integrated the concept of user benefit at an early design stage.

Air Concept is available in a selection of designs, including Roadsign, which evokes the Australian wide plains; Mo By Me, which features refined and innovative designs, and is available in a children’s range (Tribus ORBIS) and an adult range; and the WANT’ed collection for teenagers, which is based on the character of Ed. All the collections include articles like desk chairs, pouffes, storage boxes and stickers.

MY NOTE DECO is owned by Groupe Impex SAS and has its headquarters in Chimilin in Southeastern France. It is committed to following an ecological approach at all times.