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ISSUE: November/December 2009

Look Out! We’re Looking In!

Some of China’s strongest and most familiar manufacturers are attesting to the potential and profitability of making furniture for the home market. What lies ahead for exports and from where will demand hail? Nicole Liang finds out from participants at the China International Furniture Fair (CIFF) held September 6-9, 2009 at China Import & Export Fair Complex in Guangzhou.



Cai Bi Zhan

Managing Director
Evergo Furniture Co Ltd, Guangdong, China

“Our factory is based in Foshan and we have our own retail stores. We plan to open 21 new shops next year – one in each province. The global economic crisis has brought problems for the last two years but China has a huge market domestically. We are also licensed to sell the Foreverhome brand of furniture from Italy, which we OEM for.”

Mike Hong

Vice President
Zuoyou Furniture Co Ltd, Guangdong, China

“We have been in the furniture business for 24 years and the domestic market has always been a focus. We target the mid-high end group of consumers who are earning more as the nation progresses. Sales in the past year grew by 30 percent. China’s potential is great and continues to increase. What we see now is only a tip of the iceberg. But like any successful enterprise, we must internationalise; we cannot give up on or neglect exports.”

Khagesh M Agarwal

KBK Megamart Pvt Ltd
Calcutta, India

“I don’t think it is true that everyone is turning to sell domestically and cut down on exports. This may be right to some extent but the export market is still there to be tapped, especially in India, where demand is very, very big. A lot of new houses are being built and a lot of people are importing furniture for these new homes."

Li Jian Jun

Public Relations Manager
Foshan Steel-land Industrial Development Co Ltd
Guangdong, China

“Domestic demands account for 75 percent of our total sales, which rose by 30 percent last year. In first tier cities especially, residents have high spending power. Our products are positioned like Toyota cars – high quality at affordable mid-priced range. We already own more than 1,000 stores across the country. Another brand under us, C&C, is present in more than 100 stores. We also plan to widen our export business which is seeing much growth potential especially in South Africa, where the next World Cup will be held.”

Zhou Liang

Vice General Manager
Xilinmen Group Co Ltd, Zhejiang, China

“China’s domestic sales network is very developed now, while the economic crisis has lowered China’s exports. But we are cautious to divide our business equally into three segments – export, local retail and hospitality projects. At the same time, we have upped our product innovation to launch the bamboo fibre range at the CIFF this September.”

Raj Walia

Richway Inc
Ontario, Canada

“More manufacturers are turning to domestic sales and products designed for the local Chinese market. Selection is more limited now and it is tougher to source for furniture.”

Current issue:
March/April 2010

To Gather Again In March
Every March, the international furniture community gears itself up for a jam-packed calendar. Starting with MIFF in Kuala Lumpur and to finish with the CIFF-Office Show at the end of March, buyers and suppliers gather in Asia for the latest products and designs the region has to offer. This is in the form of more than a dozen exhibitions running back-to-back.

REGIONAL REPORT

INTERIOR DESIGN/TREND

SPOTLIGHT

HIT GUIDE

SHOW REPORT

TALKING POINT

COUNTRY REPORT

GREEN FOOTPRINTS

INDUSTRY OUTLOOK

MANAGEMENT 101

DEPARTMENTS

PRODUCT FEATURES