Furniture Industry Outlook 2016

The potential of the furniture industry in Romania is impressive, it's easy to see and it's easy to sense. But to have a business in this industry it is not enough just to manufacture furniture. Success also comes if you have a good product and if you have a market to sell it to and if the market knows that you exist, but also if you have the information to help you position yourself correctly in the market and act in relation to it. An analysis of the furniture industry with figures, names, forecasts, local and global market issues is Furniture Industry Outlook 2016 by Financial Trends.

Alexandru Bratosin - Managing Director of Financial Trends - assures us that it is a valuable report containing real and concrete information. An interesting new publication, so we asked him a few questions:

RdL- What is Financial Trends?

A.B.-Financial Trends is a company that provides industry statistics, analysis and trends, being the first company in Romania that exclusively analyzes the furniture industry in the country. The information from our studies and analysis helps companies to develop their expansion strategies for the coming years, to base their decisions on industry trends and to know their position in relation to the industry and competition. In short, a collaboration with Financial Trends saves you time and effort and gives you the information you need to better understand your industry, the factors that influence the industry, and how you can gain a strong competitive advantage in the industry.

RdL- We have also noticed on financialtrends.ro that the main product being promoted is the Mobile Industry Outlook. Is this Financial Trends' first analysis of a Romanian industry or have there been others? If it is the first, why did you choose the furniture industry? Why not another?

A.B.-"Industry Outlook 2016. Industria de mobila" is the first analysis on the furniture industry in Romania exclusively by Financial Trends. We have chosen to analyze the furniture industry from 3 perspectives:
a. First of all, we chose to analyze this industry because it has a long history of transforming a simple piece of wood with the art of wood into what the client wants for their home or to give them the comfort and peace of mind they need.
b. From a statistical and economic perspective, it is one of the only manufacturing industries still existing in Romania and one of the industries that brings positive results to the country's economy, as exports exceed imports.
c. The last insight emerged from discussions with entrepreneurs who own large companies or SMEs in the furniture industry. Immediately after the first discussions we realized that in the current context the only thing they lack in order to increase their market share is the lack of structured information about market history, cause-effect links, in-depth industry analysis to establish new markets and expectations on market evolution. Thus, the market need led to the creation of such a report to support the Romanian brand both at home and abroad.

Rdl- What did you want to achieve with this analysis? What was the Financial Trends target?

A.B.-The purpose of this analysis is to help any furniture manufacturer to make strategic decisions based on industry trends. With the analysis "Industry Outlook 2016. Furniture Industry" we want to bring the furniture industry as close as possible to furniture manufacturers at all levels, to show them what the industry looks like outside their company and how you can plan your next steps by detaching your decision making from current issues such as paying supplier invoices, receivables, order fulfillment, etc. The information in this report will help build an identity of the Romanian furniture sector in the world, giving entrepreneurs the framework to act at the right time and in the right place.

RdL- How much has the market been interested in this product in the time since its launch?

A.B.-The market reacted positively when they learned of the existence of this industry analysis. Today our clients, due to the quality of the information provided, have asked us to translate the analysis into other languages in order to forward it on to the parent company they represent. From this point of view, we believe that the market is interested in this analysis and it is important for us to reach the furniture manufacturers with this information and for them to know that such an analysis exists in Romania.

RdL- How do you see the Romanian furniture industry following this analysis?

A.B.- Following this analysis, the Romanian industry is similar to the European industry in terms of structure. In short, the number of large, medium-sized, small and micro enterprises out of the total number of active companies is approximately the same in Romania as in Germany, France, Italy, United Kingdom. Market segmentation is similar across the European Union in terms of revenues, number of employees and profit.

RdL- What do you think will be the challenges in the coming years? What will the global market look like? Where are we heading towards?

A.B.-From our point of view, the furniture industry will change in the coming years due to technological advances. The players who can afford to invest in production factories, new production technology, industry trend intelligence to keep abreast of every change in the industry and keep pace with the global changes will remain in the market. The evolution of the industry will lead to automation and mass production with a wide range of designs. This context will lead to the elimination of small companies producing furniture to order because they will not be able to afford to produce large quantities due to lack of investment and will become increasingly isolated until they disappear. This trend is taking shape in other furniture producing countries, and small manufacturers are starting to exit the market or specialize in producing a single item to supply to a larger player and under contract with the larger player to be able to invest in the production line to meet demand.
The global market will be growing in the coming years and will be influenced by several factors of which I will highlight only 4 as follows:
1) Growth in per capita income (GDP/capita) which is projected to increase both in the country and globally. The estimated increase in Romania's GDP/capita is 33.69% in the period 2016 -202020, which means that if the share of expenditure on household furnishings remains at the same level as in the last 7 years, the amount spent by the population will increase.
2) Increase in the number of people living in urban areas. By 2030, their number globally is expected to increase from the current 541TPTP3T to 66%, which will lead to rising living standards, rising incomes and an increased need for comfort, which will in turn trigger investment in home improvement.
3) The growth in the number of homes over the next 20 years will increase consumers' need for new furniture.
4) The increase in the number of built office spaces, which is based on the migration of the rural population to urban areas, will lead to the growth of the office space development market.

RdL- Why buy this analysis of the furniture industry?

A.B.- In a market so competitive and influenced by foreign investors, Romanian furniture manufacturers are obliged to consolidate their position on the market by all possible means. Not so long ago "information is power" sounded like a cliché; today it is a reality. The entrepreneurs who will have the maturity and vision to know their market, to know their competitors, to discover competitive advantages from analysis and different sources of information will be the only ones who will remain on the market.
The quality of the information provided by Financial Trends lies in our direct and honest approach with our clients, our analysts being 100% 100% independent, and the analysis process developed based on quality information received from national, European and global sources. I urge any entrepreneurs in the furniture industry to have the maturity to be informed about the market in which they operate. Information about Outlook can be found here.