Textination Newsline

• The cultivation of cotton is to be expanded

Pakistan's textile industry has lost competitiveness. Investments in new textile technology are necessary. Exports of German machinery increase.

The textile industry is Pakistan's most important industrial sector. In Pakistan's fiscal year 2017/18 (July 1st 2017 to June 30th 2018), the textile industry accounted for 8.5 percent of gross domestic product. The sector accounted for about a quarter of the total industrial value added. It is by far the country's most important export sector. Textile exports accounted for 58 percent of total exports in 2017/18.

However, the international competitiveness of the sector is currently declining. This trend should turn around. Prime Minister Imran Khan met with representatives of the textile industry at the end of January 2019. Economic policy aims to expand and modernize the textile industry. Production costs are to be reduced and productivity increased. In addition, quality improvements, production expansions and higher added value are necessary.

The textile industry's value chain begins with around 1,300 companies that are ginning, process and bale raw cotton. In addition to the demand for cotton, the demand for synthetic fibers is also increasing, although there are only three manufacturers of polyester fibers in Pakistan to date.

The number of spinning mills is estimated at 517 in 2017 and the number of weaving mills at 124 large and 425 medium-sized and small mills. Ten large and 625 medium-sized and small companies process fabrics. Towels were produced by about 400 companies, knitted fabrics by 2,500 companies. Clothing made of woven fabrics was supplied by 50 large factories and 2,500 medium-sized and small factories.

Export transactions stagnate
Pakistan's textile exports grew by 8.7 percent to USD 13.5 billion in 2017/18. This level was already reached in 2013/14 and 2014/15. Textile exports in the first seven months of fiscal year 2018/19 (July 18th to January 19th) increased slightly by 1.2 percent year-on-year to US$ 7.8 billion.

^*) Fiscal years (July to June)

Sources: All Pakistan Textile Mills Association (APTMA); Pakistan Bureau of Statistics; Textile Commissioner's Organization

The All Pakistan Textile Mills Association (APTMA) aims to increase exports to USD 28 billion by 2023/24. This requires consistent state support and long-term export promotion, according to the association.

The leading foreign customer is the USA. Other important customers include the United Kingdom, Germany and Spain. In 2017 and 2018, Germany imported textile materials and goods worth EUR 1 billion from Pakistan.

Machine imports still declining
Imports of textile machinery in 2013/14 amounted still to USD 599 million. In the following three years it was USD 449 million (2014/15), USD 462 million (2015/16) and USD 557 million (2016/17). Imports are not currently showing an upward trend despite the need for modernization. According to the statistics authority, they fell by 42 per cent to USD 325 million in 2017/18. There are still no signs of a recovery in 2018/19 either.

Sources: Pakistan Bureau of Statistics, UN Comtrade

Business trip to the fifth largest customer of German spinning technology
According to calculations by the German Engineering Federation (VDMA), German textile machinery exports to Pakistan increased to EUR 53 million in 2017. The previous year's figure was EUR 48 million, EUR 39 million of which was attributable to spinning machines.

A business trip of German companies from the textile machinery and accessories sectors will take place to Karachi and Lahore from November 11th to 15th 2019. The Federal Ministry of Economics and Energy will promote and the company SBS Systems for Business Solution will organize the trip (contact: Thomas Nytsch, e-mail: thomasnytsch@sbs-business.com).

Cotton production to be strongly increased
The local cotton production is the base of the textile industry. After India, China and the USA, Pakistan is the fourth largest cotton producer, followed by Brazil and Uzbekistan. Without an increase in local crop yields, the growth of the textile industry is limited. Increased imports of cotton would further reduce the industry's struggling international competitiveness.

In an international comparison, the country is one of the cotton producers with the lowest yields per hectare. Australia, Turkey, China and Brazil form the leading group with about 1,600 to 1,700 kilograms per hectare. Pakistan only reaches 600 to 800 kilograms.

¹⁾ one bale = 170 ^{kilograms, 2)} Forecast
Source: Pakistan Bureau of Statistics; research by Germany Trade & Invest

The government has set a production target of around 15 million bales for 2019/20. APTMA believes an increase to 20 million bales is possible by 2023/24. The association assumes that there will be about 2,800 hectares of cultivated land and an increase in yields per hectare to 1,200 kilograms.

Problems with the supply of cotton

Baumwolle wird vor allem in den Provinzen Punjab und Sindh angebaut. Die Baumwollproduktion erreichte 2014/15 noch rund 14 Millionen Ballen. Die Ernte fiel 2015/16 auf unter 10 Millionen und lag 2017/18 bei 12 Millionen Ballen. Die Produktion ist 2018/19 wieder gesunken, ein Wert von etwa 11 Millionen Ballen wird prognostiziert. Als Gründe werden unter anderem Wassermangel, eine schlechte Qualität der Pflanzenschutzmittel und minderwertiges Saatgut genannt. Zudem sei die finanzielle und regulatorische Unterstützung der Regierung unzureichend, so Branchenvertreter.

The local supply could therefore no longer cover the annual cotton demand of the textile industry of 15 to 16 million bales in recent years. Textile manufacturers therefore imported cotton mainly from India and China, about 3 million to 4 million bales a year. However, imports from India have been stopped since February 2019. The background to this is the political tensions and recent military conflicts between the two states.

• Deliveries have risen sharply recently

Cheap and used technology dominates at the Dominican market for textile machinery. It is some of the country's problems that give German suppliers some hope.

The good news is that in the first eleven months of 2018 German exports of textile and clothing machinery to the Dominican Republic rose by 580 percent year-on-year, and, according to Eurostat, by 2017 German deliveries had tripled. The bad news: German sector exports reached only EUR 1.7 million in absolute terms. This is considerably less than, for example, in Guatemala with its not much larger technology market.

Representatives of German providers are not surprised about the figures. Cheap equipment from China and other Asian countries are in demand, but above all mainly used machines. Hugo Clavijo of Texquim, who represents the German suppliers Mayer & Cie. (circular knitting machines) and Groz-Beckert (needles), among others in the Dominican Republic, estimates, that just five out of every hundred machines sold are new. Around the turn of the millennium, the market thus became the residual ramp for the declining US textile industry. According to UN Comtrade, around 60 percent of the value of technology deliveries in recent years came from the USA.

The International Textile Manufacturers Federation also registered hardly any shipments of new machines: for 2010 to 2017, the ITMF shows just ten flat knitting machines and eleven (all in 2017) circular knitting machines. Also, for this period 720 Double Heaters for texturing synthetic filaments for yarn production were listed. The ITMF counts the deliveries of 200 textile machinery manufacturers worldwide and thus a large part of the market, albeit not the entire one.

Electricity and water bottlenecks as arguments for expensive machines
Hugo Clavijo currently sees no great chance of a rapid improvement in the sale of expensive German technology. But ironically, it is some of the country's problems that may transform the potential customer interest into concrete procurements: The energy supply for the textile companies is expensive and unreliable, and the companies have to treat their process water themselves. Economical and less repair-prone machines would come into a closer consideration even if the purchase prices were significantly higher. It would also be helpful to enforce environmental standards, which today are largely on paper only.

There is also a need for technology if the Dominican textile and clothing manufacturers expand their capacities due to possible changes in international trade policy, i.e. if clothing customers in the USA would place orders in the Caribbean country instead of Asia. At the moment, however, the Dominican export industry is not using its factories to capacity.

¹⁾ no data on other machines; ²⁾ spinning machines; ³⁾ weaving machines

Source: International Textile Manufacturers Federation

The Dominican textile and clothing industry, which, according to the central bank, generated 11 percent of the country's total export revenues with clothing from free zones in 2017, is not fully vertically integrated: it mainly imports yarns, which then is mainly being knitted but also woven or otherwise processed and then assembled into finished clothing. It often produces T-shirts and other knitwear with a high cotton content. And this is "the cheap stuff," as Clavijo says.

There is a limited production of synthetic yarn in the Dominican Republic which, according to Hugo Clavijo, is limited to two companies: The Korean company Youm Kwang textures filaments in the country, while the US company A&E (American & Efird) produces sewing thread from imported filaments.

Four export producers as important technology customers
The Dominican textile sector is said to consist of about two equal segments. A dozen medium-sized companies and a large number of garage companies supply the domestic market. In addition, four companies produce for export in the country's free zones: Gildan (Canada), Hanes (USA), Willbes (Korea) and the local Grupo M, which has been working in a 50/50 joint venture with Brandix from Sri Lanka since the beginning of 2017. The procurement of machines in foreign companies is not decided by the local management, but by the corporate headquarters, according to representatives.

The four export producers are said to be vertically integrated from yarn processing onwards. Grupo M supplies about one fifth of its fabrics, knitwear, etc. to processors, while the other three industry giants manufacture these preliminary products completely by themselves. According to Comtrade (SITC chapter 84), three quarters of the clothing exports go to the USA, the remainder predominantly to the neighboring Haiti.

For US clothing customers, the nearby Dominican Republic offers fast and cheap transport routes as well as the advantageous customs regime of the DR-CAFTA trade agreement. According to Hugo Clavijo, however, Dominican clothing exporters must obtain their intermediate products from the USA in order to benefit from all customs relief. Producers for the Dominican domestic market, on the other hand, are using yarns and fabrics from China, Pakistan or other third countries that offer lower production costs.

USA dominate machine deliveries
The Dominican market for textile and clothing machinery has stagnated in recent years: For 2017, UN Comtrade estimated imports - there is no significant domestic production - at USD 36 million. That was as much as 2014 and around USD 10 million more than around 2010.

According to Comtrade, Germany was ranked sixth in the import ranking with an average share of 2.0 percent between 2015 and 2017. Eurostat, whose (export) data deviate considerably in some cases, noted stagnating industry deliveries from the European Union to the Dominican Republic for the first eleven months of 2018 in addition to the high growth for Made in Germany.

^*) SITC 724 without household sewing machines (724,33), household washing machines (724,.71), machines for dry cleaning (724.72), leather processing (7248), parts of household washing machines (724.91).
Source: UN Comtrade.

Austria's most important public exhibition in the high-quality furniture and furnishing sector, "Wohnen & Interieur" at Messe Wien, is in the starting blocks for the coming spring. From 9 to 17 March 2019, organizer Reed Exhibitions will once again open the four exhibition halls, A to D, for the 18th edition of the fair. Structured subject areas and a focus on design worlds refresh the established exhibition format.

It is said that the personality of the people is reflected in their own four walls. One is aware spending the majority of the time indoors. And here we should feel comfortable, quasi "native", relaxed - and some even speak of a "therapeutic" effect of the living environment on the individual. Inspira tions and trends for your own four walls can be seen in a wide range at Austria's largest interior design trade fair, Wohnen & Interieur, including advice, trade fair offers and immediate purchase.

At home connected with nature
The more hectic the world appears out there, the more important becomes an oasis of peace in your own four walls. And as people become more and more aware of themselves, concepts such as sustainability and environment gain in importance.
Everyone is talking about "Natural Living" this year - natural materials are very much in vogue, wood dominates the popularity scale. Pollutant-free tanned leather, cork, natural fibers from coconut and sisal to cotton and linen are in demand. Also, in the spirit of a "green stamp", preference is given to local products, a topic in which Austrian manufacturers with top-quality and likeable products are on top and present themselves accordingly at the W & I.    

Trend colors convey a sense of life
Life-affirming, happy coral red - Living Coral - radiates warmth and brings energy, comfort and security. Also important are delicate Ice Cream Colors, which can be ideally combined with each other and especially with natural wood tones. But also, exciting wall colors as well as striking statement wallpapers and wall tattoos are new favorites. Alternatively: wallpapers with a touch of vintage. Fabrics in gold, honey and brown tones correspond to blue nuances of turquoise, royal and petrol as well as pink and red shades.

Little space - plenty of room for ideas  
"Mindful architecture" addresses mindful design that harmonizes body and mind. And "Slow Living" brings peace to mind, this is based on clear forms, preferably universities and dispenses with unnecessary frills. Flows from the fields of design, fashion, society, politics and anthropology are expressed in the living environment - practical furniture increasingly plays a role: intelligent furniture solutions, foldable furniture, from the dining table to the bar table, from the stool to the side table and stackable shelf variants are used in urban scenes, Where living space is becoming more and more precious and therefore more limited, the challenge for planning professionals and interior design professionals. Furniture becomes multifunctional applicable and versatile, without much effort, of course.

Upcycling to „Smart Living“
And again, the topic of sustainability emerges, a consciousness without a warning finger: Recycled materials come to life or old furnishings are "revamped" and shines in new splendor.
"Smart Living", the digitization in your own household, from safety and comfort through to energy management, is entering all generations - this market is rapidly expanding worldwide.

• Capacity expansion planned by 20 percent

Istanbul (GTAI) - Several major apparel manufacturers plan to significantly expand their production capacities in 2019. The modernization of the factories is on the agenda as well.

Turkey's export-oriented clothing industry scores at European customers with good quality and above all with short delivery times. Recently, they have significantly increased their orders, according to industry sources.

The good order situation is prompting Turkish clothing manufacturers to investments. The 28 larger companies plan to spend around 100 million US dollars in 2019 to expand their capacities. This is the result of a study conducted by the Turkish business magazine Ekonomist (December 9, 2018 issue) in cooperation with the Garment Industry Association TGSD.

On average, the companies aimed to increase their capacity by around 20 percent in 2019, the report says. They expected their sales to increase by 15 to 35 percent.

The clothing manufacturer Taha Giyim (http://www.tahagiyim.com), supplier of LC Waikiki, plans to expand its production in the Malatya organized industrial zone. The company plans to invest a total of Turkish Lira 32.2 million (TL; about USD 6.7 million; USD 1 = 4.81 TL) in this project this year and increase its annual shirt production capacity to 2 million pieces. The company is aiming for its sales growth of 40 percent in 2019. In 2018, the estimated revenue was about T.L. 2.5 billion or about USD 520 million.

Higher production of men's outerwear
The company TYH Tekstil (http://www.tyh.com.tr), which manufactures men's outerwear in six plants, plans to expand its production capacity by 15 percent from the current 20 million units per year in 2019. Investments of TL 15 million TL are planned in Akhisar/Manisa (Western Turkey) and Ordu (Black Sea region). The company exports most of its products to the European Union. The aim is to increase deliveries to the USA. The estimated turnover of around USD 140 million in 2018 is expected to increase by 15 percent in 2019.

The manufacturer Yesim Tekstil (http://www.yesim.com), which sews for large textile companies such as Inditex, Esprit and Tommy Hilfiger, plans to double its turnover from around US$ 300 million (2018) to US$ 600 million by 2022. The technological infrastructure (industry 4.0, digitization, cloud computing) is to be expanded. The investment budget for the next five years for the procurement of machinery, plant, software and licenses totals USD 14.4 million.

Denim article manufacturer expands capacities
The manufacturer of denim articles, Calik Denim (http://www.calikdenim.com), plans to increase its production capacity by 30 percent in 2019 with a further USD 8.4 million and to push forward with the modernization of its manufacturing processes. Last year, the company stated that it had invested a total of USD 44.7 million. Calik Denim's goal is to increase its current annual capacity from 44 million meters to 60 million meters by 2020. For 2019, the company is targeting sales growth of 22 percent (2018: USD 189 million).

The company Migiboy Tekstil (http://www.migiboy.com) plans to build a fourth plant for TL 100 million in which previously imported textile raw materials should be produced. The company's goal is to triple its turnover of around TL 300 million (2018) over the next five years.

Sector network of Turkish companies abroad grows
The increasing internationalization of the clothing business is also contributing to the export success. Turkish textile trading companies have opened more than 2,000 branches abroad in recent years. The Koton company alone is growing by 30 percent annually. In 2017, the company ordered goods worth TL 1.8 billion from Turkey for its foreign business. In the foreseeable future, Koton intends to increase its procurement share from Turkey from the current 85 percent to 90 percent. Koton has 516 branches in 29 countries and employs about 10,500 people.

Hadi Karasu, President of the Industry Association (TGSD), sees potential in the German market in particular that has not yet been fully exploited. So far almost one fifth of Turkish clothing exports go to Germany. Karasu believes a share of 25 percent as possible.

In 2018, the apparel industry increased its exports by 3.6 percent to USD 17.6 billion. For 2019, the association TGSD expects an increase of 10 percent. Production is expected to increase by 3 to 4 percent.
Further information to economic situation, sectors, business practice, right, customs and advertisements in Turkey are callable under http://www.gtai.de/tuerkei

• State enterprises get better equipment

Cairo (GTAI) - The Egyptian government plans to modernize the textile sector and private companies are investing in new locations. Increasing machine imports and clothing exports are expected.

In the Egyptian textile and clothing industry, the signs are pointing to expansion and modernization. Local media reported on a number of private and public investment projects. According to the newspaper Al Gomhouria, a Chinese producer in the Suez Canal economic zone is planning the world's largest textile factory for USD 6 billion. The Chinese companies TIDA and Shoon Dong Roy want to build a clothing factory for 800 million USD. Sino-Egypt Minkai is planning to build a textile industry complex for around USD 750 million.

The Egyptian state also wants to strengthen the textile and clothing production. In November 2018, the Minister of State Enterprise Hisham Tawfiq negotiated an extensive restructuring of the Cotton & Textile Holding Company with Werner International of the USA. According to press reports, the properties of 14 of the 25 cotton ginning plants should be sold. The ministry estimates the value at USD 1.5 billion. This appropriation is intended to cover the repair of machinery and the import of new equipment for the eleven remaining companies.

A free zone for textile production will also be created in Minya on the initiative of the state. This industrial zone is to be built on an area of 2.2 million square metres: The General Authority for Free Zones and Investment intends to launch the project before the end of 2018.

In autumn 2018, the Cotton & Textiles Industries Holding Company and Marubeni of Japan signed a letter of intent. This relates to the construction of a new textile factory in Kafr El Sheikh. A reduced loan from the Japan Bank for International Cooperation secures the financing of the project.

Import demand for textile and clothing machinery expected to increase
The planned projects are expected to lead to a further increase of a demand of imports. Like other types of equipment, the vast majority of textile and clothing machinery is imported into Egypt. In 2017 the German share of deliveries fell by 8.4 percentage points to an year-on-year comparison to 12 percent. However, this reduction is put into a perspective by the fact that the reference year 2016 was a positive outlier. In 2015, the German share was still 15.8 percent.

n.a. = not available
Source: Comtrade

Egyptian textile and clothing companies often produce with a lot of manual work and partly with very outdated machines. The government's aim is to create as many jobs as possible due to the continued population growth. On the other hand, a more automated and modern production would allow more complex products. These could be sold at a higher profit, but would also require less human labor.

Important role of the sector companies for the Egyptian economy
The textile and clothing companies in Egypt represent a significant and labor-intensive industry. Local and imported fibers are being processed in the country and there is a broad base of spinning mills, weaving mills, dyeing houses and manufacturers of clothing and home textiles. It is estimated that the companies employ between 1 million and 1.2 million people. A regional focus is Mahala El Kubra. State enterprises are strongly represented in the textile sector, while the private sector plays a greater role in the clothing sector. About 90 percent of the spinning and weaving mills are state-owned.

According to the Readymade Garments Export Council (RMGEC), the garment industry accounts for 3 percent of the country's gross domestic product, 15 percent of exports (excluding oil), and one of three industrial jobs in the country. From January to the end of August 2018, clothing exports to the RMGEC totaled USD 1,040 million. In the same period of 2017, exports amounted to only US$ 980 million.

Source: UN Comtrade

The Qualified Industrial Zones (QIZ) play a special role. These are special zones with Israeli added value, which are fixed during production, and the products enjoy customs advantages when exported to the USA. Since 2005, the QIZ system has provided more private investments in the garment sector. Jeans and other clothing for well-known brands are delivered to the USA from the 25 zones.
Egyptian manufacturers are also generally not always recognizable as such, as they often manufacture for major international brands. Middle East Eye names Calvin Klein, Decathlon, Tommy Hilfiger and Zara as examples. In November 2017 Dice Sport and Casual Wear agreed to supply Levi Strauss & Co. with children's clothing.

The US company Disney even purchases 33 types of products from Egypt. Since 2017, Egypt has been cooperating with the International Labor Organization ILO as part of the Better Work Program. Working conditions are to be improved in 30 clothing factories. According to media reports, for Disney these measures were a reason to extend the licenses of the Egyptian suppliers until December 2019.

Currency effect improves competitiveness
The labor-intensive production benefited from the currency devaluation in 2016. According to a report by the news portal Middle East Eye, Egypt has at least 100 USD monthly salary for workers and is about at the same level as India or Bangladesh and at about 50 of percent Chinese salaries. In addition, prompt and fast deliveries to Europe and the USA are possible.

On the other hand, the companies are dependent on foreign supplies, which became more expensive. In Egypt especially soft and high-quality long staple cotton is cultivated and exported. Domestic producers, on the other hand, mainly use short-staple cotton and other foreign fibers as raw materials. The RMGEC complained about rising production costs in October 2018. Wages, electricity, water, natural gas, transports and more expensive imports of raw materials contributed to this development.

Further information on Egypt can be found at http://www.gtai.de

• Almost 1 in 3 pieces of furniture is exported
• 14% of furniture sales now online

At the European press conference in September 2018 in Madrid for imm co-logne/LivingKitchen 2019, Jan Kurth, Chief Executive of the Association of the German Furniture Industry (VDM), reported on the state of business in the sector:

At the end of an exceptionally hot summer, which has driven consumers to outdoor pools and beer gardens rather than furniture showrooms, the German furniture industry looks back on correspondingly subdued growth in the sector. Following a decline in sales in the second half of 2017, the business climate for manufacturers did improve slightly in the first half of 2018, but the bottom line is that furniture sales have stalled, especially within Germany. While the year began distinctly positively on the back of imm cologne, a significant slowdown in business subsequently set in.
From January to June, sales in the sector reached approximately Euro 9.1 billion, just 1 per cent higher than in the same period of the previous year. Following a 0.7 per cent fall in sales for 2017 as a whole, marked in particular by a negative trend in the second half-year (–1.6%), German furniture manufacturers were thus able to generate slight sales growth, but the situation remains disappointing.

Growth stimulus comes from abroad
This marginal increase in sales was exclusively attributable to international business, since sales outside Germany grew in the first six months by 2.7 per cent in comparison with the same period of the previous year. Domestic sales, on the other hand, stagnated with a minimal rise of 0.3 per cent. Export business benefitted from revived demand in key European sales markets and, increasingly, from the positive economic development in the major growth regions outside the EU. Almost one third of German furniture exports are now sold to non-EU countries.

Results of the latest VDM survey
In summer 2018, the VDM conducted a survey of the economic situation faced by companies in the sector. Participants rated the current business climate as satisfactory (34%) to poor (40%), with only 26 per cent judging it to be good. Compared with summer 2017, the situation for business had worsened in the view of 51 per cent of those surveyed.

State of export business better than domestic market
The disparity between the domestic market and export business is also reflected in the business survey. While most respondents (57%) judged the situation for domestic business as poor, an overwhelming number of manufacturers considered the situation for export business to be good (29%) to satisfactory (56%).

The current difficulties in domestic demand are largely confirmed by the furniture retail sector. Naturally, the long period of high temperatures moved many activities outdoors, but still this explanation falls short. To discover a little more about this, the VDM commissioned a representative study from the prestigious market research institute Kantar TNS, which put the furniture buying behaviour of Germans under the microscope. We were particularly interested to learn where people seek information about furniture and where they buy it. Do they look at advertising supplements in daily newspapers or rather retailers’ websites? Are people increasingly buying furniture online, or is the official sales channel statistic correct, which has been citing an almost stable figure of between 7 and 8 per cent for several years?

Customers increasingly seek information online
First, a look at the information sources. Overall, the furniture store itself – that is to say, looking at furniture in person – remains the most important source of information (68%), followed by brochures from furniture showrooms (54%). But 48 per cent of all those surveyed now use the Internet as a source of information and inspiration. In the younger target groups (<40 years old), the significance of the information source sees a clear shift, with the Internet dominating (77%) but furniture stores still being used by 63 per cent.

When it comes to formal educational attainment, there is a clear correlation with the information sources used. Those with a lower level of education favour brochures and advertising from furniture stores. The higher the level of education, the more buyers actively seek information online.

80% have bought large furniture items in the past 5 years
Online shopping or a trip to the shops? Generally speaking, over 80 per cent of Germans have bought relatively large items of furniture in the past five years. As can be expected, this proportion tails off with increasing age. Of those who bought furniture, 75 per cent carried out this latest transaction in a furniture store. Just under 10 per cent of shoppers bought from a purely online retailer and only 4 per cent purchased via the website of a furniture retailer. This gives a 14 per cent share of sales now taking place online and thus double the figure given out by the official sales channel statistics. In terms of online shoppers, people living alone and the under-30s lead by a clear margin. As young people get older, they are unlikely to move away from online shopping for furniture, and new “Internet savvy” consumers enter the market, the “normality threshold” for the remaining age groups is also expected to fall. There is therefore clearly still a great deal of potential for online furniture sales, and the industry and trade would be well advised to exploit this potential through engaging concepts and information suited to the target groups, moving away from discount and clearance promotions.

Additional online potential
We also see the growth of online business as offering opportunities for the furniture sector as a whole. Firstly, the fixation on prices and discounts is not as pronounced online as in highly concentrated bricks-and-mortar retail. Secondly, the short delivery times and short-notice availability typical of online trading tend to be served more flexibly from internal German sources than from Asia.

Official assessment: sales in the individual segments
According to official statistics, the individual segments in the German furniture industry developed unevenly between January and June 2018. Kitchen furniture manufacturers recorded sales growth of 4 per cent to around Euro 2.5 billion. The office furniture industry reported a distinctly positive result with sales of around Euro 1.1 billion (+7.9%). Manufacturers of shop and contract furniture saw a year-on-year increase of 7.2 per cent and generated sales of around Euro 920 million.

Manufacturers of upholstered furniture registered a noticeable decline, with sales falling by 5.3 per cent to around Euro 480 million from January to June 2018. With a drop of 1.6 per cent to Euro 3.7 billion, the sales performance in household furniture, other furniture and furniture parts was also more negative than the industry average. The smallest segment in the industry – mattresses – recorded the most significant decline in sales of 12.8 per cent to Euro 400 million. This must, however, be put in the context of the above-average growth in sales in this segment in recent years.

Furniture industry generates new jobs
We now take a look at the employment figures for the industry. The 482 businesses currently operating with more than 50 staff (–2.2%) employ 84,300 men and women, which is slightly above (+0.7%) the previous year’s level. Approximately 600 new jobs have been created in the industry in the last year, despite the difficult market conditions.

Compared with the same period of the previous year, German furniture exports in the first half of 2018 grew by 2.2 per cent to Euro 5.5 billion. With an increase of 1.2 per cent, sales to EU countries only crept slightly above the previous year’s level, thus developing much more sluggishly than exports as a whole. Having said this, exports to the German furniture industry’s largest external market, France, achieved growth of 3.5 per cent, and the Dutch (+6.2%), Polish (+10%) and Spanish (+6.1%) markets also saw positive developments from the perspective of the German furniture industry. However, furniture exports to the important sales markets of Austria (–1.3%) and Switzerland (–3.8%) declined.

Negative trend in Great Britain
The furniture industry also clearly felt the negative effects of the Brexit negotiations and the fall in the pound over the course of the previous year, with furniture exports to Great Britain contracting by 8.9 per cent in the first half of 2018. No other major export market performed as badly as the United Kingdom from the perspective of German furniture manufacturers.

Boom in exports to the USA, China and Russia
The key growth markets for German furniture now lie outside the EU. The outstanding performance of German furniture manufacturers in the largest growth markets of the USA (+9.5%), China (+25.9%) and Russia (+14%) is particularly noteworthy. Given the size of each of these markets and the strong demand for high-quality furniture, these figures are sure to see further growth. Other markets outside Europe, such as Canada, Mexico, Japan, South Korea and Singapore, are currently developing well, although exports to these countries are still at a relatively low level. Overall, the non-EU market is expected to become an important driver for growth for the German furniture industry in the years ahead.

Export ratio up by 32.6%
The industry’s export ratio – that is to say, the proportion of goods shipped directly abroad by domestic furniture manufacturers against total sales by the industry – climbed to 32.6 per cent in the first half of 2018, thereby achieving a new record. The corresponding figure for the first half of 2017 reached 32.1 per cent. This means that the furniture industry’s export ratio has doubled since the turn of the millennium.

Furniture “made in Germany” highly regarded
The success of German furniture manufacturers abroad can be put down to the quality, reliability of supply, design and individuality of our products. German manufacturers often have a better grip on processes and logistics than their international competitors. These are important selling points for consumers – whether they be in Shanghai, St Petersburg or San Francisco.

Greater support for exporters
In view of the increasing importance of exports for the industry, the VDM will be expanding the support it offers exporting companies. A new VDM Export working group aims to encourage dialogue between individual manufacturers, identify the main markets and coordinate export and trade fair activities for the industry as a whole. Information days and workshops for furniture manufacturers will be organised to share industry-specific expertise relating to the individual export markets. Practical tools will also be made available to support the successful involvement of German furniture manufacturers abroad. These additional export activities are intended to help German furniture manufacturers to grow their market share on the world market.

Slight increase in imports
Import competition remains strong: after German furniture imports achieved growth of 0.8 per cent to Euro 12.7 billion for 2017 as a whole, in the first half of 2018 they rose by a further 0.6 per cent to Euro 6.6 billion. However, the trade deficit reduced by 8.1 per cent to around Euro 1.2 billion in the same period as a result of substantially increased exports. Overall, furniture imports to Germany from eastern Europe are increasingly gaining ground from their Asian competitors. Poland enjoyed growth of 7.4 per cent and, as has been the case for a number of years, remained by far the largest source country in terms of furniture volume. Nowadays, more than one in four pieces of furniture (26.3%) imported into Germany originates from our neighbour to the east. The Czech Republic remains the third-largest source of imports with a slight rise of 0.7 per cent. Altogether, imports from EU countries achieved a significant increase of 1.8 per cent. By contrast, imports from Asia fell disproportionately (–5.9%), especially from Vietnam (–12.3%), Taiwan (–13.9%) and Indonesia (–9.8%). Imports from the second-largest originating country, China, declined significantly with a drop of 5.2 per cent. The structure of German furniture imports is highly concentrated, with around 56 per cent of all German furniture imports now attributable solely to the three largest supplier countries: Poland, China and the Czech Republic.

56% of all imports from Poland, China and the Czech Republic
Almost two thirds of participants in the VDM survey expect the business outlook to remain the same in the six months ahead. 24 per cent anticipate an improvement in the situation and just 12 per cent a worsening. According to the assessment of the respondents, the major factors affecting the trading climate in the next six months will be increasing prices of raw materials (33% of respondents), a shortage of skilled personnel (27%), growing pressure from imports (18%) and increasingly protectionist trade policies (9%).

Rising material costs hit the industry hard
The rising cost of materials as regards solid wood are seen as a particular obstacle for development in the sector. Companies in the German furniture industry taking part in the survey report an average increase of 9 per cent in the cost of solid wood when compared with summer 2017. Prices of wood-based materials increased by 5 per cent in the same period, with logistics costs also up by 5 per cent and staffing costs by 3 per cent. Given the market power of purchasing associations, it is not possible to pass on this rise in costs in full to the German furniture retail trade.

Forecast for the current year: +1%
While the contribution of foreign markets to German furniture industry sales is expected to remain positive in the second half-year, in view of the very significant growth in recent times, there are clouds on the horizon as far as domestic trade is concerned. Consumer confidence in Germany is also on the wane. Economic forecasts for this year have recently been revised downwards by leading economists. On this basis, we continue to anticipate sales growth at the end of the year by around 1 per cent in 2018.

• E-commerce to grow by 17 percent in 2018

Berlin (GTAI) - E-commerce in the Netherlands is expected to grow in 2018. The most popular products are media and entertainment. Strong growth was recorded in the food trade.
The Dutch online food trade is gaining momentum, and high growth rates are expected for 2018. Customers also look beyond the borders and shop abroad. However, the online shops with the highest turnover are in Dutch hands.

Dutch people are very open to new technologies. In 2018, around 97 percent of the population (16.8 million people) will have an Internet connection. On average, the 13.9 million online shoppers spend EUR 1,242 a year. In 2018, e-commerce revenue will grow by around 17 percent to EUR 26.3 billion. This is predicted by an investigation of the organization Thuiswinkel. Already in the first quarter of 2018, EUR 6.3 billion were spent online, an increase of 13 percent compared to the same quarter of the previous year. The last quarter of a year with the holidays (Christmas, Santa Claus and Black Friday), in which 30 percent of the annual sales are taken place, is always very promising.

According to the Portal Commercenews online trading amounted to EUR 22.5 billion in 2017, up 13 percent from 2016, accounting for 9.7 percent of the total retail sales, which grew by only 4.2 percent. The e-commerce boom was followed by new company foundations: around 9,200 new webshops were established, but 5,400 were closed too. Most of these webshops also have foreign markets in their view.

Laptops are most commonly used for online purchases, but mobile devices are becoming increasingly popular. 2017 was marked by growing mobile commerce (m-commerce), a further increase is expected in 2018. After all, the country has more mobile devices than inhabitants (110 percent).

Not only the web shops benefit from the booming e-commerce. The Dutch Post is also pleased about the growth. Their e-commerce revenue is estimated at 42 percent of total revenue in 2018 (2017: 34 percent).

Food is bought more frequently online
Demand is focused on the media and entertainment sectors, where some 8.5 million purchases were made in the first three months of 2018. Food and near-food products (goods that are not food but are also available in supermarkets) were in demand in the first quarter of 2018, 42 percent more than in the same period of last year. Although their share of total purchases is still low, experts are already forecasting 3.7 percent in 2018 after 2.9 percent in 2017, when the sales exceeded EUR 1 billion for the first time. The purchases were mainly made at the large Albert Heijn and Jumbo supermarkets. The third important market Picnic, which only operates online, wants to expand into Germany and has already started a pilot project in the Düsseldorf area.

The Albert Heijn supermarket is about to make it even easier for its customers, to receive goods even when they are not at home. It is testing a so-called intelligent key (smart door lock) from Nuki. Customers can use their mobile phones to control who enters the apartment in their absence. By this this way he can let the delivery service in after his call..

Buyers are usually satisfied with their online purchases. Nevertheless, they fear that the goods are not clearly enough illustrated and described, as well as difficulties in returning them and their costs. Web shops can score points if they offer free shipping and fair return options.

The thrifty Dutch also compare when buying on the Internet. According to Ecommerce Foundation, 60 percent look around at multiple merchants before deciding, 53 percent use websites that compare prices or products, half consider other users' reviews on the web and only 8 percent buy spontaneously based on advertising or social media ads (multiple answers possible).

Dutch spend more and more abroad
Around 3.8 million Dutch people bought from foreign webshops in 2017, spending rose by 28 percent compared to the previous year. In 2017, they spent around EUR 1.5 billion on webshops in the European Union. Also Chinese sites with favorable offers are popular. Around EUR 248 million were invested in shops such as Aliexpress, Banggood, Dealextreme, Geekbuying, Gearbest, MiniIn TheBox. The most popular countries were China, the United Kingdom, Germany and the USA.

The most popular payment provider on the Internet is iDEAL. Around 95 percent of customers use the Dutch online payment system, in which several local banks are involved. Its market share is an impressive 57 percent. In 2017, the number of transactions via iDEAL grew by almost 34 percent. Foreign webshops have also joined the system: About one third of the payments went to them.

Source: Ecommerce Foundation

Many Dutch retailers among top online shops
Many of the most successful online retailers are Dutch companies. Bol, the local online seller with the highest turnover, was able to grow because large e-traders such as eBay or Amazon were not yet present in the Netherlands. Bol developed from a project of the German Bertelsmann Group with a focus on books and DVDs, but is now in Dutch hands and has considerably expanded its offering to other product groups. In 2012 Bol was acquired by the Ahold Group.

The Rotterdam-based company Coolblue launched an online store in 2000. Subsequently, several web shops were opened, each focusing on one product category. A stationary business was added in 2005. Coolblue today sells mainly consumer electronics, white goods and fitness equipment and is the second largest online retailer. The company is known for its excellent customer service.

Wehkamp began as a mail order company in 1952 and sold all articles via its Internet platform before 2000. The Internet pioneer has developed slowly, but has recently invested heavily in order to survive in the Dutch top league.

Like eBay in Germany, Marktplaats.nl in the Netherlands is the marketplace for second-hand goods. Google Shopping achieved strong growth in 2017. The portal is also expected to become the most important comparison portal in the Netherlands in a short time.

‘High-Tex from Germany’ at Techtextil North America and Texprocess Americas shows again how innovative the German textile industry is.

Back to the USA: ‘High-Tex from Germany’ made a guest appearance at Techtextil North America and Texprocess Americas in Atlanta for the second time from 22 to 24 May 2018. At the special exhibition organised by the Federal Ministry of Economics and Energy (Bundesministerium für Wirtschaft und Energie – BMWi) in cooperation with the Association of the German Trade Fair Industry (Messeausschuss der Deutschen Wirtschaft e.V. – AUMA), a total of 66 companies presented technical textiles, nonwovens, textile-processing machines, smart textiles and textile-research projects to the trade visitors. The textile sector made its first appearance in the USA in 2000. This was followed by highly successful presentations in Shanghai in 2002, in Mumbai in 2007 and in Moscow in 2012.

“Taking ‘High-Tex from Germany’ to Atlanta again was a very good decision. The southeast of the USA has a long tradition of textile manufacturing. It is home to many companies that are always on the lookout for innovative textiles and machines for textile production and processing”, explained Detlev Rünger, German Consul General in Atlanta during the ‘High-Tex from Germany’ press conference. “Fairs bring people together. And this was evident here in Atlanta. With the overseas exhibition programme, we give small to medium-sized companies the chance to show their products in foreign markets”, said Patrick Specht of the Trade Fair Policy and EXPO Participations division of the BMWi.

“‘High-Tex from Germany’ within the framework of Techtextil North America and Texprocess Americas was a very good platform for our small to medium-sized companies. After Techtextil and Texprocess in Frankfurt, these two events are the second-most important editions of the trade-fair duo. ‘High-Tex from Germany’ came fully up to our expectations and anyone who failed to take part missed a great opportunity to be noticed”, said Marc Lorch, Member of the Board of Zwissler Holding, who represented the participating companies as exhibitor president.

Michael Metzler, Sales President of ZSK Stickmaschinen, confirmed this saying, “A German pavilion of this scope makes us extremely visible. Thanks to the excellent organisation, we were also able to concentrate on promoting our company and products.” In addition to the appealing exhibition-stand concept and the excellent organisation, the companies taking part were particularly pleased with the high visitor standard. “We regularly exhibit at Techtextil North America but taking part in ‘High-Tex for Germany’ resulted in our best ever day at a fair here. The pavilion is a real eye-catcher”, said Thomas Wiederer, Area Sales Manager, Brückner Textile Technologies. “The visitors to our exhibition stand were very interested in our products. We gained potential customers and were able to make numerous high-grade contacts. The level of interest shown in our highly innovative e-textile solutions, which are completely new in the sector, was very high. We are looking forward to the follow-up phase”, said Andreas Lanyi, Vice President Digital Unit and Internet of Things of the Hamburg-based start-up, Lunative Laboratories.

Besides gaining new customers, the focus of the companies taking part in ‘High-Tex from Germany’ was on cultivating customer relations. “The German pavilion in Atlanta once again gave us a good opportunity to get to know the US market better. We have had a factory in the vicinity of Atlanta for two years now and aim to expand our network in the long term”, said Ronny Schröder, Associate Sales Director Technical and Comfort Products, Sandler. “We like making presentations within the framework of the German pavilion very much”, added Georg Voggenreiter, Technical Sales, Maschinenfabrik Herbert Meyer. “Once again, ‘High-Tex from Germany’ was a good starting point for cultivating contacts with our customers in the USA.”

The companies taking part in ‘High-Tex from Germany’ made their presentations on around 1,300 square metres of exhibition space with their own exhibition stands, with selected exhibits on a central ‘Plaza’, in guided tours and no less than 35 lectures. Additionally, the German Institutes of Textile and Fibre Research (Deutsche Institute für Textil- und Faserforschung – DITF), the Association of the Finishing, Yarns, Woven Fabrics and Technical Textiles Industry (Industrieverband Veredlung, Garne, Gewebe und Technische Textilien – IVGT), the Tübingen-Reutlingen-Zollernalb location agency and the German American Chamber of Commerce of the Southern U.S. provided insights into current research projects and offered information about the sector.

• Sudanese and Chinese investors want to secure raw material supplies

Nairobi (GTAI) - Ethiopia has further successes in attracting textile companies: One British company is planning to invest USD 100 million, one Chinese company even plans to invest USD 220 million. This means that the textile sector is increasingly becoming a self-starter, as donors increasingly want to supply domestic industry with pre-products. Meanwhile, those who invest should not only raise the financial means, but also the raw material cotton, according to market experts.

The Ethiopian textile and clothing market has two new entrants: the British Intrade Co. UK Ltd. and the Chinese Wuxi No. 1 Cotton Investment Co. Ltd, Intrade intends to build a textile and clothing factory in the Mekelle Industrial Park (Tigray Regional State), which was opened in July 2017. Initial cost estimates are around USD 100 million. Intrade is an offshore company of the Sudanese Mahgoub-Sons Group. The company has reached an agreement with the Ethiopian Investment Commission to invest USD 200 million in three projects. The textile project is to be completed in 16 months.

Security of supply for cotton is becoming an issue
The Sudanese group is not only interested in textile production, but also with lucrative supply transactions for its own cotton. They have the capacity to supply 500,000 tons of long staple quality cotton annually, Wagdi Mirghani Mahgoub, Managing Director of Intrade says. The supply of raw cotton has become an increasing problem for the emerging Ethiopian textile industry since some Asian countries ordered export stops for the raw material, including the PR China and India. The African Plantation, which cultivates 33,000 hectares of agricultural land in Sudan, also belongs to the Mahgoub-Sons Group.

However, Wuxi No. 1 Cotton Investment has announced the second and larger textile investment of 2018: a textile factory will be opened shortly in the Dire Dawa Industrial Park. In a first phase, USD 80 million are planned, followed by further investments totaling USD 140 million. The company intends to install state-of-the-art textile machines to produce and supply goods for the demanding markets in Europe, Japan, South Korea and Southeast Asia. According to their own statements, partners are leading world machinery brands. Wuxi is already pursuing a project in the Ethiopian city of Adama and also has plans to grow cotton in Ethiopia.

Ethiopia is considered the first textile address in Africa
"Clothing companies are nomads," an industry consultant knows, "they go where it is cheapest for them. If wages and ancillary costs rise too much in countries like Bangladesh or the PR China, the caravan moves on." South of the Sahara, only Mauritius has made a name for itself as a producer of high-quality clothing. Attempts to establish larger-scale textile and clothing companies in Namibia and Lesotho have so far been unsuccessful. Meanwhile, Kenya and Ghana have production conditions that are far too expensive.

Ethiopia offers several advantages at the same time: Wages and ancillary costs are extremely low and far below those in China. The US Centre for Global Development found out that a worker in Ethiopian sweatshops earns an average of USD 909 a year. In Bangladesh, however, it is US$ 835 and in Tanzania and Kenya even US$ 1,776 and US$ 2,118 respectively. Another advantage: Ethiopian seamstresses are considered to be extremely hardworking and reliable. In addition, there is a tradition in textile and clothing production as well as in leather processing and thus there is a basic pool of trained specialists.

Infrastructure is making huge progress
Meanwhile, the supply of domestic cotton and leather needs to be expanded, because in the drought years 2016 and partly 2017 the supply of cotton was insufficient. The government is cooperating and is increasingly listening to the needs of producers. The infrastructure is currently undergoing sustained improvement, in particular the transport routes to the neighboring seaport of Djibouti, from where Europe can be reached more quickly than from the Far East. And, last but not least, the Ethiopian capital Addis Ababa has a capable air traffic hub with a dozen direct flights to the EU, including Frankfurt and Vienna. In addition, there is a modern air freight center.

Just as important as the delivery routes are the comparatively modern production conditions in the newly emerging industrial centers throughout the country. Everything here is "Made in China": fences, access controls, roads, electricity and water supply, waste and sewage disposal, workers' settlements. From a European perspective, this may look like Chinese dominance, but from an Ethiopian perspective it creates jobs, feeds families and earns foreign exchange. Under better working conditions than in Bangladesh, experts mean.

According to the ideas of the Ethiopian government, the country is undergoing a transformation process: away from an agrarian-based economy and towards an industrial state. By 2025, the country is expected to reach middle-income status and to become Africa's largest industrial production hub. To achieve this, Ethiopia is investing heavily in roads, railways and power generation, health and education, urban and rural development and the creation of industrial clusters.

Customs advantages in the USA and Europe
Ethiopia has so far benefited from the African Growth and Opportunity Act (AGOA) of the USA, which, for example, allows savings of 16.8 percent in import duties on cotton trousers and 30 percent on synthetic shirts. Ethiopia also has duty-free access to the EU market under the Everything but Arms initiative. Fears that US President Donald Trump might stop AGOA have not yet come true.

Source: Comtrade

German exports can be expanded
German sales representatives of technology for the textile, clothing and leather industry are not yet well positioned in Ethiopia. According to preliminary figures from the Federal Statistical Office (SITC 724), only EUR 2.84 million of relevant technology where sent to Ethiopia in 2017, though 169 percent more than in the previous year.

Source: Comtrade

• Sales of Kitchens and Beds is outperforming
• E-commerce puts pressure on the Sector

Paris (GTAI) - Furniture sales in France rose sharply in 2017 for the third year in a row, although the record level of 2011 has not yet been reached. This is reported by the association FNAEM in its annual balance sheet and refers to the close connection with the booming housing market. This also should push the furniture sector in 2018.

After growth rates of 2.4 and 2.3 percent in 2015 and 2016 the French furniture market has again achieved a stable growth of 2 percent in 2017. According to the FNAEM Federation (Federation française du negoce de la ameublement et de equipement de la maison), the market developments are closely linked to the housing and real estate markets. According to the association, every third furniture purchase was made by a household that has moved within the last 24 months.
 
In 2017 16 percent more homes were built in France compared to the previous year. By the end of October 2017, the real estate market also had also registered 16 percent more transactions. The FFB (Federation française du batiment) expects a strong total construction activity again but with a slight decline of 2.5 per cent in the construction of new housing in 2018.

The development of the overall economy and the political environment also have a strong influence on the furniture market. For example, the presidential elections and the change of government in France led to an initial uncertainty among consumers and delays in the awarding of public contracts. Sales of furniture initially developed weakly in the first half of 2017, but then all the more dynamically.

Source: IPEA (Institut de prospective et d'etudes de l'ameublement)

Most strongly grew the kitchens segment in 2017, whereas in recent years in particular bedroom furniture led the sales. Kitchens are particularly benefiting from the improving housing market and a continuing trend in French households to pay more attention to kitchen equipment.

Fitted kitchens gain market share
According to an analysis by the market research company IPEA (Institut de prospective et d'étes de l'ameublement), only 60 percent of households in France have fitted kitchens, much less than in other Western European countries (Germany: around 80 percent). This difference promises good growth rates for this segment for years to come.
According to the market researchers, the gap between the well-running segment of sofas and armchairs over benches is increasing in favor of upholstered furniture. Above all, folding sofas, which are always offered cheaper, continue to make competition to banks.

Other home furniture such as tables, chairs or chests, which continue to make the majority of the market, were, according to the FNAEM association, unable to make up much ground in retailing compared to kitchens and beds in 2017. Also, in 2018, according to the association's expectations, there will be no signs of recovery. According to FNAEM at most the online trade should continue to grow in the home furniture segment.
The sales of garden furniture benefited from warm weather periods in spring 207, which extended the sales season. According to IPEA bathroom furniture could not fully benefit from the upturn in the housing market in 2017. The business often depends on the hardware stores, which often promote low-cost products. Installers would have sold less bathroom furniture in favor of heating systems.
 
Good sales forecasts for beds
The bedroom segment, the leader in growth in recent years, has developed less strongly in 2017. IPEA attributes this to a tougher competition with more price promotions. Lower prices had slowed the sales despite good volumes. The buyers continue to ask for larger beds sizes with a width of 160 cm.

According to a study by the market research firm Xerfi, the bedding segment is expected to grow steadily by 3.3 percent per year until 2019, supported by the housing market and higher disposable income. French consumers would also exchange their mattresses now more often. According to the trade Frenchmen buy a new mattress every 14 year, whereas this happens in the US every eight years. The association of the mattress industry calls 13,5 for Germany.

Retailers operate multichannel strategy
However, the competition in the bed and mattress market is growing, above all due to the success of e-commerce. Online mattress suppliers such as Casper from the USA (with production in Germany), Tediber and Ilobed from France or Simba and Eve Sleep from the UK have launched massive advertising campaigns in France. According to estimations of the providers, they now have reached a market share of about 5 to 6 percent in the mattress segment.

The stationary trade with furniture stores like Ikea, Conforama or But and the bed specialists Maison de la literie, Compagnie du lit or Litrimarche defend themselves against the pure on-line offerors. All major retailers now operate a multichannel strategy, meaning that they try not only to sell in their furniture stores but also via their own online channels. At the same time the shops are upgraded by events, more advice or more frequently changing exhibitions.

Leading in France are the large furniture stores Ikea, Conforama and But. Market leader Ikea claims a market share of 19.4 percent in 2017. Conforama and But did not publish any shares for 2017 but came to 16.1 and 13.4 percent respectively in 2016. According to estimates by IPEA, online commerce accounts for a total market share of around 12 percent. Half of this is accounted for by pure online providers and internet sales by conventional, previously purely stationary, providers.

Ikea aims for a 10 percent online share in France. Conforama claims to already generate 10 percent of its sales via the Internet. However, the company also offers entertainment and household electronics. Of the online furniture purchases, 82 percent are still being picked up at the stores. Conforma wants to do justice to this with additional furniture markets in the low-price segment. At the same time, other sales rooms should be created in which new furnishing ideas will be presented.

Source: IPEA

Conforama joined the French online pioneer Showroomprive.com in 2017 as an investor, hoping to gain expertise in online marketing. Due to the impending bankruptcy of the South African parent company Steinhoff Conforama sold its shares in early 2018 to the supermarket chain Carrefour.

However, the company intends to take advantage of the increased customer interest in the bedding segment with a new high-end store chain under the brand "Il etait une nuit" and is buying additionally more smaller bed houses. The chain But was for a long time for sale until it was taken over in mid-2016 by the third largest furniture retailer Lutz from Austria together with financial investors.