Textination Newsline

Digital textile printing technologies to take Centre Stage at Gartex Texprocess India 2019 – the 3-day comprehensive exhibition on complete supply-chain of garmenting & textile manufacturing solutions

India’s leading trade show, dedicated completely to garmenting and textile manufacturing solutions and technologies, Gartex Texprocess India is scheduled from 10-12 August 2019. Spread over 1,50,000 sq. ft. exhibit area, the show will be held across six halls in Pragati Maidan, wherein more than 200 companies will display over 400 brands. A hub dedicated completely for showcasing and highlighting latest developments in machinery, inks, software and services in digital textile printing, the Show is designed to take the country’s fabric printing & apparel industry to the next level.

The 4th edition of the Show is gearing up incorporating DIGITEX Show highlighting the developments and innovations taking place in the digital textile printing technology, which is eventually picking up fast in the apparel manufacturing industry across the country. More than 20,000 enthusiastic visitors are expected to witness the latest developments during the three days of extreme business activities. They would not only take a glimpse of what new has hit the turf in the digital textile printing, but will also experience the newest technologies through various live demonstrations that the leading brands catering to the solution for soft signage and sublimation printing would put on the display.

The transformation in digital technologies over the past few years has been tremendous, which the organisers found important to bring forth under the DIGITEX @ Gartex Texprocess 2019. The advancement in technologies and rapidly increasing awareness has brought it at a revolution of sorts. Digitex hopes to become a one-stop solution hub for the latest machinery, inks, software and services to serious buyers and decision makers of the digital textile printing industry. The Show would also witness renowned brands offering live demo of their respective machines to let the visitors feel and appreciate the development taking place in the fabric digital printing arena which is slowly but steadily picking up.

Ever since direct to garment (DTG) printing has been introduced, textile printing industry has started finding new horizons with a fast and flexible production solution that delivers exceptional image quality, which in turn is opening up new doors of opportunities for those who are willing to enter into the apparel industry or are eager to expand their garmenting & textile business. Digitex @ Gartex Texprocess India is an important event for the digital printing technology leaders as it offers them the perfect Launchpad as far as Indian market is concerned.

Moreover, experts feel that increasing thrust and resultant R&D investment in progression of digital textile printing technology will further boost the growth avenues for the digital textile industry in near future. Meanwhile, increasing popularity of polyester as an alternative to cotton as a textile fabric further creates opportunities for digital textile printing equipment providers to expand their business. Attributing to such significant demand for digital textile printing technology, there is scope for manufacturers to enhance their business in time to come.

Many leading names like ColorJet India, Fortuna Colours & Prints Llp, Apsom Technologies, Kornit Digital, True Colors Group, Epson India, Jaysynth Dyestuff (India) Ltd., etc. are lined up with their new arrivals and eagerly awaiting the Show dates to launch their latest printers. Featuring continuous production and a wide range of printing capabilities, most of these new age digital textile printers work on minimal maintenance and come with easy cleaning options for smooth operation. All these activities clearly evince that overall textile printing technology market has positive growth prospects, riding on the back of the country’s burgeoning textile industry.

Companies like Arrow Digital, AT Inks, Britomatics, Cosmic Trends, DCC Print Vision Llp, E.I.DuPont India Pvt. Ltd. Electronics For Imaging India Pvt. Ltd. (Efi Optitex), Epson India, Fortuna Colours & Prints Llp, Ganpati Graphics, Grafica Flextronica, Green Printing Solution, Green Tech, Hi Tech Marketing, HP India Sales Pvt. Ltd., Jay Chemicals Industries Ltd., JN Arora & Co., Kamal Sales Corp., KNR Technology Company, Mac Printing Solutions, Mouvent, Negi Sign Systems & Supplies Co., Orange O Technology Pvt. Ltd., Somya Digital Technologies, Spintex Pvt. Ltd./Aura, Tanya Enterprises, Texzium International Pvt. Ltd./Wenli, Veekay Enterprises, & many more are coming up with their technological innovations to showcase their latest product range under the DIGITEX.
 
The extensive exhibit profile ranging from new printers and inks to upcoming techniques will explore new and exciting opportunities offered by digital printing for home furnishing & interior decoration, apparel & fashion and corporate interiors. On the display will be digital textile machinery, digital textile printing machines, dye sublimation process, screen printing machines, t-shirt printing machines, transfer printing process, digital textile printing chemicals, digital textile printing inks (disperse, reactive and pigment inks), heat transfer machines, sublimation paper, software & many more.

Moreover, it’s a great opportunity for digital printing companies, signage industry stakeholders, screen printing industry people from graphic arts industry, merchandisers and other industry players to interact with the leading digital printing technology suppliers and to witness the latest range and innovations in the sector. This is because following the advent of digital printing solution, the applications of fabric or textile is not limited only to the clothing and home furnishing, but has gone far beyond to include signage, flags, posters, back-lit, front-lit, etc. to bring forth a wholesome idea that where all digital textile printing technology can be used.

Points to be noted are numerous benefits of soft signage. Textile or soft signage presses are very eco-friendly, run over water-based inks with little to no odour and low power consumption. Soft signage facilitates customers save on shipping because of being much lighter in weight than other materials used in the signage and graphics industry. Also, fabric-printed signs fold up to create smaller packages, again decreasing shipping costs. But overall, the Show would be a win-win for business visitors as it has much more than focusing on digital printing technology, bringing entire value chain of garmenting and textile printing manufacturing solution under one roof.

Organised by the MEX Exhibitions Pvt. Ltd. in association with Messe Frankfurt India, Gartex Texprocess, this year, will have three more shows apart from the Digitex. These are namely, FABRIC & TRIMS SHOW: A focused area to source all embellishments & fabrics, DENIM SHOW: A zone that aims to bring together the denim supply chain under one roof, and INDIA LAUNDRY SHOW: An ideal platform offering a wide range of business and networking opportunities to manufacturers, suppliers and service providers in the laundry and dry-cleaning industries.

Additionally, there are a couple of focus areas i.e., EMBROIDERY ZONE highlighting the significant evolution that has been taking place in the invention of new technologies and machinery for embroidery. The top variants of embroidery machines, software & allied products will be highlighted in this dedicated segment. Another focus area is GARMENTING & APPAREL MACHINERY that would showcase technological developments in the Garment & Apparel Manufacturing Sector.

Broad exhibit categories at Gartex Texprocess 2019 include embroidery machines, cutting and sewing machines, fabrics & accessories, needles & threads, laundry & washing equipment, finishing equipment, laser cutting machines, digital textile printing machines, automation and software.

After just a few seasons (since the founding of MBFW), Berlin has established itself as one of the top 5 fashion sites worldwide with up to 70,000 visitors, more than 30 fashion shows during the Fashion Week as well as numerous trade shows, events and showrooms.
In 2018, around 200,000 people came to visit the Fashion Week, further fueling the city’s economy with up to 120 million euros. The broad range of Berlin’s fashion sector offers everything. from high-end couture and tailoring to eco-fashion and streetwear, from single pieces to collections. Green Fashion and Upcycling are becoming increasingly important; more and more fashion labels in Berlin concern themselves with production according to ecological standards. Neonyt as well as other major trade shows are showcasing numerous brands of the Eco-Portfolio.
 
 

MBFW

In July 2019, MBFW will showcase its fashion-focused, approachable concept according to the new claim „Follow MBFW – Focus Fashion“. Within the modern and digital format that successfully launched in 2018, Mercedes-Benz and creative agency NOWADAYS band together to further strongly promote Berlin as fashion location and offer an attention-drawing platform for upcoming designers as well as established fashion brands to present their collections twice a year. The collections for Spring/Summer 2020 will be presented at ewerk located in Wilhelmstraße, Berlin-Mitte. With its raw industrial look, the location offers excellent conditions to create an authentic atmosphere where high-end fashion is the centre of attention. Within the new concept, MBFW focuses on remarkably staged presentations by a selected number of designer labels and brands in one location. Fashion interested end-consumers have the chance to watch all MBFW shows live at the forecourt of the venue or follow via digital channels like the website www.mbfw.berlin or on Instagram: @MBFW.berlin.

Monday 1.7.2019 – Wednesday 3.7.2019
LOCATION ewerk Berlin
Wilhelmstraße 43
10117 Berlin
CONTACT buero@mbfw.berlin
WEB  www.mbfw.berlin    

PREMIUM INTERNATIONAL BUSINESS PLATFORM FOR ADVANCED CONTEMPORARY FASHION

Begun in January 2019, the focus this season continues to be on the restructuring of the halls. The goal is to amalgamate the theme areas more precisely and make it easier for visitors to gain an overview, as well as to inspire them and appeal to their emotions. The exhibitors will present key looks rather than huge collections.On top of this we see the recurrence of a trusty PREMIUM theme: sustainability. As a result of this, there will be no plastic in the catering areas; a strong focus on rubbish sorting; and specific promotion of eco-brands.

PREMIUM has been the leading trade show among the most important international trade events since 2003, as well as the most relevant business and networking platform for advanced contemporary fashion. PREMIUM continually aims to inspire, strengthen business relationships and promote discussion across disciplines. B2B services are constantly being perfected and developed together with the key players in the industry.

Tuesday, 2.7.2019, 10am–7pm
Wednesday, 3.7.2019, 10am–7pm
Thursday, 4.7.2019, 10am–5pm
LOCATION STATION-Berlin
Luckenwalder Strasse 4–6
10963 Berlin
CONTACT PREMIUM Exhibitions GmbH
 +49 (0) 3062 908 50
 info@premiumexhibitions.com
WEB www.premiumexhibitions.com
www.facebook.com/PREMIUMBERLIN
www.instagram.com/PREMIUMBERLIN
www.twitter.com/PREMIUMBERLIN    

PANORAMA BERLIN
PANORAMA EXPEDITION

PANORAMA BERLIN is the groundbreaking meeting point for decision makers in the fashion and lifestyle business. Since its premiere in January 2013, it has become one of the most relevant European fashion platforms and, as the leading trade fair for Berlin Fashion Week, represents a comprehensive overview of national and international women & menswear.
Twice a year, together with the Tradeshow for Quality Garments SELVEDGE RUN & ZEITGEIST and the sustainable fashion show XOOM, PANORAMA BERLIN is an "all-in-one event" for international brands, which are divided into various sectors: smart formalwear, casual and sportswear, contemporary styles, denim, heritage and streetwear, accessories and shoes as well as sustainable fashion and lifestyle products.
Following the realignment in January 2019, PANORAMA BERLIN will be taking place from 2 to 4 July 2019 under the motto "BERLIN VIBES" and will focus on the topics of infotainment, eventisation and matchmaking. The concentration continues to target brands with relevance and clear messages. More sophisticated presentations, trend capsules and limited editions, which can only be found in Berlin, stage fashion in an exciting lifestyle context. From furniture to beauty products: In new, central concept store areas in halls 1 to 4, brands and products are presented in a new exciting relationship, providing a wealth of inspiration in terms of presentation and composition. Under the motto "Knowledge to go", PANORAMA BERLIN will be presenting a wide-ranging lecture program with leading keynote speakers in the Retail Solutions Hall on a wide range of future topics relating to international trends in retail, marketing, e-commerce and digitization.

Tuesday, 2.7.2019, 9am–6pm
Wednesday, 3.7.2019, 9am–6pm
Thursday, 4.7.2019, 9am–5pm
LOCATION PANORAMA BERLIN
ExpoCenter City
Eingang Süd/Jafféstraße
14055 Berlin
CONTACT PANORAMA Fashion Fair Berlin GmbH
+49 (0) 3027 595 604 0
office@panorama-berlin.com
WEB www.panorama-berlin.com
www.facebook.com/panoramafashionfairberlin
www.instagram.com/panoramafashionfair

 SHOW & ORDER X PREMIUM
TRADE SHOW FOR FASHION, LIFESTYLE & EXPERIENCE

Thanks to the special department store concept, SHOW&ORDER X PREMIUM is different to other trade shows. Buyers gain inspiration and stories not only from the family atmosphere, but also from the spacious Experience Floor. In addition, the Beauty Lounge will be there again: the place to go to enjoy a quick freshen-up during the hustle and bustle of Fashion Week. It’s not just the KÜHLHAUS itself that has lots to offer again in July 2019 – the Outside Area, too, will be equipped for hot summer days with a beach lounge, bar and mouth-watering catering. Trade show for fashion, lifestyle & experience Over six partly open, gallery-like floors around 200 fashion brands will be exhibiting alongside beauty products, interior and design pieces, stationery, books, art, music, fragrances and magazines, as well as innovative food concepts, located in various experience spaces on the different floors of the KÜHLHAUS. The building is situated on the STATION-Berlin premises very close by to PREMIUM.

Tuesday, 2.7.2019, 10am–7pm
Wednesday, 3.7.2019, 10am–7pm
Thursday, 4.7.2019, 10am–5pm
LOCATION Kühlhaus
Etage 1–5
Luckenwalder Strasse 3
10963 Berlin
WEB www.showandorder.de
www.facebook.com/ShowandOrder

#FASHIONTECH BERLIN

#FASHIONTECH BERLIN, held twice a year during Berlin Fashion Week, is the leading tech conference for the fashion industry, discussing topics around digital transformation, innovations and disruptive technologies. Featuring keynote presentations with international experts on stage (#LISTEN!), interactive masterclasses to boost your specialist knowledge (#LEARN!) and the Exhibition Area, where visitors will be introduced to the latest developments, products and innovations on the market (#EXPERIENCE!), #FASHIONTECH Berlin has evolved to become a leading European content hub for technology, digitalisation, sustainability and innovation.
#FASHIONTECH BERLIN also creates the stage for interdisciplinary exchange between different industries. The networking areas give visitors the opportunity to network with the speakers, industry insiders and entrepreneurs, as well as to seek out new business partners and generate business leads. Since digitalisation has affects every aspect of modern lifestyle, FASHIONTECH BERLN is looking into the latest trends that shape our lives.

TOPICS OF OUR TIME IN THE ERA OF DIGITALISATION

• DIGITAL BUSINESS
• STREET CULTURE
• E-SPORTS & GAMING IN FASHION
• SUSTAINABLE FUTURE

 

Thursday, 4.7.2019, 10am–6.30pm
LOCATION Festsaal Kreuzberg
Am Flutgraben 2
12435 Berlin
CONTACT Michael Stracke
hello@fashiontech.berlin
WEB www.fashiontech.berlin
www.facebook.com/FashionTechBerlinConference
www.instagram.com/Fashiontech_berlin/
www.twitter.com/fashiontechber

FASHIONSUSTAIN BERLIN

Technology, sustainability and innovation are important drivers of the fashion and textile industry that will revolutionize the sector and its processes and production methods. On Wednesday and Thursday, 3/4 July 2019, the international conference format Fashionsustain is dedicated to precisely these topics.
The up-coming edition of Fashionsustain will be dedicated to the subject of water – from microplastics to water stewardship. Highprofile speakers from innovative companies will be presenting visionary approaches to help preserve this vital resource. In addition, the summer edition of Fashionsustain focuses on retail. This involves margins, assortments, collections, POS solutions and the communication of sustainability issues.
And the topics discussed on the conference stage will be brought to life in the “Showcase of Change” exhibition area. But taking place before that, from 1 to 2 July 2019, is the Thinkathon – a space for open dialogue and creative thinking processes. Fashionsustain is part of Neonyt, the global hub for fashion, sustainability and innovation (2 to 4 July 2019) – organized by Messe Frankfurt.

Wednesday, 3.7.2019, 10am–6pm
Thursday, 4.7.2019, 10am–6pm
LOCATION Kraftwerk Berlin
Upper level
Köpenicker Straße 70
10179 Berlin
CONTACT Falco Fuchs
Messe Frankfurt Exhibition GmbH
+49 6975 755 938
falco.fuchs@messefrankfurt.com
WEB www.fashionsustain.com
www.facebook.com/FashionSustain
www.instagram.com/fashionsustain.berlin 

SEEK – A COMMON GROUND FOR INDIVIDUALS IN FASHION

The concept of the Trade Union, which was developed by SEEK Director Maren Wiebus and her team, will continue and will be polished from time to time.        
The bringing together of pioneers and industry visionaries will continue to have its dedicated space for promoting discussion, inspiration and food for thought. SEEK goes charity again! After the overwhelming success of the first initiative with One Warm Winter in January, SEEK and the Berlinbased NGO are planning to collect sneakers for the homeless this summer in front of the location during the show, but also before and after by collaborating partner stores. The project is supported by Sneaker Freaker.
Many reasons to celebrate: 60th birthday of Alpha Industries, 100th birthday of Champion and Farah plus a special Event OVERKILL x ASICSTIGER x SEEK Block Party Vol. 2 Fashion. Trade. Show. Each season, SEEK, the Voice of Street Culture, presents selected streetwear and urbanwear pieces that translate the current lifestyle trends for the industry. SEEK stands for democracy and fairness, clarity, friendliness and honesty, in keeping with the motto of “what you see is what you get”. The focus is on carefully selected style tribes that embody the modern zeitgeist and guarantee SEEK’s visitors valuable inspiration.

Tuesday, 2.7.2019, 9am–6pm
Wednesday, 3.7.2019, 9am–6pm
Thursday, 4.7.2019, 9am–5pm
LOCATION ARENA Berlin
Eichenstrasse 4
12435 Berlin
CONTACT info@seekexhibitions.com
WEB www.seekexhibitions.com
www.facebook.com/seekberlin

SELVEDGE RUN & ZEITGEIST

The show will be all about quality and trust.
After the successful merger with Panorama Berlin, the architecturally impressive hall at the south entrance of the Berlin Expo Center is the new home of Selvedge Run & Zeitgeist. As an integrated part of Panorama Berlin, the tradeshow for quality garments and crafted goods presents a unique exhibitor mix of the latest streetwear topics, which are highly relevant for the market, such as: denim, craft, current and outdoor. The brand list of Selvedge Run & Zeitgeist includes international iconic and heritage brands and distinctive products, some of which can only be seen in Europe exclusively in Berlin.
In July 2019, Selvedge Run & Zeitgeist will again be the hot spot for the community, offering a meeting place with like-minded people and food & drinks to discover the best quality brands and meet buyers from all over the world. In the integrated "Marketplace" you will find curated concept brands that can be ordered as well as bought directly.

Tuesday, 2.7.2019, 9am–6pm
Wednesday, 3.7.2019, 9am–6pm
Thursday, 4.7.2019, 9am–5pm
LOCATION PANORAMA BERLIN
ExpoCenter City
South Entrance/Jafféstrasse
14055 Berlin
CONTACT info@selvedgerun.com
+49 (0) 3027 595 604 0
WEB www.selvedgerun.com
www.facebook.com/selvedgerun
www.instagram.com/selvedgerun
www.vimeo.com/selvedgerun

NEONYT – GLOBAL HUB FOR FASHION, SUSTAINABILITY AND INNOVATION

Changing fashion together. Through collaboration, communication and entrepreneurship. That is the vision of Neonyt, the global hub for fashion, sustainability and innovation.With its hub concept, Neonyt combines the most important elements of the fashion industry – style, business, inspiration, knowledge, fun and community – in a neo-new way. The hub is made up of the Neonyt Trade Show, the conferences Fashionsustain and the design-thinking format Thinkathon, showcases, the influencer and blogger event Prepeek, networking events and, last but not least, the Neonyt Party.
The Neonyt Trade Fair will present a good balance of leading brands and newcomers – from contemporary, casual and urbanwear to denim, streetwear and sportswear down to business outfits. In addition to men’s, ladies’ and kidswear, the assortment of products on show also includes outdoorwear, shoes, accessories, jewellery and beauty. Neonyt is organized by Messe Frankfurt.

Tuesday, 2.7.2019, 9am–6pm
Wednesday, 3.7.2019, 9am–6pm
Thursday, 4.7.2019, 9am–5pm
LOCATION Kraftwerk Berlin
Köpenicker Straße 70
10179 Berlin
WEB www.neonyt.com
www.facebook.com/Neonytberlin
www.instagram.com/neonyt.berlin

Every two years, interzum presents pioneering innovations for the design of tomorrow’s living spaces. The world’s largest event for the supplier industry will unveil the latest developments and groundbreaking trends for homes and interior design from 21 to 24 May 2019. International exhibitors will present new materials and functions that are set to have a major influence on furniture production and interior design in coming years. The three exhibition segments – Materials & Nature, Function & Components, and Textile & Machinery – focus on innovative surfaces, sustainable materials and new technologies. Global mega-trends such as digitalisation, individualisation, mobility and urbanisation will also be addressed in the presentations by exhibitors. These are some of the trends and innovations that will appear in the showcases at the forthcoming edition of interzum.

Technology and emotion: the diversity of surfaces
The importance of the material dimension of design is growing, and with it attention is focusing on surfaces – a trend clearly in evidence at this year’s interzum. Many consumers today expect their living environments to both look and feel good, and to be tailored to their individual needs and wants. Furniture manufacturers can impress them with attractive surfaces. Design trends in this field are guided by both technological developments and emotional impressions. From super matt to high-gloss and custom, the diversity of new decors and surfaces that will be on display at interzum is almost limitless. New or rediscovered materials and combinations, as well as innovative manufacturing processes, have paved the way for these developments. Digital printing enables unique patterns while soft-touch or anti-fingerprint effects ensure an excellent look and feel that lasts. Alongside an immense diversity of design, the exhibitors in this segment will present a wide spectrum of functional features.

Reproducing nature: a feel in harmony with the look
Reproducing materials remains especially popular in laminated surfaces. Imitating the appearance of very different woods is a trend that shows no sign of stopping and one that appears today in many different forms. “What we’re seeing at the moment is trends going in different directions,” says Klaus Monhoff, Head of Design and Décor Management at the Egger Group. The manufacturer is responding to current demand for striking, rustic woods with a new synchronised pore surface with the look of old wood. Screen printing and digital printing specialist Stainer will have extra-large-format wood decors on display at its stand at interzum 2019. Its six-by-two metre panels with the look of different deciduous woods are suitable for walls and flooring. In the field of digital reproductions, the influence of matt, metallic-look surfaces is growing. The Viscora® Supermatt metallic coloured lamination film by Austrian exhibitor Hueck Folien is an example of this trend, as is a new surface by Egger that imitates the look and feel of finely brushed metal.

Focus on environmentally friendly materials and components
Sustainability is a global mega-trend that remains a current and future challenge for the interiors industry. Consumers want the interior design of their homes to be as contaminant-free as possible, and many are also seeking to minimise their ecological footprints. Eco-friendly materials and furniture components are therefore a crucial point of focus for many exhibitors at the forthcoming edition of interzum. Among them is wood processing company Swiss Krono. It will be showcasing BE.YOND, the world’s first biobased chipboard that meets the most stringent indoor air quality requirements. As a renewable, carbon-neutral recyclable material, wood plays a major role in lightweight design and furniture construction. Austrian plywood manufacturer Sperrholzwerk Schweitzer will have aerowood® on display in Cologne. The lightweight panel is resource-efficient, extremely light and available in any dimensions. “Nature is here” is Proadec’s slogan for its showcase. Its new, exceptionally environmentally friendly edge banding will be on display at the trade fair. Another key area of focus at interzum will be biobased plastics. Among the innovations on show in this category are fittings by Swedish exhibitor Ackurat and a new launch by Oskar Lehmann, whose product portfolio includes cable guides for desks. Sustainability can result in great creativity, as Austrian manufacturer Organoid will demonstrate at its stand: natural surfaces produced from hay or moss are made to sparkle with upcycled Swarovski Zirconia gemstones.

Adaptable solutions: individualisation is the new standard
The mega-trend for individualisation is a theme that runs throughout the exhibitors’ presentations at the forthcoming interzum. The desire for solutions that are as individually tailored as possible is transforming consumers’ expectations of their lives and homes. This shift has prompted many exhibitors to present new products that allow interiors to be adapted to personal requirements. The new Innovus collection by Portuguese wood-based materials manufacturer Sonae Arauco is one of the products that promise design freedom. With five new finishes and around 100 new decors, it opens up a multitude of possible combinations and applications. The Marino collection by Spanish exhibitor ServiCanto is similarly versatile and can be paired with different types of surfaces. A unique interpretation of classic wood surfaces makes the new product on show from Italian manufacturer Alpi a standout. Its Gamperana Triplex veneer collection is a collaboration with designer Martino Gamper. Instead of appearing in isolation, the veneer sheets are grouped in threes, paving the way for highly original compositions. Praveedh Décor, based in Mumbai, India, has expanded the colour spectrum of its acrylic prelaminated boards: its new product OpuLux Fantasy is available in multicolour designs that can be adapted to customer preferences.

The new openness: the merging of living worlds
The boundaries between the different areas of the home have been eroding for some time. The increasing fluidity of transitions is having an effect on systems, fittings and lighting. Many exhibitors at interzum 2019 are focusing on flexible design elements that act as the foundation for a consistent home architecture. One example of this trend is the new Schüco Openstyle system, which allows spaces to be flexibly joined or subdivided in line with requirements and the current living situation. “OpenUp” is Vauth-Sagel’s slogan for its interzum appearance. The storage specialist will premiere solutions for all areas of the home at the fair. Highly flexible also sums up the presentation by Hettich, a specialist in functional fittings: “We are simplifying diversity,” says Uwe Kreidel, Managing Director. The company will present multifunctional new products for different living situations in its product showcase.

The art of omission: increasingly invisible components
Increasing flexibility and multifunctionality in furniture is going hand in hand with rising standards for the design of technical solutions. “It is a matter of principle for us that a movement system must enhance the overall design of the item of furniture,” says Albert Trebo, Managing Director for Sales and Marketing of Grass, based in Austria. In this context, the miniaturisation of fittings technology and components such as control and lighting elements continues to play a major role. At interzum, Kesseböhmer will present a new flap fitting that is significantly different to the previous standard solutions on the market in its dimensions, design and functions. Lighting systems manufacturer Hera is also devoting its energies to miniaturisation. Its stand will feature luminaires that can be integrated into furniture almost invisibly. German start-up ambigence, based in Herford near Bielefeld, is taking advantage of this year’s interzum to present a completely new product category. It starts from a simple principle: instead of seeing the furniture panel and fittings as two separate components, they are conceived as a single unit. “Furniture is freed from limiting fittings by integrating functions into the space inside the furniture panel,” explains Norbert Poppenborg, Director Marketing & Business Development.

Micro living: greater comfort in limited space
A further global issue that many exhibitors at the forthcoming interzum are addressing is increasing urbanisation. With growing numbers moving to cities, living space is in increasingly short supply, especially in major conurbations, and rents and house prices are soaring as a result. This trend calls for optimal utilisation of the available floor space and components to provide more space per square metre. The latest solutions here include intelligent storage solutions, such as Kesseböhmer’s urban smart kitchen. “By employing intelligent fittings technology, the collection sets out to make optimal use of the storage space on small floor plans and to provide an overview of the contents, as well as easy access to them, with voice control as an option,” says Managing Director Burkhard Schreiber. A special event area at the trade fair will highlight the development potential that the intensifying shortage of living space presents: a number of exhibitors will showcase new concepts and solutions in the Tiny Spaces – Living in Compact Homes Piazza. To accompany the piazza, star architect Yasmine Mahmoudieh will present her experience of working with tiny spaces and discuss the future requirements that will apply to this field in a talk on Tuesday 21 May 2019.

Mattress production: efficiency provides enhanced sleeping comfort
Diversity is also on the increase in the world of mattresses. Materials are becoming more and more innovative, and processing standards are nearing perfection. Industry quality leaders therefore need to position themselves carefully. Many interzum exhibitors have focused their attention on developing efficient production and new processes that provide enhanced sleeping comfort. Schreiner Machine Service (SMS) represents various machine manufacturers on the European market. At the event, it will announce a world first in the manufacture of spring cores that allows customers to produce innovative mattresses while cutting their production costs. Production optimisation is also a focus for Brother, a specialist in automated sewing solutions whose product showcase will feature its BAS-370H model. The freely programmable bridge type electronic pattern sewer saves floor space in the production line when sewing large areas and enables fast sewing. Spanish company Visdeltex is heading in a similar direction with a new system for fast and automated quilting of bed and divan tops.

interzum 2019: the platform for new ideas
It is the supplier industry that has demonstrated time and again in the past how innovations can transform the market and the standards expected of living environments. The innovations on display at the forthcoming interzum will determine the materials, surfaces and technologies for the design of tomorrow’s interiors. A showcase packed with exhibitors’ latest ideas and solutions is lined up visitors.

 

• 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.

Pakistan: exports of yarn, fabrics and clothing (USD million) ^*)

Products	2013/14	2014/15	2015/16	2016/17	2017/18
Total	13,733	13,471	12,447	12,452	13,530
.Cotton yarn	1,997	1,849	1,265	1,244	1,372
.Cotton fabrics	2,770	2,453	2,214	2,136	2,204
.Towels	767	797	803	801	797
.Bed linen	2,138	2,103	2,020	2,136	2,261
.Clothing	1,906	2,095	2,195	2,319	2,579
.Knitted goods	2,294	2,406	2,364	2,361	2,720
.Other products	1,858	1,767	1,586	1,452	1,597

^*) 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.

Pakistan: Imports of selected textile machinery (USD million)

HS-Positions	2014	2015	2016	2017
84.45 Spinning machines etc.	230	162	162	246
84.46 Looms	84	73	107	90
84.47 Knitting machines etc.	70	84	65	75
84.48 Auxiliary machinery for HS headings 84.44 to 84.47	85	70	77	82

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.

Pakistan: Cotton production

Year	Cultivation area (in hectares)	Production (in 1,000 bales) 1)	Yield per hectare (in kilograms)
2013/14	2,086	12,769	774
2014/15	2,961	13,960	802
2015/16	2,902	9,917	582
2016/17	2,489	10,671	730
2017/18	2,699	11,935	752
2018/19 2)	2,500	11,000	748

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.

• E-Commerce Market continues to grow rapidly

Russia's online retailers are entering into strategic alliances. The market is maturing and consolidating. German suppliers must prepare themselves for tougher competition.
Russia's online trade continues to record strong growth rates. In 2018, sales increased by 19 percent year-on-year to around Rubel 1.2 billion (EUR 15.5 billion; 1 EUR = 74.04
Rubles, annual average exchange rate 2018). This corresponded to about 290 million orders, according to Data Insight's analysis. By the end of 2023, the investment bank Morgan Stanley expects annual growth of 25 percent to Rubles 3.5 billion. In 2018, the cross-border Internet trade increased by 29 percent to the equivalent of EUR 4.7 billion.

Development of the Russian online trade

	2014	2015	2016	2017	2018
Sales (Bn. Rubel) 1)	560	650	805	965	1.150
Change (in %) 2)	34.9	16.1	23.0	20.0	19.0

¹⁾ Physical goods only; excluding cross-border trade, deliveries of ready meals, tickets for transport and events, coupons, consumer-to-consumer and multi-level marketing;
²⁾ Nominal year-on-year; variance due to rounding.
Sources: Market research institute Data Insight; Association of Online Retailers (NAMO)

The share of e-commerce in retail sales is currently still around 5 percent. With the "Strategy for the Development of Online Trade by 2025", the government wants to increase this up to 20 percent. The conditions for further growth are good, as Russian consumers are Internet-savvy and open to technical innovations. Already 76 percent of all Russians have an Internet connection. According to the national "Digital Economy" project, broadband Internet penetration is expected to reach 97 percent by 2024.
 
Growth potential far from exhausted
Russia's online retailers are following this trend by modernizing their websites and are investing in goods logistics. Electronic marketplaces are becoming increasingly popular. This is because they offer smaller Internet retailers in particular the opportunity to assert themselves against the market leaders.
In the Forbes ranking of the 20 most valuable Internet companies in Russia, online retailers Wildberries and Ozon rank fourth and fifth respectively. The Russian fashion mail order company Lamoda - a foundation of the German Rocket Internet - is in ninth place.     
The Otto Group realigned its business model in Russia in 2018 and removed its subsidiaries Quelle and Otto from the market. The Hamburg-based group relies on the online brands Bonprix and Witt as well as on the eSolutions platform, which offers B2B services in the areas of marketing, sales, logistics and IT.

Leading online retailers in Russia

Company	Productportfolio	Sales 2017 (Bn. Rubel)	Change 2017/2016 (in %)	Number of orders (in Mio.)
Wildberries	Clothing, Shoes, Accessoires	63.8	40.0	39.8
Citilink	Goods of all kind	55.2	35.0	5.2
DNS-Shop / Technopoint	Entertainment electronics, Household appliances	38.9	61.0	5.8
M.Video	Entertainment electronics, Household appliances	36.7	41.0	3.6
Eldorado	Entertainment electronics, Household appliances	23.7	2.0	4.3
Lamoda	Clothing, Shoes, Accessoires	23.6	6.0	4.0
Ozon	Goods of all kind	23.4	44.0	8.6
Ulmart	Goods of all kind	23.1	-37.0	5.9
Bonprix	Clothing, Accessoires	16.5	10.0	4.0
Svyaznoy	Entertainment electronics, Household appliances	15.7	35.0	1.5

Source: Data Insight (http://datainsight.ru/top100/)

Russia gets two "local Amazons" at once 
Russian online trading is already firmly in the hands of a few large players who are continuing to expand their market presence. The market leader Wildberries added electronics and household appliances to its range in 2018. AFK Sistema Holding of the oligarch Yevgeny Yevtushenkov has increased its stake in the online retailer Ozon and is investing in the construction of new logistics centers In addition, Ozon started selling medicines, jewellery and ready meals.  

In April 2018, the Russian technology group Yandex and Sberbank agreed to establish the Beru and Bringly online marketplaces. The aim is to further develop the Yandex.Market platform into a "Russian Amazon". Russia's largest bank brings in the customer data of 100 million account holders.
Beru and Bringly's range mainly includes high-priced goods such as electronics, clothing, shoes and cosmetics. Bringly cooperates with the British cosmetics chain Feelunique, among others. In September 2018, Yandex.Market also concluded a cooperation agreement with Hepsiburada, Turkey's largest online marketplace. 

Alibaba expands its market presence in Russia
In September 2018, the next major merger in Russian online trading was announced: The Mail.ru Group and Megafon (part of the company empire of the oligarch Alisher Usmanow), the Russian Fund for Direct Investments and the Chinese technology group Alibaba intend to establish a joint online marketplace by the end of the first quarter of 2019. Alibaba intends to expand its presence on the Russian market.
The Mail.ru Group provides access to the data records of around 100 million users - an enormous new customer potential for the Chinese online giant. On March 5th  2019, AliExpress, the Russian subsidiary of Alibaba, also launched a platform for the sale of passenger cars of the Chinese brand Chery.

Duty-free limit continues to fall
Two thirds of Russian online buyers also order goods from foreign traders. 90 percent of the deliveries come from China. If the price and weight of the product are within the exemption limits, no sales tax is payable. On 1 January 2019, the exemption limit for cross-border online trading was halved to EUR 500 and the weight limit was lowered from 31 to 25 kilograms. From January 1st   2020, the tax-free allowance will fall to EUR 200.  However, this measure is unlikely to generate any additional revenue for the Russian State. In 86 percent of cross-border online purchases, the maximum value of goods is at about USD 22.

Above all, capacity bottlenecks in the delivery of online orders are currently putting the brakes on sector. VTB-Bank is therefore investing around EUR 410 million in the construction of 40 logistics and distribution centers for the Russian Post Office (Potschta Rossii) by 2021. The state-owned company intends to profit from the growth in the online commerce and increase its revenue from parcel services for e-commerce to Rubel 122 billion by 2023. Since September 2018, the Russian Post has been distributing deliveries from China via hubs in Siberia and the Far East.
The logistics service provider DPD has been working with the Avito advertising portal since October 2018. In future Its customers will be able to collect their parcels at around 1,500 DPD stations. Since June 2018 DHL and eBay have been working together on logistics services in Russia.

The development of B2B platforms is becoming increasingly important in Russia's online trade. The potential is huge: the Russian B2B online market amounts to around USD 20 billion - and the trend is rising. Pioneers such as Sewerstal, Alrosa or Technonikol already rely on B2B platforms to sell directly to their end customers. In 2018, the Chinese Fosun Group acquired around 20 percent of the shares in the B2B platform Prod.Center, on which agricultural products are traded.

• Competition from the Far East increases modernization pressure

Turkey is an important market for German manufacturers of textile machinery. However, the textile and clothing industry has a problem: exports have been stagnating for years.

The Turkish textile industry is broadly based: Companies manufacture all intermediate products in the country, including yarns, fibers and fabrics. Production along the entire textile value chain means great sales potential for German suppliers of textile machinery. In fact, Turkey is the second most important export market for German spinning, weaving, textile finishing machines and the like after China, as it can be seen from the figures of the Federal Statistical Office Destatis.Nevertheless, the sector is not a growth market. Apart from a few outliers upwards and downwards, Turkish textile machinery imports have remained at the same level for several years. This is due to the fact that Turkish exports of textiles and clothing are also stagnating. Particularly noticeable: companies benefited only marginally from the weak lira last year.

Textile and apparel industry benefits little from weak lira

Year	Turkish exports of clothing and textiles (in US$ billion)	Annual change (in %)
2015	26.3	-10.3
2016	26.1	-0.6
2017	26.7	2.1
2018	27.7	3.6

Source: Turkish Statistical Office TÜIK (http://www.tuik.gov.tr)

Increasing pressure from the Far East
Turkish clothing manufacturers are increasingly feeling the effects of competition from the Far East. Despite the high number of informal workers, wages in Turkey have risen to such an extent that they cannot keep up with the low wages of Asian sewing factories. The geographical advantage of Turkish companies over Chinese competitors is at stake because of the new Silk Road and the development of faster transport routes. Free trade agreements that the European Union is currently negotiating with India and South Korea will further increase the pressure on Turkish producers.

Slump in 3rd quarter 2018
In addition, there is the difficult economic situation in the country: the Turkish lira reached a record low, especially in the months of August to October 2018, and commercial banks raised their lending rates. As a result, financing costs for machinery from abroad suddenly increased, orders from Turkey failed to materialize, especially in the third quarter. The German knitting machine manufacturer Mayer & Cie has also noticed this, as Stefan Bühler, who is responsible for the Turkish business, reports: "In the last three months of 2018, the market was virtually dead. In the meantime, however, the industry is gradually recovering.

Akar Textile plans new factory
Announcements about new investments cannot yet be heard at this time. As early as June 2018, Akar Textile (http://www.akartextile.com) announced that it would build a new factory for 47 million Turkish lira (TL) in the municipality of Savur in southeastern Turkey. 3,000 employees are there to become employed. Akar Textile produces for companies such as C&A, Mango and H&M. Only a few months after the announcement of the project, the economic crisis in Turkey deepened in September. The extent to which the turbulence has affected the project implementation is not known.

Technical textiles as a driving force for growth
Far Eastern competition is increasing the pressure to modernize the Turkish textile industry. In the future, industry will have to compete primarily with high-quality products. Growth impulses are currently coming from the sector of technical textiles. According to industry reports, more than 200 small and medium-sized enterprises are already producing technical textiles and nonwovens in Turkey. These textiles and fabrics are being used in the automotive, packaging and cosmetics industries.

In June 2018, the Turkish METYX Group (http://www.metyx.com) invested in its machinery parc. The company is manufacturing technical textiles and has ordered a line of warp knitting machines from the German textile machine manufacturer Karl Mayer. The manufacturer of composite materials is thus increasing its capacity by 12,000 tons of glass and carbon fibers. In recent years, more and more research and development centers have emerged to promote the necessary technology transfer in the industry. The Institute for Technical Textiles at RWTH Aachen University (ITA) founded a research center in Istanbul in October 2016. In the Teknosab industrial zone in Bursa the BUTEKOM research and development center for textile technology was established in 2008. The institute offers training as well as research and development cooperation to and with companies.

However, many medium-sized textile companies often lack the money to invest in modern machinery. The short planning horizon makes an access to research and development more difficult. As a member of the management board of the German-Turkish Chamber of Industry and Commerce, Frank Kaiser has been observing the Turkish business landscape for eight years. He points out that the textile manufacturers, like other medium-sized companies in the country too, often plan in short terms. "In view of the volatile business environment, this is rational," Kaiser explains.

Turkish imports of textile machinery and exchange rate comparison  ¹⁾

Year	Import from Germany (in USD million)	Total imports (in USD million)	Exchange rate (1 US$ = ?TL)
2009	143	505	1.55
2011	521	1,851	1.67
2013	619	2,211	1.90
2015	382	1,398	2.72
2017	447	1,478	3.65
2018 1) 2)	490	1,774	4.81

¹⁾ the slump in the 3rd quarter is not yet visible in the annual figures for 2018; it will not become noticeable until 2019
Sources: UN-Comtrade, TurkStat ²⁾, Bundesbank

 

 

 

 

• Final Release

The latest edition of DOMOTEX – the world’s leading showcase for carpets and floor coverings (January 11 to 14) – has underscored its reputation as the sector’s biggest and most important hub for business, innovations and trends. Over 1,400 exhibitors from more than 60 nations came to Hannover to kick off a successful new year of business. With close to 90 percent of all attendees having decision-making authority, the caliber of the show’s visitors remained extremely high – a fact confirmed by exhibitors. Due to growing market concentration, DOMOTEX recorded a slight dip in attendance. According to the exhibition survey, the order situation of exhibitors remained constant, while the purchasing volume per visitor went up. About 70 percent of all DOMOTEX attendees once again came from abroad – a clear sign of the flagship fair’s international appeal. In terms of visitor backgrounds, attendance was notably up on the part of wholesale and retail professionals. The figures also revealed an increase in attendance by architects, interior designers and contract business professionals. In addition, DOMOTEX 2019 saw an increase in the amount of display space sold.

“Thanks to its strong international drawing power, DOMOTEX serves as the sector’s definitive global marketplace. The positive and optimistic outlook on the 2019 business year that was tangible in the trade fair halls proves the success of this year’s exhibition,” said Dr. Andreas Gruchow, the Managing Board member in charge of DOMOTEX at Deutsche Messe.

“Manufacturers and customers as well as partners, architects and designers from all over the world come together to network at DOMOTEX, spawning new business relationships and collaborative opportunities previously not deemed possible,” remarked Sonia Wedell-Castellano, the new global director for DOMOTEX, adding: “That’s what this year’s theme of Create’N’Connect is all about.”

Upbeat mood among exhibitors
Fabian Kölliker, Head of Marketing at the Swiss Krono Group, voiced early praise for the professional nature of the event: “We are very satisfied with the number, quality and internationality of attendees. Even after day two of the fair, we are already extremely happy with our success so far.”

The Balta Group has remained faithful to DOMOTEX since the origin of the fair. As Marketing Director Geert Vanden Bossche reports: “The rug business is a global business and this is the best place to connect with people and customers from around the world. In only four days we can meet with a lot of customers, giving a good return on our investments.”

For Myriam Ragolle, Managing Director of Ragolle Rugs, DOMOTEX represents the ideal opportunity to present the new products to a worldwide audience within just a four-day period: “It is impossible to achieve that by traveling. We can also make contacts with new customers from all over the world. This makes DOMOTEX unique.”

Exhibitors from the skilled trades also expressed keen satisfaction with the run of the show: “Here at DOMOTEX 2019, we have once again succeeded in impressing a trade audience from Germany and abroad,” said Julian Utz, CEO of Uzin Utz, adding: “The show’s international focus gives us access to exactly the right potential customers.” As he pointed out, Uzin Utz is strongly focused on Asian and Arab-speaking markets. “So the strong turnout by customers from these regions is a real boon for us.”

The benefits of attending DOMOTEX
Susanne Gerken, a Color & Trim designer at Volkswagen, came to DOMOTEX 2019 to catch the latest trends and check out innovative materials. As she pointed out, color trends and issues such as sustainability, recycling and new material lifecycles are all equally applicable to the automotive industry, and her takeaway was much more than just new impressions: “At DOMOTEX I picked up several ideas I can use to great advantage in my work.”

In contrast, business matters were the prime objective for Alex Hosseinnia, CEO of Dallas Rugs in Dallas, Colorado: “My line of work is all about buying and selling,” he said, adding that what he liked about DOMOTEX was the way it made it easy for him to meet up with suppliers, and that it was an ideal place to discover the latest trends and fashions, for example colors and patterns, that were “likely to be showing up in U.S. retail channels in the course of the next year or two.”

“CREATE’N’CONNECT” at DOMOTEX 2019
The inspiring “Framing Trends” showcase in Hall 9 proved its worth. In its second year, it once again featured impressive displays of innovative products by manufacturers, artists, designers and students. International architects, designers, planners and influencers were particularly appreciative of “Framing Trends” as the beating heart of the event. The new showcase has proven to be highly effective at bringing visitors together and spawning lively interaction and business dialogue.

Under the motto of “Gaining Ground”, the “Treffpunkt Handwerk” skilled trades hub in Hall 13 proved popular among interior designers, parquet and floor layers, painters and varnishers. The hands-on demo area gave flooring experts an opportunity to see innovative floor treatment and finishing tools and machinery in action while comparing notes with fellow professionals.

Digital tools for sales and marketing in the floor covering industry
A key topic at the event involved solutions for the digital presentation of carpets and floor coverings. The new digital solutions ran the gamut of VR and AR applications, including visualization aids for every aspect of the marketing mix, plus innovative software which makes it easy for customers to discover and choose their favorite designs and collections while providing retailers with new options for digital product presentation and sales.

 

• Exports rise in the country's most important industrial sector.

Phnom Penh (GTAI) - Cambodia's clothing exports are growing steadily. However, two factors cloud the prospects for the future.

Cambodia's garment industry is the backbone of the Kingdom's export-oriented economy. Industry exports account for around 40 percent of the gross domestic product (GDP). More than 800,000 Cambodians are employed in over 800 companies. That is more than 85 percent of all factory workers in the country.

Apparel and footwear exports reached USD 8.0 billion in 2017, according to Cambodian customs. This represented an increase of 9.6 percent compared with 2016. Proud growth rates between 7 and almost 15 percent were already achieved in previous years. GTAI estimates on the basis of partner countries' imports an even higher export volume of around USD 12 billion.

More than 70 percent of the country's total exports of goods regularly come from the sector. Shoes accounted for exports of USD 873 million (+14.4 percent) in 2017. Foreign business with shoes has been improving for some years now and has been able to increase its share of exports to over 10 percent. With an unchanged share of 46 percent compared to the previous year, the EU continued to play a major role among the customers in 2017, followed by the USA with 24 percent.

The value-added volume of the sector is low and the road to an integrated textile industry in Cambodia is still long. Machines, raw materials and design come from abroad in the form of a CMT model ("Cut Make Trim"). Fabrics, yarns and haberdashery have to be imported in order to keep the local clothing industry "on the runway". In 2016, according to the United Nations Comtrade Database, USD 4.1 billion worth of textiles came into the country for processing - about 60 percent of which came from China. Textile imports have risen proportionally to clothing exports in recent years.

The garment industry is dominated by foreign companies, mostly from the Asian neighborhood China, Hong Kong (SVR), Singapore, Malaysia or South Korea. Many manufacturers produce to order for multinational brands such as Adidas, Puma, Gap, H&M, Marks & Spencer or Uniqlo. In principle, the complete contract manufacturing is intended for export.

Rising wages fuel fear of competition
After years of growth the sector is looking to the future with concern. The country is increasingly in danger of losing market share to its competitors - for example in Myanmar, Vietnam or Bangladesh - primarily due to rising wage costs. In January 2018, the monthly minimum wage for workers was raised to USD 170, up from USD 153. Compared to 2013, when a minimum of USD 80 was required by law, there has now been more than a doubling.

The annual agenda included regular increases of around 10 percent. According to the Cambodia Garment and Footwear Sector Bulletin of the International Labor Organization (ILO), workers who worked the full month, including overtime payments and incentives, were paid an average wage of just under USD 243 in 2017. Last year, it was USD 225.

In the past, low wages were mainly responsible for the attractiveness and competitiveness of Cambodian industry. This advantage is crumbling year after year as a result of the increase of minimum wages. An end to this politically motivated development is not in sight. The government can imagine, referring to expert recommendations, that minimum wages will be raised to USD 250 per month by 2023.

If the trend continues, companies are likely to migrate and not too many new investors will pitch their tents in Cambodia, critics warn. In 2017, sector companies invested nearly USD 270 million in 55 projects. This represented 5 per cent of the Kingdom's total investments. In the previous year, this share had been 9 percent.

Industry representatives complain that the costs grow faster than the productivity. Automation of production processes is becoming more and more urgent in order to keep up with productivity. However, both the lack of skilled workers and an infrastructure in need of improvement are serious bottleneck factors. There are also critics who are generally pessimistic about a possible automation in the sector. Cambodia could only score points through low labor cost advantages. Automated mass production is reserved for countries that have a reliable and cost-effective power supply and are closer to the sales markets.

Will the trade routes to the EU remain free?
Even more worrying would be the EU's cancellation of the preferential trading system EBA ("Everything But Arms"). Finally, the exemption of Cambodian clothing from customs duties is at stake on the main market. A discontinuation is likely to trigger a wave of migration of the clothing industry. Quite a few companies have taken the EBA initiative alone as an opportunity to establish themselves in the Kingdom.

In addition, the view wanders across the border to Vietnam. Manufacturers there could soon benefit from a free trade agreement with the EU. Vietnam is also participating at the Asia-Pacific Comprehensive and Progressive Agreement for Trans Pacific Partnership (CPTPP), while Cambodia remains outside. If the trade arrangements remain unchanged, Cambodia may get off with a black eye. However, the other factors should not be ignored. Transport and general export costs are also considered comparatively high compared with Vietnam or China.

Cambodian exporters are currently benefiting from the trade dispute between the USA and China. The National Bank of Cambodia (NBC) semi-annual report supports this assumption. According to the study, apparel and footwear exports rose by 11 percent in the first six months of 2018 compared to the same period of last year to reach a volume of USD 4 billion. Since July 2016, clothing, shoes and travel goods (suitcases, bags, etc.) can be delivered duty-free to the USA. According to the Garment Manufacturers Association of Cambodia (GMAC), shipments of travel goods to the USA in the first half of 2018 reached an amount of around USD 160 million - three times the previous annual exports.

Cambodia's imports of textile machinery amounted to USD 127.3 million (SITC 724) in 2017 according to the UN Comtrade database. This was 11.4 percent more than in the previous year. About 60 percent of the capital goods came from China; the remaining deliveries are relatively evenly distributed among other Asian countries. German deliveries only appear very sparsely in the statistics. Used machines from abroad are more likely to be in demand, but are not recorded statistically.

Cooperation and local production the new trend

Nairobi (GTAI) - China dominates infrastructure projects and the construction industry in East Africa. But now the Kingdom of the Middle is also intensifying its commitment in trade and industry.

The Chinese advance in East Africa is breathtakingly fast, focused, efficient and highly successful. The approach is simple: one makes a business proposal that meets the wishes of the decision-makers, brings everything with you, including financing, and the project will be brought out with Confucian efficiency.

Because the customer is satisfied, follow-up orders are being placed. And the more orders there are, the more Chinese activities are there that no longer have anything to do with the original project: Trade, housing construction and business start-ups. And the more the debt with Chinese financiers rises, the more their interest grows in ensuring that the debt can be serviced.

China is fast - on its terms
In Kenya, the Chinese breakthrough came with the comparatively short road from Nairobi to Thika. The international donor community was willing to finance a road construction project, but only at the usual terms, such as regular feasibility studies and tenders, but at favorable interest rates. During the term of office of the former acting President at the time, all this would not have been completed.

Meanwhile, the Chinese made a different offer: shortest construction time and commercial credit with free hand and political backing. Residence permits were issued in an urgent procedure, and work had already begun before necessary expropriations had been completed. Everything was brought along, even truck drivers and food. Deliveries were made on time for the end of the President's term of office.

If customers are satisfied, there are follow-up orders. For example, a new railway - the favorite project of the current Kenyan President Uhuru Kenyatta - is also being built, financed and operated by the Chinese. The usual donors, such as the World Bank, had previously declined because the project was unlikely to pay off economically. Thanks to Chinese commitment, the first route from Mombasa to Nairobi was completed in time for the presidential election campaign and could be marketed as a political success. The fact that, in the opinion of critics, that the section was three times as expensive as necessary, was not contested by the voters.

Chinese appearance in the ripening process
Chinese companies had learned a lot from the first road project: They now know what the Kenyan business world and industry can and can't do, what they need, how they tick, how to do business in Kenya and how to deal with bureaucracy and widespread corruption, what cartels and monopolies one has to fear and how to deal with them if necessary.

Thanks to this knowledge and preferential treatment in work permits, Chinese construction and trading companies were able to gain a foothold within a very short space of time. And the more Kenyan government orders go to Chinese companies and the more Chinese traders gain a foothold in Kenya, the more Chinese goods flood the country.

But not only that: Chinese companies have been founded to manufacture locally. In addition, hordes of Kenyan workers are employed or Kenyan goods are being purchased if they are cheaper and/or better, or, logistically speaking, can they be procured more quickly. Kenyan companies and workers have also learned what is important to the Chinese partners - a learning and maturing process on both sides. Some Chinese people have married local and want to stay.

State acquisition perfected
Meanwhile, Chinese companies have virtually "perfected" their government procurement, reports the leading Kenyan daily newspaper "The Nation" with a sarcastic undertone: Chinese acquirers use an English first name that can be remembered and pronounced and, accompanied by a politically well-connected "fixer", visit together a cabinet secretary or the head of a semi-state company and make a proposal for a major infrastructure project combined with the promise to provide the financing.

A "Memorandum of Understanding" is then signed very quickly, followed by a commercial contract with the responsible ministry. Then only the Ministry of Finance has to sign the loan agreement and the deal is perfect. Parliament, budget controllers and the state auditor are excluded. The fact that high commissions and so-called kickbacks (bribes) are being paid in these transactions is in the nature of things.

German companies that participate in Chinese projects may be familiar with this background and are therefore usually very cautious. In other words: German-Chinese business relations in East Africa are reluctantly hanged on the big bell, because the German reputation could suffer. The German-Chinese business relationships that have nevertheless become known are quite different but show a range of possibilities.

Professional cooperation without ideology
On the one hand, there are German companies which are based in China, either independently, as joint ventures or in the form of cooperation. Such companies are considered "Chinese" because they know the rules of the game, the correspondence can be conducted in Chinese and the bank account exists in China. Then there are other German companies with whom one has already worked successfully together in Germany or elsewhere in the world - so why not again? And there are German companies that have a lot of experience in Africa and are well networked, such as consulting firms that can take over construction supervision. It is often the Kenyan client who demands a neutral and professional watchdog.

Many German products are appreciated by the Chinese. If a German company in Kenya is successful with construction chemicals, a Chinese company will also like to come back on them. And if a German construction machine has the desired specifications, it is also being bought by Chinese people in Kenya.

Chinese companies are first and foremost concerned with business and not ideology. German products and services have a good reputation worldwide, even among Chinese people. If China did not used them for its first projects in East Africa, it was because of a lack of knowledge of what is locally available and what is not. In the meantime, this has changed dramatically. And like everywhere in business life, contacts count and they need time to be established.

Chinese are the new Indians
It can already be foreseen that the driving force behind new industrial projects in Kenya will no longer come from entrepreneurs of Indian origin, but from Chinese ones. Once planned Chinese-built industrial parks are completed, there will be a wave of Chinese investment. If these investors first look at Chinese technology, it is only because they are better acquainted with the Chinese market. Anyone who knows and appreciates German products, on the other hand, will know how to weigh up the commercial advantages and disadvantages. For example, one of the first Chinese industrial projects in Kenya, the building materials supplier China Wu Yi Precast, has primarily installed German technology.

Farthest in Ethiopia
What applies to Kenya also applies to Ethiopia, where the Chinese advance is already much further ahead. There, too, the Chinese have built a railway, much more modern and cheaper than in Kenya. And more importantly, they are building industrial parks throughout the country where international companies can find good conditions for low-wage production. The first textile, clothing and leather factories report successes. Food processing and pharmaceutical companies are coming in a second wave. Of course, there are many Chinese companies in it, but not only. And, of course, German companies have good sales opportunities if they make the appropriate marketing efforts.

In Uganda are Chinese traders who have been mixing up the local market. The great Chinese engagement will only come with the start of the oil production and when the Kenyan railway has reached the Ugandan border. In Tanzania, the Chinese currently have less to report because the incumbent president, who is committed to fighting corruption, wants it that way. Instead of Chinese, he gets his railroad built by Turks. Meanwhile, Djibouti has become so heavily indebted to China that its influence can no longer be stopped.

New tones from Beijing
While the Chinese progress all over East Africa - even without Tanzania - can no longer be stopped, it remains exciting to see to what extent new tones from Beijing will affect China's involvement in East Africa. The Chinese leadership has declared its intention to curb corruption in its own government. If it is serious about this, it will also have to introduce stricter rules in its East Africa business.

And then there is the "socialism with Chinese characteristics" propagated by Chinese President Xi Jinping, with which he wants to make the world happy. So far it has been Western Europe and North America that have aggressively propagated their democracy as a form of government and political ideology in Africa. It seems that Xi Jinping now wants to counter this with Chinese principles. Chinese reforms can also be expected in the areas of environmental protection and sustainability, which at some point will also affect Chinese Africa business.

Investment projects in East African countries with Chinese participation

Country	Project	Investment mio. USD	Status	Note
Ethiopia	Gas production and export	4,300	Talks Start 2020	Poly Group / GCL China
Ethiopia	Industrial park	2,000 – 2,500	Different project statuses	Developers primarily Chinese companies
Dschibuti	Gas pipeline between Ethiopia and Djibouti	4,000	Talks; start of gas production mid-2019	Poly Group/GCL Petroleum Group Holdings Ltd. (both PR China)
Dschibuti	48 sqkm Chinese Free Zone	340	Under construction; largely completed in 2019	Dalian Port Corp., China Merchants Holdings (both PR China), Djibouti Ports and Free Zone Authority
Kenya	High Grand Falls Dam (Kibuka)	1,500	Contract awarded; start of construction still pending	China State Construction Engineering Corporation
Kenya	Standard gauge railway Nairobi-Naivasha	1,500	Under construction; anticipated completion: September 2019	China Road and Bridge Corporation
Tanzania	Mchuchuma Coal and Liganga Iron Ore Project	3,000	Planning	Sichuan Hongda Group of China
Uganda	Development of an oil production infrastructure	More than 10,000	Development of a master plan	Development of a master plan Joint project between Total, Tullow Oil and China National Offshore Oil Corp. (CNOOC)
Uganda	Uganda Crude Oil Pipeline through Tanzania to Indian Ocean	3,600	Front End Engineering Design (FEED) completed	Joint projects of Total, Tullow Oil and CNOOC
Uganda	800 MW Ayago hydropower plant	N.A.	Letter of intend	Desired partner: China

Source: Research by Germany Trade & Invest

The entire study "China in Africa - Perspectives, Strategies and Cooperation Potentials for German Companies" is available free of charge: Print version under order number 21054 (32 pages) at Germany Trade & Invest, Kundencenter, Postfach 140116, 53056 Bonn, Germany, Telephone: 0228/24993-316, e-mail: vertrieb@gtai.de or as PDF document (german only) after short registration at http://www.gtai.de/china-in-afrika.

• 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.