Textination Newsline

• 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.

• HEIMTEXTIL IS ALREADY SHOWING TODAY HOW WE CAN SLEEP BETTER TOMORROW

According to doctors specialising in sleep, we already know almost everything there is to know about sleep. However, studies show that the quality of this regeneration process is deteriorating all the time. How can we prevent this from happening? The upcoming Heimtextil (8-11 January, Frankfurt am Main) will supply solutions to this with the new ‘Sleep! The Future Forum’. Here, international experts will present the latest findings and textile innovations for a restful night. The world’s leading trade fair for home and contract textiles brings together around 800 producers of textiles in the bed segment. Of these, 140 international industry leaders will be represented in the ‘Smart Bedding’ segment alone in hall 11.0, which will be presenting the latest sleep systems, mattresses, bedding and smart sleep technology. In addition, the new ‘Sleep! The Future Forum’ in the foyer of hall 11.0 will provide a platform for knowledge transfer, exchange of experiences and networking relating to a good night’s sleep. International experts will provide an overview of the current state of research and the latest findings on the ‘Future of sleep’ in the four subject areas of digital, sport, hotels and sustainability.

‘We sleep too little’
It is not without reason that many experts are declaring sleep to be the latest lifestyle trend after nutrition and fitness: numerous current studies prove that we are sleeping ever more badly despite increasing knowledge. ‘You don’t always notice sleep deprivation straightaway but you do become less attentive’, says Prof. Ingo Fietze, Head of the Interdisciplinary Sleep Medicine Centre at the Berliner Charité and chair of the German Sleep Foundation. At ‘Sleep! The Future Forum’, Fietze will talk about ‘The power engine of sleep’. ‘From a scientific point of view, we already know a great deal about our night’s sleep. The big problem is that we don’t sleep enough and don’t give sleep the importance it deserves’, says Fietze.

In order to improve our night’s sleep, there are now a number of smart gadgets available: intelligent pillows, noise-reducing high-tech earplugs and sleep trackers – these are all designed to help banish bad sleeping habits and consolidate healthy ones. Given that consumers can quickly get lost in this maze, the Schlafonauten, who call themselves Germany's biggest YouTube channel on the topic of sleep, are ready to help. ‘We test products that promise a calmer night to see how effective they are’, says Schlafonaut Fabian Dittrich. He will present the latest test results in the knowledge forum as part of an interview (‘Smart innovations – the practical test’).

Sleep like a (sports) professional
Another speaker knows the sleeping habits of professional athletes very well: Nick Littlehales, sleep coach of five-time World Cup footballerCristiano Ronaldo and four-time Formula 1 world champion Lewis Hamilton, will present his findings from his 22 years as a sleep coach for top athletes (‘Redefining Sleep in Elite Sport’). ‘Athletes and professionals in world sports are facing the growing demands of a globalised 24-hour society’, says Littlehales. This is also increasingly true for non-athletes, says Littlehales, who is certain that his sleep tips for professionals will also be useful for normal mortals.

The night's rest as an experience
Sleeperoo founder Karen Löhnert will show that you can sleep comfortably in the most unusual places during her lecture ‘Sleeperoo - The Night, The Place and You’ at the ‘Sleep!’ forum. She will be introducing the world’s first ‘Design Sleep Cube’. The sleeping capsule known from the start-up TV show ‘Höhle des Löwen’ is currently nominated for the German Innovation Award 2019. It allows the user to spend the night in exotic places such as a museum, a bunker or a pier in the Baltic Sea. ‘I'm a big fan of adventure nights, from tree houses to tepees; but unfortunately I've only been able to find a few local accommodation offers of this type and they don't come with quality guarantees’, says Löhnert. With her sleep cube, she wants to make sleep experiences with a high standard of amenities possible for the first time. In the Sleep Cube, the user lies on a comfortable 1.60 metre wide and 2 metre long mattress, while three large panoramic windows and the roof provide a view of the surroundings and the sky.

Even classic hotel stays have now become a focus of research. Vanessa Borkmann from the Fraunhofer Institute for Industrial Engineering IAO will talk about the importance of sleep in hotels in Frankfurt am Main in January (‘The importance of sleep during a hotel stay – a special experience thanks to innovation’). ‘Healthy sleep is particularly important in hotels’, says Borkmann, who wants to show how the effect of rest in the hotel bed can be improved, for example through the design of the sleeping environment, the behaviour of the guest themselves or technical innovations.

Sustainable sleep
More and more people are using natural materials and sustainably produced textiles in their bedrooms. The lecture block ‘Sleep & Sustainability’ is therefore dedicated to the material properties of textiles and the quality of their processing as well as the auditability of sustainable procurement and production standards. This is how Hendrik Albers, buyer of home and household textiles, bedding & mattresses at OTTO, and Dr Juliane Hedderich, managing director of the Down and Feather Associations in Mainz, describe the growing importance of nature conservation, environmental protection and animal welfare in the bedroom (‘Sustainable good advice - Convincing with the right arguments when it comes to animal welfare and quality’). ‘In the past, criteria such as weight, moisture wicking and filling power has played an almost exclusive role in the choice of bedding, but now the ethical component is increasingly coming into play’, says Hedderich. Consumers are placing ever greater importance on certificates and seals which prove that the processed down and feathers did not originate from live plucking or foie gras production. Hedderich and OTTO buyer Albers present the quality seal ‘DOWNPASS 2017’, which guarantees controlled animal husbandry and adherence to animal protection criteria.

The year is coming to an end and suddenly it's time again: Christmas!

We wish all those who visited us in the past months, with whom we were allowed to work and whom we could support, wonderful holidays.

With bright lights and moments of happiness. With people and partners that are important or can become. With the necessary distance to the daily work routine and the possibility to draw breath.

We look forward to seeing you in the coming days, weeks and months.

Sincerely
Your Textination Team

• Industrial park under construction

Baku (GTAI) - The Azerbaijani textile and silk industry is going to have a future again after a dramatic slump. Several initiatives are helping the traditional industry to make a fresh start.

Azerbaijan wants to revive its once strong textile, silk and clothing industry. In 1990, the sector still accounted for just under 18 percent of the total industrial production – in 2017 it was just 0.5 percent. Future investment activities will be determined by several initiatives. These include the implementation of programs for the production and processing of cotton and silk cocoons for semi-finished and finished goods, the establishment of an industrial park for light industry in Mingatchevir and the establishment of branches of the Azerkhalcha company for hand-woven carpets.

New projects in cotton processing on the horizon
At the beginning of the 1980s, cotton cultivation boomed in the country with an annual harvest of more than 1 million tons of raw cotton. The collapse of the Soviet Union, the transformation crisis in the 1990s and general neglect almost brought the industry to a standstill. In 2015, the harvest reached a historic low of 35,000 tons of raw cotton.

But the turnaround has begun. In 2017, 207,000 tons of raw cotton were harvested (forecast for 2018: 250,000 to 260,000 tons). A downer is the low average yield of 1.52 tons per hectare (2017). The government announced increased support for soil irrigation and technical equipment for manufacturers. By 2022 the harvest is expected to rise up to 500,000 tons per year.

The "State Program for the Development of Cotton Growing in the period 2017 to 2022" adopted on July 13th 2017 is a guideline for the further development. Projects are planned for the renewal of existing and the construction of new cotton ginning mills and processing of cotton fibers into yarns, fabrics and finished products. By mid-2018 there were eight spinning mills in the country with a total annual capacity of 44,600 tons of yarn. Above all among the yarn producers in Uzbekistan are the companies Mingatschewir Textil, MKT Istehsalat Kommersiya, ASK Textil Sumgait and Azeripek (better known as Ipek Scheki).

Silk industry to be expanded
Since 2016 the silk industry, which came almost to a standstill, has now been on the move again. On November 27th 2017 the "State Program for the Development of Silkworm Breeding and Processing of Mulberry Silkworm Cocoons for the period 2017 to 2025" was adopted. The program defines projects to revitalize the sector. The annual production of cocoons is expected to rise to 6,000 tons by 2025, ensuring an annual production of up to 600 tons of raw silk. In 2017 244 tons of cocoons were produced after 71 tons in 2016 (forecasts for 2018 and 2019: about 500 and 1,000 tons respectively).

The modernization of the silk combinate Azeripek in Scheki is at the top of the project list. The contact organization is the Azerbaijan State Industrial Association, to which Azeripek and other companies are reporting (http://www.ask.gov.az). The construction of a new silk spinning mill with an annual capacity of 3,000 tons of yarn is planned.

Established in 1931 and later expanded the Silk Combine in Scheki was the flagship of the silk industry in the Soviet Union in the 1970s and 1980s with some 7,000 permanent employees. It produced up to 400 tons of raw silk per year and supplied over 100 factories with silk yarn and twist. Inefficient privatization, financial problems, lack of raw materials and sales difficulties repeatedly led to production stoppages. Today's capacities allow an annual production of up to 135 tons of raw silk only. As a result of technical problems, the factory is unable to produce finished fabrics.

Industrial park for light industry under construction
In the in 2016 established Industrial Park for Light Industry in Mingatchevir, nine factories for the production of textile and clothing products (cotton, acrylic and wool yarn, hosiery and apparel) and other light industry products (leather footwear and cosmetics) are to be built. The construction of more production facilities is planned. In February 2018 the company Textile Mingatchevir opened the first two factories in the industrial park. It intends to produce up to 20,000 tons of cotton and blended yarn annually. Capital expenditures were USD 46 million.

Azerkhalcha revives traditional carpet art
Azerkhalcha, the company for the production of hand-woven carpets, has an ambitious goal: 30 regional carpet weaving mills are to be established by 2020. By the end of 2017 ten branches have already been opened. A further 20 will be added in 2018 and 2019. Azerkhalcha was founded in 2016 on the initiative of the government. In 2018 and 2019, the state will invest around USD 22 million in the construction of new branches and a wool processing factory.

From 2020, approximately 5,000 employees will produce hand-woven carpets under the Azerbaijan Carpet label for domestic and foreign markets. The expansion plans for the production of hand-woven carpets result from the in 2018 adopted state program for the development of carpet art in Azerbaijan and the Nakhichevan Autonomous Republic for the years 2018 till 2022.

Azerbaijan offers opportunities as a production location
Azerbaijan can score with some advantages as a production location for the textile and silk industry as well as for the clothing industry. These include a sufficiently available and quickly trained labor force, low wage costs, tax and other preferences in industrial areas and good conditions for the sale of the goods.

Good sales opportunities result from the free trade agreements with the countries of the Commonwealth of Independent States and the export opportunities to Turkey. No import duties have to be paid for exports to these countries. Clothing manufacturers from EU countries with the intention of exporting to these countries can benefit from this. Several companies, especially from the Baltic States, are currently exploring their opportunities for a market entry.

The Azerbaijan Textile Industry Association sees a need for action on the part of the government with regard to the framework conditions for the domestic clothing manufacturers. For example, the tariff burden on imports of accessories such as adhesives, buttons and snap fasteners and zippers should significantly be reduced.

Leading manufacturers of apparel and other finished textile products include Baku Textile Factory (Baki Tekstil Fabriki), Accord Textil (Agstafa, part of the Accord Industrial Holding), Alyans Tekstil (Sumqayit), the apparel factory in the Gilan-Textile Park (Sumqayit), and Debet Uniform (Baku). The factories mainly produce workwear and outerwear.

• 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

German suppliers can benefit from production expansions
Tunis (GTAI) - After difficult years, Tunisia's textile sector is recovering. Exports and foreign investment are on the rise again. Production is for export, especially to Europe.

At the end of October 2018, the Swiss auditing group SGS reported its expanded testing capacity for textiles in Tunisia. This was in response to the increased demand from producers producing for the world market in Tunisia. The sector has not been doing well in recent years. Even before the revolution in 2011, competitive pressure from Asian producers had left its mark, especially after the expiry of the multi-fiber agreement in 2005. According to the FTTH (Fédération Tunisienne du textile et de l'habillement), more than 400 companies have left the country since 2011 and 40,000 jobs have been lost.

Now positive news are coming: In 2018, for example, the German Gonser Group opened its fifth production facility in Tunisia. In total, foreign direct investments in the first six months of 2018 amounted to Tunisian Dinar (tD) 24.9 million (approx. EUR 7.5 million), 1 tD = approx. EUR 0.301as of 11. 07.), more than twice as high as in the corresponding period of the previous year. The fact, that the number of new created jobs as a result has risen much less, can be seen as confirmation of the structural change: Away from simple mass production to higher-value production.

A high level of employee training is also decisive for this. The Sartex company shows how this can be ensured. In 2014, the Tunisian company opened a training center, in which some 500 Tunisians have already been trained and most of them were hired by Sartex. The company was supported by the Gesellschaft für Internationale Zusammenarbeit (GIZ) and the Centre d'Orientation et de Reconversion Professionnelle (CORP) of the AHK Tunisia.

During the visit of Federal Development Minister Müller in October 2018, an agreement was signed on the establishment of a training center in EL Alia in the Bizerte governorate. Among others the German company van Laack is producing in the region. A total of 180,000 Tunisians now work in the textile sector, which accounts with that for about 40 percent of industrial jobs.

Wage increases in two steps
More than one year after its foundation, FTTH has established itself as the interest representative of textile companies. In 2017 the company split from the employers' association UTICA (Union Tunisians de l'Industrie, du Commerce et de l'Artisanat), not least because the envisaged general wage increases for the company's own industrial sector were considered unworkable. But meanwhile, common ground and cooperation have been emphasized again, or FTTH describes itself as part of UTICA, with a high degree of autonomy.

An agreement has now also been reached with the Union Générale Tunisienne du Travail (UGTT). This provides for wage increases of 6.5 percent as of 1 January 2019 and 2020 respectively. This wage increases are thus likely to be lower than the inflation, provided that the forecasts for the inflation rate of around 7.5 percent for the current year 2018 will be that way. Currently, the minimum wage in Tunisia's textile and clothing industry for unskilled job starters is around EUR 129 (as of 07-11-2018) per 48-hour week.

Of the more than 1,600 textile companies, over 1,400 are producing exclusively for export. The target markets are clearly in Europe. More than 60 percent of exports went to France and Italy in 2016, with Germany in third place with about 11 percent. As the largest non-European customer, the USA was ranked ninth with less than one per cent. By joining the Common Market for Southern and Eastern Africa (COMESA), Tunisia aims to develop new markets. According to the Ministry of Commerce, bilateral talks are underway with several African countries to provide duty-free market access for Tunisian textiles.

Are Chinese investors discovering Tunisia as a location?
In addition to the relations with the African continent, relations with China could also change in the medium term. At the China-Africa Cooperation Forum held in Beijing in September 2018, Chinese textile companies expressed their interest in Tunisia as a production location. As wages have increased in China in the meantime, a relocation of production to certain sectors of the textile industry could prove useful for the European market.

Exports already increased in 2017. The trend seems to continue in 2018. In 2016 exports were USD 2.9 billion, in 2017 USD 3 billion (a significant increase due to the Dinar's decline in exchange rates (7 billion tD against tD 8.4 billion). According to the first announcements, exports to Europe in the first months of 2018 are expected to have increased again by 3.5 percent compared to 2017. Improving transport and customs clearance should be important for the further development of the textile sector. Especially the companies producing purely for export express this again and again. The textile sector in particular is dependent on short delivery times.

Meanwhile, FTTH is also working to improve the competitive position of Tunisian textile companies on their home market. This applies, for example, to the imports of used clothing for which stricter controls are being desired.

Note: Thailand was the third largest supplier in 2016, but fell behind in 2017. The table shows the four most important suppliers in 2017
Source: UN Comtrade

In addition to production expansions by German companies, German suppliers could also benefit if the recovery and, above all, structural changes will continue. While total imports of textile and leather machinery fell slightly from around USD 70 million to USD 67 million between 2015 and 2017, German deliveries increased from USD 5 million to USD 7.2 million. (JPS)

Further information on the Chinese commitment in Tunisia can be found online (German only): Link

Kooperation und Produktion vor Ort der neue Trend
Nairobi (GTAI) - China dominiert in Ostafrika Infrastrukturprojekte und die Bauwirtschaft. Nun intensiviert das Reich der Mitte auch beim Handel und in der Industrie sein Engagement.

Der chinesische Vormarsch in Ostafrika ist atemberaubend schnell, fokussiert, effizient und höchst erfolgreich. Dabei ist der Ansatz einfach: Man macht einen Geschäftsvorschlag, der den Wünschen der Entscheidungsträger entspricht, bringt erst einmal alles mit, einschließlich der Finanzierung, und zieht das Vorhaben mit konfuzianischer Effizienz durch.

Weil der Kunde damit zufrieden ist, kommen Folgeaufträge. Und je mehr Aufträge es gibt, umso mehr chinesische Aktivitäten gibt es, die mit dem ursprünglichen Projekt nichts mehr zu tun haben: Handel, Wohnungsbau und Geschäftsgründungen. Und je mehr die Schulden bei chinesischen Finanzgebern steigen, desto mehr wächst deren Interesse, dafür zu sorgen, dass die Schulden bedient werden können.

China ist schnell - zu seinen Bedingungen
In Kenia kam der chinesische Durchbruch mit der vergleichsweise kurzen Straße von Nairobi nach Thika. Die internationale Gebergemeinschaft war bereit, einen Straßenausbau zu finanzieren, aber nur zu den üblichen Bedingungen wie ordentlichen Durchführbarkeitsstudien und Ausschreibungen, dafür aber zu günstigen Zinssätzen. Zur Amtszeit des seinerzeit amtierenden Präsidenten wäre das alles nicht fertig geworden.

Die Chinesen machten derweil ein anders Angebot: Kürzeste Bauzeit und kommerzieller Kredit bei freier Hand und politischer Rückendeckung. Aufenthaltsgenehmigungen gab es im Eilverfahren, mit den Arbeiten wurde schon mal begonnen, bevor notwendige Enteignungen abgeschlossen waren. Alles wurde mitgebracht, selbst Lkw-Fahrer und Nahrungsmittel. Geliefert wurde pünktlich zum Ende der Amtszeit des Präsidenten.

Wenn Kunden zufrieden sind, gibt es Folgeaufträge. Eine neue Eisenbahn zum Beispiel - das Lieblingsprojekt des aktuell amtierenden kenianischen Präsidenten Uhuru Kenyatta - wird ebenfalls von Chinesen gebaut, finanziert und betrieben. Übliche Geber wie die Weltbank hatten zuvor abgewinkt, weil sich das Vorhaben volkswirtschaftlich nicht rechnen dürfte. Dank des chinesischen Engagements ist die erste Trasse von Mombasa nach Nairobi zeitig zum Präsidentschaftswahlkampf fertig geworden und konnte als politischer Erfolg vermarktet werden. Dass das Teilstück nach Ansicht von Kritikern drei Mal so teuer war wie notwendig, focht den Wähler nicht an.

Chinesischer Auftritt im Reifeprozess
Bei dem ersten Straßenprojekt haben chinesische Firmen viel gelernt: Sie wissen nun, was die kenianische Geschäftswelt und die kenianische Industrie kann und was sie nicht kann, was sie braucht, wie sie tickt, wie in Kenia Geschäfte laufen und wie man mit der Bürokratie und der weit verbreiteten Korruption zu Recht kommt, welche Kartelle und Monopole man fürchten muss und wie man sich mit ihnen notfalls arrangieren kann.

Dank dieses Wissens und einer Vorzugsbehandlung bei Arbeitsgenehmigungen konnten chinesische Bau- und Handelsunternehmen in kürzester Zeit Fuß fassen. Und je mehr kenianische Staatsaufträge an chinesische Firmen gehen und je mehr chinesische Handelstreibende in Kenia Fuß fassen, umso mehr chinesische Waren überschwemmen das Land.

Aber nicht nur: Längst werden auch chinesische Firmen gegründet, die vor Ort fertigen. Zudem werden Heerschaaren kenianischer Arbeiter beschäftigt oder kenianische Waren eingekauft, wenn sie preiswerter und/oder besser sind oder, logistisch gesehen, schneller beschafft werden können. Dabei haben auch kenianische Firmen und Arbeiter gelernt, worauf es den chinesischen Partnern ankommt - ein Lern- und Reifeprozess auf beiden Seiten. So mancher Chinese hat mittlerweile eine Einheimische geheiratet und will bleiben.

Staatliche Akquise perfektioniert
Ihre staatliche Auftragsbeschaffung haben chinesische Firmen derweil geradezu "perfektioniert", berichtet die führende kenianische Tageszeitung "The Nation" mit einem sarkastischen Unterton: Chinesische Akquisiteure bedienen sich eines englischen Vornamens, den man sich merken und aussprechen kann, und werden in Begleitung eines politisch gut vernetzten "Fixers" bei einem Kabinettssekretär oder dem Chef eines halbstaatlichen Unternehmens vorstellig und machen einen Vorschlag für ein größeres Infrastrukturprojekt, verbunden mit dem Versprechen, für die Finanzierung zu sorgen.

Sehr schnell wird dann ein "Memorandum of Understanding" unterzeichnet, dem ein kommerzieller Vertrag mit dem zuständigen Ministerium folgt. Dann muss nur noch das Finanzministerium den Kreditvertrag unterschreiben und der Deal ist perfekt. Parlament, Haushaltskontrolleure und der staatliche Auditor bleiben außen vor. Das bei diesen Geschäften hohe Provisionen und sogenannte Kickbacks (Bestechungsgelder) gezahlt werden, liegt in der Natur der Sache.

Deutsche Firmen, die sich an chinesischen Projekten wie auch immer beteiligen, kennen diesen Hintergrund und sind deshalb meist zurückhaltend. Anders formuliert: Deutsch-chinesische Geschäftsbeziehungen werden in Ostafrika ungern an die große Glocke gehängt, weil der deutsche Ruf leiden könnte. Die dennoch bekannt gewordenen deutsch-chinesischen Geschäftsbeziehungen sind recht unterschiedlich und zeigen eine Palette des Möglichen.

Professionelle Kooperation ohne Ideologie
Da gibt es zum einen deutsche Firmen, die in China ansässig sind, entweder eigenständig, als Joint-Venture oder in Form einer Kooperation. Solche Firmen gelten als "chinesisch", weil sie die Spielregeln kennen, die Korrespondenz in Chinesisch geführt werden kann und das Bankkonto in China besteht. Dann gibt es zum anderen deutsche Firmen, mit denen man in Deutschland oder sonst wo auf der Welt schon erfolgreich zusammengearbeitet hat - warum also nicht wieder? Und es gibt deutsche Firmen, die in Afrika viel Erfahrung haben und gut vernetzt sind, wie zum Beispiel Beraterunternehmen, welche die Bauaufsicht übernehmen können. Oft ist es auch der kenianische Auftraggeber, der einen neutralen und professionellen Aufpasser verlangt.

Viele deutsche Produkte werden von Chinesen geschätzt. Wenn ein deutsches Unternehmen in Kenia erfolgreich mit Bauchemikalien ist, wird auch ein chinesisches Unternehmen darauf zurückgreifen. Und wenn eine deutsche Baumaschine die gewünschten Spezifikationen hat, wird sie auch von Chinesen in Kenia gekauft.

Den chinesischen Firmen geht es in allererster Linie ums Geschäft und nicht um Ideologie. Deutsche Produkte und Dienstleistungen haben weltweit einen guten Ruf, auch bei Chinesen. Wenn China bei seinen ersten Projekten in Ostafrika nicht darauf zugegriffen hat, dann lag das an der mangelhaften Kenntnis dessen, was lokal verfügbar ist und was nicht. Inzwischen hat sich das nachhaltig geändert. Und wie überall im Geschäftsleben zählen Kontakte und die brauchen eine Zeit, bis sie aufgebaut werden können.

Chinesen sind die neuen Inder
Es ist bereits abzusehen, dass die treibende Kraft bei neuen Industrieprojekten in Kenia nicht mehr wie bislang von indisch-stämmigen Unternehmern kommen wird, sondern von chinesischen. Wenn erst einmal geplante, von Chinesen gebaute Industrieparks fertig werden, wird es zu einer chinesischen Investitionswelle kommen. Wenn diese Investoren zuerst einmal nach chinesischer Technik schauen, dann nur, weil sie sich auf dem chinesischen Markt besser auskennen. Wer dagegen auch deutsche Produkte kennt und schätzt, wird die kommerziellen Vor- und Nachteile abzuwägen wissen. So hat eines der ersten chinesischen Industrieprojekte in Kenia, der Baustoffzulieferer China Wu Yi Precast, vornehmlich deutsche Technik installiert.

Am weitesten in Äthiopien
Was für Kenia gilt, gilt auch für Äthiopien, wo der chinesische Vormarsch schon viel weiter ist. Auch dort haben Chinesen eine Eisenbahn gebaut, deutlich moderner und billiger als in Kenia. Und was noch wichtiger ist: Sie bauen überall im Land Industrieparks, in denen internationale Firmen gute Rahmenbedingungen für eine Niedriglohnproduktion finden. Die ersten Textil-, Bekleidungs- und Lederfabriken melden Erfolge. Nahrungsmittel verarbeitende und Pharmaunternehmen kommen in einer zweiten Welle. Selbstverständlich sind viele chinesische Firmen dabei, aber nicht nur. Und selbstverständlich haben deutsche Firmen Absatzchancen, wenn sie die entsprechenden Marketinganstrengungen unternehmen.

In Uganda sind es bislang chinesische Händler, welche den lokalen Markt aufmischen. Das große chinesische Engagement wird erst mit dem Beginn der Ölförderung kommen und wenn die kenianische Eisenbahn die ugandische Grenze erreicht hat. In Tansania haben die Chinesen derzeit weniger zu melden, weil der amtierende Staatspräsident, der sich die Korruptionsbekämpfung auf die Fahne geschrieben hat, das so will. Statt von Chinesen lässt er seine Eisenbahn von Türken bauen. Dschibuti hat sich derweil so stark gegenüber China verschuldet, dass dessen Einfluss nicht mehr zu stoppen ist.

Neue Töne aus Peking
Während der chinesische Vorstoß in ganz Ostafrika - auch ohne Tansania - nicht mehr aufzuhalten ist, bleibt es spannend zu sehen, inwieweit sich neue Töne aus Peking auf das chinesische Ostafrika-Engagement auswirken. Die chinesische Führung will erklärtermaßen die Korruption in der eigenen Regierung eindämmen. Wenn sie es damit ernst meint, wird sie auch in ihrem Ostafrikageschäft strengere Regeln einführen müssen.

Und dann ist da noch der vom chinesischen Präsidenten Xi Jinping propagierte "Sozialismus mit chinesischen Charakteristika", mit dem er die Welt beglücken will. Bislang war es Westeuropa und Nordamerika, die ihre Demokratie als Regierungsform und politische Ideologie aggressiv in Afrika propagiert haben. Es scheint, dass Xi Jinping dem nun chinesische Prinzipien entgegensetzen möchte. Auch in Sachen Umweltschutz und Nachhaltigkeit ist mit chinesischen Reformen zu rechnen, die irgendwann auch auf das chinesische Afrikageschäft abfärben dürften.

Quelle: Recherchen von Germany Trade & Invest

Die gesamte Studie "China in Afrika - Perspektiven, Strategien und Kooperationspotenziale für deutsche Unternehmen" können Sie kostenlos beziehen: Printversion unter der Bestellnummer 21054 (32 Seiten) bei Germany Trade & Invest, Kundencenter, Postfach 140116, 53056 Bonn, Telefon: 0228/24993-316, E-Mail: vertrieb@gtai.de oder als PDF-Dokument nach kurzer Registrierung unter http://www.gtai.de/china-in-afrika.

OutDoor by ISPO is coming to Munich and numerous exhibitors and partners have already confirmed their involvement in the trade fair (June 30 to July 3, 2019) – around nine months in advance. The international trade fair for the outdoor industry owes its popularity in no small part to the new profile, which extends far beyond the exhibition halls themselves: the 365-day platform provides brands and manufacturers with the digital and physical channels they need to be able to communicate with their customers all year round. As such, OutDoor by ISPO is the reliable, modern and pioneering platform that the industry has been looking for.
 
At the end of June during the Outdoor by ISPO launch conference it was already clear that the concept developed by Messe München in cooperation with the European Outdoor Group (EOG) was exactly what the market needed. Over 250 international industry representatives also welcomed the plan to raise the profile of OutDoor by ISPO by establishing it as a year-round platform for the outdoor industry in addition to the trade fair. Numerous exhibitors, from a total of 25 countries so far, including for example Arc‘terix, Maloja, Mountain Hardware, Jack Wolfskin, Ortlieb, Petzl, Scott, Sining Rock, Tatonka and Vaude as well as the Oberalp Group with its brands Dynafit, Salewa, Pomoca and Wild Country, have already registered for the first event in Munich. The new OutDoor by ISPO will open its doors for the first time at the Messe München Exhibition Center from June 30 to July 3, 2019. An overview of the brands and manufacturers, which have already booked their places, updated every week, is available online as is information on the exhibitor registration process.
 
“OutDoor Easy” – flexible stand construction concept for more modest budgets
OutDoor by ISPO is an important industry event both for small and big brands and hence caters for companies of all sizes. Outdoor Easy is specifically targeted at exhibitors with a more modest budget and aims to make the exhibition process as smooth as possible. Markus Hefter, Exhibition Director OutDoor by ISPO, says: “This flexible and cost-effective stand construction concept is a high-quality and authentic solution enabling companies to showcase their products in the perfect setting without having to undertake all the set-up work on their own.” The concept consists of a cost-effective full package offering an open and attractive layout as well as a good location in the hall. More information on OutDoor Easy is available here. 
 
PADDLEexpo enriches OutDoor by ISPO with its experience
With the PADDLEexpo as partner the booming water sports sector will now be properly represented at OutDoor by ISPO. The professional trade show for kayaking, canoeing & stand-up paddling (SUP) in Nuremberg has been an ISPO partner for ten years and the partnership is now being taken to the next level with the installation of the Paddlesport Village at OutDoor by ISPO. This area will be exclusively dedicated to paddlesport products and will be an important meeting place for kayaking, canoeing and SUP experts. More information on PADDLEexpo is available at ispo.com.
 
OutDoor by ISPO available 365 days a year for the industry
ISPO is known for being a year-round ecosystem offering analog and digital products and services. ISPO customers have been benefiting from this mix of information, innovation and networking for years – and this portfolio is now also available for OutDoor by ISPO. OutDoor by ISPO now offers market players the opportunity to present themselves to the world 24 hours a day, 365 days a year. With it, the annual leading trade fair for the outdoor industry is supplemented with a far-reaching platform, which is available to the entire outdoor community, from brands and manufacturers right through to retailers and consumers all around the world.

• 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.

With “Toward Utopia”, Heimtextil is setting the course for the new trend season 2019/2020. As part of the official Heimtextil Trend Preview on 4 September 2018 in Frankfurt am Main, London-based studio FranklinTill presented the design themes for the upcoming international trade fair for home and contract textiles (8-11 January 2019).

In addition to the British trend researchers, Anne Marie Commandeur from the Stijlinstituut Amsterdam and Anja Bisgaard Gaede from SPOTT Trends & Business also participated in the forecast for perspectiverelated interior design, which applies globally. Together with the Heimtextil management team, they provided initial insights into future style worlds. Stefan Weil from Atelier Markgraph, the studio that designs the spatial staging of Heimtextil trends, gave a preview of the new “Trend Space' and emphasised the importance of spatial communication for Heimtextil.
 
The Heimtextil trends 2019/2020 describe a world in which we live according to new standards. We try to escape complex lifestyles and have a desire for deeper relationships, spiritual confirmation and greater meaning. “We live in an era of uncertainty and mistrust in the established order. As a reaction, we try to live a meaningful, conscious life based on positive relationships. We take responsibility for our lives and look for ways of life that fulfil our value system in search of a new utopia – a society that aims at promoting the well-being of all its citizens”, explains Caroline Till, co-founder of FranklinTill Studio. The search for new lifestyles in which mindfulness and sustainability play an important role will be the challenge of the coming decades.

“Toward Utopia” shows which individual routes we can take on the way to finding a modern utopia: those who seek temporary time-out from the internet to reconnect with nature and defy the elements (“Go off-grid”), while others escape from the real world into a virtual world (“Escape Reality”). Some withdraw and find security in pure, minimalist rooms (“Seek Sanctuary”). “Embrace Indulgence” offers a nostalgic answer to today’s uncertain times and surrounds us with beauty and luxury. And the unconditional hedonistic desire for play (“Pursue Play”) is probably hidden in all of us.

„Trend Space“ in hall 3.0
In the newly designed “Trend Space” in hall 3.0, Heimtextil will be demonstrating how the various scenarios can be lived out. Here, the trade fair presents five trend themes that represent a combination of inspiration, interaction and knowledge transfer and showcases trailblazing projects and design initiatives. The “Trend Space” also presents current colour trends. The immersive staging on site and the Trend Book, which is available as of now, document the poetic properties of colour as well as its inspiring, artistic and aesthetic power in design.

‘The new “Trend Space” at Heimtextil convinces with interactive and tactile worlds of experience. Visitors are playfully inspired, involved and motivated to get to grips with futuristic, spatial design concepts’, says Olaf Schmidt, Vice President Textiles & Textile Technologies at Messe Frankfurt, looking ahead to the future. ‘This creates a comprehensive picture of the design of future spaces and we can get some answers to the questions of how we will interact, consume, live and work in the future’, continues Schmidt.
 
An overview of Heimtextil trends 2019/2010:

PURSUE PLAY
In an era of uncertainty, political instability and environmental problems, we satisfy our need for optimism and creativity with play. Playing helps us to find meaning in the midst of chaos and turbulent times. Designers thus playfully focus on uninhibited, tactile interactions and experiments. Daring, cheeky product, room and fashion designs are loosened up with a touch of humour. Shapes and colour palettes take on a surrealistic note and the concept of L’art pour l’art once again commands attention. The use of rich primary colours is playful and naive, while the combination of high-gloss and matt textures creates a palatable visual appeal. Abstract forms, bold play with patterns and exuberant textures challenge us to be imaginative and invent our own stories.
 
SEEK SANCTUARY
In the midst of our intense, hyper-connected everyday life, more and more people are looking for ways to “cut off” all connections – for utopian havens of peace amidst all the noise. They retreat to urban oases where they can switch off to find relaxation, a new perspective and clarity. However, this essentialism does not mean that we have to categorically reject products. Rather, is it about the targeted search for and appreciation of design pieces and concepts that are simple, beautiful, functional and high quality. The combination of a minimalist colour palette with carefully selected structural details, curvy shapes and upholstery gives rise to comfort and warmth.

GO OFF-GRID
The search for a new closeness to nature leads to a hankering for experiences beyond a networked everyday life. It is an attempt to live more naturally, to return to the origins of humanity and to live in harmony with nature – and not against it. It is about cross-border experiences in remote locations, supported by high-tech survival equipment. The combination of hard-wearing technical aspects of outdoor textiles and workwear requires a sophisticated, utilitarian aesthetic and promises durability and functionality. Colours and patterns inspired by nature celebrate the supposed “imperfection” of the natural.
 
ESCAPE REALITY
A new utopia can be rooted in both the digital and the real. The potential of virtual and extended reality blurs the boundaries between fantasy and reality. We are working on a technology that enables deeper and more lasting experiences in daily life. Shimmering, iridescent surfaces have a transformative and optimistic quality, are transformed by movement and create a fleeting, intangible form of motion. Mother-of-pearl effects and high gloss create a unique dynamic in designs that seem to achieve the impossible by appearing fluid and in suspension as a solid form that could literally dissolve at any time. Ethereal combinations of light pastel shades create a surrealistic, hyper-real mood.

EMBRACE INDULGENCE
High-quality materials and rich colours, a modernist style and solid craftsmanship combine to form a utopian vision of the future of luxury. In a modern age marked by uncertainty, we look back through rose-tinted glasses to earlier epochs, remember the comfort of the good old days, long for security and surround ourselves with a calm, inviting aesthetic. Cleverly combined, honest materials, creatively implemented ideas and simple opulence form a new kind of comfort as well as give rise to intimacy and a sense of tangibleness.