Textination Newsline

Interview on the trade fair landscape for floor coverings in Germany

The effects of the Corona pandemic were felt in almost all areas of social and economic life. The trade fair industry in particular was severely affected, with many events cancelled or postponed. With the return to normality, the question arises as to what significance leading trade fairs will have in the post-Corona era and how the competition between different organisers will develop. For its KLARTEXT interview series, Textination talked to Ms Sonia Wedell-Castellano, Global Director of DOMOTEX Events.

 

After DOMOTEX was unable to take place in 2021 and 2022 due to the pandemic, the trade fair returned in 2023 with a successful event. Nevertheless, the number of exhibitors has almost halved compared to 2020. How do you assess the future importance of leading trade fairs after the industry had to come to terms with online meetings and travel restrictions for a long period of time?

I think it is important to remember that this was the first DOMOTEX since the outbreak of the pandemic, and at a time when the global economic situation is rather difficult. Of course, this situation has made some companies reluctant to participate in DOMOTEX 2023, so we have not yet been able to welcome all companies back as exhibitors at the show. In addition, there were still significant travel restrictions in place at the beginning of the year, for example in China, which simply made it more difficult for our exhibitors to participate in a trade fair abroad. As far as our expectations for the next event are concerned, I can say that many companies - even those that did not exhibit this year - have communicated their interest in wanting to be back at DOMOTEX 2024.
 
We are certain that leading trade fairs and exhibitions in general will continue to be of great importance in the future! You may be able to cultivate existing customers at digital events, but you can't generate new ones. The focus of DOMOTEX is on products you can touch, on the haptic experience on site. You can't transfer that to the digital world. Even the chance encounters at the stand or in the halls do not happen digitally. But a trade fair thrives on personal encounters, personal exchanges. Business is done between people, not between screens. Both exhibitors and visitors have told us quite clearly that they want and need DOMOTEX to be a trade fair where people are present.

 

The degree of internationalisation among DOMOTEX visitors was between 62 and 67 percent in the last three years of the event before the pandemic; in 2023 it even reached 69 percent. Would you agree that leading international trade fairs in Germany are now primarily only important for export-oriented companies? And what does that imply for the economic efficiency of trade fairs?

Certainly, leading international trade fairs in Germany are particularly interesting for export-oriented companies, but not exclusively. That doesn't change anything at all about the profitability of trade fairs. We generate our turnover with all our exhibitors, regardless of whether they are export-oriented or only interested in the Germany-Austria-Switzerland region. That's why satisfied exhibitors are very important to us. And an exhibitor is satisfied when he can do good business or make good contacts at our fairs. It's more and more about the right quality of visitors, less about the quantity. In any case, all our exhibitors very much welcome international visitors!

 

For the 2024 edition, Deutsche Messe has announced that its DOMOTEX concept has been changed to focus on different areas each year: Carpet & Rugs in the odd-numbered years and Flooring in the even-numbered years. Flooring covers wood and laminate flooring, parquet, design flooring, resilient floor coverings, carpets, outdoor flooring and application and installation technology. Carpet & Rugs stands for hand-made carpets and runners as well as for machine-woven carpets.

Yet you say that the Carpet & Rugs segment in particular needs an annual presentation platform, while the flooring segment would like to see DOMOTEX every two years as the central platform for the industry due to longer innovation cycles. Doesn't that actually mean that floor coverings are only in Hannover every other year, but carpets continue to exhibit annually in Hannover? Could you clarify that?

DOMOTEX - Home of Flooring will take place in 2024 and in all even years: This is a DOMOTEX with all exhibitors as we know them from the past. So, from herringbone parquet to outdoor coverings, oriental carpets and contemporary designs - everything, under one roof. In the odd years, i.e. from 2025, there will then be DOMOTEX - Home of Carpets and Rugs, with a focus on suppliers of fitted carpets. The background to this is that the hard flooring industry had wanted DOMOTEX to be held every two years. After this year's DOMOTEX, the suppliers of wall-to-wall carpets have again clearly spoken out in favour of an annual platform. With our new focus model, we are meeting the needs that the market has expressed to us.

 

Messe Frankfurt has declared a new product segment for next year's Heimtextil - interestingly, under the name Carpets & Rugs. While the watchword at DOMOTEX in the even year 2024 is Flooring, Heimtextil offers an alternative trade fair venue for carpets. How do you assess this situation - do exhibitors now have to choose between Hannover and Frankfurt and what does this mean for the split concept?

No, exhibitors from the carpet sector will not have to choose between Hannover and Frankfurt in future - because DOMOTEX is and will remain the home of the entire industry, even in the even years! At DOMOTEX, Home of Flooring means, as I explained earlier, that we present the entire spectrum of floor coverings and carpets. But what is even more important is that we have been told by exhibitors and many visitors that the market does not want to be split up any further. Through the many (small) events, the flooring industry is only competing with itself. To put it bluntly: if only some of the exhibitors take part in ten events, it can't really work. The critical mass is missing. A trade fair is only as good as its participants and they often don't have the time to visit several events.    

 

Another innovation for DOMOTEX is the country focus. What do you expect from this and why did you choose "Insight Italy" for 2024?

With our new special presentation, we want to arouse the curiosity of our visitors - especially retailers, architects and contractors - and highlight the international character of DOMOTEX. After all, what could be more exciting than getting to know a country in depth?  

That is why the INSIGHT concept will in future feature a different country at each DOMOTEX - Home of Flooring. Special exhibition areas will showcase innovations and products, present partnerships with designers and universities, and stage trends. In addition, the conference will provide insights into the respective market and references.  
In 2024, we will start with Italy, a very design-savvy and creative country from which many trends come.

 

Deutsche Messe wants to strengthen the Hannover venue for the leading trade fair DOMOTEX and to hold additional fairs only in Shanghai and in Gaziantep. There will be no Carpet Expo in Istanbul. What influence does the changing entrepreneurial landscape in terms of production countries and markets have on your international concept?

First of all, it must be noted that the business landscape for carpets has not changed in Turkey. Here, only the associations have decided to organise a carpet fair in Istanbul in the future. The background is the continuing visa problem for Turkish exhibitors in Germany as well as the immensely high inflation in Turkey, which makes foreign participation extremely costly for Turkish companies. We would have liked to organise a carpet fair in Istanbul together with the Turkish associations, but not at any price and not on their terms alone. Hannover is and will remain the international platform for DOMOTEX, and we will continue to strengthen this location.

But of course, we also keep an eye on the global market and keep our eyes and ears open at all times, for all our brands, by the way. It was only in this way that DOMOTEX asia/Chinafloor in Shanghai was able to develop into what is now a very successful event. The potential was there, we were in the right place at the right time. If we hadn't seized the opportunity at the time, there would still be a strong floor coverings trade fair in Shanghai - but it would be run by one of our competitors and it wouldn't be called DOMOTEX today.

Many thanks to Ms Sonia Wedell-Castellano for the KLARTEXT.

SCIRT stands for System Circularity & Innovative Recycling of Textiles. Coordinated by VITO, an independent Flemish research organisation in the cleantech and sustainable development sector, SCIRT is a three year EU-funded project from the Horizon 2020 Programme.

It aims to demonstrate a complete textile-to-textile recycling system for discarded clothing—or post-consumer textiles—involving stakeholders throughout the value chain and focusing on the recycling of natural fibres, synthetic fibres and fibre blends. To reach this goal, the project has set four main objectives.

• Deliver a closed-loop recycling solution for discarded textiles.
• Stimulate and encourage conscious design as well as production practices.
• Create new business opportunities by boosting textile value chain activity.
• Raise awareness of the environmental and social impacts of buying clothes.

Gathering 18 partners from five countries, the SCIRT project held its virtual kick-off meeting in mid-2021 to begin tackling the issue of clothing waste and recyclability, one of the biggest challenges faced in the fashion industry today.

As clothing brands are setting ambitious targets and making promises to incorporate recycled fibres in their products, discarded textiles are piling up in abundance around the globe. Though it would seem that the stars of supply and demand have aligned for this part of the circular economy, the truth is that less than 1% of textile waste is recycled into new textile fibres, according to an Ellen MacArthur Foundation report published in 2017. This miniscule percentage is indicative of a greater problem-achieving circularity in the fashion industry is not just a question of supply and demand, but of the connection between the two. There is a lack of knowledge surrounding the technological, economic and environmental feasibility of recycling fibre mixtures, and a need to align the quality and cost of recycling processes with the demands of textile companies and fashion brands.

SCIRT will develop solutions to support systemic innovation towards a more circular fashion system and bridge this supply-demand gap. To address the demand side of the equation, SCIRT will demonstrate a complete textile-to-textile recycling system for discarded clothing, otherwise known as post-consumer textiles, involving stakeholders throughout the value chain and focusing on the recycling of natural and synthetic fibres, as well as fibre blends. With the support of technical partners and research institutes, clothing brands Decathlon, Petit Bateau, Bel & Bo, HNST and Xandres, will develop, prototype and produce six different representative types of apparel using post-consumer recycled fibres. These include formal and casual wear, sportswear, underwear and uniforms. Through this endeavour, SCIRT will prioritise quality and cost-effectiveness in order to ensure market confidence and encourage the broad uptake of post-consumer recycled fibres.

From a non-technological perspective, SCIRT will develop supporting policy measures and tools to facilitate the transition towards a circular system for apparel. This includes a framework for an eco-modulated Extended Producer Responsibility (EPR) system and a True Cost Model to quantify circularity and increase value chain transparency. Special attention will also be given to the consumer perspective. To this end, Citizen Labs engaging consumers in various European locations, as well as a wider online engagement platform, will be developed to engage citizens throughout the project in order to understand the perceptions, motivations and emotions shaping their behaviour regarding the purchase, use, and disposal of textiles.

Over the next three years, SCIRT project partners will work to overcome current technological, economic, socio-economic and regulatory barriers faced in textiles recycling to achieve a real, lasting circular fashion economy.

2021:
The SCIRT project kicks off and partners identify the current state-of-the-art in apparel design, production and recycling, challenges and market trends, and stakeholder needs.

2022:
Designing and testing a fibre-to-fibre system by producing recycled yarns and filaments, free from harmful substances.

2023:
Formal wear, casual wear, sportswear, underwear and uniforms will be designed and produced using the optimized yarns developed.

Partners

• Fashion companies: Bel&Bo, HNST, Decathlon, Xandres, Petit Bateau
• Research organisations: VITO, CETI, Prospex Institute
• Universities: BOKU, TU Wien, ESTIA
• Industry players: Altex, AVS Spinning - A European Spinning Group (ESG) Company, Valvan
• SMEs: Circular.fashion, FFact
• Non-profit organisations: Flanders DC, IID-SII

 

ALTEX
ALTEX is a textile recycling company based in Germany that employs state-of-the-art machinery to recycle textile waste into new high-quality products. Its products include teared fibres, natural fibres, synthetic fibres and fibre blends among others.

Bel & Bo
Bel&Bo is a family-owned Belgian business with about 95 retail stores located throughout Belgium. Its mission is to offer colourful, fashionable and sustainably produced clothing for men, women and children at an affordable price.

CETI
The European Center for Innovative Textiles (CETI) is a non-profit organisation dedicated to conceiving, experimenting with and prototyping innovative textile materials and products through both private and collaborative R&D projects.

circular.fashion
circular.fashion offers software for circular design, intelligent textile sorting and closed-loop recycling, including the Circular Design Software and the circularity.ID®, as well as training and hands-on support to fashion brands in their transitions.

Decathlon
With over 315 stores in France, and 1,511 around the world, Decathlon has been innovating since 1976 to become the main player for athletic people. It has been engaged in reducing its environmental impact through a number of actions.

ESG
The European Spinning Group (ESG) is a textile group based in Belgium that offers a range of yarns produced with a highly technological open-end spinning mill for different applications, such as for interiors, fashion and technical textiles.

ESTIA
ESTIA is a French institute that has provided education and training in the areas of industrial technologies for 20 years. Since 2017, ESTIA has had a program focused on new materials and disruptive process in the fashion and textile industry.

FFACT
FFact is a unique group of management consultants that facilitates the implementation of sustainability from a business perspective, and translates facts into useful management information. FFact is based in the Netherlands and Belgium.

Flanders DC
The Flanders District of Creativity, a non-profit organisation based in Belgium, informs, coaches, promotes and inspires creative entrepreneurs in various sectors, including the fashion industry, who want to build or grow their business.

HNST
HNST is a Belgian circular denim brand that recovers post-consumer denim and recycles it into new fabric in the EU, creating durable and 100% recyclable jeans that use 82% less water and emit 76% less carbon dioxide than conventional jeans.

Petit Bateau
Petit Bateau is a French apparel brand that specialises in knit products. As a vertical company, Petit Bateau carries out its own knitting, dyeing, making up and store management with the support of its 3,000 employees.

Prospex Institute
The Prospex Institute aims to promote the participation of citizens and stakeholders in socially relevant decision-making dialogue and development by engaging with theorists and practitioners both in Belgium and abroad.

IID-SII
The Sustainable Innovation Institute is a French non-profit association based in Paris. Initiated by LGI, a French SME, the purpose of IID-SII is to act as a think and do tank on sustainable innovation to support the adoption of novel solutions.

TU Wien
TU Wien is an open academic institution where research, teaching and learning have taken place under the motto “Technology for people” for the past 200 years. One of its key areas of research is on recycling technology and fibre innovation.

BOKU
Research at the Institute for Environmental Biotechnology of BOKU based in Vienna, Austria focus on the exploitation of enzymes as powerful biocatalysts for biomaterials processing within recycling applications.

Valvan
Valvan Baling Systems has 30 years of experience in designing and constructing custom-made machinery, specialising in Baling Machines and Sorting Facilities for fibre producers, collectors, sorters and recyclers of textiles.

VITO
VITO, a leading independent European research and technology organisation in the cleantech and sustainable development sectors, aims to accelerate the transition towards a sustainable society by developing sustainable technologies.

Xandres
Xandres is a brand inspired by and for women. It is rooted in a highly respected tradition of fashion, driven by quality and created for the life women lead today. Xandres offers innovative designs with respect for luxury and the environment.

Rogator / exeo investigate for the second time the purchasing behavior during the Corona crisis in Germany, Austria, Switzerland and Sweden ("OpinionTRAIN") and presented the results:

• Declining frequency of visits to discounters and more visits to hypermarkets
• Significant shift in consumer behavior: More spending on groceries
• Dynamic pricing is rejected by consumers
• Online retail: The crisis winner (especially among younger consumers)

Supermarkets and hypermarkets have benefited from the Corona crisis in multiple ways. Firstly, the spending on groceries by German households has risen significantly (more home office, less traveling, more time spent with family and on cooking). Secondly, in 2020, the sales market share of discounters fell by around 1 percentage point to 42.1%, while full-range retailers gained 1.5 percentage points (to 34.8% market share).

“With the continuously growing competition and the existing distribution struggles, it is not surprising if the news on the grocery trade increasingly contain the tenor price war again in the new year. The increase in VAT at the beginning of the year has speeded up the price competition”, says Johannes Hercher, CEO of Rogator AG and co-author of the OpinionTRAIN study

An overview of the results:

Declining frequency of visits to discounters and more visits to hypermarkets
While shopping in all four countries surveyed most frequently took place in supermarkets in the past 2 months (Visits in the past 2 months: Germany 81%, Austria 86%, Switzerland 79%, and Sweden 79%), Germany has the highest percentage of respondents (71%), compared to other countries, who purchased groceries at discounters. Against all expectations, the leading discounters such as Aldi and Lidl have performed relatively worse than the full-range retailers during the Corona crisis. Compared to the first data collection (Apr./May2020), the share of consumers with purchases in discounters in Germany decreased from 74% to currently 71%, the share of shoppers in supermarkets remained unchanged (81%), and the consumer rate for hypermarkets (e.g. Real, Kaufland) increased significantly (from 34% to 44%). While especially older consumers are staying more loyal to the discounter, the consumer rate in the <30 age group is particularly low at 53%. Instead, online grocery shopping shows a high relevance among younger consumers. Almost one in three respondents said, that they had ordered groceries online in the past 2 months.

Significant shift in consumer behavior: More spending on groceries
The crisis situation is leading to massive changes in purchasing behavior. In almost all types of grocery shops, the frequency of visits has decreased, except for online shopping and organic food stores. The reaction patterns of the consumers are becoming increasingly entrenched. As already observed in Apr./May 2020, consumers are going less frequently to grocery stores, but are purchasing more items per visit. In many cases, the discounters do not meet the consumers' need for complete purchases. This is bitter in many respects. In Germany, for example, around a quarter of respondents say, that their spending on food increased during the Corona crisis (5 % are assuming a decrease), while this is the exact opposite (8% increase and 21% decrease in expenses) for clothing (textile, without sports). These figures reflect a massive shift in consumption. This is an indicator that Corona has also changed the statistical market basket. For 2020, the inflation rate for groceries is reported at 2.4%. In this case, most of the change in spending habits can be explained by a quantity effect.

Dynamic pricing is rejected by consumers
Since price flexibility is being discussed in retail as the new "silver bullet to increase margins," the OpinionTRAIN study took a closer look at consumers' views on dynamic pricing ("when demand goes up, the price goes up; when demand goes down, the price goes down"). Results: The consumers' enthusiasm for dynamic pricing in retailing is rather limited. This is not a German phenomenon. In all four countries, the rejection of dynamic pricing is greater than the approval. For retail companies, the "total rejection" segment presents a major threat in particular. This group includes about one-third of consumers and rejects flexible pricing in all 20 product categories presented. Many consumers clearly long for continuity, especially in times of significant changes in terms of retail prices. Although consumers who have already had experience of dynamic pricing (prices can change every hour) in online retailing are more relaxed about the issue, the implementation of dynamic pricing nevertheless involves a significant risk of damage to the customer relationship and a lasting loss of trust.

Online retail: The crisis winner (especially among younger consumers)
The reinforcement of online sales observed in recent years is receiving a new boost due to Corona. The shift in purchasing in favor of online retailing is evident in all four countries, with the strongest showing in Sweden. Here, 40% of consumers say that they ordered more online during the Corona crisis (8% less). Similar results, slightly more moderate, are also seen in Germany (29% more, 9% less ordered online). The demand shift in favor of online purchasing is particularly strong among younger consumers under the age of 30, while it is relatively weak among the age group of 60+.

“It is becoming increasingly apparent, that Corona will also have a medium-term impact on demand behavior. For instance, consumer preferences also seem to diverge more along age segments: On the one hand, the younger consumers are directing towards omnichannel shopping, where even fluctuating prices are not a major problem. And on the other hand, the older consumers prefer in-store shopping and have a strong desire for stable and reliable prices”, summarizes Prof. Dr. Andreas Krämer, CEO of exeo Strategic Consulting AG and professor at the University of Applied Sciences in Iserlohn as co-author of the OpinionTRAIN study.

• After the corona shock, European SMEs are showing very high levels of debt, a considerable deterioration in profitability in some cases, and insufficient capitalization
• The Covid-19 pandemic is particularly affecting small and medium-sized enterprises (SMEs) in France and Italy
• Compared to its European counterparts, German SMEs have come through the crisis relatively well so far
• Already before the crisis 20% "zombies" among Italian SMEs, in France 11%, Germany 10%  

In France and Italy in particular, the Covid-19 pandemic is taking a toll on small and medium-sized enterprises (SMEs): they are currently lacking financial resources totaling an estimated EUR 100 billion - despite the extensive economic stimulus packages and after the exclusion of so-called "zombie" companies. In Germany too, SMEs lacking around EUR three billion of financial resources for a sufficient recapitalization. In view of the lack of EUR 70 billion in Italy and around EUR 29 billion in France, however, the local SMEs are in a much better position. This is the conclusion of a recent analysis by the world's leading credit insurer Euler Hermes.

"European SMEs have a very high level of debt, significantly deteriorated profitability and insufficient capitalization," Ron van het Hof, CEO of Euler Hermes in Germany, Austria and Switzerland says. "In the medium term, this is a very bad combination for the solvency of these companies. In Italy and France in particular, Covid-19 is making the situation increasingly acute, even if the numerous economic stimulus packages have at least avoided a short-term liquidity crisis. German SMEs have once again proven to be relatively robust and have so far come through the crisis relatively well compared to their European counterparts."

In this country too, debt has increased as a result of numerous liquidity measures. In France in particular, however, it is almost twice as high in relation to gross domestic product (81% of GDP) as in Germany (43% of GDP). In Italy, the debt of 65% of GDP is above average also in a European comparison (average: 63%).

In terms of profitability, French SMEs are at the bottom of the European league
"French small and medium-sized companies are now at the bottom of the European league in terms of profitability, even behind Italy," Ana Boata, Head of Macroeconomics at Euler Hermes says. "The profitability of French SMEs has fallen dramatically by 7 percentage points (pp) since the beginning of the year compared to -0.6 pp in Germany. In Italy, we estimate that profitability has also fallen by up to 3pp^[1]. With 33%, the equity ratio in Italy is the lowest and thus well below the 40% that is generally considered as being adequate. Accordingly, Italy is the country where the greatest need for additional funding for recapitalization exists."

In France, the equity ratio of SMEs is 37%, while in Germany, at 39%, only slightly below the recommended capital adequacy level. In their analysis, the economists have already deducted such companies that were already practically unviable before the Covid 19 pandemic.

"A majority of medium-sized companies are proving to be very robust even in the current crisis, especially in Germany, Van het Hof says. "This fact, however, must not hide the fact that there are numerous zombie companies in their shadow in Europe - even before the Covid-19 pandemic. In Italy, for example, even before the crisis, around one-fifth of the SMEs were no longer economically viable, while in France (11%) and Germany (10%) only about half as many were known. However, this number is likely to have increased dramatically with the current crisis, as have the financing requirements of SMEs. The situation will be particularly tight for companies and sectors that had little buffer before the crisis."

In Germany, the equity ratio before the pandemic was particularly low in the transportation industry: in shipping it was around 32%, in aviation 29%. With Covid-19 the existing financing gap has widened again. In France and Italy, companies in the hotel and restaurant industry as well as in mechanical engineering and trade had particularly bad starting positions and therefore have the greatest need for capital now.

The complete study can be found here: https://ots.de/lYcKea 

^[1] Figures are currently available for Germany and France until H1 2020, in Italy only for Q1 2020. The decline in profitability of up to 3pp in Italy is an expert estimate.

Euler Hermes is the world leader in credit insurance and a recognized specialist in bonding and guarantees, debt collection and protection against fraud or political risks. Every day, Euler Hermes monitors and analyzes the insolvency of more than 80 million small, medium and multinational companies through its proprietary monitoring system. Overall, the expert analyses cover markets that account for 92% of the global gross domestic product (GDP).

Please read the attached document for notes regarding forward-looking statements.

• High internationality and excellent visitor quality ensure top ra-tings

The trade fair combination for visual communication and haptic adver-tising, EXPO 4.0, was an impressive event with 421 exhibitors and 12,518 visitors held from 30 January to 1 February 2020 in Stuttgart:
TV TecStyle Visions, trade fair for textile decoration and promotion, enriched the trade fair combination with a top-class exhibitor offering, high internationality and an accompanying programme characterised by innovations and know-how transfer. It proved its status as a leading trade fair for the European textile decoration industry in an impressive way: 262 exhibitors, including all relevant companies from the exhibition segments textiles and technology, mark the importance as a European industry get-together every two years in Stuttgart. The leading trade fair confronts the uncertain European market situation and uncertainties in trade, the number of exhibitors remained almost constant compared to the previous event (2018: 270). The 126 international exhibitors came from 21 countries to Stuttgart. The top 5 countries of origin are Germany, Great Britain, Spain, Poland and Italy.
 
Many decision-makers from the Germany/Austria/Switzerland region
Within the framework of TV TecStyle Visions the visitors were particularly interested in the different printing processes, embroidery and textiles. The EXPO 4.0 trade fair combination attracted 17 per cent international visitors from 50 countries to Stuttgart. The appeal of the leading European trade fair is manifested with the top visitor countries Switzerland and Austria. 35 percent of all visitors to TV TecStyle Visions travelled more than 300 kilometres to Stuttgart.

The quality of the visitors has been a reliable constant for years: four out of five visitors are actively involved in purchasing and procurement decisions, 87 percent have concrete intentions to invest and 84 percent of the visitors want to invest in the next 12 months. An overall rating of the trade fair combination of 2.0 ("good") and a return visit rate for 4 out of 5 visitors highlight the positive synergy effects created by the parallel timing of the three trade fairs in the trade fair combination EXPO 4.0. This is also reflected in the amount of time visitors spend at the event - on average 4.8 hours at the three trade fairs.
 
Comprehensive accompanying programme
Apart from the exhibition offering, TV TecStyle Visions has been convincing for years with a comprehensive accompanying programme. Not only real innovations and trends that move the industry are showcased at the stands. At this year's trade fair the TecCheck Area acts as a look into the near future. In the digital microfactory nine companies demonstrated the possibilities of digitalisation in production under the coordination of DITF (German Institutes for Textile and Fibre Research, Denkendorf). A polo-shirt was made in one hour, from the 3D design and conception, through to the printing, thermosetting, cutting and making-up of the garment. The trend topics of the industry and the degree of innovation were also shown in the forum, such as the option of personalisation and automation in textile finishing/textile decoration/garment decoration. The TecStyle Fashion Show, the forum and also Charlie's Corner gave visitors a platform to exchange information and ideas and for know-how transfer, as well as another presentation possibility for the exhibitors.
 
The next TV TecStyle Visions takes place in the EXPO 4.0 trade fair combination with WETEC and GiveADays in two years. The dates 10 to 12 February 2022 are currently reserved.

• Strong Triple: COMPOSITES EUROPE, International Composites Conference and Lightweight Technologies Forum
• “Process live” special areas showcase technological progress
• Co-located event: Foam Expo Europe

The composites industry provides important impetus – for lightweight construction and material innovations in automotive, aviation, mechanical engineering, construction, wind power as well as in the sports and leisure sectors. So in international competition it is solutions with a high degree of automation that are in demand. COMPOSITES EUROPE from 10 to 12 September will present the trends and advances in the production and processing of fibre-reinforced plastics in Stuttgart. The trade fair will be accompanied by the International Composites Conference and the Lightweight Technologies Forum. Also held in parallel at the Messe Stuttgart premises will be Foam Expo Europe.

Trade fair visitors will meet with over 300 exhibitors from 30 nations who will be displaying materials, technical solutions and innovative application examples in Stuttgart. Apart from novel products the trade fair will place special emphasis on innovative process engineering. Visitors will learn about the state of play in serial production and new applications in the composites industry in the exhibition area as well as on numerous special areas, on themed guided tours, at the accompanying International Composites Conference and at the Lightweight Technologies Forum, which is dedicated to the trends in multi-material lightweight construction.

“Process live”: Technologies in Synergy
Perfectly coordinated processing and manufacturing processes will be centre stage at the “Process live” event. On shared exhibition space machinery and equipment manufacturers will exhibit their technologies in concert and – what’s more – in operation so as to show the different individual processes in a real context.  

On display, to name but one exhibit, is VAP®, the Vacuum Assisted Process patented by Airbus, which will be in the limelight in the Trans-Textil and Composyst special area. This process permits the one-step production of large-surface and geometrically complex components without an autoclave, which is why it is particularly suitable for structural components in aviation, wind power, shipbuilding, in rail and road transport, in machinery and device manufacturing as well as in architecture and in the leisure industry.

The “Process live” special area care of cutting specialists GUNNAR from Switzerland specifically targets the DACH region (Germany, Austria, Switzerland) with its small and medium-sized companies. Jointly with laser projection expert LAP and composites engineering expert SCHEURER Swiss, GUNNAR introduces a connected overall process that fuses modern machinery and software with specialists’ manual jobs. The point of departure here is an automated manufacturing process for sorted layer placement in small and medium quantities involving a certain degree of skilled labour.

Fibre composite specialist Hacotech will present CNC-controlled cutting processes and various finishing possibilities in cooperation with Aristo Graphic Systeme and Lavesan. Alongside cutting, production preparation and customised sizing, the production of dimensionally correct templates and the cutting and custom-sizing of composite materials and prepregs will be on show.

Cutting technology is also centre stage in the special area of Rebstock Consulting, Broetje-Automation and Zünd Systemtechnik, which will be taking part in “Process live” with “Automated Sorting and Kitting”.

Composite producer Saertex and chemical company Scott Bader will demonstrate the RTM process for producing and curing a laminate that complies with the highest fire protection requirements in as little as 1 hour.   

5th International Composites Conference (ICC)
Serial production, stable processes, new markets – the International Composites Conference (ICC) is set to inject a fresh breeze for innovations into the market and to this end brings together processors and users of fibre-reinforced plastics from all over Europe. For the first time, this renowned Conference will be held in parallel with COMPOSITES EUROPE. The lecture programme put together by the trade association Composites Germany and the trade fair will also move closer in terms of content.  

One of tomorrow’s cross-cutting themes keeping the entire industry on its toes are multi-material solutions in nearly all industrial applications. In the construction sector the Conference also deals with the rising use of carbon concrete. Process engineering will focus on processing thermoplastic materials for serial production and stable processes for thermoset plastic processing.  

The partner country of the Conference is the United Kingdom. Especially against the backdrop of the current Brexit debate the ICC aims to foster exchange among all European countries. After all, the UK is among the biggest producers of composites components in Europe.

Themed Tours on Digitalisation, Fibre Glass, Thermoplastics, Automotive and Wind Power
Guided tours and hands-on demonstrations in the exhibition halls complement the conference programme. Themed guided tours revolving around composites application, materials and markets guide trade fair visitors and congress delegates right to the stands of selected exhibitors, who will share with visitors their innovations in the fields of digitalisation of composites production, automotive manufacturing, building and construction, fibreglass, new mobility, thermoplastic materials and wind power.  

New ideas on special areas and joint stands
“Material and Production Technology” is the name of the new special area set up under the guidance of the Institute of Plastics Processing (IKV) of the RWTH Aachen University. In cooperation with other institutes such as the Aachen Center for Integrative Lightweight Production (AZL) the IKV will place manufacturing technology centre stage at the trade fair. In particular, the special area will trace the path from scientific development to practical, industrial implementation.

Tomorrow’s automotive experts will also be given a separate forum: under the heading “Formula Student” students and trainees will present to visitors racing cars and bikes they have engineered.

Lightweight Technologies Forum: platform for multi-material lightweight construction
Lightweight construction remains a driver across the board for many developments in the composites sector. The Lightweight Technologies Forum (LTF) held as part of COMPOSITES EUROPE makes it clear how lightweight construction can be achieved in an economical and resource-efficient manner. This Forum views itself as a cross-industry and multi-material think tank where all parties involved can reflect on these new concepts.

To this end, the Forum in Stuttgart pools lightweight construction projects from automotive manufacturing, aviation and aerospace and mechanical engineering, to name but a few industries that serve as a driving force for many sectors with high demands made on materials, security and reliability.  

This year’s keynote speakers include Airbus Innovation Manager Peter Pirklbauer, lightweight construction expert Prof. Jörg Wellnitz (TU Ingolstadt), Dutch racing driver Jeroen Bleekemolen and lightweight construction, aviation and aerospace specialist Claus Georg Bayreuther (AMC). In their talks they will provide an overview of reference projects and novel manufacturing and joining technologies.  

Combining its own exhibition space with a lecture forum, the LTF demonstrates how glass-fibre reinforced plastics (GRP) and carbon fibre reinforced plastics (CFRP) leverage their strengths mixed with other materials in hybrid structural components. Exhibitors at the Forum and in the neighbouring Lightweight Area include “Leichtbau-Zentrum Sachsen” (Lightweight Construction Center Saxony), Chem-Trend, Gößl + Pfaff, Krempel, Mitsui Chemicals Europe, Leichtbau BW, the VDMA, Gustav Gerster, Potters Ballotini (UK), Yuho (Japan), Riba Composites (Italy) and Stamixco (Switzerland) as well as the journals Lightweight Design (Springer Fachmedien) and Automobil Industrie (Vogel Communications Group), to name but a few.

“Ultralight in Space”: market study on lightweight construction trends in the aerospace industry
The aerospace industry has always served as a pioneer for ultra-lightweight construction pushing many disciplines to their limits as a driver of innovation. The latest technical trends are currently under scrutiny via a market study carried out by consultancy Automotive Management Consulting (AMC) in cooperation with the Luxembourg-based aerospace OEM GRADEL. The results will be presented for the first time at the LTF in Stuttgart on 10 September.  

Presentation of the AVK Innovation Prize
Innovative products and applications in fibre-reinforced plastics, manufacturing processes and the latest insights from research and science, will again be recognised by the German trade association AVK – Industrievereinigung Verstärkte Kunststoffe e. V. with its renowned Innovation Prize. The winners will be announced as part of the trade fair on 10 September and the award-winning products and projects will be on display in a special area.

Presentation of the SMB-BMC Design Award
The European Alliance for SMC BMC will announce the winners of the SMC BMC Design Award 2019 – also on 10 September. The contest already held for the second time now, honours and promotes the design excellence of students or young design professionals who use SMC and BMC components (sheet and bulk moulding compounds) in their designs. This year saw sustainable mobility take centre stage as a theme.

COMPOSITES Night
The event to celebrate the midway point of the trade fair: the COMPOSITES Night at the end of the second trade fair day offers visitors and exhibitors additional opportunities for networking. Participants are in for buffets and live music at the Stage Palladium Theater in Stuttgart.

Matchmaking programme makes trade fair visit more efficient
Thanks to the complimentary networking & meeting platform “matchmaking” visitors and exhibitors can already reach out to contacts in the run-up to COMPOSITES EUROPE. Who is at the trade fair? Who has answers to your specific questions? Who can you team up with to turn new ideas into practice? The matchmaking platform allows you to “filter” and make direct appointments with potential cooperation partners by product category, industry, country, or company.

Career & Composites
With its career&composites stand COMPOSITES EUROPE targets students and graduates who can come here to establish contact with potential employers. On the special area the exhibitors present their companies to interested junior employees and attract attention to vacancies and career opportunities via a Job Wall.

Co-located with Foam Expo Europe
COMPOSITES EUROPE will be co-located with Foam Expo Europe for the first time. This trade fair covers the supply chain of technical foam production and presents moulded, rigid and soft foam solutions – from raw materials to equipment and machinery. The parallel exhibition dates generate special synergies for gaining an overview of lightweight construction materials for such shared applications as the automotive, aviation, construction and sports & leisure industries.

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.

 

• 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.

 

At May 29/30, 2018, 147 exhibitors from six countries present application-oriented textil and lightweight-solutions for all sectors from A to Z and introduce numerous innovations in Chemnitz - Special exhibitions and specialiced events deepen the trade fair topics and give inspiration for innovation development and business contacts

With a 10 % plus of exhibitors and an exhibition area which rose 20 % the trade fair duo mtex+ and LiMA starts at May 29/30, 2018. At hall 1 of the Messe Chemnitz 147 companies and research institutes present on 4.200 square metres application-oriented textil and lightweight-solutions for sectors from architecture to railway technology. On 3.500 square metres 134 exhibitors were represented at the previous trade fair in 2016 in Chemnitz. „We are pleased that the merging of the fields of technology technical textiles and lightweight becomes even more visible at our trade fair duo. Not only exhibitors from the Central German industry and research region demonstrate their know-how. We can as well welcome companies and research institutes from all over Germany adding Belgium, France, Austria, Switzerland and the Czech Republic in Chemnitz. To us this is the proof that the further merge of mtex+ and LiMA under the new slogan ‚Excellent connections: Technical textiles meet lightweight construction‘ works out“, emphasises Dr. Ralf Schulze, director C³ Chemnitzer Veranstaltungszentren GmbH, to which the Messe Chemnitz belongs.

Innovations from textil circuit boards to railway-components made of basalt and bamboo
The international trade fair for technical textiles mtex+ and the lightweight trade fair LiMA focus on functionalised and intelligent textiles as well as lightweight materials and –products, digitised production, process development-, process- and technology development, refinement and recycling. The exhibitors in 2018 put various innovations forward. The nonwoven-manufacturer Glatzeder arrives with a protective suit made of an entirely new material, which is suitable for work under extreme conditions. A especially for security forces made protective clothing will be shown by Wattana. Flexible textil circuit boards made of conductive nonwovens are the new development from Norafin. Vowalon presents a surface sealing for imitation leather padding which extends its service life. Light interactive components as well as tables and seating areas made of textile concrete will be shown by the TU Chemnitz. HÖRMANN Vehicle Engineering demonstrates trim - and interior components  for railway vehicles with basalt- and bamboo fibre.
New and proven special exhibitions offer insights into innovative developments besides the exhibition stands. A new addition at the program is „light.building“ belonging to lightweight in architecture and building trade and „flexible.protect“ belonging to  protection- and safety textiles for humans, nature, mobile and immobile goods. The successful exhibition „health.textil” with medicine-, health- and wellness textiles from 2016 will be continued.

Compact, intensive and international
The exhibition stand- and special exhibition-presentations demonstrate the growing application range of technical textiles and lightweight. „Hightech-textiles and lightweight solutions conquer more and more new fields of application. Compact seen should be the various possibilities in the Central German industrial metropolis Chemnitz, that is and was a centre of innovative textile industry. The atmosphere of the small but fine trade fair duo of short distances and intensive contacts is not only appreciated by the actors of the strong Saxon-Thuringian textile region but also by foreign companies and research institutes. So are the textile federation ATOK and the Techtex-Cluster CLUTEX from the Czech Republic with a multicompany stand and the Smart-Textiles-Network from Austria our guests again“, informs Dr. Jenz Otto, general manager of the Noth-Eastgerman textile- and clothing industry association (vti) and amends: „The exhibiton is not only an obligatory date for the specialised insiders but also the federal policy shows a great interest in the textil- and lightweight- competences of the region. Because of this the Commissioner for middle class and for the new Länder, Christian Hirte, follows our trade fair duo invitation.“ The vti is from the very beginning major partner and a generator of inputs for the continuous further development of the event.

You can find further information about the program as well as the trade fairs under: www.mtex-lima.de

 

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

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

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

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

Furniture market in France 2017

	Sales 2017 (in Euro billion)	Change  2017/16 (in %)	Share (in %)
Kitchen furniture	2.57	4.0	26.3
Upholstered furniture (sofas, armchairs and benches)	2.42	2.3	24.8
Beds	1.34	3.0	13.8
Bathroom furniture	0.24	-1.6	2.5
Garden furniture	0.13	2.0	1.4
Other home furniture (tables, chairs, chests, drawers)	3.06	0.1	31.2
Total	9.76	2.0	100.0

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

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

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

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

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

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

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

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

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

Furniture retail in France by sales channel 2017

	Sales 2017 (in EUR billion)	Change 2017/16 (in %)
Furniture stores	4.91	+0.9
Kitchenhouses	1.30	+6.0
Furniture stores, medium segment	1.02	+1.4
Luxury furniture stores	0.37	+2.0
Craft	0.33	-0.4
E-Commerce, catalog-trading and others	1.83	+3.3
Total	9.76	+2.0

Source: IPEA

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

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

Contacts

Name	Internet address	Comments
AHK Frankreich	http://frankreich.ahk.de	Advises on entering the market in France
Federation française du negoce de l'ameublement et de l'equipement de la maison (FNAEM)	http://www.fnaem.fr	Association of the furniture trade
Union nationale des industries de l'ameublement français	http://www.ameublement.com	Association of the French furniture manufacturers