After the euphoria of Milan Design Week, where the arrival of operators had recorded extraordinary numbers, the disappointing final results arrived for the furniture exports which, after years of continuous surges, have recorded heavy growth setbacks.
I Istat data on Foreign Trade they in fact recorded -2023 percent in March compared to March 13,8 due to the collapse of sales in France (-4 percent, our first market), in Germany (-8,1 per cent) e of England (-10 percent) although the strong growth of the North American market (+24,4 percent) is offsetting the European declines. As for the production the first quarter closed with -4.9 percent for furniture and -3,3 percent for the wood supply chain.
Snaidero: but the climate is positive, no alarms
“Despite these initial data, expectations are positive” he declared to Firstonline Edi Snaidero, President of the European Furniture Industries Confederation-EFIC and representative of the kitchen sector in Federlegno Arredo, “and the Forecasts indicate a rebound which should arrive in next few months. This positive reaction can be explained by that +28% of arrivals of the operators at Furniture expo and above all with the very strong presence of those foreign which in the early days constituted as much as 80 percent”.
In Europe things went worse: -20%.
If the Made in Italy of furniture and wood suffers a setback, after two years of great and unrepeatable growth, one wonders how it went in theeast of Europe. “It got worse” says Snaidero again. “In France, Germany and Northern Europe thesetback is approximately 20 percent a whole of Europe and a recovery in sales will only be able to benefit from a drop in interest rates which could influence the performance of construction and in particular renovations".
Incentives are not useful, it is better to aim for sustainability and internationalisation
In a recent interview with Firstonline Snaidero had expressed opposition to a possible program incentives of great scope. “We remain of the same opinion because, as has been seen in other sectors, once the concession period ends, the market suffers very significant drops. Instead, we are of the opinion that the growth of our entire sector must be linked to sustainability e to internationalisation”. And yet, in the recent European electoral campaign the theme of ecological transition and decarbonisation took a back seat, indeed, the European leaders themselves deliberately no longer spoke about it. One of the winning values recognized in Italian design is precisely that of a shared choice for eco-sustainability; but what will happen in the face of the difficulties of a very competitive market?
Italian sustainability: a model for Europe
We asked Snaidero if there are any rethinks in the winning path of the circular transition since Italian furniture sector. “No changes and indeed our model for verifying this path has been adopted at European level” says Snaidero, “and since 3 April the first survey at European level has been active. But, taking into account that the companies in our sector are mainly small and medium-sized, they must be given it the necessary time and resources to adapt to the changes already undertaken not only i production processes, but also i products. This means that a lot depends on the ways in which Brussels imposes its decisions." This eco-sustainability is in fact a difficult path for European industry since it works in conditions of difficult competitiveness, comparing themselves with the production of other countries that do not have our rules..." Snaidero does not say the words "dumping" but it is clear that, as Brussels has complained several times, competitors whose factories take advantage of socio-economic conditions operate in Europe more favorable, and heavily subsidized by governments.
Less competition for kitchen furniture
However, there is a furniture segment, that of kitchen furniture, who is little or not at all affected by this competition unfair. A kitchen is in fact a complex system, made up of a set of furniture, technologies and services that are difficult to bring to Europe from other areas, primarily due to objective logistical difficulties. But the danger or challenges come in the sector of appliances and precisely in the high-end ranges of the builtin where European production managed to maintain strong positions.
I Korean manufacturers are becoming particularly aggressive and the latest example came from the presentation that Lyu Jae-cheol, president of the division LG Electronics Home Appliance & Air Solution, said in a meeting with journalists about LG's strategy for conquering the European built-in market, both in the Premium and medium ranges. “We aim to reach $722 million in global sales of built-in appliances in three years,” said Lyu Jae-cheol, winning the hearts of consumers in Europe, the largest market for built-in kitchen appliances in the world, both premium, and mid-range.
Secondo Euromonitor, the kitchen appliance market was worth $21,2 billion in 2023, controlling 42% of the global built-in appliance market. LG's program couldn't be clearer than that. Very ambitious and already underway given that LG with the Premium Signature Kitchen Suite brand and with the original LG Electronics brand has achieved notable shares in Europe. As for the Chinese, who are also on the rise, "we don't fear them", commented the Korean manager coldly.
