Helmut Max Merkel Editor in Chief (international) of MBELMARKT - - PowerPoint PPT Presentation

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Helmut Max Merkel Editor in Chief (international) of MBELMARKT - - PowerPoint PPT Presentation

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Helmut Max Merkel Editor in Chief (international) of MBELMARKT (International Interior Business Magazine) and General Manager of CRP Consulting Nuremberg, Germany CRP Consulting - Mai 2013 1 1. Overview of Germany 2. Furniture Market in

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Helmut Max Merkel

Editor in Chief (international) of MÖBELMARKT (International Interior Business Magazine) and General Manager of CRP Consulting Nuremberg, Germany

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CRP Consulting - Mai 2013

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1. Overview of Germany 2. Furniture Market in Germany - Overview 2.1 Situation on the German furniture sector 2.2 Furniture industry (manufacturers) 2.3 Exports 2.4 Imports 3. Furniture Market in Germany - Players 3.1 Retailers 3.2 Buying Groups 4. Furniture Trends in Germany 5. Technical Specification 6. Challenges

CRP Consulting - Mai 2013

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  • 1. Overview of Germany

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CRP Consulting - Mai 2013

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CRP Consulting - Mai 2013

Germany – a fortunate island?

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Germany: Facts and figures

  • 82 Million inhabitants (decreasing).
  • 40,4 Million households (increasing).
  • Conclusion: More and more single households.
  • Per capita living space: 43 sqm (more than ever!).
  • More than 60% of all apartments/houses have balcony
  • r garden (Outdoor furniture!).

CRP Consulting - Mai 2013

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Germans are getting older.

More than 30 Million Germans are more than 50 years old, half of them are older than 65. Generation 60 Plus is a very interesting but extremly heterogenous target group (high purchasing power, but very different interests and tastes).

CRP Consulting - Mai 2013

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Germany: Economic growth in the first quarter 2013: only 0,1%!

CRP Consulting - Mai 2013

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Uncertainty because of the political situation? Parliament election in September!

CRP Consulting - Mai 2013

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2. Furniture Market in Germany – Oerview

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The European furniture sector – suffering from the Euro crisis

Some facts:

  • Italy: Market volume for furniture was decreasing by

5% in 2012. Forecast for 2013: -6%.

  • Spain: Decrease of the market volume for furniture

between 2006 and 2012: -60%

  • Between 2010 and 2012 50% of the Spanish furniture

retailers had to give up and to close shops.

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No crisis in Germany?

Sales in the German retail sector 2012: More or less the same level as 2011: A bit more than 30 billion Euro*. Market share: 28% kitchen, 18% upholstery furniture, 12% living and bedroom furniture. *Total amount incl. kitchen and home accessories. Without kitchen and home accessories: 14 billion Euro.

CRP Consulting - Mai 2013

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CRP Consulting - Mai 2013

Why the situation in the German furniture sector is better than in other countries?

  • Consumers are not yet directly affected by Euro crisis
  • Low jobless rate (labor shortage in some industry sectors)

improves climate for private consumption

  • Cultural aspects. German love to live in a cozy environment.

So the per capita cosumption for furniture is higher than in

  • ther countries (more than 380 Euro per year).

Perspectives: Furniture industry can be beneficiary from Euro crisis.

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CRP Consulting - Mai 2013

The German furniture industry (manufacturers):

  • Turnover: 17,1 billion Euro (under the prior crisis level of

17,2 billion Euro in 2008)

  • Growth in 2012: 1,3%
  • Turnover domestic: 12,3 billion Euro (+1,2%)
  • Turnover international (exports): 4,8 billion Euro

(+1,4%).

  • Approx. 500 manufacturers.
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CRP Consulting - Mai 2013

Protagonists in the German furniture industry:

  • Nobilia Werke (kitchen)

turnover more than 850 Million Euro, approx. 2.400 workers, export rate almost 40%.

  • Hülsta group (home furniture)

Turnover more than 500 Million Euro, more than 3.000 workers. Group members are Hülsta, Rolf Benz, Ruf Bett, Arte M, Loddenkemper and more.

  • Welle Holding (home furniture)

Turnover 470 Million Euro, almost 4.000 workers, group members are Himolla, K+W Polstermöbel, Leicht Kitchen, Paidi, Bürstadt Furniture (supplier of Ikea).

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Export:

  • Problems in Europe (France -5,4%, Austria -5%,

Netherlands -10,3%).

  • Successful in Asia and America (China +11,4%, Japan

25,1%, Mexico 21,7%).

  • Fastest growing export market: Russia (300 million

Euro, 20% growth per year)

CRP Consulting - Mai 2013

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Every second piece of furniture sold in Germany is imported. Biggest importers (Jan. – Sept. 2012):

CRP Consulting - Mai 2013

German furniture imports (january – september 2012): 7,36 billion Euro

  • 1. Poland (1,63 billion Euro, +2,3%)
  • 2. China (1,19 billion Euro, +10,9%)
  • 3. Italy (602 million Euro, -8,4%)

Vietnam (116,3 million Euro, +8,7%) Indonesia (63,5 million Euro, - 1%) India (41,3 million Euro, +21,3%) Malaysia (21,1 million Euro, +7,5%) Thailand (19,4 million Euro, +8,7%) Philippines (5,1 million Euro, -5,2%)

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3. Furniture Market in Germany - Players

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CRP Consulting - Mai 2013

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The German furniture retail business:

  • Approx. 9.000 furniture retailers. They represent 75%
  • f the total sales
  • More than 80% are memebers of buying groups
  • Total sales area: 22 million sqm
  • Market is getting more and more splitted in low end

and medium to high end

  • 25% of the business is generated by discount markets

(Roller, Poco, Boss).

CRP Consulting - Mai 2013

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Increasing number of big stores

2002: 116 stores bigger than 25.000 sqm. 2012: 166 stores bigger than 25.000 sqm. Biggest store: Möbel Inhofer, 74.000 sqm sales area.

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Top players in the German furniture retail business:

CRP Consulting - Mai 2013

  • 1. Ikea Deutschland

Turnover: 3,88 billion Euro 46 /Ikea furniture stores

  • 2. Krieger-Gruppe

Turnover: 1,93 billion Euro Retail brands: Höffner, Möbel Kraft, Sconto

  • 3. XXXLutz-Group

Turnover: 1,6 billion Euro Retail brands: XXXLutz, XXXLNeubert, XXXLMann, XXXLHiendl, Mömax, Sparkauf

  • 4. Tessner-Group

Turnover: 1,25 billion Euro Retail brands: Roller, Tejo, SB Lagerkauf, Meda Küchen

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Top players in the German furniture retail business:

CRP Consulting - Mai 2013

  • 5. Porta Möbel-Gruppe

Turnover: 1,225 billion Euro Retail brands: Porta Möbel, Möbel Hausmann, SB-Möbel Boss

  • 6. Otto Group

Turnover Living: 1,1 billion Euro Retail Brands: Otto, Küche&Co., Baur, Heine, Smatch.com, Quelle.de, Neckermann.de, Schwab, Manufactum, Baumarkt.direkt, Schlafwelt.de

  • 7. Segmüller

Turnover: 1,05 billion Euro Retail Brands: Segmüller, Möbel Maxx

  • 8. Poco Domäne Holding

Turnover: 956 million Euro Retail Brand: Poco-Domäne

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Top players in the German furniture retail business:

CRP Consulting - Mai 2013

  • 9. Dänisches Bettenlager(Jyske Holding)

Turnover: 906 million Euro Retail Brand: Dänisches Bettenlager

  • 10. Ebay Deutschland

Turnover Living: 870 million Euro Sales concept: Online marketplace

  • 11. Karstadt Warenhaus

Turnover „Karstadt Home“: 490 Mio. million Euro Retail brand: Karstadt

  • 12. Amazon.de

Turnover Living: 430 million Euro Concept: online marketplace

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Top players in the German furniture retail business:

CRP Consulting - Mai 2013

  • 13. Möbel Martin

Turnover: 387 million Euro 8 furniture stores

  • 14. Zurbrüggen

Turnover: 340 million Euro Retail brands: 5 furniture stores, 3 Osca-Discount stores 4 Z2 ready-to- assemblefurniture-shops

  • 15. Ostermann

Turnover: 335 million Euro Locations/brands: 4 furniture centers, 4 trends-shops, 4 4 Loft-shops, 1 Ostermann-kitchen center

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Top players in the German furniture retail business:

CRP Consulting - Mai 2013

  • 16. Schaffrath

Turnover: 332 million Euros Retail brands: Schaffrath 4 furniture stores, 10 kitchen-stores, 3 Schaffrath Young Stores, 2 Casa Natura, 11 Electric Schaffrath, 1 kitchen-express, Knuffmann 3 furniture stores, 1 „design collection“, 4 K.N.A.S.T. (young living Knuffmann)

  • 17. Dodenhof

Turnover: 310 million Euros Locations: 2 furniture stores

  • 18. Finke

Turnover: 300 million Euros Locations: 6 furniture stores, 7 Preis-Rebell-discount shops, 1 Xara kitchen store

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Top players in the German furniture retail business:

CRP Consulting - Mai 2013

  • 20. Culinoma

Turnover: 250 million Euro Retail brands: Asmo, Plana, Vesta, Marquardt

  • 21. Inhofer

Turnover: 225 million Euro Retail brands: 1/furniture store, 1 Mega-In/ready-to-assemble shop, 1 Sparkauf, 1 Design Furniture Store Interni, 1 Küche + Bad/Innovation kitchen + bath

  • 22. Kröger/Rück

Turnover: 190 million Euro Locations/Retail brands: 1 Kröger furniture store, 3 Möbelstadt Rück, 1 Villa Rück

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Top players in the German furniture retail business:

CRP Consulting - Mai 2013

  • 23. Möbel Mahler Einrichtungszentrum

Turnover: 187 million. Euro Locations: 3 furniture stores

  • 24. Hofmeister

Turnover: 180 million. Euro Locations: 2 furniture stores, 1 kitchen store

  • 25. Küchen Aktuell

Turnover: 175 million Euro Locations: 15 kitchen stores

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CRP Consulting - Mai 2013

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CRP Consulting - Mai 2013

Relevant buying groups for furniture manufacturers from Singapore:

  • Alliance (430 members, 765 shops and stores)
  • Atlas (9 members, 44 stores)
  • Begros (9 members, 400 shops and stores),
  • Einrichtungspartnerring VME (180 members, 350 shops and stores)
  • EMV (555 members, 1.000 shops and stores)
  • Garant Möbel (more than 2.000 shops and stores in Germany)
  • GfM-Trend (695 members, 753 shops and stores)
  • Union (29 members, 210 shops and stores)
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Buying groups know how strong they are.

CRP Consulting - Mai 2013

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imm cologne – gateway to the German market? Alternative M.O.W.?

CRP Consulting - Mai 2013

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4. Furniture Trends in Germany

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How the Germans like to live today? Trends in the German furniture market

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Trinity of design, quality and material! The combination is important, not

  • nly in the high end segment.

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Trends:

  • Nature is capturing apartments and houses.
  • Green passion is affecting the choice of materials.
  • Unique copies are getting more and more popular.

A new oak table looks different from the next one.

  • Natural materials: Solid wood, veneer, leather, wool felt,

coats of animals.

  • Real glass instead of acrylic glass
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CRP Consulting - Mai 2013

Photo: Scholtissek Table „Fat Berta“ made of solid European walnut, Measures: 3,20 x 1,10 m. Weight: 200 kg.

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Photo: Voglauer The collection V-Linea is made of Wild Oak or Wild Walnut. Other materials are loden, leather and glass.

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Trend: Wall units are getting more flexible, more individual, more intelligent (more functions)

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Photo: Gwinner

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Photo: Decker

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Variety of wood:

  • Oak is Number 1!
  • Share of Walnut stays stable.
  • More combinations high gloss/wood (solid wood or

veneer).

CRP Consulting - Mai 2013

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Photo: Gwinner

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Trends: Sofas are getting smaller than in the past (single apartments). Softed corners and curbs.

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Photo: Cor

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Trends: 3-2-1 Sofa sets are loosing market shares. Less traditional seating arrangements (husband/father on armchair, wife and children on sofas). Slogan of today: comfort for all! Very popular: L-Form

CRP Consulting - Mai 2013

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Photo: Koinor

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Photo: Dietsch

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Sofas MUST convince by perfect functionality (Only in the low end sector you can sell sofas without function)

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Photo: ADA

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Photo: FM Munzer

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Upholstered beds: Mega trend boxspring

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Photo: Oschmann

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Trends: Loud colours are getting more and more popular. Blue ist the newcomer of 2013. Germans love white furniture. But the market share of white is decreasing a little bit. The share of dark grey is increasing.

CRP Consulting - Mai 2013

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Photo: Flötotto

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Photo: Sudbrock

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5. Technical Specification

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Sofas:

Height of seat is very different. Depending on design and target group (young = low, old = high).

  • Height of seat: 38 to 48 cm.
  • Height of back: 60 to 90 cm
  • Seat depth: 55 to 80 cm, „big sofas“: 100 cm and more.

CRP Consulting - Mai 2013

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Foam density:

  • 25 kg/cbm for seats
  • 28 kg/cbm fort the back

The density of cheap sofas, sold in discount shops, is a little bit below.

CRP Consulting - Mai 2013

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Dining sets:

  • Height of tables: 72/76 cm
  • Size of table tops: popular is 90 x 180 cm (extendable

to 240 cm)

  • Height of chairs (seat): 45 cm

CRP Consulting - Mai 2013

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Coffee tables:

  • Height up to 60 cm

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Beds:

  • Length (normally) 200 cm (can be modified to 190 or

210 cm)

  • Width is 90/ 120/ 140/ 180 cm

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Wardrobe:

  • Standard measures 225 x 222 x 60 cm.
  • Standard height is 222 cm, reduced height is 216 cm.

CRP Consulting - Mai 2013

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6. Challenges

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Challenges:

  • 1. Design
  • 2. Quality
  • 3. Reliability
  • 4. Price
  • 5. Flexibility
  • 6. Acting local

CRP Consulting - Mai 2013

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Challenge 1: Meet the specific taste of German consumers!

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Challenge 2: Quality is not a question of price range!

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Challenge 3: German buyers don’t allow mistakes!

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Challenge 4: Price is decisive!

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Challenge 5: One container with one type of chair in one colour? Flexibilty is the trump!

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Challenge 6: German retailers prefer German partners!

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Final advise: Be patient!!!

GOOD LUCK!

CRP Consulting - Mai 2013