Household Goods, Furniture & Furnishings – France Sector Report Household Goods, Furniture and Furnishings France Produced by: Marie-Agnès Laude, Trade Sector Promoter, Paris Last revised March 2008 Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Enterprise & Regulatory Reform, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published August 2008 by UK Trade & Investment. Crown Copyright © www.uktradeinvest.gov.uk Household Goods, Furniture & Furnishings – France Table of Contents OVERVIEW 3 OPPORTUNITIES 3 CHARACTERISTICS OF MARKET 4 KEY METHODS OF DOING BUSINESS 5 MORE DETAILED SECTOR REPORTS 5 EVENTS 6 CONTACT LISTS 8 www.uktradeinvest.gov.uk Page 2 of 7 Household Goods, Furniture & Furnishings – France OVERVIEW The furniture industry is made up of furniture for the office, kitchen, bedroom, living room, outdoor furniture, seats, and 'other' furniture (for the bathroom or shops). It groups products made of wood, metal, plastic and other materials such as cane, either for the household or for professional use (in offices, shops, warehouses…). Around two thirds of the manufactured products are made of wood. The French market for domestic furniture and furnishings is a mature market, where the price/quality ratio is very important. According to trade federations, the industry must offer consumers what they really want in terms of function, comfort and quality production for a competitive price. There has been a growing interest in the home and interiors over the last few years, and people are showing their individual personality through choice of décor. As a result of high real estate prices and employment uncertainty, the French are investing more and more in homedecoration. In addition, many people cannot afford to upgrade or purchase a new property. People prefer to stay at home with family and friends rather than entertaining outside of the home. The trend 'nesting' brings with it a passion for decoration and furniture. It must be noted however that the industry is linked to economical, demographic and sociological aspects. In this respect, young people tend to live at home with their parents for longer, therefore pushing back the age when furnishing their own place. OPPORTUNITIES Until the early 2000's, sales in the home furnishing decoration sector had been steadily decreasing. However over the last few years this trend has started to reverse. The kitchen is becoming a living area, whereas the living room is an area for relaxing and entertainment. Demand for comfortable upholstered seating is expected to follow the rising sales of flat (plasma) TV screen sales and multimedia. Customers tend to renew their home décor in accordance with consumer electronic trends: for example, a new sofa to complement a new home cinema set-up. Another trend is bringing the outside indoors, where the home is opening outwards. The home has also become a place of production. With this comes the idea that everybody can, and is entitled, to create. But people also want homes to be productive in that they are places of care i.e. to pamper, hence the success of cushions and curtains, which one can customise, and scented products in general. The ageing population will influence choice in furniture, through a trend for ergonomics and preferring to invest more in bedding than for instance in storage furniture (deemed less useful). There is a potential for handcrafted top quality design furniture aimed at the very top end of the market. The once large market for traditional English style furniture is not as popular as it once was. The law about the future opening of furniture shops on Sundays throughout France is still being discussed but Sunday opening should be going ahead, and sales are be expected to increase as a result. www.uktradeinvest.gov.uk Page 3 of 7 Household Goods, Furniture & Furnishings – France UKTI publishes international business opportunities gathered by our network of British Embassies, High Commissions and Consulates worldwide. These opportunities appear in the Opportunities portlet on the relevant sector and country pages on the UKTI website. By setting up a profile you can be alerted by email when relevant new opportunities are published. New or updated alert profiles can be set in My Account on the website. CHARACTERISTICS OF MARKET The French market for furniture sales amounts to €14.32 billion (includes household, office, accessories, second-hand and other furniture). The market for household furniture (new) reached €9.67 billion in 2007 representing a growth of 7.3% (the highest since 1977), compared to growth limited to 2.6% in 2006 and 2.5% in 2005. Sales of kitchen furniture and beds experienced the highest growth, followed by upholstered seating. Most people buy modern/contemporary furniture (70% compared to 30% for rustic furniture in 2006). Trends for purchasing furniture in 2008 are encouraging, especially as household consumption has risen by 3%. France is the 4th European producer (behind Italy, Germany and the UK) and ranks 6 th in the world, representing €8.80 billion (€12.3 billion including seating for the transport sector - cars, planes, trains…). Despite a small but steady decline in the last few years, production figures show a stabilisation. The industry enjoys an excellent international reputation and its players such as Parisot, Gautier, Roset export throughout the world. A large number of companies still manufacture furniture in the traditional way. The main competitors are more and more "Young living" chains coming from Scandinavia such as Ikea Jysk, BoConcept and in the near future, Ilva. French exports of furniture total €2.3 billion. This represented a 7.1% increase between 2005 and 2006, whereas previous years' figures had only revealed a 1-2% steady increase since the 1990's. In terms of value of exports, France ranks 4 th in Europe and 8th in the world. While China is the overall world leader for furniture exports (20% market share) and exported €427 billion to France in 2006 (making it the 6 th leading exporter to France), Spain and Germany are France's top importers, with €411 million and €265 million respectively in 2006. The United Kingdom then came fourth with €190 million (behind UEBL -Belgium/Luxembourg). France exports 71.1% of its products to European countries. In 2006, French furnishing imports represented €5.8 billion (+5% between 2005-6, and a steady rise since the 1990's). Imports have doubled since the mid-1990's; this is due to distributors widening their sourcing, and manufacturers developing their international organisation's production. The largest imports were of seating and kitchen furniture. Italy remained France's top supplier with €1,285 million (20% of the total imports) and Germany in second place with €753 million. The United Kingdom was the 8 th largest supplier of furnishings/decoration with €116 million, a constant increase in recent years. Increasingly, products are being produced and imported from Eastern Europe and China. The large gap between imports and exports currently results in a commercial deficit of 50%. Despite a steady rising demand, French industrialists suffer from a powerful and condensed distribution network that imposes a purchase strategy based on price. This results in favouring cheap foreign imports from the East over French manufacturing. French manufacturers have nonetheless adopted innovation, differentiation and branding strategies that have brought positive results in 2007. www.uktradeinvest.gov.uk Page 4 of 7 Household Goods, Furniture & Furnishings – France KEY METHODS OF DOING BUSINESS The distribution methods of furniture/furnishings are very much the same as in neighbouring European countries. Manufacturers sell into the French market through importers, distributors and buying groups. We have noticed that there have been fewer agents working in these sectors due to low consumer confidence. However, increasingly larger retail chains/outlets are buying direct from manufacturers and the role of the stockholding importer/distributor is gradually declining. Channels of distribution for furnishing fabrics/home decoration rank as follows: independents, specialist chain stores, furniture stores, mail order, DIY stores, super/hypermarkets, and department stores. Young living styles such as Ikea, Habitat are performing well, so do kitchen specialist and furnishing-decorating stores. On the other hand, small generalists are loosing market shares. The sales period – January and July - remain the best time for the furniture/furnishing sector. Other background information on doing business in France can be found on UKTI’s website. Simply go to the France country page where you will find information on: Economic background and geography Customs & regulations Selling & communications Contacts & setting up Visiting and social hints and tips MORE DETAILED SECTOR REPORTS When considering doing business in France, it is essential to obtain legal, financial and taxation advice. Further information on the Household Goods, Furniture and Furnishing sectors in France is available from the Commercial Section, British Embassy Paris. We can provide focused business advice and visit support in France through the online Overseas Market Introduction Service (OMIS), please contact us for further information on how we can help you to expand your business in France: For further details, please contact: MARKET RESEARCH TEAM British Embassy, 35 rue du Faubourg St-Honoré, 75383 PARIS Cedex 08 Tel 00 33 1 44 51 34 00 Fax 00 33 1 44 51 34 01 Email: mrt@fco.gov.uk www.uktradeinvest.gov.uk Page 5 of 7 Household Goods, Furniture & Furnishings – France PUBLICATIONS COURRIER DU MEUBLE ET DE L'HABITAT Email: courrierdumeuble@hotmail.com Tel: 0033 1 48 74 52 50 Fax: 0033 1 40 16 43 65 Weekly circulation of 3,800. General information and news on the furniture/furnishing sector in France and throughout the world for trade and distribution specialists (hypermarkets, retailers), industrial buying groups, manufacturers and designers. UNIVERS HEBDO www.univers-presse.com Email: dollez@univers-presse.com Tel: 0033 1 58 30 80 70 Fax: 0033 1 58 30 80 81 Weekly circulation of 12,500. News on the furniture and decoration sectors. Coupled with the quaterly Univers Magazine which offers analysis and trends in those sectors and is aimed at trade specialists. JOURNAL DU TEXTILE www.journaldutextile.com Email: contact@journaldutextiel.com Tel: 0033 1 43 57 21 89 Fax: 0033 1 47 00 08 38 Weekly circulation of 20,000. It has by far the biggest market penetration and has been the number one professional press journal for household textiles/decoration, technical textiles and clothing industry for many years. This is also an important advertising and recruitment medium. EVENTS Furniture General information on trade fairs may be obtained on the following web sites: www.foiresalon.com www.salons-online.com www.ccip.fr www.service-expo.com SALON DU MEUBLE Paris Expo, Porte de Versailles. Date: every year at the end of January Website: www.salondumeuble.com A major European fair, Salon du Meuble presents a showcase of what’s available internationally on the furniture and home furnishings market. www.uktradeinvest.gov.uk Page 6 of 7 Household Goods, Furniture & Furnishings – France FOIRE DE PARIS, Porte de Versailles. Date: early May Website: www.foiredeparis.fr This is a trade fair open to the public (764000 visitors - 2871 exhibitors), covering home, leisure, tourism and food. ENVIES DE PRINTEMPS, Strasbourg Next dates: 28-31/03/2008, Website: www.enviesdeprintemps.com Trade fair open to the public covering home, decoration, leisure and outdoor activities. Furnishings/Interior decoration APPROFAL along with Salon du Meuble SALON DU MEUBLE Paris Expo, Porte de Versailles. Website: www.salondumeuble.com MAISON ET OBJET International home-style exhibition for decoration, giftware and tableware. Home textiles: household linens, curtains, accessories, trimmings, furnishing and handcrafted work. Held in Paris-Villepinte twice a year in January and September. Website: www.maison-objet.com E-mail: info@maison-objet.com UK Trade & Investment’s Tradeshow Access Programme (TAP) can help eligible UK businesses take part in overseas exhibitions. Attendance at TAP events offers significant benefits: possibilities for business opportunities both at the show and in the future a chance to assess new markets and develop useful contacts grants are available if you meet the criteria UKTI staff overseas will be available to assist delegates Find out if you are eligible to apply to attend this event, and more about the support UKTI can offer, on the UKTI Market Entry web page. Details of TAP events can be found in the Events portlet on the France page. Other Market Visit Support may be available via your local International Trade Advisor. www.uktradeinvest.gov.uk Page 7 of 7 Household Goods, Furniture & Furnishings – France CONTACT LISTS Useful information for manufacturers and distributors: www.meubleparis.net www.decofinder.com www.ameublement.com www.ipea.fr (promotion and research institute for the furniture trade) www.unifa.org (national union of French furniture industries) www.fnaem.fr (French federation for the furniture/household trade) UKTI’s International Trade Advisers can provide you with essential and impartial advice on all aspects of international trade. Every UK region also has dedicated sector specialists who can provide advice tailored to your industry. You can trace your nearest advisor by entering your postcode into the Local Office Database on the homepage of our website. For new and inexperienced exporters, our Passport to Export process will take you through the mechanics of exporting. An International Trade Adviser will provide professional advice on a range of services, including financial subsidies, export documentation, contacts in overseas markets, overseas visits, translating marketing material, e-commerce, subsidised export training and market research. www.uktradeinvest.gov.uk Page 8 of 7