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SPECIAL REPORT
MARKETS
WORLD LUXURY
END FURNITURE
by Aurelio Volpe
Director CSIL International Market Research
he world market for luxury furniture and furnishings is worth
approximately USD 157 billion at
consumer prices (around USD
70 billion at factory prices).
T
The main driver of the luxury furniture
market is the increasing number of millionaires, around 24 million adults who
own assets worth in excess of one million dollars. Approximately 10.8 million
of them live in North America, home to
a robust middle class population. In
Europe around 8 million adults have
assets over USD 1 million, fuelling a
luxury furniture and furnishing market
of around USD 53 billion, equal to
around 15% of the total consumption of
furniture and furnishings for the home
and contract markets. At least one in
four adult millionaires makes a sizeable
purchase of furniture or furnishing each
year (six million costumers) for a total of
least nine million purchases.
The luxury furniture market could be
divided into roughly 55%-60% furniture
and 40%-45% other luxury items (fur-
nishings/interior design). Another relevant breakdown is 65%-70% purchases
for home, and 30%-35% for non-residential locations (hotels and resorts, restaurants, offices, retail).
Worth noting that Italy, the world’s leading exporter of luxury furniture has lost
ground over the last ten years: its share
of worldwide furniture exports fell from
16% in 2000 to 10% in 2009. This is par-
WORLD. THE TOP OF THE PYRAMID. UNITS
Source: CSIL processing
WORLD. EXPORTS OF FURNITURE AND LUXURY FURNITURE,
SHARES BY COUNTRY, 2000-2009
tially due to the growth of emerging
countries, although this does not affect
the luxury furniture segment. Germany
consolidated its position from a share of
9% of total luxury furniture exports in
2000 to 10% in 2009.
RETAILERS TO WATCH: THE
ARCHITECTS & DESIGNERS BUILDING
The A&D Building, New York’s ultimate
showroom resource, is the largest luxury
kitchen and bath and home building
product centre in the New York metropolitan area. With 40 showrooms on 12
floors that cover 200,000 sq. f. of
space, the A&D Building offers thousands of distinctive premium product
brands in kitchen and bath, appliances,
tile and stone, as well as home and office
furnishings.
June 2011 - WF 31
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SPECIAL REPORT
MARKETS
Bulthaup b3
New York landscape
Situated in the heart of the Decorative
Arts District, the A&D Building is steps
away from the world-class stores, art
galleries, restaurants and hotels of
Park, Madison and Fifth Avenues that
make up Manhattan’s East Midtown
luxury/business grid.
Owned by the A&D Building’s parent
company, Vornado Realty Trust, this
new landmark is home to Bloomberg
LP headquarters, the One Beacon
Court residential tower and Le Cirque
restaurant. A Vornado subsidiary,
MMPI manages some of the country’s
most prominent design centres,
including Chicago's Merchandise
Mart, and the showrooms of the A&D
Building.
The A&D Building frequently hosts
special events where new products
are introduced and leading design
industry experts and celebrity chefs
give presentations and cooking
demonstrations. Trade professionals
as well as discerning consumers are
invited to attend these events, many of
which are held in conjunction with
trade, shelter and general interest
publications.
32 WF - June 2011
MANUFACTURERS TO WATCH:
BULTHAUP
In 2009 Bulthaup recorded a turnover
of USD 156 million. The company is run
by the Bulthaup family, with the
Japanese multinational Toto (bathtubs
and other bathroom products, and
kitchen furniture.) The company is considerably design/innovation oriented
and at the forefront as regards the
choice of materials (it was the first manufacturer to use steel in the production
of kitchen furniture).
The foundations for the company's
innovative leadership were laid back in
1974 with the introduction of its new
modular system, the C12 kitchen
range. In 1988 the company launched
the innovative kitchen workbench,
then it set new standards in 1992 with
the introduction of system 25 (a flexible system which, with its modules and
wealth of installation elements, made
virtually any design possible). In 2004
the company further expanded its role
as market leader with the introduction
of its new generation product Bulthaup
b3 (see photo). In 2008 the company
manufactured new less expensive
products.
In recent years the firm has been even
more oriented towards reinforcing the
Bulthaup brand on the world markets. Its
strategy was not only designed to remind
people of its product lines, but at the
same time to give greater value to the
articles.
The communication strategy is moving
towards showing that the products are
not only aesthetically attractive, but also
boast ergonomic features and are of
excellent quality. In 2008 the company
launched two new products: Bulthaup
b1 for a younger clientele at more affordable prices, and the system Bulthaup b2
that follows the principle of "clearing
away anything superfluous”.
Bulthaup distributes mostly throughout a
network of exclusive kitchen specialists in
some 50 countries worldwide. The company sells also to furniture retailers. The company has showrooms in major cities including Munich, Milan, London, New York and
Tokyo. In February 2008 Bulthaup opened
its first and largest showroom in China in
the city of Shanghai. This Bulthaup showroom offers kitchen plans, living space concepts and innovations over an area of
around 800 sq. m.