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The French furniture market news 
¡¾Jan.31, 2002¡¿

The French furniture market

Production

France is the third largest European furniture producer after Italy and Germany, with a share of total European production of about 10% (7,812 million Euro).

As regards the breakdown of production according to product type, the sector shows a certain uniformity among the various segments, with similar quotas of office and kitchen furniture of roughly 12%.

Production grew at 5% at current prices in 2000 driven by strong demand and by the good performance of exports and affected all segments, but especially the office furniture (+6% in 2000) while kitchen furniture segment remained steady (+1% in 2000).

A growth in a range of 1%/3% is expected to be reported for 2001.

Prices

In spite of fluctuating oil and energy prices, furniture production prices growth was moderate, registering a value of 0.5% in year 2000.

Demand

In 2000 apparent domestic consumption recorded excellent growth of 7% at current prices (between 1996 and 2000 production recorded average annual growth of 5%) and was worth Euro 9,111 million.

Furniture Production By Value and Product

Foreign trade

France is the third largest exporter and the second largest importer of furniture in Europe.

Over the course of 2000 international trade recorded an excellent performance. During 2000 the increase in exports was 17% compared to 1999, while imports recorded growth of 18%. An increasing openness of the French market has also been registered, with imports accounting for 38% of domestic consumption in 2000 (33% in 1998) and exports claiming 28% of the national production of furniture.

In 2000 exports were directed mainly towards European Union markets (mainly Germany, Spain, Belgium and the United Kingdom) which absorbed about 66% of total French exports. But a considerable increase in the demand for French furniture from the United States has also been registered (+38% in year 2000, compared to the previous year).

The leading supplier of furniture to France is Italy, whose furniture (mainly upholstery, dining rooms and office furniture) worth 24% of total imports, followed by Germany, Belgium and Luxembourg.

French Company News

The turnover of Ekornes of France reached euro 32 million in 2001, registering a growth of 25% compared to the previous year. April, October and November were the months during which orders grew fastest.

The offer of stylish storage at low cost has already made France one of the fastest-growing markets for the Swedish-turned-Dutch furniture retailer Ikea, that now ranks number one in the world. Sales in the year to August soared 16% to Euro 880 million, growth almost twice the pace of the group's 9.4% increase to Euro 10.4 billion.

With 12 stores open, France already ranks as Ikea's fourth-largest market, after Germany (21%), the US (13%) and Britain (12%). France, however, is closing the gap, up from 8% of group sales to 9% over the past 12 months, despite the opening of only two new stores.