What's in Store for Polish Furniture?
For many years Poland has been among the biggest furniture manufacturers in Europe, along-side Germany, Italy and France. Each year over 80 percent of its global production goes abroad, primarily to European Union markets. Were it not for exports, many producers would have to close their factories.
Among developed European countries there are at least a few which manufacture furniture. Germany is the unquestioned leader; production in the furniture business there is worth over 18 billion euros per year; Italian furniture production is slightly smaller, worth 12.67 billion euros, and French-5.19 billion euros. Poland, with sold production worth 3.5 billion euros, is one of the largest and most important manufacturers and-which annoys some other producers-also a large potential exporter.
Polish furniture
The furniture manufacturing tradition in Poland is a long one. Furniture is certainly one of those Polish products which in recent years have been subject to total metamorphosis. The economic transformations in Poland at the beginning of the 1990s, the country's opening up to the world, and access to modern technologies permitted modernization and privatization of the furniture business. Along with the privatization of the old factories, new, initially smaller, factories emerged. This was the path taken by Nowy Styl- today one of the largest chair producers in Europe-Kler, Adriana, Profim, Balma, Mikomax and Com 40. Young Polish businesspeople used to begin exploring domestic markets by very simple methods, but the results proved beneficial. Soon they were able to import new technologies and materials for furniture production. Some boast their own models designed by Polish and Western designers. Polish products are present at international fairs all over the world and successfully compete with Western ones, not only in terms of price.
Exports
In view of stagnation in the domestic market as a result of lack of ideas on how to resolve housing problems, almost all Polish furniture producers have oriented themselves to exports. Last year, 79 percent of domestic production was exported. European Union countries are the main buyers of Polish furniture: 78 percent of total exports went there; 8.4 percent to Central and Eastern European EU candidates; 4 percent to the countries in the region which do not yet aspire to EU membership; 1.6 percent to Russia; 2.5 percent to the United States; and 5 percent to other countries.
The export structure as regards Polish furniture is transparent and it shows to what extent Poland is already linked to the EU market-especially the German market, which is still the largest buyer of Polish furniture. Poland has not yet managed to reconstruct its Russian market after the slump; meanwhile, regulations binding in Russia encourage Polish producers to start production there and establish partnerships with local companies. This path, both in Russia and Ukraine, is being followed by producers such as Nowy Styl and Forte. Their presence in highly-developed EU markets was possible not only due to the involvement of German distributors in the privatization of Polish factories, but also thanks to the qualitative changes occurring in the manufacture of Polish furniture. Today, the furniture is manufactured using the latest technologies and raw materials but also according to designs whose esthetic level matches that of Italian and German products. They are able to compete with the best brands, both in upholstered and office furniture.
Polish trademark
Should Polish furniture be sold under its own trademark? This is the question being asked by many producers. Promoting a trademark in their own country requires not only top quality products, but also a sales network and huge resources for advertising and promotion. This is what Swarzędz, one of the oldest manufacturers of home furnishings in Poland, has experienced. Producers of upholstered furniture like Kler, Eljot, Iker, COM 40 and Adriana compete for Polish clients. Each attempts to promote their products abroad. Distributors in the European Union gladly take Polish couches and other furniture at a good sale price, but they are not interested in promoting foreign trademarks. Most often, such products are signed with a distributor's trademark.
All the forecasts drawn up by experts indicate that for the time being there is no chance of radical improvement in domestic demand for furniture. But exports are expected to grow after Poland's official EU accession.