International Opportunities
The International Home Furnishings
market is robust, with strong activity across borders. US exports were
up about 10% in 1998 largely on the strength of sales to Canada and Mexico,
the first and third largest export markets respectively. Exports account
for 1 out of 16 dollars of consumption. Imports are also up dramatically
due to the strong US economy; imports account for about 1 out of every
5 dollars of consumption, up from 1 out of 7 dollars in 1992 (US Industry
& Trade Outlook, 1999). US manufacturers account for a large portion
of this growth as they tend to import parts of pieces to supplement their
product lines (US Industry & Trade Outlook, 1999). Fueling this growth
is the reduction of trade barriers and tariffs to most countries and NAFTA's
continued positive influence on trade between the US, Canada, and Mexico.
Additionally, the democratization and privatization of many countries in
Russia, eastern Europe, and Latin American have created new opportunities.
source: US Industrial &
Trade Outlook, 1999
Currently, there are very
few international home furnishings intermediaries. Given the strength of
the home furnishings sector in Asia, there is an intermediary serving that
market with future potential to serve in the larger international sector.
The intermediary, www.furnituretrade.com.sg,
is a portal that is designed to serve both the furniture industry and furniture
supporting industry. The intermediary offers bedroom, living room, dining
room, office, outdoor/garden, and knock down products. In addition, the
intermediary offers furniture fittings, components & parts, furnishings
materials and coatings, wood and wood products, and woodworking machinery
and tools. This portal is by far the most robust in terms of content only
of all intermediaries operating in the home furnishings sector today. The
information content offered on this site includes: news, articles, associations,
bulletin boards, advertising opportunities, and web links. The focus is
on the international market, so information includes links and news from
the US, Finland, Britian, Spain and other countries. The site does not
offer transactions nor does it have detailed product descriptions; it operates
primarily as a brochure/advertising site for players in the market.
Players in the US market are
looking to expand internationally; this is a compelling global market.
Elisa Harnquist, co-founder of RetailMetro observes "We are planning to
expand internationally. In fact, we are already attracting buyers from
overseas, without our doing any marketing. The global market is a really
great opportunity for U.S.-based manufacturers. The international aspect
of this network is really what the manufacturers see as a great opportunity."
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