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."