It is worth making investments
Polish furniture as guaranteed profit, pt. 1
Poland is one of the top five furniture producers in Europe, with its production share in the entire Europe amounting to 7.1%. By 2020, the sale of furniture produced in Poland is estimated to increase up to nearly PLN 50 billion. In the newest industry report “The Furniture Market in Poland” of June 2017, KPMG Poland describes in detail the nature of the market and provides some optimistic data for the investors, along with the pillars associated with the furniture industry. The KPMG’s report depicts the conditions of the furniture market in Poland, the level of its involvement, while looking into the pockets and shopping preferences of Poles.
The year 2016 in Poland was concluded with the total sale of furniture amounting to PLN 42 billion. Between 2010 and 2015, the furniture industry increased at an 8.7% rate, which is superior to the growth rate of the entire industrial processing (an average rate of 5.2%). KPMG indicates that even if we focus on a shorter period of time, i.e. from 2012 to 2015, the furniture industry performed even better, with the growth rate amounting to 10.7%.
A soft investment start will be in addition ensured by the image of Poland – the leader of furniture production and export in Europe. This title results from statistical data and the level of technological involvement of Polish furniture producers. The position of the leader at this moment is determined by two factors – the production of high-quality furniture and relatively low labour costs. According to the author of the report, they may prove insufficient to maintain the current growth rate. With this knowledge, it is time to look for new competitive edges in categories such as furniture design. With its large production infrastructure, Poland can be successfully the leader of furniture design, following in the footsteps of Denmark and the phenomenon of Scandinavian design. This sort of direction was taken by Piotr Voelkel. In addition to furniture production, he also developed a design staff and trained a number of designers in a privately-owned School of Form in Poznań.
Jan Szynaka, the Chairman of the Polish Chamber of Commerce of Furniture Manufacturers, seeks the nature of the Polish furniture industry in a large share of the national capital and the Polish ownership structure. He also emphasises that Polish furniture is not only bought in Europe, but also in Brazil and the United Arab Emirates. This is confirmed by studies. Poland is not only a producer; the country is also the fourth biggest furniture exporter in the world! The foreign trade balance is on an increase. According to the Central Statistical Office of Poland, furniture export in 2015 reached PLN 36.3 billion, followed by an 11.5% increase in 2016, i.e. PLN 40.5 billion. Polish furniture ends up in German (36% of export), British, (8% of export), and Czech (7% of export) interiors. The rest of the export (13%) goes to USA, Russia, and China. The limitation results from high transportation costs which significantly increase the price of products in relation to local markets.
For investors, it is the best time to launch a new, unique concept of the furniture industry on the market. This business should be based on the following characteristics. Firstly, there is finishing of a high quality. Secondly, there is a specialised design that matches modern aesthetic preferences that Poles have. Thirdly, there is a good relationship between the price and the quality. Unless it is a luxurious item, which also has its market in Poland and Europe.