São Paulo – Businessman Bachir Sarkis, from Dubai, in the United Arab Emirates, is promising to buy luxury Brazilian furniture. He is in São Paulo to visit the 4th edition of the winter edition of the Brazilian High-End Furniture Manufacturers Association (Abimad), which ends on Saturday (30), at Expo Imigrantes. Bachir said that Brazilian furniture has similar quality to that exhibited in the main sector fairs and that is successful among consumers in the Middle East.
“The design of Brazilian furniture is surprising. When we go to Milan and visit stands, we notice that some copy the projects of others. Here, honestly, I do not see the same. The design, the quality and the gloss of the wood… your finishing is impressive,” said Sarkis. This is the first time he participates in the event. “I plan to return for all editions.”
Sarkis has not yet closed deals at the event and should not sign contracts in Brazil. But he said that, as soon as he gets to Dubai, he should place an order for “no less than US$ 50,000.”
Another visitor from the Emirates is Muhammed Noufel. His office is in Abu Dhabi, the country capital. He represents several companies in the sector and was also surprised with the design of the decoration objects made in Brazil. “They are beautiful. The products used are much appreciated by those in Abu Dhabi,” he said.
Noufel did not confirm whether he will close deals in the country, but one brand, especially, impressed him. “I liked the Companhia das Fibras material very much.” The company produces carpets and furniture with reusable products, like demolition wood and banana leaf.
The company exports 20% of produce. None, for the time being, goes to the Arab nations. “Chile and the United States buy half of what we export,” said Companhia das Fibras partner Alberto Dias. He reveals, however, that he may close a deal with Noufel.
“He liked our products, our carpets, very much,” said Dias. “Our raw material is environmentally correct and we also develop social work, as bananas are sold for 0.15 Brazilian real (US$ 0.10) a kilogram after harvested, but we buy banana leaf for 30 reals (US$ 20) per kilogram,” he pointed out. “Today, foreigners appreciate products that are environmentally and socially correct. We may now be able to start selling to the Arabs,” he added.
Market
Both Noufel and Sarkis are part of a group of 17 foreigners invited to the fair by Abimad. In last year’s winter edition, eight foreigners came. Erik Fiuza, responsible for the international department at Abimad, estimates that the association invested 5,000 Brazilian reals (US$ 3,200) to bring each guest. “But, in the February edition this year, they signed US$ 2 million in purchases during the event. We calculate that, for the coming 12 months, starting in February, they purchased over US$ 2 million. It is investment that brings return after the event,” he said.
The July Abimad is better than the February edition, which is already at its eighth edition and at which high-end furniture producers usually release their collections. The sector works with more quality, investment in design and cheaper prices. Despite the praise by the Arab customers and the Abimad investment, furniture exports have already lived better moments.
According to the Abimad president, who is the commercial director at Butzke, Michel Otte, foreign sales started dropping in 2005. “Exports represented 80% of what we produced. Now, they answer to 20%,” he said. He added that the depreciate dollar is the main barrier to exports, but recalled that it is not the only one. “In the past we also had infrastructure and logistics problems, difficulties to export, but that was compensated by exchange rates. Now, exchange rates no longer allow for that,” he said.
On the other hand, the domestic market compensates losses on the foreign market. “We also made use of the real estate boom. Many people who purchased real estate over the last three years have started getting their keys now. We expect a heated market in coming years,” he said.
*Translated by Mark Ament
