São Paulo – Egypt and Kuwait are among the few countries in the world to present growth in the furniture market this year. According to a study by the Italian Centre for Industrial Studies (Csil), the World Furniture Outlook, only China, India, Russia, Egypt and Kuwait should present furniture consumption growth of over 3% in 2009. And Brazil should seek its space in the market in the Arab countries this year, according to the president of the Brazilian Furniture Industry Association (Abimovel), José Luiz Dias Fernandez.
"We do not business with Egypt, but we do with Kuwait, through our participation in the Index fair in Dubai," said Fernandez. Brazilian companies usually exhibit at the Index, a fair in the furniture and decoration sector that takes place in the United Arab Emirates each year. This year, the exhibition is scheduled to take place between November 14th and 17th. According to the president at the Abimovel, one of the objectives of the Brazilian furniture industry this year, aimed at recovery, is the search for new markets. This target includes the Arab countries.
The intention is to make the sector recover after facing a difficult period, generated by the international economic crisis, late last year. Apart form seeking new clients abroad, the sector is also investing in design. All of this to gain breathing space despite the crisis and to guarantee recovery of sales in the second half of this year.
Most of the furniture sales from Brazil to the Arab world are through Dubai, according to Fernandez. For this reason, industries in the sector plan to open, in the emirate, a permanent showroom in Jumeirah. The subject is under discussion with the Brazilian Export and Investment Promotion Agency (Apex-Brasil). According to Fernandez, the intention is for the showroom to be multisectorial and to include, as well as furniture, building material, like marble and granite, decoration and handicraft. There should also be a separate space for exhibition of material.
Despite the crisis faced by the sector in late 2008, the Brazilian furniture industry managed to expand exports late last year. Sector revenues with foreign sales rose from US$ 988 million in 2007 to US$ 1.5 billion last year. Worldwide, trade grew 4% in 2008 as against the previous year, according to figures supplied by Csil. The study of the Italian institute shows, however, that the global market should be stagnant in 2009. The forecast is for lower demand in several markets, among them the United States and France. In Brazil there should be growth of 1%.
*Translated by Mark Ament
