2014.09 Furniture

Furniture
Executive Summary
This sector fact sheet provides key trade and investment related statistics for the furniture sector. Specifically, it
shows global trade and investment flows including an analysis of top markets and products for South Africa and
the Western Cape highlighting the largest and fastest growing products and sub-sectors. The key highlights in the
furniture sector are provided below:
SECTOR OVERVIEW
In the last 10 years, world trade of furniture has grown faster than furniture production, and has
consistently amounted to about 1% of the world trade of manufactures.
Current trends in the South African furniture sector include major retailors providing e-commerce services
such as online buying as well as increased consumer confidence and increased value sales.
TRADE
Global trade in furniture was worth ZAR1.18trn in 2012, growing by 18% from 2011.
South Africas exports of furniture was worth ZAR4.26bn in 2013 and grew 50.3% from 2012.
Western Capes exports of furniture was worth ZAR282m in 2012 growing by 4.4% from 2011.
Parts of seats are the Western Capes largest furniture export in value terms, reaching ZAR107m in 2012
and a compound Annual Growth Rate (CAGR) of 7% was experienced in this sub-sector from 2004 to
2012.
The Western Cape used to be a net exporter of metal furniture but from 2006 become a net importer with
an import CAGR of around 24%.
Germany was the leading destination market for furniture products from South Africa in 2013 (ZAR1.1bn),
and from the Western Cape in 2012 (ZAR70m)
Seven out of the top ten South African export destination markets for furniture are other African countries.
Six out of the top ten Western Cape export destination markets for furniture are other African countries.
INVESTMENT
Foreign Direct Investment (FDI) into the South African furniture sector between 2003 and 2013 reached
ZAR649.71m, which is an average investment of ZAR129.78m per project.
South Africa is the 21th largest source market for global FDI projects in this sector and the 49th largest
destination market.
Poltrona Frau invested ZAR300m in the Cape Town in March 2012 for a furniture retail project.
1.
Sector Overview
The global furniture sector includes all movable articles that are used to make a room or building suitable for living
or working in, such as tables, chairs, or desks. The definition used in this sector analysis also includes mattresses
and parts of furniture that are not yet compiled. It specifically excludes medical, dental or veterinary furniture as
well as all rotating, reclining and elevating seats. This sector review will look at the retail sale of furniture globally
and particularly in South Africa and the Western Cape.
The products assessed in this sector are classified under domestic or household furniture, including office furniture.
Furniture is usually divided by function into the following sub-sectors:
SUB-SECTORS OF DOMESTIC AND OFFICE FURNITURE
SUB-SECTORS
Upholstered seating
Non-upholstered seating
Dining and living room furniture
Kitchen furniture
Bedroom Furniture
Office furniture
Other furniture
Furniture parts
PRODUCT GROUPS
Armchairs, reclining chairs, couches, sofas, divans,
footstools, seating elements upholstered with leather, wool,
synthetic material, cotton etc.
Seats, armchairs, rocking chairs, seats convertible into
beds, stools
Dining sets (tables and chairs), dressers, coffee tables,
sideboards, shelf systems, room dividers,
television/video/music system storage units
Fitted cabinets and kitchen units, kitchen tables and chairs,
free-standing pieces such as movable trolleys and butcher
blocks
Beds, headboards, bedside tables, dressing tables, chests
of drawers, wardrobes (fitted or free standing)
Desks, chairs, drawer units, filing cabinets, integrated
workstations
Cupboards, bookcases and wall units, mirrors, hall stands,
bathroom furniture such as baskets
Parts of furniture or seats, including semi-finished furniture
Source: cbi, 2014
In addition to its function, furniture can also be defined by material or content or by style. Furniture by raw material
can be classified as:
Wood
Cane, osier, bamboo, etc.
Metal
Plastic/synthetic
Stone
Glass
Combination of materials
The materials used in the furniture manufacturing process affects the prices and profit margins in the furniture
sector. The global commodity prices that can be analysed include cotton, iron, steel and aluminium. The graphs
below show the prices of the commodities and the percentage change in price from year to year. All of the
commodities experienced large dips in 2009 due to the financial crisis as well as in 2012 due to many developed
economies experiencing a double-dip recession, US dollar appreciation and a slowdown in global demand.
Interestingly, none of the metal commodity prices are forecast to rise above pre-crisis levels and all the commodities
below are forecast to stabilise to a certain degree.
Cotton prices range between 57USc/lb and 138USc/lb, with quite a high volatility. From 2014 the price is
forecast to average around 80 to 90USc/lb.
Iron prices range between 84USD/tonne and 176 USD/tonne, with quite a high volatility. From 2014 the
price is forecast to average around 90 to 100 USD/tonne.
Aluminium prices range between 1704USD/tonne and 2425USD/tonne, with quite a high volatility. From
2014 the price is forecast to rise steadily from 1800USD/tonne to 2200 USD/tonne in 2018.
Steel prices range between 612USD/tonne and 935USD/tonne, with quite a high volatility. From 2014 the
price is forecast to average around 690USD/tonne.
GLOBAL COTTON PRICES, 2008-2018

160
80
140
60
40
100
USc/lb
20
80
0
60
-20
40
Percentage change (%)
120
-40
20
0
Cotton Price, USc/lb, ave
2008
63,6
2009
57,1
2010
94,1
2011
137,5
2012
79,7
2013
83,4
2014f
82,0
2015f
84,0
2016f
86,0
2017f
89,0
2018f
91,5
Cotton price, ave, % y-o-y
11,2
-10,2
64,8
46,1
-42,0
4,6
-1,6
2,4
2,4
3,5
2,8
-60
Source: BMI, 2014
GLOBAL IRON PRICES, 2008-2018

200,0
100
180,0
80
60
USD/tonne
140,0
120,0
40
100,0
20
80,0
60,0
-20
40,0
20,0
-40
0,0
-60
2008 2009 2010 2011 2012 2013 2014f 2015f 2016f 2017f 2018
Iron Ore Price, USD/tonne, ave 152,5 84,5 153,4 175,5 128,6 135,2 108,0 100,0 95,0 90,0 85,0
Iron ore price, ave, % y-o-y
25,6
-44,6
81,5
14,4
-26,7
5,1
-20,1
-7,4
-5,0
-5,3
160,0
-5,6
Source: BMI, 2014
GLOBAL ALUMINIUM PRICES, 2008-2018

3000
40
20
USD/tonne
2000
10
1500
0
-10
1000
-20
500
0
Aluminium Price, Three-month,
USD/tonne, ave
-30
2008 2009 2010 2011 2012 2013 2014f 2015f 2016f 2017f 2018
2623 1704 2193 2421 2053 1887 1850 1900 2000 2100 2200
Aluminium price, three-month, ave, %

-1,5
y-o-y
Source: BMI, 2014
-35,0 28,7
10,4 -15,2
-8,1
-2,0
2,7
5,3
5,0
4,8
-40
30
2500
GLOBAL STEEL PRICES, 2008-2018

1000
30
900
USD/tonne
700
10
600
500
400
-10
300
-20
200
-30
100
0
2008
2009
2010
2011
2012
2013 2014f 2015f 2016f 2017f 2018
20
800
-40
Steel Price, Global Carbon Steel

935,0 612,3 733,4 854,3 757,2 708,1 695,0 690,0 685,0 690,0 690,0
Composite, USD/tonne, ave
Steel price, Global Carbon Steel
Composite, ave, % y-o-y
-34,5
19,8
16,5
-11,4
-6,5
-1,8
-0,7
-0,7
0,7
0,0
Source: BMI, 2014
1.1
The Global Furniture Sector
In 2013, the world furniture market was worth USD463bn and forecasts from CSIL, a leading Italian independent
research center, expect furniture consumption growth to exceed 3% by the end of 2014. This growth is expected
to vary in different regions of the world. Western Europe is expected to remain stable with moderate growth in North
and South America and fast growth in emerging market economies, particularly in Asia. The nature of furniture
sales has changed from ready-assembled pieces to more ready-to-assemble (RTA) pieces from 1970 onwards
with the expansion of IKEA.
Traditional furniture-making countries continue to account for over 70% of the global market, for example the EU
accounts for around half of the worlds furniture production. This is possible because of their long established
production capacity, advancement in science and technology, funds and rich management experiences.
Developing countries and regions like China, Southeast Asia, Poland and Mexico, have built upon their competitive
advantages and have gradually obtained around 30% of the world market.
In the last 10 years, world trade of furniture has grown faster than furniture production, and has consistently
amounted to about 1% of the world trade of manufactures. The global import penetration for furniture (measured
as the ratio between imports and consumption) rose from 27.8% in 2003 to 30.6% in 2007. In 2008 and 2009, it
decreased as a consequence of the recession, and remained below the pre-recession maximum thereafter.
According to the Forbes 2000, the list of worlds biggest public companies, the furniture companies that are in the
top 2000 include Steinhoff International, Mohawk Industries and Jarden. Steinhoff International is headquartered
in Johannesburg and employs 79,818 people. It is an integrated retailer, which manufactures, sources and retails
furniture and household goods in Europe, Africa and the Pacific Rim. Its diversified industrial businesses in southern
Africa provide supply chain and logistics services, timber products and other raw materials. African listed
subsidiaries, include KAP Industrial Holdings and JD Group Limited. Mohawk Industries, Inc. manufactures and
distributes residential and commercial flooring. It offers a carpet, ceramic tile, wood, stone, laminate, vinyl, rugs
and other home products. The company operates through three reporting segments: Mohawk, Dal-Tile and Unili.
TOP PERFORMING FURNITURE COMPANIES, 2014
FORBES 2000
RANKING
COMPANY
COUNTRY
MARKET VALUE
672
Steinhoff International
South Africa
USD10.5bn
1371
Mohawk Industries
United States
USD10bn
1578
Jarden
United States
USD8bn
Source: Forbes, 2014
1.2
South African Furniture Sector
When considering the South African consumer spending on furniture over time we have used the broad definition
which is the sum of spending on household furniture for all household rooms such as chairs, sofas, tables, beds,
cupboards, ornaments, mirrors, baby furniture, bedding, ceramics, etc. It also includes carpets and other floor
coverings and furniture repairs which are not included in the trade and investment analysis.
According to Euromonitor, business conditions saw a significant improvement during 2012 for furniture and
homeware stores. Consumer confidence improved during the first quarter of the year, leading to improved value
sales for the year. Stricter credit evaluation policies by retailers offering credit also led to improved value sales, as
the number of defaulting customers declined. This led to improved growth forecasts for the period 2012 to 2018 of
around 6%. A vast improvement from the negative growth of around 3% from 2007 to 2011. Although there has
been negative spending from 2007 to 2011 in furniture spending, strong growth rates have been forecast for private
final consumption across South Africa of above 5%. This is expected to trickle down positively across all 13 areas
of household spending including furniture and furnishings spending.
14
12
10
-2
-4
0
Furniture and furnishings spending, ZARbn
Furniture and furnishings spending, ZAR % y-o-y
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
10,8
0
9,5
10,0
10,5
11,0
11,6
12,3
12,9
-3,24 -3,35 -3,46 -3,59 -3,72 5,36
10,4
10,1
9,7
9,4
9,0
4,97
4,80
5,43
5,45
5,43
5,68
% Growth
Value (ZARbn)
FURNITURE AND FURNISHINGS SPENDING IN SOUTH AFRICA, 2006-2018
-6
Source: BMI, 2014
Growth in the furniture sector was encouraged due to the rapidly growing popularity of the internet for retail which
has attracted furniture retailers towards e-commerce. South Africa-based website Nevada Furniture has built a
business by sourcing Swedish furniture retailer IKEA's products and delivering them to local customers. High-end
furniture makers, such as Wetherlys, have also launched e-commerce portals to tap into the potentially huge
market. The JD Group, a South African furniture retailer and financial services provider is also planning to open at
least 50 stores in rural areas. Their stores include Russels, Joshua Doore and Bradlows furniture.
1.2.1 South African Furniture Associations

SOUTH AFRICAN FURNITURE ASSOCIATIONS
ASSOCIATION
Forest Industries Education
and Training Authority
Furntech
FOCUS
The creative challenge for all people in the forest
industries is to optimise the beneficiation of trees.
FIETA helps to develop the skills to meet this
challenge.
Furntech's mission is to be a globally competitive,
outcomes-based training provider that offers
comprehensive and innovative business incubation
services in order to assist in job and wealth creation in
South Africa's furniture and wood products sector.
CONTACT
http://www.fieta.org.za/
http://www.furntech.org.za/about-us/aboutus
The wood and paper industries in South Africa also have a Competitiveness Enhancement Incentives (ECA)
managed by the IDC. These are investments which facilitate increased competitiveness, sustainable economic
growth and development in a specific sector. Focus areas are projects and investments in forestry, pulp and paper,
furniture, saw milling, board production and renewable energy. The applicability is competitive risk-related interest
rates based on the prime bank overdraft rate.
1.3
Western Cape Furniture Sector
The manufacture of furniture in the Western Cape is depicted in the graph below. The graph shows that over time
the percentage contribution of furniture and other manufacture is declining as a percentage of GDP from 2.04% in
2003 to 1.66% in 2011. The value of the furniture manufacturing sector in the Western Cape peaked in 2008 at
ZAR3.4bn and has since declined to ZAR3.08bn in 2011.
FURNITURE MANUFACTURING IN THE WESTERN CAPE: CONTRIBUTION TO GDP, 2003-2011

4,0
2,5%
3,5
2,0%
3,0
VALUE (ZARbn)
1,5%
2,0
1,0%
1,5
1,0
0,5%
0,5
0,0
Furniture and other manufacturing
(ZARbn)
% of total GDP
2003
2004
2005
2006
2007
2008
2009
2010
2011
2,74
2,83
2,98
3,13
3,24
3,40
3,07
3,09
3,08
2,04%
2,00%
1,98%
1,96%
1,91%
1,92%
1,76%
1,71%
1,66%
0,0%
Source: Quantec, 2014
1.3.1 Western Cape Furniture Associations

The Western Cape has a few associations that provide support to the furniture sector in the Province. They can
be seen in the table below:
WESTERN CAPE FURNITURE ASSOCIATIONS
ASSOCIATION
FOCUS
CONTACT
Cape Furniture
Manufacturers Association
(CFMA)
Provide support for collective bargaining and

representation.
http://www.cfma.org.za/
Western Cape Furniture

Initiative
To develop and grow the furniture industry in a

sustainable manner through the implementation of
programmes and interventions that will improve the
industry skills and making the furniture industry
globally competitive
http://www.capefurniture.za.org/about.htm
Furniture Bargaining Council

for the Western Cape
Representation, mediation and administration
http://www.furniture.org.za/about.htm
% CONTRIBUTION TO GDP
2,5
1.3.2 Western Cape Furniture Sector Value Chain

Companies in the furniture value chain in the Western Cape are presented below. These are the companies
registered under the Companies and Intellectual Properties Commission (CIPC) under furniture manufacture
[SIC931], furniture and requisite wholesale [SIC6139] and furniture retail outlets [SIC6233].
MANUFACTURE [SIC931]
CARLIZE ELS INTERIOR
DESIGN CONSULTANT
COTTAGE FURNITURE
MANUFACTURERS
DREAMWORKS KITCHENS
JUAN ARCHITECTURAL
INTERIOR DESIGN PROJECTS
MILO'S CABINET WORKS
RENSILVLEI
BC WOODWORKS
CCC MANUFACTURING
DIENER CUPBOARDS
MAVERICK TRADING 399
Source: BFA, 2014
WHOLESALE DISTRIBUTORS
[SIC6139]
360 DEGREE BLINDS AND
PROJECT SOLUTIONS
A AND E FURNITURE
A AND G FURNITURE
SUPPLIES
ADESSO WHOLESALE
AMABANE AIRCONDITIONING
BHOFOLO FURNISHERS
BRICKFIELD OFFICE
FURNITURE AND TRADING
CONTRAFURN
CRAFTWELL KITCHENS AND
INTERIORS
DAVE WATLING AGENCIES
FUTURE FURNISHERS
GOUROUX
HOT TUNA PROPS
HUNTERS AIR
INTERNATIONAL FURNITURE
HOUSE
J AND B SATELITES
KZN KITCHEN CUPBOARDS
LATIF FURNISHERS
LEZMIN 2748
LOW PRICE FURNISHERS
MAGNUM MEUBELS
MAP FURNITURE
WAREHOUSE
NATALIA FURNISHERS
SEAWOLF MARINE
SEN-AD
SHAINE AMIKA TRADING
SUPER PRICE FURNISHERS
VARI-VEST FOURTEEN
RETAIL OUTLETS [SIC 6233]

CHEAP SLEEP
LE JACQUES BEACH HOUSE
D'COR
LIGHTHOUSE LOUNGE
OFFICE MAD LIQUIDATION
CENTRE
THE BEDROOM SHOP
2.
Trade
2.1
Global Trade in the Furniture Sector
Global exports of furniture products increased steadily from 2004 to 2008, before a dip in 2009. However increases
in exports were recorded from 2010 to 2012, with 2012 recording the highest exports of furniture products over the
ten year period. Global exports of furniture increased from ZAR606bn in 2004 to ZAR1.18trn in 2012. In 2012,
exports of furniture products increased by 18%, the highest growth since pre-crisis levels.
GLOBAL FURNITURE TRADE, 2004-2012
1 400
25
20
1 200
15
10
800
600
% growth
Value (ZAR bn)
1 000
-5
400
-10
200
0
Trade (ZARbn)
y-o-y Growth (%)
-15
2004
606
2005
661
2006
768
2007
930
2008
1 110
2009
911
2010
926
2011
1 002
2012
1 184
16
21
19
-18
18
-20
Source: TradeMap, 2014
As can be seen below, China was the leading source market for furniture products in 2012, valued at ZAR455bn,
followed by Germany and Italy valued at ZAR92bn and ZAR87bn respectively. Other top source markets were
Poland (ZAR69bn) and the United States (ZAR57bn). Four of the top 10 source markets are European markets.
South Africa is ranked 40th, exporting furniture to the value of ZAR2.8bn.
TOP 10 EXPORTING MARKETS FOR FURNITURE, 2012
RANK
SOURCE MARKETS
VALUE
2012
(ZARbn)
%GROWTH
2011-2012
China
455
42.9%
Germany
92
5.8%
Italy
87
6.1%
Poland
69
5.1%
United States of America
57
28.1%
Mexico
47
36.4%
Viet Nam
40
79.4%
Canada
31
17.7%
Malaysia
22
17.5%
10
France
20
3.5%
40
South Africa
2.8
-13%
1 721
25.6%
TOTAL
The top 5 export products from each of the top 3 export markets are listed below:
China (HS10)
Metal furniture (ZAR76bn)
Wooden furniture (ZAR71bn)
Other upholstered and metal framed seats (50bn)
Furniture parts (ZAR47bn)
Articles of bedding with man-made stuffed fibre (ZAR39bn)

Germany (HS10)
Fitted kitchens (ZAR19bn)
Non-wooden seat parts (ZAR17bn)
Parts of metal furniture (ZAR7bn)
Wooden furniture for bedrooms (ZAR6bn)

Italy (HS10)
Upholstered seats with wooden frames (ZAR14bn)
Non-metal and wood parts of furniture (ZAR10bn)
Wooden parts of furniture (ZAR9bn)
Fitted kitchen units(ZAR7bn)

The United States was the leading global destination market for furniture products in 2012, valued at ZAR310bn,
followed by Germany and France valued at ZAR105bn and ZAR64bn respectively. Other top source markets were
the United Kingdom (ZAR59bn) and Japan (ZAR55bn). South Africa is ranked 34th, furniture importer worth
ZAR5.5bn.
TOP 10 IMPORTING MARKETS FOR FURNITURE, 2012

RANK
DESTINATION
MARKETS
VALUE
2012
(ZARbn)
% GROWTH
2011-2012
United States
310
24.7%
Germany
105
4.7%
France
64
7.8%
United Kingdom
59
13.4%
Japan
55
25.9%
Canada
53
23.5%
Netherlands
28
4.1%
Switzerland
27
9.2%
Australia
24
18.7%
10
Belgium
24
3.9%
34
South Africa
5.5
16%
1 184
18.1%
TOTAL
The top 5 imported products from each of the top 3 import markets are listed below:
United States (HS10)
Seat parts used for motor vehicles (ZAR43bn)
Household seats that are upholstered with wooden frames (20bn)
Wooden bedroom furniture (ZAR19bn)
Household chairs upholstered and wooden framed chairs (ZAR15bn)
Germany (HS10)
Non wooden seat parts (ZAR37bn)
Household seats that are upholstered with wooden frames (ZAR14bn)
Wooden furniture for dining room and living room (ZAR10bn)

France (HS10)
Upholstered seats with wooden frames (ZAR9bn)
Non- wood parts of seats (ZAR8bn)
Wooden furniture for dining room and living room (ZAR5bn)

Parts of seats was the largest globally imported furniture product in 2012, valued at ZAR215.3bn. Wooden furniture
is the second largest furniture product with trade valued at ZAR190.2bn, other products include upholstered seats
with wooden frames and metal furniture valued at ZAR115.1bn and ZAR104.9bn respectively. High growth in value
from 2011 to 2012 was seen in upholstered seats with metal frames (35.1%) as well as in other metal furniture
(24.4%).
TOP 10 GLOBALLY TRADED FURNITURE PRODUCTS, 2012
RANK
PRODUCT
VALUE
2012
(ZARbn)
%
GROWTH
2011-2012
Parts of seats other than those used for surgery, elevation, swivelling or reclining
215.3
19.6%
Furniture, wooden, nes
190.2
14.2%
Seats with wooden frames,upholstered nes
115.1
19.6%
Furniture, metal, nes
104.9
24.4%
Furniture parts nes
93.1
14.4%
Bedroom furniture, wooden, nes
77.7
19.3%
Articles of bedding/furnishing, nes, stuffed or internally fitted
69.0
15.8%
43.0
13.3%
37.9
35.1%
36.2
14.0%
1183.8
18.1%
8
9
10
Seats with metal frames, nes, other than those used for surgery, elevation, swivelling
or reclining
Seats w metal frames,upholsterd nes,oth than those used for surgery, elevation,
swivelling or reclining
Kitchen furniture, wooden, nes
TOTAL TRADE
10
2.2
South African Furniture Trade
South African exports of furniture has been volatile over the past decade. Imports rose sharply from 2012 to 2013,
increasing by 16%. Exports declined from 2011 to 2012, increasing the negative trade balance experienced by
South Africa. South Africa has not always been a net importer of furniture, for example from 2004-2007 South
Africa was a net exporter as well as in 2009 and 2010. The change in South Africas trade position is due to an
increase in imports from emerging markets such as China, as their competitive advantage in this industry is
increasing.
SOUTH AFRICAN FURNITURE TRADE, 2004-2013

6
5
Value (ZARbn)
4
3
2
1
0
-1
-2
-3
Import (ZARbn)
2004
1,53
2005
2,30
2006
3,04
2007
3,58
2008
4,06
2009
3,15
2010
3,81
Exports (ZARbn)
4,08
3,50
3,24
Trade balance (ZARbn)
2,54
1,20
0,20
2011
4,06
2012
4,80
2013
5,58
3,73
4,04
3,27
3,96
3,27
2,83
4,26
0,15
-0,02
0,12
0,15
-0,79
-1,96
-1,32
Germany was the leading destination market for furniture from South Africa in 2013, with a value of ZAR1.15bn,
the largest export to Germany is parts of seats other than medical and dental furniture. This is also the greatest
imported product from Germany to South Africa. Germany is one of the worlds largest manufacturers and global
exporters of furniture and South Africa also imports from Germany (ZAR489m). Namibia and Botswana are South
Africas second and third largest destination markets valued at ZAR557m and ZAR427m respectively. Seven out
of the top ten destination markets for furniture products are other African countries, with three other European
markets.
China was the leading source market for furniture to South Africa in 2013, valued at ZAR2.88bn, making up 52%
of all South African imports. China is followed by Germany and Thailand valued at ZAR489m and ZAR321m. Five
of the top 10 source markets are Asian markets. The top 5 imported products from China are wooden furniture
(ZAR442m); household chairs upholstered and wooden framed chairs (ZAR397m); metal furniture (ZAR281m);
articles of bedding stuffed or internally fitted (ZAR245m) and parts of seats other than those used for surgery,
elevation, swivelling or reclining (ZAR232m).
11
SOUTH AFRICAS TOP 10 IMPORT MARKETS OF

FURNITURE PRODUCTS, 2013
VALUE
%
RANK
PRODUCT
2013
GROWTH,
(ZARm) 2012-2013
SOUTH AFRICA'S TOP 10 EXPORT MARKETS OF

FURNITURE PRODUCTS, 2013
VALUE
%
RANK
PRODUCT
2013
GROWTH,
(ZARm)
2012-2013
1
Germany
1 151
-14.1%
China
2 883
11.7%
2
3
Namibia
557
Botswana
427
Germany
489
27.0%
Thailand
321
43.8%
Swaziland
223
Italy
212
35.5%
Lesotho
197
Malaysia
189
-2.7%
Zambia
192
1.2%
Poland
170
15.7%
7
8
Spain
170
39.7%
Indonesia
126
-0.9%
Mozambique
166
23.1%
United Kingdom
103
94.1%
Bulgaria
155
-10.6%
United States of America
96
13.3%
10
Zimbabwe
136
7.2%
10
India
94
21.8%
4 259
50.3%
5 578
16.3%
TOTAL EXPORTS
TOTAL IMPORTS
Source: Trademap, 2014
Parts of seats were the leading furniture export from South Africa, valued at ZAR1.739bn, followed by wooden
furniture (ZAR426m) and other seats (ZAR274.5m). Three of the top 10 exports are seats or parts of seats. Mattrass
supports showed strong growth in exports of 659.5% in 2013.
The leading furniture import into South Africa was parts of seats valued at ZAR1.536bn, followed by wooden
furniture (ZAR797.8m) and seats with wooden frames (ZAR475.6m). There has been high growth in the import of
articles of bedding in 2013 with 53% growth, other furniture parts have also grown by 52.4% in 2013.
SOUTH AFRICA'S TOP 10 EXPORTS OF FURNITURE PRODUCTS,
2013
VALUE
%
RANK
PRODUCT
2013
GROWTH
(ZARm)
2012-2013
Parts of seats other than those used
1
for surgery, elevation, swivelling or
1 739.7
-4.6%
reclining
2
3
4

Seats nes, other than those used for
surgery, elevation, swivelling or
reclining
Articles of bedding/furnishing, nes,
stuffed or internally fitted
SOUTH AFRICA'S TOP 10 IMPORTS OF FURNITURE PRODUCTS, 12

2013
VALUE
%
RANK
PRODUCT
2013
GROWTH
(ZARm)
2012-2013
Parts of seats other than those used
1
for surgery, elevation, swivelling or
1 536.6
24.8%
reclining
426.0
172.6%
797.8
0.6%
274.5
54.7%
Seats with wooden frames,

upholstered nes
475.6
8.5%
222.6
272.0%
421.8
6.8%
204.8
61.4%
Articles of bedding/furnishing, nes,

stuffed or internally fitted
413.2
53.2%
Mattress supports
202.7
659.5%
299.6
3.9%
235.7
19.3%
208.8
-5.6%
175.4
45.5%
175.2
52.4%
5 578.1
16.3%
194.2
310.4%

upholstered nes
164.0
98.8%
Office furniture, wooden, nes
157.6
134.0%
10
Mattresses fitted w
springs/stuffed/internally fitted w/any
material
119.5
422.5%
10
4 258.9
50.3%
TOTAL EXPORTS
Seats with metal frames, nes, other

than those used for surgery,
elevation, swivelling or reclining
Seats nes, other than those used for
surgery, elevation, swivelling or
reclining
Swivel seats & variable height
adjustment other than those used for
surgery and veterinary
Furniture parts nes
TOTAL IMPORTS
Medium-term export and import growth can be seen in the figures below. The top growing export product from
2009 to 2013 was mattresses with springs (60.4%) followed by stuffed articles of bedding or furnishings (51.2%).
High medium term growth of above 50% can mainly be seen in bedroom furniture, specifically related to bedding.
SOUTH AFRICAN MEDIUM-TERM EXPORT GROWTH, 2009-2013

Parts of seats other than those of heading No 94.02
-7,6%
Seats nes, other than those of heading No 94.02
7,7%
19,2%
28,0%
31,1%
34,2%
34,3%
51,2%
Mattresses fittd w springs/stuffd/internally fittd w/any material
60,4%
-20% -10%
0%
10%
20%
30%
40%
50%
60%
70%

*seats with heading number 94.02 are those used in surgery, dental practice or veterinary (for example, operating tables,
examination tables, hospital beds with mechanical fittings, dentists' chairs); barbers' chairs and similar chairs, having rotating as
well as both reclining and elevating movements; parts of the foregoing articles
The top growing import product from 2009 to 2013 was swivel seats (46.8%) followed by furniture parts (27.8%)
and upholstered seats with wooden frames (27.4%). Most of the growth in imports above 20% was found in seating.
13
SOUTH AFRICAN MEDIUM-TERM IMPORT GROWTH, 2009-2013
Parts of seats other than those of heading No 94.02
10,8%
13,8%
14,1%
14,4%
Seats nes, other than those of heading No 94.02
14,5%
14,7%
Seats with metal frames, nes, other than those of heading No

94.02
26,4%
27,4%
Furniture parts nes
27,8%
Swivel seats&variable height adjustment oth than those of

headg 94.02
46,8%
0%
5%
10% 15% 20% 25% 30% 35% 40% 45% 50%
2.3
Western Cape Furniture Trade
The Western Capes trade of furniture products has been dominated by imports over the past decade, with exports
rising to ZAR282.34m in 2012. Western Capes imports have increased by 16.86% from 2011 to 2012 to reach
ZAR1.02bn in 2012. The import of furniture into the Western Cape is likely to increase into the future at around 6%
per annum.
WESTERN CAPE TRADE IN FURNITURE, 2004-2012

1200
1000
800
600
Value (ZARm)
400
200
0
-200
-400
-600
-800
-1000
Exports (ZARm)
2004
186,17
2005
185,71
2006
217,35
2007
305,16
2008
240,34
2009
181,49
Imports (ZARm)
208,71
361,35
579,03
707,04
817,19
743,94
Trade Balance (ZARm)
-22,55
-175,64
-361,68
-401,88
-576,85
-562,46
2010
227,33
2011
270,32
2012
282,34
765,06
874,07
1021,46
-537,73
-603,75
-739,12
Germany was the leading destination market for furniture from the Western Cape in 2012, with a value of ZAR70m.
Angola and the United Kingdom ranked second and third valued at ZAR38m and ZAR33m respectively. Six of the
top 10 destination markets are fellow African markets.
14
China was the leading source market for furniture imports into the Western Cape in 2012, with a value of ZAR672m.
Indonesia and Pakistan ranked second and third valued at ZAR45m and ZAR43m respectively. Six of the top 10
source countries are Asian markets.
TOP 10 DESTINATION COUNTRIES FOR WESTERN CAPES
FURNITURE EXPORTS, 2012
VALUE
%
RANK
COUNTRY
2012
GROWTH
(ZARm)
2011-2012
TOP 10 SOURCE COUNTRIES OF WESTERN CAPES

FURNITURE IMPORTS, 2012
VALUE
%
RANK
COUNTRY
2012
GROWTH
(ZARm)
2011-2012
Germany
70.14
6.1
China
672.28
23
Angola
38.48
35.5
Indonesia
45.00
36
United Kingdom
33.07
27.9
Pakistan
43.49
80
Mozambique
22.28
13.4
Malaysia
41.84
22
Zambia
14.46
7.5
Italy
36.62
17
Zimbabwe
13.84
10.2
Germany
28.53
United States
12.86
11.0
India
27.71
29
Mauritius
11.00
114.9
Vietnam
22.88
25
United Republic of Tanzania
9.02
28.1
United States
18.02
19
10
Ghana
8.68
23.2
10
Turkey
13.58
22
TOTAL EXPORTS
282.34
6.6
TOTAL IMPORTS
1021.46
18
Parts of seats export product from the Western Cape, valued at ZAR107m, followed by wooden furniture (ZAR38m)
and metal furniture (ZAR30m). Total exports from the Western Cape grew by 4.4% in 2012. In 2012, plastic furniture
and wooden office furniture showed strong growth of 133.1% and 89% respectively.
The leading furniture import product into the Western Cape was wooden furniture valued at ZAR175m, followed by
upholstered wooden seats (ZAR126m). The highest import growth was found in seats with metal frames and
furniture parts, growing at 58.8% and 42.8% respectively.
WESTERN CAPE'S TOP 10 EXPORTS OF FURNITURE PRODUCTS,
2012
VALUE
%
RANK
PRODUCT
2012
GROWTH
(ZARm)
2011-2012
Parts of seats other than those used for
1
107
-18.1%
surgery, elevation, swivelling or reclining
WESTERN CAPE'S TOP 10 IMPORTS OF FURNITURE PRODUCTS,

2012
VALUE
%
RANK
PRODUCT
2012
GROWTH
(ZARm)
2011-2012
1
175.42
0.2%
33.6%

upholstered nes
126.79
38.6%
38
30
5.0%
Articles of bedding nes
104.34
20.0%
Furniture, plastic, nes
21
133.1%
101.12
-2.8%
Furniture parts nes
13
-40.4%
Seats nes
88.52
37.6%
Seats with wooden frames, upholstered

nes
12
29.1%
85.40
4.7%
Articles of bedding nes
12
61.4%
Seats with metal frames, nes
56.75
28.2%
34.30
58.8%
34.05
42.8%
10
Other
TOTAL EXPORTS
10
31.4%
Seats with metal frames,

upholstered nes
89.0%
Furniture parts nes
59.3%
10
Kitchen furniture, wooden, nes
282
4.4%
TOTAL IMPORTS
33.75
4.9%
1 021.46
16.9%
15
2.4. Trade Trends in Furniture sub-sectors in the Western Cape

Parts of seats, wooden furniture and metal furniture are the top three furniture sub-sectors that are exported from
the Western Cape. The Western Cape is a net exporter of parts of seats and a net importer of wooden and metal
furniture.
The graph below shows trade trends in the Western Cape for parts of seats. Exports for parts of seats have
fluctuated vastly, with a moving average trend-line experiencing two peaks and two dips in the 8 year period.
Exports of these products have experienced a CAGR of 7% over the past 8 years, growing from around ZAR60m
in 2004 to ZAR106m in 2012. Import values have had a larger CAGR of 22% over the 8 year period, however their
growth has been from a low base of ZAR3.59m in 2004 to around ZAR18m in 2012. There has not been the same
degree of volatility in the imports as there has been in the exports.
WESTERN CAPE TRADE OF PARTS OF SEATS, 2004-2012

250
Value (ZARm)
200
150
100
50
16
Exports (ZARm)
2004
59,63
2005
59,21
2006
126,05
2007
200,68
2008
115,44
2009
65,70
2010
103,98
2011
130,52
2012
106,88
Imports(ZARm)
3,56
12,80
21,76
30,90
31,44
24,38
26,53
13,29
17,86
The graph below shows that the import value of metal furniture in the Western Cape increased significantly from
2004 (ZAR19m) to 2012 (ZAR101m), with a compound annual growth rate (CAGR) of around 24%. In 2008, around
the financial crisis, there was a decrease in imports until 2010, with a large increase in 2011 of around ZAR40m to
maintain the clear upward trend seen in the moving average trendline. These increases are due to the increasing
competitive advantage of emerging markets such as China. In 2004, 61% of all metal furniture was imported from
China and by 2012 this had increased to 72%.
The Western Capes exports of metal furniture has a CAGR of only 1.6% over the 8 year period, increasing by only
ZAR3.5m. In 2004 and 2005 the Western Cape was a net exporter of metal furniture, however, into 2005 there was
a stark divergence where exports decreased and imports increased by around ZAR10m each. Thereafter exports
have not recovered.
WESTERN CAPE TRADE OF METAL FURNITURE, 2004-2012

120
Value (ZARm)
100
80
60
40
20
0
Exports (ZARm)
2004
26,43
2005
34,99
2006
22,51
2007
18,49
2008
16,86
2009
17,54
2010
19,98
2011
28,56
2012
30,00
Imports(ZARm)
18,58
27,54
41,33
68,09
88,10
67,75
64,77
104,05
101,12
The graph below shows that the import value of wooden furniture in the Western Cape. This does not include
bedroom, office or kitchen furniture. All categories of wooden furniture are imported mainly from Asia, apart from
kitchen furniture which is imported mainly from Europe.
This category increased significantly from 2004 (ZAR49m) to 2012 (ZAR178m), with a compound annual growth
rate (CAGR) of around 15%. In 2010, after the financial crisis, there was a decrease in imports which quickly
recovered to ZAR175m in 2011. These increases are due to the increasing competitive advantage of emerging
markets such as China. In 2004, 27% of all wooden furniture was imported from China and by 2012 this had
increased to 46%. The Western Capes exports of wooden furniture has a CAGR of only 3.5% over the 9 year
period, increasing by only ZAR314m.
WESTERN CAPE TRADE OF WOODEN FURNITURE, 204-2013
200
180
Value (ZARm)
160
140
120
100
80
60
40
20
0
2004
2005
Exports (ZARm)
36,77
28,48
23,11
24,39
27,29
23,49
26,32
28,23
37,71
50,51
Imports (ZARm)
49,36
89,19
125,67
149,99
174,90
172,98
130,72
175,07
175,42
177,67
2006
2007
2008
2009
2010
2011
2012
2013
17
3.
FDI
3.1
Global FDI into the Furniture Sector
The classification of furniture products can be found in the consumer products industry (72% of global projects),
the wood products industry (15% of projects) and the textile industry (13%). Between January 2003 and December
2013, a total of 1,537 FDI projects were recorded into the furniture sector, equating to a 0.9% share of global FDI.
These projects represent a total capital investment of ZAR365.94bn which is an average investment of
ZAR238.06m per project. During the period, a total of 308,839 jobs were created.
50
200
45
180
40
160
35
140
30
120
25
100
20
80
15
60
10
40
20
0
CAPEX (ZARbn)
Projects
2003
15,7
2004
19,6
2005
21,0
2006
26,3
2007
41,9
2008
45,9
2009
44,7
2010
32,4
2011
32,1
2012
44,2
2013
42,0
74
83
94
119
158
160
169
165
153
175
187
Projects
Value (ZARbn)
GLOBAL FDI INTO FURNITURE, JAN 2003-DEC 2013
Source: FDI Intelligence, 2014
18
The United States was the leading source market in terms of investment projects in the global furniture industry
with 373 investment projects, accounting for 24% of projects and 18% of capex. Sweden and Germany ranked
second and third with 173 projects (11%) and 112 projects (7%). South Africa was the 21st source market for
furniture FDI, with 12 projects in the period and ZAR1.89bn. South Africa is a net investor in the furniture sector.
SOURCE MARKETS FOR FDI IN THE FURNITURE SECTOR, JAN 2003-DEC 2013
RANK
SOURCE MARKETS
%
PROJECTS
PROJECTS
CAPEX
(ZARm)
% CAPEX
JOBS
United States
373
24%
67172.7
18.3
66 962
Sweden
173
11%
80097.5
21.8
51 014
Germany
112
7%
20381.7
5.5
15 242
Italy
99
6%
22276.3
6.1
18 406
Spain
97
6%
29007.3
7.9
20 493
Austria
72
5%
16249.5
4.4
11 531
Denmark
71
5%
24143.6
6.6
17 355
France
68
4%
19928.7
5.4
11 184
United Kingdom
44
3%
5887.1
1.6
5 713
10
China
40
3%
4036.3
1.1
3 823
21
South Africa
12
1%
1896.2
1 483
1545
100%
367420.9
100%
310197
TOTAL
The United States was also the leading destination market in terms of investment projects, for furniture with 282
investment projects, accounting for 18%. China and Germany rank second and third with 122 (8%) projects and
94 (6%) projects respectively. South Africa ranks 49th in terms of FDI projects with 5 projects in the period, with a
capex value of ZAR649.7m.
DESTINATION MARKETS FOR FDI IN THE FURNITURE SECTOR, DEC 2003-DEC 2013
RANK
DESTINATION MARKETS
PROJECTS
% PROJECTS
CAPEX
(ZARm)
% CAPEX
JOBS
United States
282
18%
51 943.3
14.1
43 270
China
122
8%
35 225.9
9.6
33 262
Germany
94
6%
22 495.3
6.1
10 293
United Kingdom
82
5%
8 441.3
2.3
7 778
India
62
4%
23 774.9
6.5
26 249
France
58
4%
23 225.2
6.3
11 277
Poland
56
4%
17 827.5
4.9
13 449
Spain
45
3%
14 816.1
4.0
9 948
Russia
44
3%
14 919.5
4.1
30 549
10
UAE
41
3%
5 835.0
1.6
6 096
49
South Africa
0%
649.7
4 582
1545
100%
367420.87
100%
310197
TOTAL
IKEA was the leading global company investing in the furniture sector with 104 projects, followed by Jysk and Zara
Home with 47 projects and 34 projects respectively. The largest investment made by IKEA was valued at
ZAR6.07bn. This investment was to set up 25 retail stores through a wholly owned subsidiary across India. The
second stage retail investment, which is still to come is estimated to be around ZAR9bn.
TOP 10 INVESTING COMPANIES IN THE FURNITURE SECTOR, JAN 2003-DEC 2013
RANK
INVESTING COMPANY
NUMBER OF
PROJECTS
CAPEX (ZARm)
IKEA
104
63 617.4
Jysk
47
14 788.9
Zara Home
34
13 668.8
Swedwood
22
8 647.2
Ethan Allen Interiors
19
4 714.1
Kinnarps
15
770.4
Kika/Leiner Group
15
2 666.6
Euromarket Designs (Crate & Barrel)
14
3 584.2
Conforama
14
7 603.1
10
Porcelanosa
14
3 579.2
1 545
367 420.9
TOTAL
19
3.2
FDI into the South African Furniture Sector
Between 2003 and 2013, a total of 5 FDI projects were recorded, into the South African furniture sector. These
projects represent a total capital investment of ZAR649.71m which is an average investment of ZAR129.78m per
project. During the period, a total of 4582 jobs were created. Each of the companies below invested in one project
each.
Poltrona Frau invested ZAR300m in March 2012 in Cape Town in a retail project. This Italy-based furniture
manufacturer has opened a store in Cape Town, in the design district of the city, and has opened in collaboration
with architect George Giorgio. This was also the most recent investment into the furniture industry in South Africa.
SOURCE MARKETS FOR FDI IN THE SOUTH AFRICAN FURNITURE SECTOR, JAN 2003-JAN 2014
INVESTING
COMPANY
DATE
SOURCE
COUNTRY
DESTINATION
STATE
INDUSTRY
SECTOR
Mar 2012
Poltrona Frau
Italy
Western Cape
Consumer
Products
Nov 2009
J&C Joel Limited
UK
Gauteng
Textiles
May 2009
Nam Viet Joint

Stock Company
(NAVIFICO)
Vietnam
KwaZulu-Natal
Wood
Products
Jul 2006
Lube
Italy
Not Specified
Consumer
Products
Jan 2003
Zorlu Textile
Turkey
Not Specified
Textiles
SUB-SECTOR
Furniture, homeware &
related products
(Consumer Products)
related products
(Textiles)
related products (Wood
Products)
related products
(Consumer Products)
related products
(Textiles)
TOTAL
INDUSTRY
ACTIVITY
Retail
Sales,
Marketing &
Support
Manufacturing
Sales,
Marketing &
Support
Manufacturing
VALUE
(ZARm)
300.06
194
14.05
18
101.92
4000
29.76
20
204.17
350
649.96
3.3
JOBS
South African FDI into the Global Furniture Sector
Between 2003 and 2013, a total of 12 FDI projects were recorded from South Africa into the global furniture sector.
These projects represent a total capital investment of ZAR1.90bn which is an average investment of ZAR157.88m
per project. During the period, a total of 1 483 jobs were created. All of the investments from South Africa were
made from the Gauteng province.
The most recent South African investment was by Abra, a Subsidiary of Steinhoff International Holdings. Abra
invested ZAR341m in the city of Lomza in Poland in November 2012 in a furniture retail project.
458220
SOURCE MARKETS FOR FDI IN THE SOUTH AFRICAN FURNITURE SECTOR, JAN 2003-JAN 2014
INVESTING
COMPANY
DATE
DESTINATION
COUNTRY
Nov 2012
Abra
Poland
May 2009
Freedom Furniture
New Zealand
May 2009
Nov 2008
Aug 2007
Jan 2006
Nov 2004
Nov 2004
Holdings
Protect-A-Bed North
America, LLC
Holdings
Steinhoff UK
Upholstery
Holdings
Holdings
UK
United States
Hungary
UK
Russia
Russia
Oct 2003
FurnCity
Botswana
Oct 2003
FurnCity
Zambia
INDUSTRY
SECTOR
Consumer
Products
Consumer
Products
Consumer
Products
Consumer
Products
Wood
Products
Wood
Products
Wood
Products
Wood
Products
Wood
Products
Wood
Products
SUB-SECTOR
Furniture, homeware & related
products (Consumer Products)
products (Wood Products)
INDUSTRY
ACTIVITY
VALUE
(ZARm)
JOBS
Retail
341.39
216
Retail
240.54
177
Retail
142.17
138
Logistics, Distribution
& Transportation
316.59
231
Manufacturing
13.47
Manufacturing
46.29
135
Manufacturing
214.92
85
70.26
11
Retail
128.95
148
Retail
128.95
148
1896.488
1483
Sales, Marketing &

Support
TOTAL
For more information on this publication and other Wesgro publications please contact research@wesgro.co.za. For more
publications like this visit the Wesgro publications portal on our website at http://wesgro.co.za/publications
21

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Furniture

Source: cbi, 2014

Cane, osier, bamboo, etc.

GLOBAL COTTON PRICES, 2008-2018

Percentage change (%)

Cotton price, ave, % y-o-y

Source: BMI, 2014

GLOBAL IRON PRICES, 2008-2018

Percentage change (%)

Source: BMI, 2014

GLOBAL ALUMINIUM PRICES, 2008-2018

Aluminium price, three-month, ave, %

Percentage change (%)

GLOBAL STEEL PRICES, 2008-2018

2013 2014f 2015f 2016f 2017f 2018

Percentage change (%)

Steel Price, Global Carbon Steel

Source: BMI, 2014

The Global Furniture Sector

Source: Forbes, 2014

South African Furniture Sector

-3,24 -3,35 -3,46 -3,59 -3,72 5,36

FURNITURE AND FURNISHINGS SPENDING IN SOUTH AFRICA, 2006-2018

Source: BMI, 2014

1.2.1 South African Furniture Associations

Western Cape Furniture Sector

FURNITURE MANUFACTURING IN THE WESTERN CAPE: CONTRIBUTION TO GDP, 2003-2011

Source: Quantec, 2014

1.3.1 Western Cape Furniture Associations

Provide support for collective bargaining and

Western Cape Furniture

To develop and grow the furniture industry in a

Furniture Bargaining Council

Representation, mediation and administration

1.3.2 Western Cape Furniture Sector Value Chain

Source: BFA, 2014

RETAIL OUTLETS [SIC 6233]

Global Trade in the Furniture Sector

Value (ZAR bn)

Source: TradeMap, 2014

United States of America

Metal furniture (ZAR76bn)

Wooden furniture (ZAR71bn)

Other upholstered and metal framed seats (50bn)

Furniture parts (ZAR47bn)

Articles of bedding with man-made stuffed fibre (ZAR39bn)

Fitted kitchens (ZAR19bn)

Non-wooden seat parts (ZAR17bn)

Metal furniture (ZAR13bn)

Parts of metal furniture (ZAR7bn)

Wooden furniture for bedrooms (ZAR6bn)

Wooden furniture (ZAR16bn)

Upholstered seats with wooden frames (ZAR14bn)

Non-metal and wood parts of furniture (ZAR10bn)

Wooden parts of furniture (ZAR9bn)

Fitted kitchen units(ZAR7bn)

TOP 10 IMPORTING MARKETS FOR FURNITURE, 2012

Wooden furniture (ZAR44bn)

Seat parts used for motor vehicles (ZAR43bn)

Household seats that are upholstered with wooden frames (20bn)

Wooden bedroom furniture (ZAR19bn)

Household chairs upholstered and wooden framed chairs (ZAR15bn)

Non wooden seat parts (ZAR37bn)