The insolvency of furniture retailer Kika/Leiner in January of this year has left deep scars on the Austrian furniture industry. The effects of this crisis are now also being clearly felt by furniture manufacturers. In particular, the loss of such a large customer as Kika/Leiner is causing unrest and uncertainty among producers, who are having to face new challenges.
Austrian furniture manufacturers are now faced with the task of acquiring new customers and expanding their sales opportunities. The crisis is hitting the industry hard, as many manufacturers who relied heavily on cooperation with Kika/Leiner are now having to completely rethink their sales strategies. The pressure to innovate and open up new markets has never been greater.
A concrete example of the current challenges is the kitchen manufacturer ewe Küchen. The Styrian company Mayr-Melnhof-Saurau (FMMS) has taken back the formerly foreign-owned kitchen manufacturer in order to bring it back under its own control. However, the weak market does not make it easy. Competition is strong, and the loss of a major customer such as Kika/Leiner is forcing manufacturers to rethink their strategy in terms of both market technology and operations.
The recovery from the crisis is slow. Manufacturers are feeling the negative effects with a certain delay, but must not be idle. The focus is now on retaining existing customers and identifying new sales markets, both domestically and internationally. This requires not only creativity, but also careful planning and implementation of sustainable business strategies.
The need to diversify markets and defend sales space is becoming ever more pressing in the industry. Woodworking and textile finishing products are also under pressure as manufacturers have to re-establish or compensate for the accès to traditional customers closed by Kika/Leiner's insolvency.
Long-term strategies are less an option than a necessity. Companies like FMMS are in the process of developing and implementing these strategies in order to not only survive the current crisis, but also to meet future challenges.
The Austrian furniture industry is in a state of upheaval, forced to adapt to the difficult market conditions. This is leading to increased uncertainty and planning insecurity for companies. However, it also shows that every crisis holds an opportunity: the need to adapt can also be seen as an impetus for innovation and renewal.
Market conditions in Austria are tense. Manufacturing companies are desperately looking for new solutions and innovation strategies to counteract the ailing furniture market. Cooperation, digitalization and the development of new sales channels are key issues that will shape the future of the Austrian furniture industry.
