Last year, the German furniture industry was confronted with a considerable decline in sales, recording a significant slump of 7.4%. The turnover achieved amounted to 16.4 billion euros, which put pressure on the industry both domestically and abroad. The decline in Germany amounted to 6.8%, with revenue reaching just under 11 billion euros. This is also reflected in foreign sales, which fell by 8.6% to 5.4 billion euros.
The export ratio of the German furniture industry is particularly noteworthy, at around 33%. Despite international recognition and demand, sales on global markets remain challenging. There are many reasons for this decline. A gloomy consumer climate is weighing heavily on the industry, combined with the negative effects of the decline in new residential construction, which is putting additional pressure on the market environment.
Jan Kurth, Managing Director of the German Furniture Industry Association (VDM/VHK), makes no secret of the difficulties the industry is facing. The decline in new residential construction is a major factor acting as a brake on the development of the furniture industry. According to Kurth, the slowdown in construction activity and the lack of investment in residential construction are serious obstacles that need to be overcome.
In response to this, the furniture industry, together with other industry players, has launched an initiative to demand greater impetus for housing construction from the future German government. The aim of this alliance is to reduce construction barriers and support a policy of sustainable growth that would benefit the furniture industry. It is hoped that political measures will be taken to revive the stagnating market and support the associated industries.
In addition to analyzing the economic situation, the realignment of the Cologne Furniture Fair was discussed at a press event in Cologne. This renowned trade fair plays a central role in the international positioning of the German furniture industry. Discussions revolved around improving the appeal of the trade fair for international retailers and consumers as well as the digital transformation, which requires adjustments to trade fair operations.
The topics discussed also included digital presentation options and innovative approaches to extend the reach of the trade fair and attract new audiences. These measures are aimed at increasing the visibility of the German furniture industry and generating new business opportunities.
The challenges facing the German furniture industry are undoubtedly complex and multifaceted. However, adjustments to market changes and strategic alliances with political decision-makers could help to mitigate current risks and open up new growth opportunities in the long term. The coming years will show how effective these measures are and what impact they will have on the industry's reputation and financial situation.
