During the Meble Polska Furniture Trade Fair, several entrepreneurs said it became clear how difficult it is for European furniture makers to compete with China. Jeroen van Hedel, founder of MaximaVida.com, shared his observations in a LinkedIn post, stating that the excellent price-quality ratio of Chinese manufacturers seems unbeatable for the time being. His post led to a lively discussion among industry professionals, discussing the challenges and opportunities for the European furniture industry.
According to one entrepreneur, the Chinese industry is working smarter and more efficiently, partly due to advanced automation.
Why is China winning
Erik van der Horst (salesman J&R Industries) sees that Chinese industry is working smarter and more efficiently, partly due to advanced automation. 'It used to be said that the difference was in labour costs, but today everything is automated. China is investing a lot in smart production methods and rapid development.'
This is confirmed by Jeroen van Hedel (CEO of MaximaVida), who says that European suppliers are missing opportunities: 'For us, the terms '"flatpack: and "mail order package" are crucial. With 80% of European suppliers, we are told that this is not possible, while China invented this concept. As a result, they are missing out on sales from the online market.'
Meble Polska was held in Poznań from 25 to 28 February.
Alternatives
Not everyone is convinced that manufacturing in China is the only option. Instead, Ewout Kuiper (commercial director at Profurn) sees innovative developments in Europe, especially in the field of seating. Arend Valkema (manager BOHEMIA metal parts) also points to the strong furniture industry in Poland, where even Ikea houses much of its production. In addition, Ties Coolen (Sourcing & Purchasing advisor at Coolen China) notes that more and more companies are considering production closer to home, partly due to disruptions in the supply chain such as the corona pandemic and rising transport costs. 'Turkey and Poland are increasingly being considered as alternatives to China. It may be more expensive, but depending on policy measures in Brussels, European production sites may become more attractive again.'
Future
The question remains whether reshoring - bringing production back to Europe - is realistic. According to some experts, this depends heavily on regulations and economic conditions. Jelle Lancée notes that Eastern European manufacturers can indeed compete, but that cooperation and innovation are essential. Meanwhile, Arend Valkema warns of the geopolitical consequences of reliance on China: 'You are bringing power to China and creating a new world order in which economic interests are paramount. That comes at a price.'
The discussion shows that there is no easy solution. European furniture manufacturers need to innovate and work more efficiently, while policymakers need to create a fairer playing field. Whether reshoring will actually take place on a large scale will depend on both economic and political choices in the coming years.
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