Uruguay alone had a 63% growth in market share between January and August
In 2012, Latin America consolidated its position as the main export destination for the furniture member companies of the Furniture Industry Association of Bento Gonçalves (Sindmóveis). The economic growth of the countries in the region, increasing incomes, strengthening the construction business and greater trade openness in these emerging markets, has resulted in new business opportunities for the furniture center.
The export performance during the year, always higher than the state as a whole, confirms that the furniture industry in Bento Gonçalves has not only adapted to the new reality of the Latin American market but also understood the profile of these consumers. From January to August, exports of the furniture center grew by 9.9% compared to the same period in 2011. The result is higher than that of Rio Grande do Sul, which grew by 4.5%, and Brazil, which had a decrease of 6% from January to August 2012.
The five major importers of furniture from the companies located in Bento Gonçalves in2012 are from Latin America. Colombia leads the ranking accounting for 15.34% of these exports, followed by Uruguay (12.78%), Chile (11.83%), Peru (9.49%) and Argentina (6.39%). Uruguay showed the best growth from January to August totaling a 63% increase over the same period last year.
For the director of international affairs of Movelsul Brasil, César Boeira Nepomuceno, due to the commercial difficulties with Argentina, several export companies started to focus their business on the Uruguayan market, because of its geographical proximity. “The advantage of selling in Latin America is that, for the vast majority, few adaptations are required for products consumed in the domestic market,” he says.
MDP furniture for bedrooms represent the largest share of sales in Latin America, while in Europe and the USA – an old destination of the furniture made in Bento Gonçalves – they had a preference for solid wood furniture with traditional style and colors. Sindmóveis advisor, Rogério Frâncio, explains that the industry had to undergo adjustments to be accepted by the new markets, where there is an increased demand for furniture with bright patterns, like mahogany and tobacco. Some adjustments were necessary regarding the measurements since buildings in Europe and the USA are larger. “Payment conditions is another important issue, as Latin America has not got a good credit rating which is very important to boost sales,” he emphasizes.
Consumption profile in Latin America
Country
Type of furniture imported from Bento Gonçalves
Argentina
Wooden furniture for bedrooms (beds, cabinets and bookshelves), other wooden furniture such as bookcases, cabinets and tables;
Bolivia
Wooden furniture for bedrooms (beds, cabinets and bookshelves);
Chile
Wooden furniture for bedrooms (beds, cabinets and bookshelves), other wooden furniture such as bookcases, cabinets and tables; wooden furniture for kitchens, such as tables and cabinets;
Colombia
Metal furniture (tables, bookcases and metal cabinets for kitchens);
Cuba
Wooden furniture, such as bookcases, cabinets and tables;
Ecuador
Wooden furniture for bedrooms (beds, cabinets and bookshelves), other wooden furniture such as bookcases, cabinets and tables;
Panama
Wooden furniture, such as bookcases, cabinets and tables;
Paraguay
Wooden furniture for bedrooms (beds, cabinets and bookshelves); wooden furniture for offices, such as tables, workstations and cabinets;
Peru
Wooden furniture for bedrooms (beds, cabinets and bookshelves); other wooden furniture such as bookcases, cabinets and tables;
Uruguay
Wooden furniture for bedrooms (beds, cabinets and bookshelves); wooden furniture for kitchens, such as tables and cabinets; other metal furniture, such as tables, bookcases and cabinets;
Venezuela
Wooden furniture for bedrooms (beds, cabinets and bookshelves).
