Background of project
I．Economical situation
1 European market
China’s furnishings
enterprises have a bright future in entering European market. According to European Union 2009 statistics, Europe has a population of 830 million; daily necessities are much more expensive than that of in China. In terms of price, Chinese products are competitive and have a lot to gain.
France is one of the four largest powers in Europe, the engine of European Union. Paris, the centre of Europe, has become the largest distribution centre and the hottest trading centre with free trade policies. China and France have been trading partners for a long time. In 2008 China’s exports to France reach 30, 9 billion euros. Currently, China has become the second largest furniture exporter and this trend remains, thus offering a platform for Chinese furnishings enterprises to enter the European market.
1988-2008 France’s furnishings consumption curve
2 French furnishings market
1) Key figures
SESSI statistics show that from 2003 to 2007, French furnishings industry has maintained a steady growth of 4%. In 2007 furnishings’ output hit 18, 7 billion euros, taking up 10% of the consumption value. There are 588 furnishings enterprises which have a staff of over 20, providing jobs for 75,911 people.
For furniture industry, 2008 sales report by institutions under UNIFA shows that France’s furniture sales increased by 7.4% (9.6 billion euros) in 2007.
When it comes to sales channel, young French people tend to choose IKEA, ALINEA and FLY and kitchenware manufacturer and so on. On the other hand, furnishings equipment-providers such as CONFORAMA，BUT and SESAME suffered a decline in sales. French people have a great interest in furnishing their homes and new products keep coming out to meet their demands.
2) Opportunities
Recently, economic crisis hit furnishings suppliers and dealers from Europe and France. Some of them went out of business and even the whole industry suffered greatly. However, there is still a great demand for furnishings products which is good for Chinese products to enter the European market.
Meanwhile, hit by cheap products from Asia, France’s domestic furnishings production decreased by 10% from 2003 to 2007. Foreign enterprises such as IKEA gained an upper hand with more profits. In 2007, foreign enterprises accounted for 8% in France’s furnishings industry but earned a 47% market share.
France’s export & import in recent years (red is for import and yellow for export)
We believe that Franc’s furnishings market will pick up. Analysis shows that by 2010 France’s property industry will hit the bottom. French government has recently launched loan program to give out greater house-purchasing favors. And Paris government has a restructuring plan for those old buildings. All these add power to the market which is good for France’s furnishings industry.
China is an important exporter of France. In 2007, France imported a volume of 3.47 billion euros. China’s export to France keeps growing from 11% in 2003 to 20% in 2007. Though the France’s furnishings market contracted due to the economic crisis, it’s very likely to rebound, which means more opportunities for Chinese enterprises.
France’s furniture export & import rank
Left: importer Right: exporter
Actually it is a channel connecting China and the western world. On the one hand, France’s furnishings industry will be promoted. On the other hand, medium and high end luxuries will be brought to China. In addition, Chinese enterprises can become dealers for other European products, bringing more products to China.
3 China’s furnishings industry
China’s furniture industry has maintained a fast speed for ten consecutive years, with an annual increase of 20% or more. For five years, annual export for furniture averages over 30%. In 2008 the furniture output reached 65 billion RMB. Meanwhile, China is strong in building materials production, whose export keeps growing. Since 2002, China has become the largest furniture exporter with a market share of 20%, reaching over 200 countries and regions. In 2008 China’s furniture export reached a volume of 27.583 billion dollars, mainly to developed countries in Europe and America. Exported building materials take up 70％ of its sales, covering over 100 countries and regions. China takes up 30% of the sanitary ware market and 35% of the sanitary accessories market in the world.
China’s furnishings & building materials are competitive on European market for their high-quality and low price. Suffering an economic crisis, about one-third European families have changed their consumption habit. 73% of households say they become more value-conscious. This is an opportunity for Chinese products to enter European market.
II. Political environment
Firstly, a good investment environment can be assured. China established Embassy diplomatic relationship with France as the first western country in 1964. On its 45th anniversary, Chinese President Hu Jintao and French President Sarkozy met on 2009 G20, which marks a new start for both countries.
Secondly, integration of European Union will bring more business opportunities to international market. As Lisbon Treaty is being discussed, EU will become a big family which provides a platform for Chinese enterprises. France, in the center of Europe will definitely play an increasingly important role in promoting prosperity.
Last but not least, Chinese government provides great support for domestic enterprises to go international. In 2009, the government launched a series of favorable policies to encourage exports. State Administration of Taxation plans to launch a taxation offset policy. China Ministry of Commerce also lowers the restriction on overseas investment. In addition, the examining and verification procedures are greatly shortened, providing enterprises an easy access to overseas investment and co-operation with international counterparts.
Jimei French project wins support from institutions such as China Ministry of commerce, Embassy of France in China, French Industrial Administration and local government.
I．Economical situation
1 European market
China’s furnishings
enterprises have a bright future in entering European market. According to European Union 2009 statistics, Europe has a population of 830 million; daily necessities are much more expensive than that of in China. In terms of price, Chinese products are competitive and have a lot to gain.
France is one of the four largest powers in Europe, the engine of European Union. Paris, the centre of Europe, has become the largest distribution centre and the hottest trading centre with free trade policies. China and France have been trading partners for a long time. In 2008 China’s exports to France reach 30, 9 billion euros. Currently, China has become the second largest furniture exporter and this trend remains, thus offering a platform for Chinese furnishings enterprises to enter the European market.
1988-2008 France’s furnishings consumption curve
2 French furnishings market
1) Key figures
SESSI statistics show that from 2003 to 2007, French furnishings industry has maintained a steady growth of 4%. In 2007 furnishings’ output hit 18, 7 billion euros, taking up 10% of the consumption value. There are 588 furnishings enterprises which have a staff of over 20, providing jobs for 75,911 people.
For furniture industry, 2008 sales report by institutions under UNIFA shows that France’s furniture sales increased by 7.4% (9.6 billion euros) in 2007.
When it comes to sales channel, young French people tend to choose IKEA, ALINEA and FLY and kitchenware manufacturer and so on. On the other hand, furnishings equipment-providers such as CONFORAMA，BUT and SESAME suffered a decline in sales. French people have a great interest in furnishing their homes and new products keep coming out to meet their demands.
2) Opportunities
Recently, economic crisis hit furnishings suppliers and dealers from Europe and France. Some of them went out of business and even the whole industry suffered greatly. However, there is still a great demand for furnishings products which is good for Chinese products to enter the European market.
Meanwhile, hit by cheap products from Asia, France’s domestic furnishings production decreased by 10% from 2003 to 2007. Foreign enterprises such as IKEA gained an upper hand with more profits. In 2007, foreign enterprises accounted for 8% in France’s furnishings industry but earned a 47% market share.
France’s export & import in recent years (red is for import and yellow for export)
We believe that Franc’s furnishings market will pick up. Analysis shows that by 2010 France’s property industry will hit the bottom. French government has recently launched loan program to give out greater house-purchasing favors. And Paris government has a restructuring plan for those old buildings. All these add power to the market which is good for France’s furnishings industry.
China is an important exporter of France. In 2007, France imported a volume of 3.47 billion euros. China’s export to France keeps growing from 11% in 2003 to 20% in 2007. Though the France’s furnishings market contracted due to the economic crisis, it’s very likely to rebound, which means more opportunities for Chinese enterprises.
France’s furniture export & import rank
Left: importer Right: exporter
Actually it is a channel connecting China and the western world. On the one hand, France’s furnishings industry will be promoted. On the other hand, medium and high end luxuries will be brought to China. In addition, Chinese enterprises can become dealers for other European products, bringing more products to China.
3 China’s furnishings industry
China’s furniture industry has maintained a fast speed for ten consecutive years, with an annual increase of 20% or more. For five years, annual export for furniture averages over 30%. In 2008 the furniture output reached 65 billion RMB. Meanwhile, China is strong in building materials production, whose export keeps growing. Since 2002, China has become the largest furniture exporter with a market share of 20%, reaching over 200 countries and regions. In 2008 China’s furniture export reached a volume of 27.583 billion dollars, mainly to developed countries in Europe and America. Exported building materials take up 70％ of its sales, covering over 100 countries and regions. China takes up 30% of the sanitary ware market and 35% of the sanitary accessories market in the world.
China’s furnishings & building materials are competitive on European market for their high-quality and low price. Suffering an economic crisis, about one-third European families have changed their consumption habit. 73% of households say they become more value-conscious. This is an opportunity for Chinese products to enter European market.
II. Political environment
Firstly, a good investment environment can be assured. China established Embassy diplomatic relationship with France as the first western country in 1964. On its 45th anniversary, Chinese President Hu Jintao and French President Sarkozy met on 2009 G20, which marks a new start for both countries.
Secondly, integration of European Union will bring more business opportunities to international market. As Lisbon Treaty is being discussed, EU will become a big family which provides a platform for Chinese enterprises. France, in the center of Europe will definitely play an increasingly important role in promoting prosperity.
Last but not least, Chinese government provides great support for domestic enterprises to go international. In 2009, the government launched a series of favorable policies to encourage exports. State Administration of Taxation plans to launch a taxation offset policy. China Ministry of Commerce also lowers the restriction on overseas investment. In addition, the examining and verification procedures are greatly shortened, providing enterprises an easy access to overseas investment and co-operation with international counterparts.
Jimei French project wins support from institutions such as China Ministry of commerce, Embassy of France in China, French Industrial Administration and local government.
