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From the 1950s to the 1970s, the Czech furniture industry experienced rapid development. Until 1989, Eastern European countries, especially Russia, were the main export markets for the Czech furniture industry. In the early 1990s, the main export market for Czech furniture changed.
The decline in purchasing power of Russian consumers and consumers in most Eastern European countries has led to the export of furniture from the Czech furniture industry, mainly exported to these countries, to Western countries, especially Western European countries.
Changes in the export market have led to a major shift in the type and grade of furniture exported, as well as the exporter’s sales strategy. It is also impossible for a manufacturing company to expect to receive large overseas orders, which necessitates more flexible production to meet the requirements of small orders. After the privatization of the enterprise began, large production groups were decomposed. Enterprises gradually adjust themselves to adapt to the new situation, aiming at new overseas markets, and many manufacturers have become the contractors of overseas furniture manufacturers.
Since the mid-1990s, there has been a significant increase in the production of furniture in the Czech Republic. Furniture production increased rapidly by 65% ​​between 1994 and 1998. In 1998, furniture production totaled $783 million. Export growth has boosted production levels. During the same period, furniture exports increased from 274 million U.S. dollars in 1994 to 631 million U.S. dollars in 1998, an increase of 130%. In these five years, the growth of exports was greater than the growth of production. In 1994, the ratio of exports to production was 58.7%, and in 1998 it was 81%. Furniture consumption has also increased significantly. From 1994 to 1998, total furniture consumption increased by 27%. Import growth is also greater than the growth rate of total consumption. From 1994 to 1998, furniture imports almost doubled. 67% of total consumption is imported furniture.
According to the type of furniture, 80% of the furniture is wood furniture, and the remaining 20% ​​is furniture of other materials. 75% are for civilian furniture, the rest are office furniture and contract furniture, and many companies are diversified. Upholstered furniture is one of the most important domestic furniture, accounting for 20% of the total output, kitchen furniture accounts for 10%, other civilian wardrobes, beds, tables and chairs, etc., accounting for 44% of the total output value of furniture.
In terms of corporate investment, the investment level of Czech furniture companies lags far behind the average investment level of EU furniture companies. Every year, EU companies use 4% of their turnover for investment and reproduction, while Czech companies only have 1.1% to 1.2%.
In terms of international trade, the Czech Republic has further increased its export volume and the furniture trade surplus has increased. In 1998, Czech furniture was mainly exported to EU countries, accounting for 87% of its total furniture exports, followed by exports to Eastern European countries, accounting for 7.5% of its total furniture exports. The main export market is Germany, which accounts for 62%, followed by Belgium and Luxembourg, respectively, and Austria, which accounts for 6%.
Germany and Austria are both big producers of high-end furniture. The Czech exports to the furniture of both countries mainly meet the needs of the middle and low-end market. Since the reunification of Germany in the 1990s, Germany’s demand for medium and low-end furniture has increased. The Czech export furniture is mainly seat parts, accounting for 45%, the other is wood furniture, accounting for 16%, and the seat is 15%.
The Czech Republic is a big country with a long history of seating and seat components. The total export volume of seat components and furniture components accounts for 56% of the total furniture exports. It can be seen that the Czech Republic is mainly a secondary contractor.
Kitchen furniture does not account for a large proportion of export furniture, but it has recently grown rapidly, with a total export value of $6.6 million. Kitchen furniture produced in the Czech Republic is mainly exported to Eastern European countries, where the demand for kitchen furniture is increasing, mainly due to the increased market demand for low-end kitchen furniture. The total value of kitchen furniture exported to the markets of Eastern European countries in the Czech Republic accounts for 65% of the total value of kitchen furniture exports. In addition, the export volume of bedroom furniture has also grown rapidly, reaching $25.6 million. In contrast to kitchen furniture, bedroom furniture is mainly exported to Western European countries, with Germany and Austria accounting for more than 88% of this export.
Germany, Belgium and Austria form the main export market for Czech furniture. As mentioned earlier, kitchen furniture is mainly exported to Eastern European countries, especially Slovakia and Russia. In addition, 30% of office furniture is also exported to the above countries.
In 1998, the total value of imported furniture in the Czech Republic was $305 million. 70% of them are from EU countries and 22% are from Eastern Europe. Germany and Italy account for 54% of Czech imports, and imported furniture from these two countries generally meets the consumption of the Czech affluent class. Importers in the Czech market have 40% German furniture, 14% Italian furniture and 13% Polish furniture. In the five years from 1994 to 1998, German and Polish furniture exports to the Czech Republic increased by 13% and 7% respectively, and only the total amount of imported Italian furniture fell by 7%.
The seats and components of imported furniture in the Czech Republic account for a large proportion. The seats account for 16% of the total imports, valued at 49 million US dollars, and the seat components account for more than 1/3 of the imports, valued at 105 million US dollars. Others such as wood furniture accounted for 14%, valued at $42 million, office furniture accounted for 6%, valued at $19 million. In 1998, the import value of kitchen furniture was 9 million US dollars, a decrease of 17% compared with 1994. The total value of imported plastic furniture was 7 million US dollars, a decrease of 24%. 45% of the total Czech furniture imports are furniture components. Seat parts are mainly imported from Germany and Italy, followed by EU countries and Eastern European countries.
The seats are mainly imported from Poland, followed by Italy. 27% of imported office furniture comes from Germany, 16% from France, 13% from the UK and 10% from Italy.
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Czech furniture industry: innovation comes from tradition
The Czech furniture industry has a history of more than a century, and it can be described as traditional. Today, there are more than 200 furniture manufacturers in the Czech Republic. The world famous seat manufacturer Thonet Group was founded in 1861.