Furniture makers not yet sitting pretty

In 2012, many overseas distributors of Camerich furniture actively upgraded their stores. The floor area of the Antwerp store more than tripled, while the Melbourne boutique reported more than 100 percent in revenue growth.

Window of Furniture's franchising operator Almutlaq Co is also a family business. The current president, Fahad Almutlaq, said the Saudi Arabian people really like their Chinese products, which are not traditional Chinese but a combination of Western modern elements with Chinese characteristics.

Unlike Camerich and Window of Furniture, Markor Furnishings is seeking cooperation or merger and acquisition opportunities in overseas markets. The company, based in the Xinjiang Uygur autonomous region, set up cooperative arrangements with US-based furniture designer, maker and retailer Ethan Allen Group Inc in 2001 and depends on the US company's hundreds of design centers and sales networks to promote its international business.

"I am impressed by Markor's team, especially their designers. They are bold, aggressive and creative," said Christine Alba, a designer at Ethan Allen, a company with more than 100 years of history. "I think we (the two companies) are complementary."

In 2009, its parent company - the Shanghai-listed Markor International Furniture Co - bought the US upholstery and timber importer Schnadig Corp for $8.94 million. Schnadig said in a statement that it was eyeing up the huge capital and production strength of Markor. The deal was conducted during the international economic slowdown, when businesses in the United States and Europe were facing sluggish demand and heavy capital pressure.

"We must admit that the crisis offered opportunities for Chinese companies to go global. I refer to companies with real capital and technological capability in various industries, including furniture," said Zhu Changling, secretary-general of China National Furniture Association.

According to Gao Xiaoshi, an analyst at domestic research firm Forward Business Intelligence Co, Chinese self-branded products come with competitive costs and performance rates. "Owing to their internationalization, Chinese designers are quickly catching up with their counterparts in the developed markets. Self-designed products made by US and European companies are usually priced much higher than their Chinese counterparts," she said.

Concerning quality, Chinese companies accumulated rich experience during their original equipment manufacturing period and some of them imported advanced machines or production lines from the world's leading machinery companies to guarantee the quality of the furniture and to help increase productivity.

Long way to go

Although the scene seems to be blooming, challenges still exist, analysts said.

US and EU requirements on environmentally friendly materials and production processes are ever-increasing. How to deal with trade barriers is a headache for many furniture exporters, according to Zhu.

"We should see it this way: It promotes us to further improve ourselves," said Fu from Camerich. In 2012, the company's investment in being environmentally friendly increased by 30 percent compared with the previous year. It funded heavily in a fully automated water-born UV coating line to ensure the quality of its products and to increase the efficiency and environmentally friendliness of its manufacturing processes.

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