FURNITURE INDUSTRY. Furniture production makes 1.2% of total industrial production in Belarus.
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1 FURNITURE INDUSTRY Furniture production makes 1.2% of total industrial production in Belarus. The export volume of furniture products exceeds imports by almost 3 times. In Belarus, furniture consumption per capita is about $52 per annum. The share of the concern Bellesbumprom decreased from 51.6% to 37.0% over the past six years. Modernization of wood industry in Belarus cost of 1 billion. The main shortcomings of the Belarusian furniture are a small range and outdated design. Furniture production is the basis of the wood industry in Belarus. In 2014, the volume of furniture production amounted to billion Belarusian rubles; production of furniture increased by 2.9% compared with On January 1 st, 2015 the stocks of finished products at furniture enterprises amounted to billion Belarusian rubles or 95.6% of the average monthly output, which is higher than in 2013 by 17.3%. Share of the furniture industry is currently about 45 50% in the structure of export goods of the timber and woodworking industries. The export volume of furniture products from Belarus is high the import volume by almost 3 times. In 2014, exports amounted to $506,1 million (1.3% more than in 2013); the import volume also increased to $166 million. The export volume of furniture products exceeds imports by almost 3 times (3.9% growth in 2013). The reduction of growth in exports of furniture products is primarily due to the decline in demand, the narrowing of markets, in particular the market of Russian Federation (Russian ruble devaluation). Furniture production in Belarus amounts to 1% of the total industrial production. This figure is higher than in Ukraine (0.5%) but significantly lower than in the EU (3 5%), which indicates the potential of the furniture market in Belarus. Belarusians spend on furniture $52 per year on average. According to preliminary estimates in 2013, the consumption of furniture amounted to $ 490 million, which is 5.6% lower than in 2012 ($519 million). Currently, about 37% of the furniture industry accounts for the concern Bellesbumprom (in %), which is composed of JV ZOV LenEvromebel, JSC Molodechnomebel, JSC Bobruiskmebel, JSC Gomel furniture factory Progress, JSC Holding Company Pinsk Wood, JSC Slonimmebel. Among the non governmental enterprises should be noted JSC Involux and LLC Black Red White Begun in 2008, modernization of the Belarusian woodworking industry has already cost at 1,016 billion of international loans. This figure is contained in the decree 160 of April 9, 2015, which extended the terms of the realization of investment projects in the field of wood, and therefore extended the terms of tax and other exemptions, loan repayment terms and amounts of state support and compensation from the budget. Nine state enterprises of the concern Bellesbumprom extended loan repayment terms for a maximum of 5 years. The corresponding decision was approved by the decree 160 of April 9, 2015, which amended the decree number 529 of 18 October The level and quality of Belarusian furniture in recent years increased significantly, despite the fact that prices remained democratic. However, the competitiveness of the Belarusian furniture remains low because of the small range and outdated design. Therefore, the domestic furniture enterprises face challenges to increase production of high quality furniture with innovation and advanced technology.
2 FURNITURE PRODUCTION Resource base. 60% of Belarusian forests are conifers. Birch dominates among the hardwoods, rest 4% are such as oak, hornbeam, ash, maple, elm. Almost 23% of Belarusian forests are man made. Belarus annually grows about 31.4 million cubic meters of wood. The Republic of Belarus has 0.86 hectares of forested land and more than 170 cubic meters of wood stock per inhabitant, which is 2 times higher than the European average. Belarusian forest cover nearly doubled over the last 60 years and continues to grow. Its significant growth both in the postwar period, and in the last 20 years is due primarily to establishment of forest plantations (afforestation) on poor agricultural and other land categories, which were transferred to the forest fund. Besides that, reforestation is constantly carried out on non forested lands glades and clearings, burned areas. It is created annually about thousand hectares of new forests. Production. In 2014, the volume of furniture production amounted to billion Belarusian rubles and increased by 2.9% compared with Belarusian furniture production is 1.2% of total industrial production. The major share (about 2/3 volume) of the range is cabinet furniture; the share of soft furniture is about 23%; the kitchen about 12% and the children about 2%. The main products of the Belarusian furniture industry are tables, chairs, cabinets and furniture sets. Furniture production by type (thousand pieces) Tables Chairs and armchairs Cabinets Sofas, couches, ottomans Convertible armchair Sofa beds Wooden beds Furniture sets ,4 1125,4 437,2 54 4,5 134,5 147,1 335, ,1 833,9 382,1 108,2 3,2 126,4 148, , ,1 5,8 143, , ,2 1131, ,8 5,8 153, , ,8 1289,3 528,9 135,2 6,3 210,2 229,2 744, ,6 965,3 497,6 130,9 5,3 192, , ,3 1024,7 618,1 130,8 5,3 202,8 245,2 430, ,4 1089, ,6 215,6 260,6 457, ,4 1084,9 691,3 156,4 5,8 228,7 279,9 475, ,3 1155,4 736,3 170,5 5,9 243,6 293,9 501,9 Source: Belstat Thus, household furniture is about 95% of the domestic market, of which 78% is soft household and cabinet furniture.
3 Dynamics of furniture production in (2010=100%) 120% 118,10% 115% 114,80% 110% 105% 106,10% 110,40% 100% 100% 95% 90% Source: Belstat, Uniter INTERNATIONAL TRADE Every year, about 45 60% of furniture produced in Belarus is exported. The volume of furniture export from Belarus exceeded the import volume more than 3 times. In 2014, exports amounted to $506 million (1.4% growth in comparison with 2013).Wood furniture export is the most rapidly growing segment (37.9%). At the same time, there is a drop in exports of wooden furniture for the bedroom and the office. Geographically, exports of furniture in 2014 are as follows: major markets are Russia (76%) and Kazakhstan (11%). The volume of imports increased in 2014 and amounted to $166 million (3.7% growth in comparison with 2013). The main supplier countries of furniture products to Belarus in 2014 are: Russia (22%), China (16%), Poland (13%) and Italy (7%). They accounted for 58% of imports. Geographical structure of export, 2014: 0,50% 0,50% 11% 12% 76% Russia Others Kazakhstan Poland Ukraine Source: Comtrade, Belstat.
4 CONSUMPTION According UNITER, in 2014 the capacity of the furniture market amounted to $475 million, which is 4.1% lower than in 2013 ($490 million). Belarusian producers sell about 40 45% of furniture production in the domestic market and 60% abroad. Belarusian furniture is available in more than 46 countries, but most of this production is sold in the markets of the CIS countries (about 85%), with more than 75% comes to Russia. Domestic market structure, 2014: 28% Imported production Belarusian production 72% Source: Belstat, Uniter. The national market of imported furniture is represented by manufacturers from more than 50 countries. The main suppliers are: Russia, Ukraine, China, Poland, Malaysia, and Italy. As well, domestic products are of a high demand in Belarus. The reason is that the quality of the Belarusian furniture is similar to the majority of world producers, and the prices are much lower. Furniture consumption per capita/$: Germany Italy United Kingdom France United States Spain Czech Republic Russia Japan Poland Slovenia Belarus Romania The world average China Latvia Estonia Lithuania Ukraine 9 Source: FIRA International Ltd, Uniter
5 The average world furniture consumption per capita is estimated at $ 46 per annum; in Belarus, this figure is $52. The Belarusian consumption of furniture is higher than in the Baltic States ($22 $33) and Ukraine ($9), but significantly lower than in the EU countries ($252). Meantime, the figure in Belarus is almost 2 times less than in neighboring countries Russia ($105) and Poland ($104), which indicates the growth potential of the furniture market. Customs duties on imports of: Furniture materials min. 0 max 15% (Medium density fiberboards, fabrics) Furniture accessories min. 0 max 15% Finished furniture min. 0 max 15% + VAT 20%, which can be a tax exemption depending on the form of ownership of the importer Exhibits and equipment intended for demonstration at exhibitions to be declared free of customs duties.
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