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Brazil's Furniture Industry Revises 2008 Growth Projection from 5% to 2.5%

Companies from Brazil that took part in the Index, the leading trade fair for furniture and decoration in the United Arab Emirates, held in Dubai last month, should close deals totaling US$ 6 million up until the first half of 2009.

This is the expectation of the Brazilian Furniture Industry Association (Abimóvel), which, in partnership with the Brazilian Export and Investment Promotion Agency (Apex-Brazil), took 36 companies to the event.

The Brazilian stand, occupying an area of 1,264 square meters, counted on the participation of companies in five different segments: high-end decoration, kitchens, padded items, furniture and decoration items. According to the Abimóvel, the Brazilian businessmen made excellent business contacts.

In a release issued by the organization, the president at Abimóvel, José Luiz Diaz Fernandez, stated that the institutional and commercial work yielded results by means of the strategy defined in partnership with the Apex and due to the products being presented in a segmented manner at international events.

From January to November, Brazilian furniture exports to the Arab market totaled US$ 11.5 million, representing growth of 26.4% compared with the same period of last year. According to information supplied by the Market Development department at the Arab Brazilian Chamber of Commerce, the Arab market went from the 19th destination for Brazilian sector exports, in 2007, to the 15th position in 2008.

Algeria was the leading Arab destination for Brazilian foreign sales of furniture, with imports of US$ 4.5 million from January to November, growth of 150% in comparison with the same period of last year. The United Arab Emirates rank second, with imports of US$ 4.2 million, followed by Saudi Arabia, with US$ 500,000.

According to the Market Development manager at the Arab Brazilian Chamber, Rodrigo Solano, Brazilian companies must innovate in order to be able to export to the Arab market, especially the Gulf countries, which seek furniture to decorate hotels and luxury buildings. "It is important to be aware of European and Chinese competition, which is gaining market share with each year," he stated.

The Brazilian furniture industry has revised its projection of growth in exports in 2008 down from 5% to 2.5% compared with last year, when foreign sales totaled US$ 1.1 billion. In order to promote sales next year, the Abimóvel is going to promote the Abimóvel Salon 2009, to be held from August 17 to 21, in the Anhembi Exhibition Pavilion, in the city of São Paulo.

Anba

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