FURNITURE NEW EUROPEAN SKILLS 2020 MULTIPLIER EVENT, BRUSSELS (BELGIUM) – 27 january 2016 2014-1-ES01-KA202-004883

Defining scenarios for the future Report of intellectual output O2, Activity O1

objectiveS To define possible scenarios for furniture companies in 2020 To understand the current situation of furniture industry in partner countries To identify Strengths, Weaknesses, Opportunities and Threats in furniture industry To identify furniture new european skills for 2020

Defining scenarios for the future CURRENT GLOBALISATION PHENOMENA Trade liberalization in emerging countries China as world power (e.g. producing furniture) Evolution of consumer demand Changes in the distribution of products and services Intensive use of new technologies (digital age) Intensification of flexible life styles (mobility, families, houses)

GLOBALISATION EFFECTS IN FURNITURE SECTOR Appearing of integrated production systems Growing role of Transnational Corporations (TNC’s) Lower costs of production are demanded Global demand of products highly differentiated Global investments (global economy) New technological possibilities Critical factors: production costs, environmental issues and energy efficiency Increase of production in emerging countries Continuous reinvestments as a critical factor of competitiveness (furniture sector is based on family business)

Possible scenarios for furniture sector RETAIL BRAND SCENARIO Key-words: Large chains of distribution, immigration, one-person households, stagnation of wages and consumption, low production costs. LOW CONSUPTION SCENARIO Key-words: ageing of the population, stagnation of jobs and wages, low rotation of products, low costs countries as leaders, sustainability is not priority. SMART SOLUTIONS Key words: rejuvenation of the population, full employment, use of ICT, flexible and intelligent homes, multi-use spaces.

FUNES scenario for furniture sector POPULATION AND SOCIETY RAW MATERIAL AND PRODUCTION PRODUCTS, TRENDS FOR LIVING, ENVIRONMENT AND TECHNOLOGIES CONSUMER INTERACTION BEHAVIOR

FUNES scenario for furniture sector POPULATION AND SOCIETY RAW MATERIAL AND PRODUCTION PRODUCTS, TRENDS FOR LIVING AND TECHNOLOGIES CONSUMER INTERACTION BEHAVIOR Ageing of population Increased costs of raw materials Eco-consumption (Alternative and renewable materials) Innovative consumer (design his own furniture) Difficulties creating young households Competitiveness of countries with low costs production Sustainable and interactive technology Purchase of furniture using multiple channels Stagnation in consumption Demand for products highly differentiated Smart houses (domotics) Increasing of online sales Stagnation of jobs and salaries Flexible and advanced lifestyles Use of ICT technologies Purchase based on lowest price Environment, health and wellness Flexible houses

FUNES scenario for furniture NEW SKILLS CONCLUSION Times of big challenges for industry and workers Globalization phenomena brings more flexibility and more unpredictability for markets and for consumption Demographic factors are crucial (ageing, new families, immigration, new homes, new public spaces) Is it Furniture Sector prepared for this?

FUNES scenario for furniture NEW skills

THANK YOU VERY MUCH! clara.ferraz@cfpimm.pt