Innovation in spotlight at Portugal's export show
By Clint Engel -- Furniture Today, March 13, 2005
Porto, Portugal — With Portugal's economy struggling, manufacturers and organizers of the Export Home show here emphasized novelty, creative design and business beyond the country's borders as a way out of the doldrums.
Exhibitors at the 17th edition of this northern Portugal trade show tried to stay ahead of the stagnant economy and continuing pressure from low-cost Chinese knockoffs with a mix of mostly contemporary goods. In the past decade, contemporary has taken the lion's share of this market, reducing traditional styles to a small, high-end niche.
The strong get bigger
While Export Home's exhibit space has stayed about the same, the number of exhibitors has shrunk to about 400 from more than 700 in recent years, as the strongest players moved to secure larger spaces for their growing lines, said Rui Ramos, general secretary of APIMA, a Portuguese furniture manufacturers association.
A push by organizers to encourage innovation and freshness apparently paid off this year, with several exhibitors saying more of their space was dedicated to new product than ever before.
Thierry Smits, commercial manager for the export arm of manufacturer Ducampus, said about 50% of its product was new, including a case goods collection that blended light and dark finishes in eye-catching bedroom and dining room vignettes.
"We try to be the first one to bring a new trend to the market," Smits said, contending that his company led a style trend last year when it used a mixture of wood and glass in several of its case pieces. This market, he estimated 30% to 40% of the exhibitors were doing something similar.
Ducampus is constantly updating its line with the help of two staff designers — staying one step ahead of the Chinese — and it's diversifying its customer base by expanding beyond Portugal. A year ago, Ducampus created its Via Foco trading arm led by Smits, and exports have grown to 30% of sales from about 10% five years ago. The company doesn't sell in the United States yet, but is working on it.
In recent years, Portugal's economy has been weak, said APIMA's Ramos. A growing trade deficit, cheap Chinese imports and low consumer confidence have taken a toll on the small furniture sector, located mainly in this northern region.
Last month, Portugal voted a new political party into power, the Socialist Party, and consumer confidence has ticked up again, Ramos said. But the industry still faces the "China problem," and the declining value of the U.S. dollar has hindered the growth of exports to the United States.
He said an observer of the country's furniture industry will come away with two perspectives depending on which manufacturers he's talking to — one of promise and potential from producers that have moved beyond Portugal's borders for business, and another less promising view from companies sticking close to home.
To help drive home the importance of innovation, Export Home organizers held a design contest that drew 20 entries from various exhibitors. The winner was one of the youngest designers — for a Moments of Youth youth bedroom storage piece that features a removable handle designed as the symbol for "forbidden" or "do not enter," with upholstered doors in metallic reflector fabric and casters on the base.
From apparel to home
Aleal, an upscale manufacturer, drew attention at the show with its new licensed line designed with a prominent Portuguese designer, Joao Rolo, who has moved from women's apparel into home products. His dark-finished cases, primarily in wenge wood, include the designer's initials as a raised metal accent on case exterior. Aleal's own label is prominent on the exteriors of all its furniture collections as well.
Co-owner Daniela Leal said the company's furniture has found its way into the homes of soccer players, actors and other celebrities in the country, and customers are proud to show off the brand.
Aleal is one of many companies here that, in the past decade, have moved away from traditional styles and deep into contemporary, reflecting what Leal said are the changing consumer tastes and buying habits of Portuguese consumers. She said the public is looking for clean lines and useful features.
"We try to consolidate function with style and design," Leal said. "That is the key to our success."
Despite the push to expand exports, manufacturers here generally do very limited, if any, business with U.S. retailers. Aleal, for instance, sells to its European neighbors but not to America, partly because of the weak U.S. dollar and prohibitive freight costs.
Aquinos, which occupied one of the largest spaces at the show and introduced Joao Rolo's licensed upholstery line here, started exporting two years ago to Europe and Africa. But it hasn't pursued U.S. business, said Export Manager Maria Jose Valenca, because it's busy enough taking care of buyers from closer to home.
One U.S. buyer at the show had a mixed reaction to what he saw. Michael Kirkpatrick, design director for Polo Ralph Lauren's furniture line, said the case goods generally were well made for the money, and incorporated materials and construction details he sees in higher-end furniture in the United States.
But, he added, "The furniture was all rather simple, and the finishes were clean but boring." The upholstery, in general, appeared low end to this designer of upscale goods.
"From an aesthetic point of view, there was nothing truly cutting edge," Kirkpatrick said. "But I get the feeling that as Portuguese manufacturers gain more international experience, they will advance rapidly in that area as well — in much the same way Spain stepped into the design limelight in the '90s after years of isolation."
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