Egypt makes strides as furniture source
Furnex show spotlights variety of new products
Gary James -- Furniture Today, June 15, 2007
CAIRO, Egypt — Egyptian producers continue to make headway in their efforts to promote the industry as an affordable source for classic French and English reproductions as well as trend-setting contemporary furniture.
At the fourth edition of the annual Furnex fair, held at the Cairo International Convention Center earlier this month, 165 companies showed their lines to more than 700 foreign buyers from 62 countries, including the United States and Canada. The show featured a new area devoted to home textiles.
 Ahmed Mohamed Nazif, prime minister of Egypt (center) cuts the ribbon to officially open the 2007 edition of the Furnex show. |
| Ahmed Mohamed Nazif, prime minister of Egypt (center) cuts the ribbon to officially open the 2007 edition of the Furnex show. |
Market organizer Expolink welcomed buyers at a gala dinner, where attendees enjoyed local cuisine, entertainment and a breathtaking view of the Pyramids lit up at night. At the event, Expolink officials announced that next year’s show will be open to international exhibitors, expanding its profile beyond its current Egypt-only focus.
“We are putting Egypt on the map of the international market for furniture,” said Mahmoud Roushdy Bayoumi, senior portfolio manager, furniture, for the Egyptian Exporters Assn./Expolink. “Each year, the scope and activity of the fair is increasing, making it a more important destination for international buyers.”
Shopping the Furnex show for the first time was Alixe MacRae, assistant general manager of Stoney Creek Furniture in Stoney Creek, Ontario. MacRae saw several pieces that she was impressed with, including Fayek’s classical chairs with updated fabrics and Mohm’s punched metal treatments.
 Ahmed Aly Helmy, CEO of Meuble El Chark and chairman of the Furniture Export Council, addresses attendees at a gala dinner in front of the Pyramids. |
| Ahmed Aly Helmy, CEO of Meuble El Chark and chairman of the Furniture Export Council, addresses attendees at a gala dinner in front of the Pyramids. |
“There was a very high level of style and innovation,” said MacRae. “I saw a lot of product that was truly different. This ability to do unique styling should make Egypt a rising player on the global scene.”
To grow their business in North America, however, MacRae added, producers should consider teaming up to offer customers mixed containers on goods. “Most retailers don’t need a whole container of any one piece but might like to bring in several pieces from different sources.”
MacRae added that her rough estimate of container pricing shows Egypt to be about 15% less for shipping than sources in Asia.
This year, Bayoumi said, the EEA expects Egyptian furniture exports, residential and contract, will total $250 million worldwide. In 2006, the total was $200 million. The three-year goal is to grow the business to $1 billion a year.
According to Bayoumi, Egypt’s producers have several strengths that make them increasingly attractive as furniture sources. First, there’s the large pool of skilled hand laborers, especially wood carvers. Second, there’s a growing base of state-of-the-art equipment being used in plants that’s helping to cut costs and maximize efficiencies.
In addition, big investments are being made in workforce and management training through the country’s Industrial Modernization Centre.
And more and more companies are developing their own designs, with both Egyptian and foreign designers, as a way to enhance and differentiate their products and complement their OEM business. Strengths include traditional French and English styles with detailed carvings and warm finishes, as well as Euro-contemporary designs with sleek lines and sophisticated coatings.
“We want to be known as world-class suppliers of furniture with unique designs and high quality,” said Bayoumi.
He said the lack of timber resources in Egypt hasn’t proven to be a major challenge, since its location on the Mediterranean allows producers to affordably obtain quality beech, oak and other woods from European and U.S. sources.
Egypt’s furniture sector is estimated to employ more than 1 million workers. According to Bayoumi, the industry includes 200,000 firms, with work forces that range from five to 800.
“A new generation is taking charge in Egypt, and that’s bringing fresh energy to the furniture sector,” said Ahmed Aly Helmy, CEO of Meuble El Chark and chairman of the Furniture Export Council. “Our companies are upgrading their skills through training, equipment and facilities.”
 Meuble El Chark is known for its wood bending and shaping, as seen on these two contemporary chairs. |
| Meuble El Chark is known for its wood bending and shaping, as seen on these two contemporary chairs. |
Meuble El Chark plans a major expansion of its plant in 2008, Helmy said, which will enable it to keep pace with a growing volume of orders.
Also planning to expand its facility in 2008 is Misr Toronto, a producer of French-styled bedroom, dining room, seating, vanities and occasional furniture. The company currently operates a 34,000-square-foot plant with 85 workers; it plans to expand that to 160,000 square feet with 300 workers.
“We have just signed agreements to act as an OEM subcontractor for companies in France and Italy,” said Ahmed El Gharabawy, chairman. “They like our quality and our much lower cost structure.”
Misr Toronto also sells furniture in the United States through wholesalers in New York and Miami. “We’d like to do more, but the United States is a more difficult market than France or Italy because consumers have so many different tastes,” said Gharabawy. “Nobody wants the same thing.”
 The carved legs on this occasional table from Misr Toronto, inspired by the root-covered trunks of local trees, feature a three-dimensional effect. |
| The carved legs on this occasional table from Misr Toronto, inspired by the root-covered trunks of local trees, feature a three-dimensional effect. |
To grow its business, El Sherook, founded in 1986, has been taking its product line in a new direction, moving away from classic traditional styles to contemporary designs. Supporting this shift, the company has invested in a range of new equipment, including a CNC router, edge bander, laser cutter, kiln dryer and sanding machine. The company also plans to install a new software system from Germany.
“The young generation has different tastes than their parents,” said Hisham El Sheikh, head of the board. “This is where the growth is — colorful, shapely furniture.”
The change in styling also will enable El Sherook to better compete with the Chinese in export markets, added Sheikh. “Our new line features a quality and originality that the Chinese can’t match.”
Currently, exports account for 60% of El Sherook’s sales. Key markets include France, Italy, the United Kingdom and the United States, where it has a showroom in the New York area together with Asal.
The company employs 200 workers at its 96,000-square-foot factory in Alexandria. It also has space for a 100,000-square-foot expansion, which it plans to open in 2008.
 El Sherook's new contemporary offerings include this table combination with a flowing, floral-inspired veneer treatment. |
| El Sherook's new contemporary offerings include this table combination with a flowing, floral-inspired veneer treatment. |
At La Roche, the big news this market was the tie-in with two name designers, Karim Rashid and Karim Mekhtigian of the design firm Alchemy. The new lines are intended to expand the company’s reach beyond its current contract base into the residential arena.
“This is a big step for us,” said Ihab Derias, managing director of La Roche and vice president of the Furniture Export Council. He added the company is developing a new sales structure to support the effort.
To build awareness of the new Rashid line, La Roche plans to set up a showroom in Milan and New York along with several other companies involved in the collection.
La Roche currently exports more than 90% of its product to Europe, mainly France, Italy and Ireland. The company operates an 118,000-square-foot plant with state-of-the-art machinery from Germany.
“We have already gotten a very good response (to these new products),” said Derias. “And the connection with Karim Rashid is opening new doors to us with other international designers, particularly in Italy.”
Such collaborations set Egyptian manufacturers apart from lower-end competition in China and elsewhere, he added. “It’s a value-added dimension that takes advantage of our skills with woodworking and shaping.”
At El Gallad, a producer of classic French and Italian case goods and occasional furniture, exports were up 30% in 2006 versus 2005. Nearly 90% of the company’s sales come from exports, with Italy, the United Kingdom, the Persian Gulf countries and the United States and Canada among its leading markets.
“The U.K. and Italy are our main customers,” said Ahmed Mohamed El Gallad, marketing and communication manager. “We would like to increase our business in the United States, but we want to make sure we have the right partner. It has to be somebody who has a good reputation and is a good fit.”
 This wood cabinet from El Gallad features extensive hand carving on the crown, rails and panels. |
| This wood cabinet from El Gallad features extensive hand carving on the crown, rails and panels. |
To support growth, El Gallad plans to expand its facility in New Damietta City as well as its work force. “We are continually developing new models and styles that take advantage of our capabilities in carving and laser cutting,” he said. “In the future, we will be showing at new markets to increase our exposure.”
At Mohm Furniture, the emphasis at Furnex was on the Impression line of contemporary furniture, presented in a distinctive black-and-white palette. Introductions included wood and metal bedroom, dining, occasional and upholstered furniture.
“Nobody thought we could do contemporary,” said Shereef Abdel Hady, managing director. “Egypt has this image as only being a source for English and French classics But a number of Egyptian producers are now offering original contemporary designs that represent a strong value and high quality.”
According to Hady, Egypt is becoming an attractive place for Italian companies to source their lines, since labor costs are much lower. He said the relatively small size of many Egyptian factories makes them very flexible and responsive to customer demands.
“We are more expensive than China but much cheaper than Italy or Spain,” he said. “And, unlike the Chinese, we are selling a lifestyle, not just a product. We are matching our products and creating an entire atmosphere. We are constantly studying the market for new trends, colors and accessories.”
The Chinese, however, are creating new competitive pressures for Egyptian producers, similar to those faced by other nations, Hady said, adding, “As long as we are living on this planet, the Chinese will be a challenge.”
To enhance its competitiveness, Mohm has teamed up with four other Egyptian producers to form the Design Republic of Egypt (see accompanying story). The companies share design skills and production expertise.
 This punched-metal table is part of Mohm's Impression line of contemporary case goods and upholstery. |
| This punched-metal table is part of Mohm's Impression line of contemporary case goods and upholstery. |
For example, Mohm is known for its metal work, while Meuble Chark has a strength in wood bending for chairs. For certain lines, one company may turn to another for a design element or component, tapping into those strengths in a way “that expands business for everybody,” said A/Hady.
The five companies also offer customers the ability to mix products in a container.
Mohm’s main export markets currently are France, Italy, Germany, Portugal and Cyprus. It doesn’t sell to the United States but that’s mostly because many U.S. buyers demand that sources be capable of delivering “enormous quantities,” said A/Hady.
One exhibitor that has made big strides in the U.S. market, thanks to its Furnex showings, is Timber Line. The producer began selling classic English, French and Italian reproductions to U.S. importer Furniture Classics in 2004 and AA Importing in 2005.
“So many companies here specialize in French, but we began adding English items in 2004 and they’ve done very well,” said Ahmed Abd El Fattah, chairman and managing director. He added that with the help of the Industrial Modernization Centre, the company has greatly improved its finishing capabilities, making its product more suitable for the U.S. market.
 Timber Line makes reproduction-quality English traditional furniture. |
| Timber Line makes reproduction-quality English traditional furniture. |
“Egyptian producers in the past earned a bad name for themselves in America because of poor quality,” he said. “We don’t want to repeat that mistake.”
This has been “a successful program for us,” said Alex Boyer, vice president of sales and marketing for Furniture Classics, which also imports solid-wood furniture from Indonesia and China. “Timber Line provides us with an incredible value in veneer constructions like swirl-crotch walnut and Carpanthian elm burl. Their marquetry work is very nice.”
Boyer added that Timber Line has been “competitive, consistent and reliable.”
Furniture Classics plans to introduce two to three dozen new pieces sourced from Timber Line at the October High Point Market.
Egyptian sources linking up with established designers
CAIRO, Egypt — Seeking to draw attention to Egypt’s unique heritage and design strengths, five companies have teamed up to launch the Design Republic of Egypt, a new brand that features furniture created by established and up-and-coming Egyptian designers.
The companies — Amr Helmy Designs, Fayek, La Roche, Meuble El Chark and Mohm — introduced their first collection under the new brand at the Milan fair in April. Called Kairobjects, the collection was designed by Karim Rashid, a high-profile international designer who was born in Egypt and raised in Toronto.
 The Endless Nile table, from Amr Helmy Designs, is part of Karim Rashid's Kairobjects collection. |
| The Endless Nile table, from Amr Helmy Designs, is part of Karim Rashid's Kairobjects collection. |
The collection blends ultra-modern forms, colors and materials with ancient Egyptian motifs, such as the pyramid shape.
Rashid’s involvement with Egypt’s furniture industry started in February 2006, when he presented a lecture in Cairo on the role of design in global markets. That appearance attracted more than 1,000 Egyptian designers and manufacturers and sparked a new connection between Rashid and his native land.
The Kairobjects collection was featured at the Furnex show here in individual showrooms and in the Platform, a special section at the fair highlighting innovative furniture by Egyptian designers.
“The Egyptian furniture industry is now at a turning point, where the creation of a global brand and the development of an individual style is vital to build global business,” said Rashid.
To gain access to global markets, Egyptian producers have begun to show their furniture as a group at major international fairs. In addition to the Milan fair in Italy, Egyptian producers have shown together at Germany’s Cologne fair and at Planete Meuble in Paris. Other shows on the calendar include Dubai in the United Arab Emirates and Birmingham, England.
The effort is supported by the Industrial Modernization Centre and the Egyptian Furniture Export Council/Expolink.
 This colorful, pyramid-shaped cabinet from La Roche is part of the Kairobjects collection. |
| This colorful, pyramid-shaped cabinet from La Roche is part of the Kairobjects collection. |
“This initiative gives the world a glimpse of our country’s diversified industry and production capabilities,” said Mahmoud Roushdy Bayoumi, senior portfolio manager, furniture, for the Egyptian Exporters Assn./Expolink. “We are working hard to generate more awareness of the design talent that exists in Egypt.
“Our designers have a unique perspective that comes from living and working in the land where furniture design began,” he said.
Local talent includes established designers such as Shahira Fahmy and Cherif Morsi, who had products on display at the Milan fair, as well as emerging designers such as Marwan Fayed, Alaa Mahmoud and Rami Makram.
In addition to promoting the skills of homegrown designers, Egyptian furniture makers are deepening their ties with the international design community. Collaborations include Italian designer Christophe Pillet’s work with Alchemy.
“These partnerships with international and Egyptian designers add value to the product and separate our manufacturers from lower-end competition,” said Bayoumi.
Egyptian sourcing holds big potential for U.S. market
CAIRO, Egypt — Egypt’s furniture industry has huge untapped potential for the American market, according to Fakhry Boutros, a sourcing agent credited with first importing Egyptian furniture into the United States in 1994.
“This is where furniture making began some 4,500 years ago,” said Boutros. “Today, Egyptian furniture makers are unrivaled in their skill with woodworking, carving, marquetry and other types of inlays. They make quality, high-end furniture in both classic and contemporary design. But most people in the industry, especially in the U.S., aren’t aware of it.”
Part of the challenge, Boutros said, is what happened in the mid-1990s after his initial forays into the U.S. market led to a large wave of Egyptian imports from a variety of other sources.
“The quality wasn’t always good and that hurt everybody,” said Boutros, who developed Egyptian import programs during the 1990s for U.S. companies such as Bassett, Hooker, Casa Bique and Pulaski. “Soon, U.S. companies were moving their programs to other parts of the world where they could get a lower price or a more consistent product.”
Today, at age 83, Boutros continues to serve as an Egyptian sourcing connection for several U.S. companies. In addition, he’s working on developing a line of imported occasional products with Dale Greene, the owner of Illusion Unlimited in Thomasville, N.C.
 Sourcing partners Dale Greene, left, and Fakhry Boutros visit the Asal Furniture plant in new Damietta City, Egypt. |
| Sourcing partners Dale Greene, left, and Fakhry Boutros visit the Asal Furniture plant in new Damietta City, Egypt. |
Greene, who started his career in the quality control lab at Thomasville Furniture, is a veteran furniture finisher whose firm retouches and repairs furniture for Maitland-Smith, E.J. Victor and Randall Tysinger Antiques.
“We see so much potential here,” said Greene, who attended this year’s Furnex show to visit prospective sources for the new line. “It’s a matter of identifying key areas of strength and then refining the product’s finish and design so that it’s just right for the U.S.”
Greene said the quality of Egyptian-made furniture is improving rapidly as plants invest in dry kilns to control wood moisture, and in automated equipment such as CNC routers and dust-free finishing tunnels.
Additional product shown at Furnex
 Asal, one of Egypt's top chair producers, sells to more than 25 foreign markets. |
 Deebtex was among the fabric sources showing in the new textile area at Furntex. |
 This lavishly appointed plasma TV frame is new from Maklad. |
| Asal, one of Egypt's top chair producers, sells to more than 25 foreign markets. | Deebtex was among the fabric sources showing in the new textile area at Furntex. | This lavishly appointed plasma TV frame is new from Maklad. |
 This French-styled chair and loveseat combination, from Al Tantawy, features hand-carved beech. |
 The Talimia Group's diverse line of educational products includes storage furniture for school or home use. |
 Fayek's line includes this accent table with gilded details. |
| This French-styled chair and loveseat combination, from Al Tantawy, features hand-carved beech. | The Talimia Group's diverse line of educational products includes storage furniture for school or home use. | Fayek's line includes this accent table with gilded details. |
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