FURNITURE INDUSTRY IN SERBIA
Furniture industry trade
The Serbian furniture industry is export-oriented, with a positive foreign trade balance. The most important markets for furniture exports from Serbia are Italy, Bosnia and Herzegovina, Macedonia and France. Smaller quantities are exported to Germany and Greece. Living room furniture exported from Serbia is mainly of foreign design ( Italy, Germany, Greece ). This input of ”design know-how” is very useful to the producers for use with products that are intended for domestic and former SFR Yugoslavia Republic markets.
The majority of furniture producers in Serbia manage to satisfy the quality and precision demands of foreign customers. The main markets for dinning room furniture exports are: Bosnia and Herzegovina ($1.1 million), Germany ($0.54 million), Macedonia ($0.3 million), and Italy ($0.1 million). There is a great deal of competition in this market from producers in Poland, Romania, Slovenia, and Croatia, thus promotion is an important aspect to this sector.
Despite the high production of bedroom furniture in Serbia, its export is significantly small amounting to only 4.3% of the furniture share. The most important markets for bedroom furniture export are: Bosnia and Herzegovina ($0.5 million), Macedonia ($0.3 million), and Germany ($0.2 million). With the aim of increasing exports, many producers have been innovative in design, functionality, and especially with the material, e.g., EU ecological furniture. The Government supports these efforts through reduction of custom taxes for new technology imports, but also through the creation of an environment to encourage foreign investment and join ventures from outside of Serbia that would enable know-how transfer.
Entering the transition process, liberalization of foreign trade and good marketing by foreign companies (or their representatives) are just some of the reasons for the sudden increase of imports in 2001 and 2002. In 2001 furniture imports hit $20.1 million (an 83.9% increase over 2000) and in 2002, a record level of $33 million was reached.
The most important categories of furniture imported are: dinning room and living room furniture ($3.9 million), bedroom furniture ($2.1 million) and kitchen furniture ($1.5 million). Other furniture categories that are significant imports are: office furniture, writing tables, closets, cabinets, and other household furniture. The most important countries that the furniture is imported from are Italy, Slovenia, Poland, Bosnia and Herzegovina, and during 2002 also Croatia.
Windows and doors
The main recent characteristic of the window market is the sudden substitution of wooden windows by PVC, which has taken 45 to 50% of the total market. This is a result of many orders from the public sector (schools, hospitals, etc.), housing, and the large number of companies that are now producing this product. Besides low maintenance, great insulation capabilities and low cost, producers invest large amounts of money in marketing and distributions. The average price of “PVC window”, dimensions 140 x 140 cm is about $150, compared to $ 155 to $ 185 for wood.
The window and door export is traditionally directed towards Russia, where the companies from Serbia supply the buildings constructed by domestic companies. Bosnia and Herzegovina and Germany are also significant. The total window and door export was $5.3 million, while imports reached $4.8 million.
Source: Geneva timber and forest discussion paper 40
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