THE INTERNATIONAL TROPICAL TIMBER ORGANIZATION

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THE INTERNATIONAL TROPICAL TIMBER ORGANIZATION
Global Outlook for the Tropical Timber Trade and
Furniture Export Markets Where are the Emerging
Markets?
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Trends in Tropical Timber Exports
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Composition of Exports By Region
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Furniture Market Trends

• US, Germany and Japan not expected to grow
• Italy, France, UK, Brazil, Spain and Mexico to
  grow moderately
• Only China expected to show high growth

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• Amongst other 40 markets
• India, Chile Ireland and Malaysia in high growth
  group
• General optimism of last year replaced by a more
  guarded posture

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• US the engine of growth for the international
  furniture trade - demand for imported furniture
  has grown
• however the slowing US economy may put export
  trade under pressure, especially for medium-low
  priced furniture

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• producers must prepare for weaker demand in major
  markets
• seek new niche markets, distribution systems and
  promotional tools
• introduce market specific designs and regularly
  launch new ranges

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The Import iceberg

• Explosion of furniture imports to the US -
  account for 34 of all furniture sales
• 29 of all furniture imports from China - 1992
  USD 69mil, over 2000 USD 1.8 bil.
• In 10 years just a handful of US domestic
  manufacturers

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and in China

• Asia Pacific main force reshaping furniture trade
• China single most important country in region
  dynamics
• Chinese market holds promise for expanding trade
  in added value products

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• house ownership encouraged
• home getting bigger
• imported brands favoured
• reduced domestic timber supply
• economy opening - WTO entry

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• China market not lived up to expectations
• within a decade domestic production created stiff
  competition
• Now an aggressive exporter with non tariff
  barriers
• distribution channels, unclear customs and
  import licensing rules

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Winning Market Share

• Added value exports will continue to grow at
  expense of primary product trade
• will expand at annual rate of 8-10
• USD5 billion in 2001, USD 6.6 billion in 2003
• Win market share in OECD countries

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• Widening base of sustainably produced timbers
• wage cost differentials and improving managerial
  skills
• advanced technologies and targeted promotion
• supportive institutions

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The problems with using tropical timbers
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Which tropical country has scored greatest
success with tropical added value exports?
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and why are these countries successful?
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Where will be the fastest development of added
value production?
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THE INTERNATIONAL TROPICAL TIMBER ORGANIZATION
itto_at_itto.or.jp