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The Polish office furniture market will soon be bigger than the Russian one

The office market in Eastern Europe suffered a decline of 3.4% last year. If one excludes Russia and Ukraine, both of which are still crisis-ridden, from the overall result, the CEE market posted a solid increase of 3.6%. In its latest study, Interconnection Consulting expects further growth (+ 1.8% per year) for the entire region by 2020, which will be fueled mainly by stronger demand in Poland, Slovakia and the Czech Republic, which will soon result in a changing of the guards. The total volume of the market in 2016 amounted to 1.4 billion Euros.

Showdown: Russia vs. Poland

Despite the sharp decline in recent years, the Russian market remains number one (share: 35.3%), however, a rapid change at the top is becoming a threat as Poland is taking giant steps towards Russia and already has a market share of 33.3%. The difference in the market volume in Euros is only € 26.5 million. While Russia recorded a 14% decline in the office furniture market last year, Poland gained 4.6%. A growth that should continue in the coming years. The office furniture market in the Czech Republic was also one of the fastest growing markets in Eastern Europe with an increase of 3.5%. This was followed by Hungary (+ 3.1%), Romania (+ 2.9%), Slovenia (+ 2.9%) and Slovakia (+ 2.8%). In addition to the Russian market, Bulgaria was the only country to suffer a decline in the office furniture market. After a decline of 1.6% in value, Bulgaria remained the smallest market in the CEE region with a market share of 1.3%.

The swivel chair is the most important product group

Unlike Western European countries, the long-established swivel chair is still the cash cow on the Eastern European office furniture market. With 305.9 million Euros, the swivel chair is the most profitable product group and will further expand its shares. With 3.6% growth annually until 2020, the swivel chairs will continue to play the first fiddle on the Eastern European office furniture market. The product group storage space is with 298,8 million Euro turnover, the number two.

The small heats up the big

The competition among office furniture suppliers was very strong. However, local suppliers dominate in individual countries. A few companies, such as the Polish manufacturer Nowy Styl, are also expanding into Western European countries. Market concentration fell 4.5% last year, leading the top 10 companies to hold only 21.8% of market shares. One reason for the decline in market concentration is the high price pressure of the smaller companies, which were able to expand their strong market position last year, says Sasa Spiridonov, author of the study.
The following countries were examined in the study: Russia, Ukraine, Poland, the Czech Republic, Slovakia, Hungary, Slovenia, Romania, Bulgaria

2017-11-14 14:25:24

Copyright: Interconnection, Publication free of charge for coverage regarding the study and InterConnection Consulting

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