Can things be worse for furniture market in 2011?

The Romanian furniture market, an almost 1 billion-euro business per year, will see a 15-20% decline in 2010. The leading players had promotional offers, offering zero-interest rate instalments, and extended the offer of accessories in order to keep the sales from declining further, writes Business Construct magazine, which appears this week together with Ziarul Financiar.

The second year of business decline appears to have brought managers in furniture retail to life, with campaigns being for the first time echoed on the market.
Managers were forced to come up with solutions after the VAT hike in the summer dealt a blow to the economy, with sales in the industry already being affected. In the absence of aggressive promotional campaigns and of new projects, the year 2010 could have been disastrous for the furniture market.
The 15-20% decline was significant, but it was to be expected. Most players expected this decline at the beginning of the year, although there were also those who dared to hope for a slight rebound in the second half of 2010.
"We thought the first few months of 2010 would be bad, and then good times would come, but there came the VAT hike, which upset all forecasts. Without a major change in the way of doing business and without aiding consumption, which should come either from a renegotiation with the bank or from a VAT cut, I don't see any reason why 2011 should be better," believes Dan Şucu, owner of Mobexpert, the biggest player on the furniture market (production and retail).