„Increased inflation, higher interest rates and lower consumer expectations have already slowed down furniture sales on the world markets since the beginning of the year. This was felt in the form of lower orders. Activity in real estate markets, on which furniture sales depend, is still subdued and general inflation is not falling, so buyers are in no hurry to open their wallets for major purchases. But with an ambitious team, we are looking for ways to boost sales. For example, we have shortened the lead time for our customers several times – in the new factory, we now produce a batch of furniture in just 4–5 weeks,“ says Tomas Mauricas, the head of Kauno Baldai.
He says that the last of the equipment purchased for the newly built factory will be delivered this month. A new advanced foam cutting line will further speed up the production process and increase the volume of furniture produced. It will help to meet the needs of new customers in foreign markets. For example, in Scandinavia, where sales in the first half of this year rose by a third compared to the same period last year, to €4.3 million. Sales in Germany remain stable, with slight growth. Meanwhile, in the Benelux countries, sales of furniture fell by a third to €5 million.
„With the new factory and its capacity, we are hungry for orders, so my team and I decided to enter the French furniture market, the third largest in Europe, which is valued at almost €16 billion. Our assessment of the competitive environment and the supply side gives us a favourable opportunity for our production, especially as this market is forecast to grow by more than 4% per year. Our objective is to achieve at least one-tenth of our sales in France. We hope to achieve this with reliable trading partners within a year,“ Mr Mauricas predicts.
According to him, the Kaunas Baldai team is expecting a very hot autumn. In order to exploit the potential of the new factory, the company will participate in the biggest furniture exhibitions in Austria, Sweden, Germany and Belgium and will be looking for new customers. In addition to bestsellers, the company will also present 9 of its latest in-house furniture collections. New markets in Europe are also being sought and analysed to see which segment of Kauno Baldai's production could successfully compete there.
Last year, Kauno Baldai, which employs over 370 people, completed the construction of a new 28,000 sqm factory. The investment, including equipment, amounted to more than EUR 30 million.
