Movelsul Brazil 2010 Sets Record Highs in Visitors and Sales

Invited IAFP members witness success

The 17th edition of the biennial Movelsul Brazil, the largest furniture trade fair in Latin America, was held Mar. 22-26 in Bento Goncalves, a city in the state of Rio Grande do Sul, considered a major furniture center. The event attracted more than 34,100 visitors from over 60 countries and recorded over US$300 million in pending sales, all hitting their record highs, according to Sindmoveis—the Association of Furniture Industries of Bento Gon?alves—which organized the show.

A total of 375 exhibitors, all from Brazil, displayed a wide variety of furniture products in Latin America's largest air-conditioned exhibition center, covering 57,290 square meters. Participation was so enthusiastic that about 80 exhibitors were left on the waiting list, according to the organizer.

The previous Movelsul, held in 2008, was so successful that its sponsors quickly committed themselves to the sponsorship of this year's show as well: Renner Sayerlack, the largest producer of paints for wood products in Latin America; and Duratex, a leading Brazilian producer of wood panels. They were joined this year by a new sponsor: Banrisul, the Bank of the State of Rio Grande Do Sul.

The items on display included furniture accessories and complements, bedroom sets, bookcases and racks, dining room sets, kitchen cabinets, upholstery, office furniture, and children's furniture. In terms of materials used, 67% of the exhibits were made of wood, 13% of metal, 10% of leather and fabric, 6% of fiber and glass, and 1% of plastic.

“Basically,” commented Marcelo Haefliger, president of Movelsul Brazil 2010, “some 80% of the exhibits carried medium to low prices and the remaining 20% medium to high prices for export.”

Tapping Overseas Markets

Brazilian furniture makers are promoting both the domestic and export markets, and to help with overseas sales the show's organizer continued to partner with the Brazilian Trade and Investment Promotion Agency (Apex) in launching a “Buyer's Project” on Mar. 23-24 with the aim of tapping international markets. Sindmoveis selected 20 importers from 14 countries, including Mexico, Colombia, England, the United States, Spain, Germany, France, Chile, and Angola, and invited them to engage in 560 business meetings with exhibitors. This effort resulted in US$15 million worth of deals under negotiation, up 25% from the corresponding figure in 2008.

“The ‘Buyer's Project' has worked well as an effective sourcing program for buyers,” Haefliger said at an international conference during the exhibition, “as well as helping promote the brands and quality of Brazilian furniture in markets around the world.” The conference was attended mostly by members of the International Alliance of Furnishing Publications (IAFP), including CENS Furniture from Taiwan, who were invited by Sindomoveis.

A new feature, the “Furniture and Real Estate Project,” was launched with the aim of strengthening relationships and development partnerships between Brazilian furniture manufacturing and civil engineering. Twelve large domestic construction companies were invited to hold business meetings with 49 furniture markets on Mar. 25-26.

This effort can help the furniture industry find new business opportunities and sales channels, said Haefliger: “One of our ideas is to have real estate firms sell fully furnished houses and apartments, so that customers can move in overnight without having to bring all of their old furniture that might not be able to fit in their new space.”

Affordable Living

Another new project, dubbed “The Consumer in the New Brazil,” was launched to show that furniture and real estate can have an affordable design. A modest house was exhibited, built on an area of 50 square meters at a total cost of 66,000 reais (about US$37,000)—60, 000 for the house itself and 6,000 for the furniture. “This is a practical and functional example that shows the public that design does not have to mean an expensive product,” said Alexandre Lazzarotto, director of Salao Design and one of the creators of the project. “You can include design and add value to popular real estate.”

Adding a bit of glitter were the Salao Design awards, the foremost product design awards in Latin America, which Sindemoveis has held for 21 years for the purposes of integrating creativity with technological innovation through design, and of recognizing the talent and ability of professionals, students, and the industry. The winning products were on exhibit at the show.

Bento Goncalves, the show's venue, is not only the home of Brazil's largest furniture industry cluster in terms of both number of companies and total turnover (with some 330 companies accounting for 30% of the country's total furniture output); it is also the wine capital of Brazil, with vineyards covering hills that are dotted with furniture factories.

The furniture makers of Bento Goncalves have two things in common: the differentiated designs of their products, and large investments in high-value-added product lines. Most turn out customized modular furniture using materials such as MDF, metals, and wood.

Buyers and exhibitors alike expressed satisfaction with the results of the show. Salam Khan, managing director of British furniture importer Sling (UK) Ltd., who was visiting the show for the second time, had this to say: “The exhibition is very good, well organized, and much larger than it was during my first visit six years ago. I see great improvements in the variety, quality, and design of exhibits at the show.”

Khan visited Movelsul to buy general household furniture such as pine beds, chests, wardrobes, and other bedroom items. “I visit existing suppliers to see if they offer any new products,” he reported, “and also locate new suppliers, because every time there are new companies coming out. It's a good thing to sit down for talks with existing and prospective new suppliers, and then determine to place orders with the best suppliers of the best products after a careful evaluation.”

Deficient Language Skills

“I'll come again the next time. One thing I would like to suggest is that the show organizer or exhibitors prepare extra people who are able to speak different languages to facilitate business negotiations. There is a slight lack of translators here.”

The weakening of demand in the UK forced Khan to look for slightly lower-priced products at this year's exhibition.

Mauricio C. Brito, a Brazilian furniture trader, visited the fair for the third consecutive time this year. “I visit Movelsul Brazil every time,” he explained, “to see new products, designs, and trends, as well as to locate new suppliers of office furniture and home furniture. Every trip has proved very fruitful.”

With Brazil set to host the 2014 FIFA World Cup and 2016 Olympic Games, Brito predicts a sharp growth in the country's demand for furniture products for use in hotels, hospitals, bars, and restaurants, as well as outdoor furniture.

Exhibitors were also happy with the show. “In my opinion, this show is the best furniture trade fair for us in Brazil,” stated export manager Roni Jochem of Moveis Rudnick S.A., a leading furniture maker based in Sao Bento do Sul, Brazil, which has participate in the show for more than 20 years. “It enables visitors to better know our brand and products, and allows us to make new contacts with potential buyers.”

Moveis Rudnick displayed a range of medium- to high-end furniture products in an exhibition space of 280 square meters: kitchen cabinets, dining sets, TV racks, closets, wardrobes, and office furniture. “We have received orders from customers around Brazil as well as from international buyers,” Jochem said, “mostly from South America, and some from Africa and Europe.”

Jochem's company runs five factories with a total work force of around 800 and has annual sales of about NT$65 million, 80% from the domestic market and 20% from exports to Africa and South America.

Better Visitors, New Buyers

Aroldo V. Falkoni, export manager of long-time participant Bertolini S/A, a leading Bento Goncalves furniture maker, also voiced satisfaction with the fair: “The quality of visitors is rising very significantly, and every time we find important new buyers. We're now negotiating with three new key buyers from Africa.” Bertolini exhibited a range of new products, especially steel kitchen cabinets, in its 500-square-meter space.

Falkoni explained that Bertolini was divided into four business units, covering steel kitchen products, MDF modular furniture, storage systems, and furniture featuring exclusive designs for specialty stores, with more than 700 employees and annual sales of NT$150 million in 2009. Sales are expected to surge to US$160 million this year, with 70% coming from domestic sales and 30% from exports.

Mulimoveis, which is considered Brazil's largest maker of baby furniture, has been a regular participant in the show since 1996, just one year after it was founded in Bento Goncalves. The company has also regularly expanded its exhibition space. “At Movelsul Brazil 2010 we have 500 square meters of exhibition space, double what we had in 2008,” reported the company's export manager, Marcelo Zortea, with a smile. “If possible, we want to expand our space further at the next show in 2012.”

“This is the biggest furniture trade fair in Latin America, attracting more than 30,000 visitors from over 60 countries. Our company alone has received visitors from 20 countries, and our business negotiations here have been very hectic.”

In addition to the children's furniture, racks, desks, and bedroom furniture in its display, Multimoveis also launched a new “eko-ambienties” line to take advantage of the “My House, My Life” 20-year low-interest loan program initiated by the Brazilian government to help medium- and low-income earners buy homes and furniture.

Zortea is optimistic that Brazil's improving economy and the upcoming sports events will power speed up the growth of the country's furniture industry. He believes that sales of his company's TV racks will grow significantly as more people buy TV sets to watch the games.