The 24th 3F in Dongguan Attracts Both Local and Overseas Buyers

Previously export-only makers also tapping domestic market

The 24th International Famous Furniture Fair, commonly known as 3F, was held Sept. 1-5 in Dongguan, the center of Chinese furniture manufacturing. The event drew 935 exhibitors from China, Hong Kong, Taiwan and overseas, and was held simultaneously with two sister shows, International Famous Furniture Woodworking Machinery & Material Fair and 2010 Dongguan Home Accents Fair (Autumn). The three-in-one event spread across 260,000 square meters in 10 exhibition halls, attracting some 65,700 visitors, about 5,220 of which coming from abroad.

Since its debut in 1999, 3F has built a reputation over the following 11 years for being an accurate gauge of the latest trends and developments in the Chinese furniture industry, hence its importance to all trade professionals. With the size of the Chinese economy having recently eclipsed the Japanese counterpart to become the world's second-biggest, coupled with the buoyant Chinese furniture market valued at an estimate of 60-plus billion yuan, every furniture producer in China and abroad is eyeing the Chinese market.

First-timer Satisfied
Lexington, a well known American furniture brand, was a first-timer at 3F. Ms. Shi Jing, the Chinese manager who oversaw the 300-plus square meters showroom brimming with American styled goods and tag lines boasting “100% Imported from America” expressed total satisfaction. She said that choosing to participate in 3F is because the show is best place to do business in the Chinese domestic market, and that she and her American partner talked about opening about 10 stores in China by the end of 2010 through appointed retailers.

Imax is another first-time exhibitor at 3F. Also an American brand but unlike Lexington's being a furniture maker, Imax is an integrated home accessories supplier. Ms. Zhu, Imax's Chinese partner who introduced the brand to China, said that Chinese consumers are welcoming home accessories like never before, so the market potential is huge. “Although my showroom is not the busiest one in the building, I met several very high quality buyers,” Zhu said, adding, “Imax is still quite new to Chinese retailers and consumers, it will take a while for the brand to really take off, but I am fully confident.”

Tapping Domestic Market

While overseas companies are emerging in the Chinese furniture landscape, a bigger group of players who are tapping this domestic market used to be export-only furniture makers. Lacqure Craft is a good example from this group, most members of which are owned by Taiwan or Hong Kong businessmen with large, modern factories in China. Marketing in China with the company Tai Sheng, Lacqure Craft began participating in 3F in 2008, and has over two years launched over 40 collections designed specially for the Chinese market. “We are working hard to build Tai Sheng into a first-tier brand for Chinese consumers in 5 to 10 years,” said Mr. Shi Da, the chief operation officer at Lacqure Craft.

Another similar story is told by Dongguan Yang Cheng Furniture, yet one more previously export-only supplier. Mr. Wu Weicheng, the owner said the excitement also started in September 2008 with the first exhibition in 3F. “It was a hit right away. Many retailers were amazed at the quality of our products and the good prices,” recalls Wu, who neglected to mention the critical reason for success being that his products are redesigned for the Chinese market. By the end of 2009, over 500 stores carrying Mr. Wu's products had been opened throughout China.

A decisive factor setting 3F apart from the other furniture shows in China is being organized by the Dongguan Famous Furniture Association and Hong Kong Furniture Association, two very active associations in China, the members of which include over 80% of the top furniture makers in China. Being backed by the furniture trade gives 3F a clear advantage for the event has working relationships with furniture distributors, retailers and large furniture mall operators in China.

While it's widely accepted that 3F is highly effective for expanding business in China, global buyers come to source products too.

Good Quality
Mr. Atsumasa Kawasaki, chairman of Taiyo Kagu Department Store, one of the largest furniture chains in Japan, returned with a 20-member buying delegation, who spent four days sourcing at 3F. “I like shopping at this show for I can find products of good quality and right for the Japanese market. People here are very nice too,” said Kawasaki.

An on-site survey of 424 foreign visitors at the 24th 3F shows that 48.9% of the respondents import goods over US$1 million from China each year, and 71.9% are final decision makers.

Regency House, a North Carolina based furniture company, was one of the exhibitors trying to tap business potential offered by the international buyers. Unlike Lexington, Regency House was a frequent exhibitor at 3F. “We are here for the international market and met a few big buyers at this show,” said Mr. Jeffery Arditti, whose satisfaction was compounded by his products winning a silver prize in the Classical furniture category of the Best Exhibits Award, and a merit prize in the Upholstery category.

Rising Demand
“China is diversifying from being a world factory to both a world market and factory,” said Ms. Fang Hui, Secretary General of the Dongguan Famous Furniture Association. “While Chinese consumers change their lifestyles and spending habits, they want fancier cars, larger houses, which create rising demand for higher quality, better designed home furnishings. I believe more and more international brands will enter the Chinese market.”

“On the other hand, China will continue to be a large furniture export country,” Fang added. “Over the years, 3F has lived up to its reputation as the gateway to the Chinese market; but the event also helps many producers to sell products to other countries.”

To further tap the importance of Houjie, where 3F is held and known as the “Oriental Capital of Furniture,” the major project “Famous Furniture Expo Park” was announced during the 24th 3F as the town's latest bid to further build the growing importance of the Chinese domestic market, and its continually significant role in the global furniture market.

The project will be built close to the existing buildings of Guangdong Modern International Exhibition Center, where International Famous Furniture Fair (3F) is held twice every year. Upon completion, the project will occupy 1 million square meters with another 1,000 acres reserved for further development. Phase 1 of the project includes an office tower and showrooms, with stores scheduled to open in March 2012. The motivation behind the Park is to combine the strength of regular trade shows, normally lasting four or five days, and the power of year-around furniture showrooms.

“From a global perspective, High Point in America and Milan in Italy are two key venues shaping the world's furniture industry. High Point prides itself on the large number of year-around showrooms while Milan is famed for iSaloni, its furniture trade show,” says Mr. Yin Chengzhi, the President of the Dongguan Famous Furniture Association. “Houjie is about to become the third world-class furniture trade venue for having both merits offered by High Point and Milan.”

The 25th 3F will be held March 16-20, 2011. Go to www.3f.net.cn/e for more information.