Wood flooring exports from Europe to China were 140,000 m2, while, about 14 million m2 of Chinese wood flooring was exported to Europe, a volume 100 time as great as that imported from Europe. This situation greatly concerns European flooring manufacturers.

Market Situation of Central European Flooring Industry Offers Great Opportunity for Cooperation

According to the annual report from the European Federation of the Parquet Industry (FEP), flooring consumption in Europe hit 112 million m2 in 2007, up 4.9% over the previous year. Germany, Spain and France were the top three flooring markets. At the same time, the output of FEP’s members amounted to 100.3 million m2, up 2.5% over 2006 levels. This set another new record for European flooring production. Currently, Sweden is still the largest flooring manufacturer in Europe, followed by Poland and Germany (known as the “New stars” in flooring production).

In fact all the data show that Europe remains a very large global flooring producer as well as a very large flooring consumer. However, with the rapid development of the Chinese flooring industry, China has become the largest consumer of flooring products. The output of China’s flooring industry totaled 361 million m2 in 2007. Influenced by the rapid development of economy, the annual average growth rate of demand was about 13% in next few years and the total output of China’s flooring will amount to 500 million m2 in 2010.

The large market potentials of both China and Europe offer great win-win opportunities for cooperation between Chinese wood manufacturing companies and the large European-based international flooring companies. 

Tremendous Potential for Sino-Europe Cooperation

China’s wood flooring companies have many advantages including low manufacturing cost and an excellent distribution network in the China domestic market. While in the European wood market, as the manufacturer of OEM, China offers wood flooring products to European merchants and importers, which consequently impact on the development of Europe’s wood flooring manufacturing industry. Thus, more and more European manufacturers expect to further strengthen cooperation with Chinese suppliers and manufacturers.
 
Similarly, European flooring manufacturers hold their own unique and excellent advantages, including owning world famous brands, good service, advanced product development and superior technologies. Although, flooring production in China has been mainly engaged in middle- and lower end products, high-end products to meet rising consumer demand needs to also be supplied. European brand products and European living styles will be welcomed by more and more Chinese and will have solid market prospects in China.

In fact, this kind of mutual complementary cooperation has been common in China. For example, the cooperation between Anderson and Power Dekor was a good example. Anderson, one of the most well known solid wood flooring manufacturers in America, has many patents covering production, development and innovation. Power Dekor, in turn, is one of China’s top brands. Both companies will now collaborate on developing brands, products, markets, sources and supply chains to further improve the development of the two companies. Power Dekor-Anderson flooring brand entered the domestic solid wood flooring market in March 2008.

European flooring manufacturers should make good use of China’s flooring industry to improve their market competitiveness and expand market share in China. Currently, there are two cooperation methods which are quite common in China.

First, Chinese flooring companies, as OEMs, cooperate with European manufacturers. European flooring manufacturers initiatively integrated Chinese manufacturing companies into their supply system to reduce their manufacturing and supplying cost. This kind of cooperation method may improve or maintain their market competitiveness and market share in Europe market.

Second, Chinese flooring companies, as independently developed brands cooperate with European manufacturers. European flooring manufactures, acting as agencies, distribute Chinese flooring products in Europe. This method can rapidly create distribution channels for Chinese flooring products in Europe, as well as accelerating the process of internationalization of China’s flooring brands.

Similarity, in the Chinese market, European companies can cooperate with Chinese companies through joint ventures, acquisition and integration to improve their shares of the high-end flooring market in China.