The situation in Latvian furniture industry. January 7, 2009Posted by ieva in Uncategorized.
Tags: chair baltic, Latvian furniture, Latvian furnture industry, nakts mebeles
Here is some more information from the research of Elina Busmane about the situation in Latvian furniture industry. She investigated two Latvian furniture companies- Chair Baltic and Nakts Mebeles. Here are the (sad) conclusions about the situation.
ANALYSIS OF EXISTING PROBLEMS
• Needs of the real consumer are not taken in serious consideration developing new products and services. In main cases the manager of the factory is defining a product aiming direct market. Products are similar to middle class products in Baltic region or are imitating recent tendencies from largest European furniture fairs.
• There is a lack of any innovations and uniqness in new products, lack of research.
• The work organization inside of companies is unefectively organized. Lack of collaboration with designers. No real communication between the designer and structures of the company (marketing, export, technology).
• Lack of on-line services. Products mainly are distributed in salons, where furniture is on display, The staff is not always enough professional to give needed advices.
• Lack of feedback services. There is no information that companies provide repair or recycling furniture they produce.
• Even if the government has established several structures and organizations for increasing effectiveness in this industry entrepreneurs are not motivated to use their possibilities for development because of the tremendous bureaucracy.
• During last year’s companies’ success was based on lower material and labor costs, but in recent economic situation these causes are not working.
• There is lack of understanding about industry’s impact to the environment; therefore producers are not motivated to join Certificating Environmental Management Systems
The existent furniture industry in Latvia produces middle class products, which where competitive because of lower costs of labor and materials. According to recent economical situation these causes are not working.
Frame chair by Komplot Design (Denmark) for Chair Baltic.
Bed Mara by Mara Skujeniece (LV/NL) for Nakts Mebeles (a positive example!)
Furniture has close relations with consumer. It is the main tool for creating environment where people spend their lives. Furniture often is based on trends & technical possibilities, but individual needs are often secondary. There is a need for changes what leads business towards real needs of customer.
Latvia is a country that always has been in political, economical and cultural crossroads. The ethnicity of the population (Latvians 60%; Russian 30%) makes the situation more diverse. Therefore this is can be a place where business based on individual needs has a potential.
Thank you, Elina!