Requirements of Innovation for Export-oriented Chinese Furniture Enterprises
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1 Requirements of Innovation for Export-oriented Chinese Furniture Enterprises IUFRO Corvallis June 2011 Na Yu and Siegfried Lewark Institute of Forest Utilization and Work Science, University of Freiburg, Germany Faculty of Furniture and Industry Design, Nanjing Forestry University, R.P.China
2 Contents 1 Introduction 2 Research question 3 Research methods 4 Results 5 Conclusions 2
3 Introduction 20% 18% 18% 17% 10% 0% 10% 8% 9% 8% 5% 6% 7% 2% -2% * 2010** 2011** -10% -20% -20% World trade of furniture: annual percentage changes Note: * Preliminary, ** Projected (Source: CSIL Market and Industry Research Institute CSIL 2010 ) 3
4 Introduction (cont.) France; 3% United Kingdom; 3% Canada; 3% Japan; 3% Germany; 7% Italy; 8% Other High Income Countries; 16% United States; 15% China; 25% Poland; 3% Brazil; 2% Vietnam; 1% Other Middle and Low Income countries; 11% Percentage breakdown of world furniture production (Source: CSIL 2010) 4
5 Introduction (cont.) \\ \yuna$ 5
6 Introduction (cont.) US$ billion US$ billion Export value Annual percentage changes The annual export value of Chinese furniture (Source: CNFA and General Administration of Customs of China GACC ) % % 6
7 Innovation (cont.) In the forest products industry, innovation is consisted of three categories (Hovgaard and Hansen 2004). Product innovation: product development or improvement; Process innovation: improved processing or manufacturing; Business systems innovation: new and/or improved business and marketing practices. (Source: Cao and Hansen 2006) 7
8 Research question Question: Requirements of innovation Objects: Export-oriented Chinese furniture enterprises Objectives: What are requirements? What can we do? How can we do better? 8
9 Research design International Furniture Fair (imm cologne) Approximately 100,000 visitors from 121 countries (Source: Imm cologne 2010) 9
10 Methods Quantitative study & Qualitative study 1. Type of enterprise 2. Size of enterprise 3. Type(s) of product(s) 4. Percentage of export 5. Percentage of European markets 10
11 Methods (cont.) 6. Major purposes of participation 7. Influence of global financial crisis 8. Requirement of innovation 9. Innovation plan for the next 1 or 2 years 10. Requirements of external supports 11
12 Description of respondents General managers 8% 4% 11% 35% Trade & sales and marketing managers Sellers Product managers 42% Others 12
13 Descriptions of enterprises (n=26) Regional distribution 8% 15% 8% 31% 19% 8% 11% 13
14 Descriptions of enterprises (cont.) Types of products Solid wood Fur. 4% 4% 19% 4% Panel Fur. Upholstered Fur. Metal Fur. 50% 8% 11% Multitypes Fur. Plastic Fur. Other 14
15 Descriptions of enterprises (cont.) Size (N. of employees) 15% 4% 11% 35% %
16 Descriptions of enterprises (cont.) Annual sale volume (Million yuan) 15% 15% 8% 30 35% %
17 Results Are you (or your enterprise) having a innovation plan(s) for the next 1 or 2 years? 23% Yes No 12% 65% Not sure 17
18 Results (cont.) Top requirement of innovation 26% Product innovation 54% Process innovation 20% Business systems innovation 18
19 Results (cont.) Requirements of external supports or services 8% 8% 4% 38% Very strong Strong Moderate Little 42% Very little 19
20 Conclusions Export-oriented Chinese furniture enterprises have high requirements of innovation. Product innovation ranks the top requirement of innovation for export-oriented Chinese furniture enterprises. External supports and services for innovation are strongly required by medium and large Chinese furniture enterprises. 20
21 Acknowledgment: The Elisabeth und Barbara Grammel scholarship 21
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