SHANGHAI, China — Shanghai now well established as the world’s factory that produces and supplies home textiles for global markets, is now being targeted as a large market place for furnishings. 

China is likely to have over 600 million middle class citizens by 2015. The China State Information Centre considers that those earning 50,000 Yuan ($6,227) per year to be middle class & the monthly income is only growing northwards.

The increased exhibitors at Intertextile Shanghai from Europe and Turkey during 29-31 August 2011 were a clear pointer to explore Chinese market. The event had 1,159 exhibitors from 27 countries 41,018 visitors from 107 countries. Maasisimo Tchen, owner & Mario Molteni, Technical Advisor

More exhibitors from Spain, Italy and Turkey reflected the optimism that the time is ripe to enter the Chinese market.  “China has many manufacturers of synthetic leather fabrics for furnishings but evidently China is seeking quality & service, which we deliver since we work with a top Italian technical expert”, said Massimo Tchen, owner & Mario Molteni, Technical Advisor, TALI, S.R.L, Italy specialized in synthetic leather fabrics manufacturing. The company produces in China but exclusively exported to European customers. Tali is now keen to establish business in China markets. “Our advantage is we are technically backed by Italian expertise and products are developed in Italy,” said Tchen. He also informed F&FI that China is now willing to give higher prices for dependable quality and he is confident to gain market share in the Chinese market.

Spanish Manufacturer Naturtex, engaged in designing, developing, produces unique and special textures that result into carpets, upholstery, decoration fabrics, modular panels & carpets. Priced to meet high-end market demand for hotel, contract and ultra rich homes, the show resulted in mixed response. “The interest in our range was curiously looked up on and we have already appointed a distributor last year expecting more business now in wards”, said Fernando Belso, Sales Manager, Naturtex, Spain. (See separate story on page 31)

The four exhibitors from Turkey in the 2008 version of this show have now risen to 41. “It is obvious that the Chinese are earning more and their disposable income is rising. They like to spend and are acquiring newer life styles,” observed Osman Canik, spokes person, UIB Exports Association, Turkey and owner of Elvin. “Sixty percent of our exhibitors here are satisfied and curtains are our mainstay. “Turkish suppliers are engaged in establishing relationship with agents and distributors in China.”

Currently, there are 160 cities with a million plus population and as a comparison, Europe has 35 cities. The McKinsey Global Institute forecasts that by 2025, there will be over 221 cities in China with over one million people. As more Chinese households have disposable income in excess of their basic necessities, a substantial share will be spent on life style products. Wal-Mart, Home Depot and IKEA group are just examples that are well established and continue to grow.  F&FI