Shanghai, China — Repeated showing at Intertextile Shanghai has boosted European and other overseas exhibitors to add new business from Chinese home textile markets. The exhibitors from Turkey during Intertextile shows have been able to finally set up distribution for their curtain collection line.  “Turkish exhibitors have been showing since 4-5 years and we have been able to establish trade relations and our patience has finally resulted in business”, observes Volkan Bakdur, Export vice Manager, Elvin Fabrics, Turkey. It has been a hard path to Elvin Fabrics that has finally settled with a distributor who has 200 retailers that holds a large potential to further penetrate to increase share of business and this is a just beginning, he added.

Italians are making their attempts and was seemingly wanted to be seen and heard at the show. For the first time Proposte made efforts to project itself as a brand and hosted 25 Italian exhibitors. ‘It is very important to offer a brand image for Italian collections and we recall last participation, which did not yield any result: This time it is more encouraging & our sales representative based in Hong Kong with five marketing staff covering China market and has been covering 200 retailers”, Datt.Marco De Benedett, owner Clerion SPA, Italy that produces and sells heavy drape fabrics. Datt.Marco De Benedett, partners Clerion SPA, Italy with colleague Raniero Rossetti

Showing for the first time Espirit, owned by Stokel & Grimmler, Germany has began with an exclusive partnership with local partner, “We are cautiously optimistic in this market with contemporary life style collections of sheers (and curtains) in China: We have  begun with two show rooms in Shanghai and Beijing”,  said Ricky Lu, owner of Beijing eurostart Co Ltd, Beijing. The designs & trends are provided by the principals and we have appropriately priced to reach the Chinese consumers added Ricky Lu. The company is considering consumer promotions and two more years may be needed to establish the brand popular, he noted.

The importance of future Chinese market potential was reflected by JAB Germany, which showed its collections in a area of 300 square meters space. “We have our own establishment with our management  with two show rooms one in Shanghai, another in Bejing and offer high end collections : Business is very encouraging and we are very bullish on future growth”, said Frank Rethmann, Director, International Sales, Bielefeld, Germany. The reasons for being bullish are well supported by Chinese economy which is sound with continued growing prospectus. “China is continuing its march toward becoming the largest luxury market in the world, buoyed by extremely favorable attitudes towards brands, increasing levels of wealth in tier-two as well as tier-one cities, and a continued confidence in future economic prospects,” according to reports from KPMG International.  Also China has a large number of young millionaires, customers from the Greater China region, which includes Hong Kong Macau and Taiwan will account for 44 percent of global luxury-goods sales by 2020.compared with 15 percent now observes, CLSA Asia-Pacific Markets forecasts. 

“Chinese consumers are increasingly opting to buy Western designs especially new classics, contemporary styles expecting high quality that is associated with Western brands”, said Amy Chen, Director of Marketing & PR Department, of  Shanghai Home Expo Company in China. Since 1998, Shanghai Home Expo is engaged in specialty retailing of home furnishings that offers branded stylish imported furniture, curtains, upholsteries, wall covering, beddings decor and accessories. The demand to meet high end needs of residential, hotel & contract is well backed and supported by it’s in- house designers who offer complete services. Company imports TIAMANTTI brand curtains from Italy, home decoration lines from Europe, USA & Turkey. “Through brands like TIAMANTTI we bring out the reliable, tempting, and worry-free, guaranteed collections to high-end consumers who are passionate to meet their aspirations”, added Amy Chen.

For Chinese who exhibited, price increase, slowing export market was a worrying factor. “Input prices including labor costs are moving up-wards and though domestic market brings us volume business margins are same as before strains us”, said Andy Chu, General Manager, Wujiang King Showtex Co.Ltd, Jiangsu Province, China. The company produces Sofa fabrics and export markets are hard and currently exports its collections to Brazil. “We know only one way to promote our products and that is through Alibaba web and we are aware that we should promote our products in International media”, said Andy Chew.

However the 10 year old company Zhejiang Huife Warp Knitting Co Ltd, the show yielded positively. Fengping Shen (the founder’s son) now runs  $25 million company is engaged in manufacturing & marketing upholstery line and decorative fabrics. “We are growing at 20-30% each year but is very keen to enter US markets with proper design elements and promotion”, said Fengping Shen. The company sells about 60% in export market and balance in domestic market. The price range of its warp knitted collections is between 1.5 to $4.5 and wants to extend to higher quality in the coming days.” We are gearing up to systematically to find markets in America and are assembling all the finer elements to lunch our range very soon”, added Fengping.  

Interestingly, the overseas exporters to market in China can be positive of future prospectus provided they attempt to brand their collections & promote. In general in a study shows that 80% of those surveyed like to buy products that are easy to use and are of high quality, even if they are more expensive.

Meanwhile Chinese housing prices are soaring and 1000 square feet bed room apartment in Beijing starts up-wards $410,000 more expensive compared to developed global market cities. Speculators as well as first time buyers are fuelling the demand though down payment to buy does not come cheap, which is 40%. In parallel a large, growing middle class, upwardly mobile & affluent Chinese consumers are increasingly aspiring for Western branded collections in home decorating too.