CASE STUDY Furniture Market Figures in France: 2010 A survey conducted by the UFME (Union des Fabricants de Menuiseries Extrieures, July 2011) among stakeholders (designers,

• CASE STUDY Furniture Market Figures in France: 2010 A survey conducted by the UFME (Union des Fabricants de Menuiseries Extérieures, July 2011) among stakeholders (designers, window manufacturers, outlets and installers) reveals the following. In 2010, the French window market suffered a decline of 4% compared to 2009 with a value of about €9 billion (€5 billion relating to installation). The market was at its historical highest in the year 2005-2006, with 12.3 million windows sold, following a steady increase in the global market of about 4% per year between 2000and 2006. The overall volume of sales in 2010 shows that more than 11 billion windows (excluding opening glazed facades, shutters and doors) were sold. Among these,only 5% were imported: this is because the carpentry sector remained unaffected by the massive industrial relocation occurring in recent years. Local production is an important factor: most consumers prefer to buy from local companies and artisans .Almost all components of windows sold in France are produced in the European Community. Indeed, as consumer preferences vary greatly from one country to another, it is very difficult to market a standard product globally, which partly explains the phenomenon of customization. In addition, over 90% of windows are custom made, which further limits the importation of materials.The housing sector, and more specifically the sector relating to windows and shutters, employed 110,000 people in France in 2010. A third of this market value is linked directly to the jobs created (€3.25 billion over 10 billion for the housing sec-tor overall). The market is mainly based on SMEs (around 5,000) who manufacture the windows, and artisans (around 40,000) who install them.Two major markets exist for windows: windows in new buildings account for 26%of market volume, while replacement windows represent the remaining 74% (source:UFME, 2011). In terms of market value, the renovation market is larger, and generates more income. Important price fluctuation can be observed on the market. The average price of a window is €420 (net of tax). However, as soon as the cost of installation is added,the price can rise by at least 80%, to €760. Since 2004, the average price of a window has increased by 38%. Several factors explain this, including the quality and type of material used: the market has shift towards aluminium on one hand, and towards more efficient products on the other hand. However, in terms of the volume of products sold, PVC largely dominates the market, with 62% of market share, followed by aluminium (22%) and wood (13%). However, looking at value estimates, aluminium accounts for 33% of market value and PVC for 49%. Nevertheless, the distribution and installation costs are declining, which, in a highly competitive market, offsets the rising costs of the commodities and materials used in the manufacturing process.The research institute Xerfi forecast two major changes in this market by 2011. Its first prediction was accelerated growth in the renovation market, reinforcing its importance. As a result of rising energy prices, individuals will be more likely to invest in better insulating materials for their houses in order to reduce their energy bills. Its second prediction was a sharp rise (expected to be a long-term trend) in new building, accounting for a third of the construction market.Given the likely future development of the market, there are plenty of opportunities for window manufacturers, including a greater focus on customization. However, it is important to note that most of these new products linked to innovations will be linked to improved technical attributes of these products. This does not allow further development towa