Bosnia and Herzegovina currently exports upholstered furniture to the European Union worth more than 100 million KM, which ranks it fifth among exporters in this market, the Center for Furniture Market Research from Milan (CSIL) announced.
According to the same source, Bosnia and Herzegovina also exports mattresses worth around 10 million euros to the EU, which confirms the strong potential of the domestic industry, which is largely export-oriented.
Germany and Italy are key markets
CSIL states that one of the main advantages of Bosnia and Herzegovina, from a European perspective, is its favorable geographical position, i.e. its proximity to large markets such as Germany and Italy.
The research shows that Germany is already among the most important export destinations of BiH for upholstered furniture and mattresses, while Italy is the third in the export of upholstered furniture. Neighboring countries, as well as the Nordic markets, are also important destinations for domestic producers.
Labor force and stable currency as trump cards
As announced by the Foreign Trade Chamber of Bosnia and Herzegovina, one of the key factors in the attractiveness of the domestic industry is the availability of qualified labor force, which is becoming an increasingly valuable asset.
The fixed exchange rate of the convertible mark in relation to the euro provides additional stability to international affairs, which facilitates the planning and implementation of international transactions.
Industry growth challenges
Despite the positive trends, the research also points to certain limitations.
“One of the key constraints stems from the country’s small size, with a population of around three million, which can affect the scale of industry development. Although there are medium and large manufacturers, both domestic and foreign, the overall presence of large companies is still relatively limited,” the CSIL report said.
Examples of successful BiH company
As an example of good practice, CSIL highlights the company “Export City” from Prnjavor, specialized in the production of upholstered chairs, benches, armchairs and armchairs, with the capacity to manufacture sofas and beds. As much as 95 percent of production is made to order, exclusively for export.
“Almost all materials are of European origin and have FSC, ‘eco-tex’ and ‘blue angel’ certificates. The company is fully export-oriented, and its clients are furniture manufacturers from the EU,” stated CSIL.
Among the prominent examples are the company “Moj san” from Kakanj, a well-known manufacturer of mattresses with a strong position on the domestic and export markets, and “Sinkro” from Sarajevo, a bed manufacturer that was taken over by the Cotta group in 2018, one of the largest European manufacturers of upholstered furniture.
Potential for further growth
“Even though the upholstered furniture industry in Bosnia and Herzegovina is still relatively fragmented, companies like the ones listed above show the capacity, knowledge and ambition necessary for competitiveness on the European market,” CSIL concludes. NOISE.
