Poor demand and low prices have resulted in a very tough year for Brazil’s furniture sector. Furniture production declined almost 18% in Western Santa Catarina State, one of the biggest furniture clusters in the country, while sales have dropped by as much as 40% in some market sectors, further exacerbating unemployment.
While manufacturers are developing innovative customised products and marketing comfort and affordable design, the increase in the cost of utilities, taxes and low productivity have driven up retail prices that are passed on to consumers. These solutions are seen to be ineffective in this current economic climate.
Source: ITTO
