Baltic Export, Good for Business, Latvia, Markets and Companies, Woodwork

"The sector was going through a period of rapid growth after 2003 as many people were taking out loans in banks, companies and banks were refurbishing their offices, et cetera. In 2007, companies made furniture worth EUR 175 million. But after the crisis began, the demand fell dramatically. 2008 was the worst year when many companies folded – only about 200 companies survived out of 555 before the crisis. The remaining ones, however, were able to survive the "blank" period, and slow development resumed in 2009 and has continued since," said Plezers.

According to the latest estimates, total net turnover of Plezers association's members amounted to EUR 43.51 million in the first nine months, which is 11.1% or EUR 4.38 million more than in the same period last year.

This year, furniture making will grow 15% from 2013 thanks to the recovering construction sector, with local companies selling furniture worth about EUR 95 million, said Plezers, adding that supplying furniture for the new National Library building had played an important part.

"This year has also been very successful in that local furniture makers won several tenders, including the opportunity to supply furniture for the National Library for EUR 3.5 million," explained Plezers.

He went on to say that Latvian furniture made of natural wood was the most popular in Lithuania, Estonia, Poland, Scandinavia, Germany, Belgium, England, and Northern Italy.

"Further down to the south, there is a completely different style – dark-colored furniture dominates there, as well as furniture made of glass, stone, marble. For instance, at a major furniture exhibition in Lisbon you could see no lightly-colored furniture, so we are not even considering these southern regions. Likewise, we are not planning to do business in China, because transport costs are too high, furthermore, the Chinese make furniture themselves. And Russia is not, and will not be, a market to us. Fluctuations in the ruble's exchange rate is not the most important factor – there is no need to get involved with the complicated marketing system in Russia if we have good sales markets in the West," Plezers said.