
New to Germany? Avoid These Common Health Insurance Mistakes
Section: Health Insurance
The furniture industry, which experienced significant growth during the pandemic, is now facing a stark decline in orders and revenue. As consumer priorities shift towards essential expenditures, furniture retailers are struggling to attract customers.
In 2024, the financial outlook for German furniture manufacturers worsened, with a reported nominal revenue decrease of 7.4% to EUR16.4 billion. The industry is grappling with a notable reluctance among consumers to make furniture purchases, as many prioritize spending on necessities such as food and energy.
Experts in the field, such as Sebastian Wilde from Falkensteg consultancy, highlight that the rising cost of living has forced households to reassess their budgets, deeming furniture purchases as non-essential. The aftermath of the pandemic has further complicated the situation, as many consumers fulfilled their furniture needs during the lockdowns, leading to decreased demand.
In response to the challenging market conditions, furniture retailers are employing various strategies to entice customers, including promotional offers. However, these efforts have yielded limited success. A growing number of people in Germany are opting to spend their disposable income on travel and leisure rather than on furniture.
Industry sentiment remains bleak, with a recent survey indicating that only 4% of furniture and home textiles companies view their business conditions positively. In contrast, nearly one-third of surveyed businesses reported poor conditions. The cancellation of prominent events, such as the IMM Cologne furniture fair, reflects the industry's current struggles.
Employment in the furniture sector has also taken a hit, with a 5.4% reduction in workforce numbers, resulting in the loss of over 71,000 jobs. Additionally, 44% of companies in the sector have resorted to short-time work in response to the downturn.
The financial instability has led to several high-profile bankruptcies within the industry, including renowned chains and manufacturers. The number of insolvencies surged to over 230 cases in the past year, marking the highest level in a decade. Despite this, larger brands like Ikea continue to navigate the challenges, reporting a 5% decrease in sales, which they attribute to reduced consumer foot traffic and lowered product prices.
Compounding the industry's woes is the decline in new housing construction, with only 215,900 new permits issued in 2024--a 17% decrease year-on-year. This downturn in the housing market has a direct impact on furniture sales, as new homes typically drive demand for kitchen and living room furnishings.
Looking ahead, some industry leaders are cautiously optimistic about the future. Jan Kurth, head of the German furniture industry associations, anticipates modest growth in the coming year, driven by expectations of easing inflation and increasing real wages. Moreover, there is a growing interest in flexible furniture solutions that cater to the needs of consumers living in smaller spaces.
Overall, while the furniture industry currently faces significant hurdles, there may be opportunities for recovery if market conditions improve and consumer preferences shift toward innovative and space-efficient products.
Section: Health Insurance
Section: Health
Section: News
Section: Arts
Section: Arts
Section: Politics
Section: Politics
Section: News
Section: Politics
Section: Health Insurance
Health Insurance in Germany is compulsory and sometimes complicated, not to mention expensive. As an expat, you are required to navigate this landscape within weeks of arriving, so check our FAQ on PKV. For our guide on resources and access to agents who can give you a competitive quote, try our PKV Cost comparison tool.
Germany is famous for its medical expertise and extensive number of hospitals and clinics. See this comprehensive directory of hospitals and clinics across the country, complete with links to their websites, addresses, contact info, and specializations/services.
Offene Wunde is a documentary theater piece about the attack at the Olympia Einkaufszentrum (OEZ) by Tunay Önder and Christine Umpfenbach. On July 22, 2016, a perpetrator motivated by racism killed nine young people from Munich: Armela, Can, Dijamant, Guiliano, Hüseyin, Roberto, Sabine, Selçuk,...
No comments yet. Be the first to comment!