Tuesday, October 19, 2010

China's flooring innovations increase

ANOTHER TRIP TO CHINA YIELDS NEW INSIGHT FOR FLOOR COVERING

A few years ago Thomas Baert, president of Chinafloors  and its brand Lamett USA told me “China has been the low cost producer but soon it will be the source of innovation.”  That was quite a statement considering in the 1990’s the country’s reputation was to partner with Westerners simply to access modern technology and information.  That, like so much else is changing remarkably fast in Chinese flooring.

I have visited China about twice a year since 1992 and every visit reveals something new.  I just returned from my most recent trip and can confirm that the metamorphosis continues. Just riding to the airport in Shanghai I saw more building cranes on skyscrapers under construction than probably exist in the whole US Midwest.

Only five years ago it was common to see hopeful workers standing every morning 50 deep for a job in a flooring plant. Today, manufacturers talk about the difficulty of finding good workers and the need for more automation as discussed in a Floor Covering Weekly (FCW) article, “China’s Double Edged Sword.

Rather than the low cost imitator that China was known to be, more and more we see advancements and product improvements in floor covering coming from China.  Ray Pina of FCW noted this in his article “China’s Vinyl Market Thrives on Innovation” but innovation is not limited to vinyl. In the last few years we have seen new products such as strand bamboo, high gloss laminate and click LVT coming from China.  These are not low cost category killers but rather products at the high end of the spectrum in each category that have been developed in China.

Sunyard faux wood grain created by pressing
Chinese LVT manufacturing leaders Novalis and Shanghai Jinka Flooring Technology are both working on new products that will inevitably show up in the USA under the brand names of their large American partners.  New designs, finishes, sizes, profiles and materials are all in development as sales of LVT continue to grow.

Competition Spurs Category’s Competition” gives an interesting overview of the current competition.  Referring to the boom in China’s domestic market, one manufacturer remarked that when LVT catches on there as it has in the US “a hundred domestic manufacturers will not be able to meet the LVT demand.”

On this trip I saw new products that reflect the country’s increasing focus on the environment and sustainability. For example, at Sunyard (Zhejiang Shiyou Timber Co.) I saw the latest version of direct printing of exotic wood patterns onto HDF and plywood with sustainable veneers.  They are also working on a process to compress fast growing softwood species to create harder, dent resistant wear surfaces and they are creating faux grains in wood using pressing techniques. 

In recognition of the increasing focus on the environment and innovation, the largest flooring show held in Asia, Domotex asia/CHINAFLOOR (DACF),  has incorporated the theme Innovation and Respect for Nature into its upcoming show (March 22-24, 2011) in Shanghai. DACF will ask its exhibitors to submit information about their most innovative products which will then be featured for the international press to review and write about.  Those of you planning to attend the show can contact me and I will direct you to those booths.

People who watched the Olympics’ opening ceremony in Beijing witnessed an example of China’s creativity, organization and ability to produce. That country first impacted the international flooring industry as a low cost provider but it is rapidly evolving with creativity of its own. According to my associate, Stuart Hirschhorn of Catalina Reports, Chinese flooring exports to the USA are up; no doubt in part because of their continued low prices, but to my point, it is increasingly because of innovation. He confirmed that US imports have changed from largely low priced goods to a much broader range that includes top of the line products.

It is interesting to watch these changes and important that we don’t underestimate what they mean to the industry. I'm happy to discuss this with you here on the blog ... just leave a comment, or feel free to contact me.

Jim

Jim Gould is President of the Floor Covering Institute

jgould@floorcoveringinstitute.com

6 comments:

  1. Jim, thanks for the great insight into the Chinese Floor Covering Industry. You make it plain that they are progressing rapidly and are increasingly important to understand. The industry is increasingly International. We will soon realize inovations from Eastern European countries as well. Clay Henderson

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  2. Dear Jim, great article, just back from China too, see tremendous changes, althugh it was not long ago I was there. Automation coming up, less labour, products from high end, even producing such products for European manufacturers, worry how the world market for flooring will look if demand in China will really take off. Best regards Ruud Steenvoorden

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  3. Ruud and Clay,
    Thanks for your comments. It is nice to see that others involved in the global market are seeing the same thing that I have observed. I agree that there are comparisons to be drawn between Asia and Eastern Europe. Both are underdeveloped with workers anxious to produce at low wages for export and eventually for their domestic markets. I have not seen a lot of innovation from Eastern Europe but will be looking for it at Domotex Germany in January.

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  4. Just riding to the airport in Shanghai I saw more building cranes on skyscrapers under construction than probably exist in the whole US Midwest.

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  5. That was quite a statement considering in the 1990’s the country’s reputation was to partner with Westerners simply to access modern technology and information.

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  6. Jim,I'm inspired by your article.China is a very good example of developing country.

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