DOMOTEX - Useful Expressions, Final Advice

Last minute details: the weather, useful expressions and advice for DOMOTEX 2010.

Jim, Katherine and I are excited about seeing you in a few days. We have several last minute details to share with you. Starting with airport security: plan for extra time.

The Weather in Hannover

Definitely be prepared for cold, wintery weather. Here is a link to the BBC weather website for Hannover so you can monitor what to expect. As you can see, it will be cold and mostly overcast.

Useful German and Flooring Expressions

Even if you are a Domotex travel-pro, it can't hurt to be reminded of a few German expressions. If there are others you would add to the list, let us know in the comments.

Customer service: Service or Information

Hello!: Guten Tag!
Good bye!: Auf Wiedersehen!

Thank you: Danke
You’re welcome: Bitte

Train station: Bahnhof or Hauptbahnhof
Where is the train station? Wo ist der Bahnhof?

Fairground: Messegelaende
How far is the fairground? Wie weit is the Messegelaende?
Which train goes to the fairground? Welche Bahn geht zum Messegelaende?

Entrance: Eingang
How do I get to the entrance? Wie komme ich zum Eingang?

Exit: Ausgang
How do I find the exit? Wie finde ich den Ausgang?

For other words and expressions, consider this online dictionary http://www.leo.org/ which includes an English to German search window.

As it relates to flooring, you'll notice different conventions for referring to product. This listing of flooring expressions will help you make sense of the differences.

Flooring Product Expressions

Carpet or rugs – Tapis, moquette [French terms]. The german word for carpet is Teppich, for wall-to-wall is Teppichboden (literally carpetfloor) or Teppichfliessen (carpet tile).

Wood – Parquet (pronounced parkett, not par kay); you might also say Holzboden for woodfloor.

Vinyl – PVC (not just tile but also sheet goods)

Nylon – Polyamide (PA)

Polypropylene – PP

Polyurethane finishes on flooring is called PU

Again, if there are others you suggest adding to the list, do let us know in the comments.

FloorDaily Interview with Rita Anticipates DOMOTEX 2010

If you haven't, you might also want to listen to this recent FloorDaily interview with Kemp Harr during which Rita Dommermuth Discusses Highlights and Weather Conditions for Domotex Germany.

It lasts approximately 8 minutes. The description reads:

"Rita Dommermuth, VP of Sales for Domotex, and Kemp Harr discuss the highlights for the world's largest global flooring expo which will be held in Hanover Germany from January 16 to 19. Listen to the interview to hear more details about the anticipated attendance, U.S. participation, Contract World, a bus tour of German retailers, and more about the weather forecast."

Advice For Getting Around Hannover

Donna Hyland suggests, when using a taxi, having the address of your destination written down to give to the taxi driver, although most speak English quite well. Germans are modest about their foreign language capabilities so if you ask if they speak English, they usually will say “just a little”.

It is generally a good idea to always have readily available your exact hotel phone number and address. After a full few days walking the show, navigating a foreign environment and being still jet lagged, it's nice to give your brain a break and simply pull out a piece of paper - or your cell phone/PDA - with your hotel information.

VIP North American Delegation

If you are a member of the VIP North American Delegation, Jim recommends that you meet him on Saturday morning, the opening day of Domotex, at the VIP Lounge area if you need help or direction. He will be checking email in the evening only.

Note that Domotex entrance tickets and other information will be sent out on 1/11/10. If you haven't received yours, please contact Rita, Katherine or Jim or all three.

Finally, if you need help of any kind, please don't hesitate to ask. You will find many staff members ready to help and answer your questions at DOMOTEX.

Bon Voyage! Katherine, Art, and Rita and Jim will see you very shortly in Germany.

~ Jim and Rita

Jim Gould, Floor Covering Institute
jgould@FloorCoveringInstitute.com

Rita Dommermuth, Hannover Fairs USA
rita@hfusa.com - Tel: 562-901-9191

Hannover Restaurants For Domotex Dining

Where To Dine In Hannover?

A question that frequently comes up at Domotex time is where to go for dinner in Hannover? I have my favorite and dine there every Domotex. But what about others? Hannover offers many excellent restaurants and a variety of cuisines: which to choose? I decided to survey my colleagues for their favorites. The result is this list of best Hannover Restaurants for Domotex Dining.

For all of these, I recommend calling ahead for a reservation. Also, not all take credit cards.

Best Hannover Restaurants for Domotex Dining

Kim Gavin, Floor Covering Weekly
Kim's favorite in Hannover is the highly rated Chinese/Asian restaurant - Arc En'Ciel. It is located Downtown near the train station and a two block walk from the Crowne Plaza Hotel. It is open Monday through Saturday and accepts credit cards.

Address: Königstraße 55, 30175 Hannover
Phone: 0511 313 857


David Wootton, The Wootton Group
David considers the best restaurant in Hannover to be Die Insel. He says it's quite expensive, but good and authentically German.

Rudolf-von-Bennigsen Ufer 81, D-30519 Hannover
Tel. +49 (0)511.83 12 14
n.schu@dieinsel.com


Rita Dommermuth, DOMOTEX
Rita recommends Pier 51. It's a restaurant with international cuisine and an exciting view. The restaurant has a unique, almost Mediterranean feel, with two-thirds of it directly overlooking the Maschsee lake. It is rated as one of Hannover's best restaurants and has received numerous awards. Garden or terrace, and beer garden.

Rudolf-von-Bennigsen-Ufer 51, 30173 Hannover
Phone +49 511 807 180-0
info@pier51.de


Monika Arnold, DOMOTEX
Monika recommends three restaurants:

Basil. The food is excellent and the atmosphere is very nice as you can see from the website (also in english).

Address: Dragonerstraße 30, 30163 Hannover, Germany
Phone: 0511 622-636

If you are looking for a bavarian restaurant, the Bavarium and the Paulaner are really traditional restaurants in that style from the northern part of Germany. Unfortunately the websites are only in German.

Bavarium Address: Windmühlenstraße 3, 30159 Hannover
Bavarium Phone: 0511 323600

Paulaner Address: Prinzenstraße 1, 30159 Hannover
Paulener Phone: 0511 3681285


And, last, but certainly NOT least, mine!

My favorite is the Altedeutsche Bierstube. It is a great cozy, little, traditional German food restaurant. Their unique schweinhoch (pig’s knuckle) served with its crispy skin, mashed potatoes and sauerkraut is a meal I dream about all year long. I’m looking forward to enjoying another great dinner there this year. It is is only open Monday through Saturday [i.e., closed Sunday]. Also, they do NOT take credit cards.

Address: Kobelingerstrasse 1, 30159, Hannover,
Phone: 511 344 921

If you have favorite Hannover restaurants you've enjoyed while at Domotex, let us know in the comments. And, if you go to any of these restaurants, let us know what you enjoyed most.

Safe travels and see you shortly at DOMOTEX!

~ Jim

Jim Gould, Floor Covering Institute
jgould@FloorCoveringInstitute.com

Meet Katherine León, Director of Sales, DOMOTEX

Katherine León Joins DOMOTEX in 2010

Happy New Year 2010!

From all of us at Hannover Fairs USA, we would like to wish you a very happy and prosperous New Year 2010!

DOMOTEX 2010 is just around the corner and should you have any last minute questions prior to the show, please contact the Long Beach office at 562-901-9191 or e-mail me at rita@hfusa.com.

DOMOTEX News: Katherine León

We also have some news: a new director of sales.

Katherine León has joined Hannover Fairs USA in the New Year as Director of Sales for the Domotex team.

From this point on, my role at Hannover Fairs USA will be focused full-time on several other events organized by Deutsche Messe AG, including Hannover Messe and CeMAT in Hannover along with their respective worldwide events. These shows are industrial technology B2B events supporting all facets of manufacturing (Hannover Messe) and material handling & logistics (CeMAT).

I know you will enjoy Katherine. Prior to joining the Hannover Fairs USA team, Katherine was the Sales Manager for Messe Frankfurt USA where she led sales and marketing efforts in the domestic textile division. With a decade of trade show and conference experience, she has managed and produced meetings and events of all sizes in the B2B sector.

Katherine graduated from Syracuse University and currently resides in Atlanta, GA where she enjoys running and volunteering in her neighborhood association.

Katherine will be at DOMOTEX assisting U.S. exhibitors. After the show she can be reached in her Atlanta office, 404-326-9921, or via email at kleon@hfusa.com.

Katherine and I both look forward to seeing you in Hannover for DOMOTEX 2010!

Safe travels.

~ Rita

Rita Dommermuth, Hannover Fairs USA
rita@hfusa.com - Tel: 562-901-9191

International Trade & Importing Advice For Flooring

How Much Do You Know About Flooring, International Trade & Importing?

DOMOTEX: A Source of Invaluable Flooring Insights for Importing & International Trade

International trade can be extremely profitable or a very expensive lesson depending on how well you understand the importing process and prepare for it - especially in flooring. I've learned many lessons during my floor covering career; some confirmed expectations and others led to surprises -- expensive surprises -- having to do with not knowing enough about importing. As Yogi Berra said, “You don’t know what you don’t know” and, if I had, I might have saved a lot of money! For example, I wish I had known why gross profit margins were higher in ceramic than in other flooring categories before making the investments I did. That was an example of not understanding how freight costs ate away profits every time I moved ceramic. On the other hand, I won when I gambled on a new category called laminate back in the early 1990s. That's when I found Pergo at Domotex and was the first person to import it and then distribute it nationally in the U.S.

The long and the short of flooring, international trade and importing is caution for the inexperienced. As we like to say in America, “there may be gold in those hills” but it can be a dangerous road getting there without knowledge or experience.

And, that's where Domotex is invaluable!

I was reminded of this earlier today while speaking with a man who had recently invested in a wood flooring factory in Eastern Europe. He is using Domotex Hannover as the fastest and most economical way to get a perspective on the international market, see products, trends and meet with manufacturers and buyers from around the world. This is something that everyone contemplating international business must do. Domotex is an invaluable tool for anyone looking outside of their borders for opportunity. But once you decide to take the leap into international waters there is a lot to learn!

As easy as it seems to match up two parties when one is saying “I want to sell” and the other “I want to buy,” I've learned not to underestimate the complexity of the international market. More specifically, there are two high level phases associated with bringing product into the U.S. The first involves procureing, shipping, clearing customs and getting it to its final destination. The second is the process of sales, logistics and distribution to customers.

If you are coming to Domotex to find product to import and you are not an experienced importer there are many things you need to consider. Here are a few:

• Are your Commercial Invoice (a required document) and Purchase Order in agreement and do they specify both the terms of your transaction and the product?

• Does your paperwork conform with U.S. regulatory requirements?

• Are packaging, marking, and regulatory requirements specified and met?

• What constitutes full performance by your supplier and how have you documented it?

• Is your product correctly classified under the HTS codes so that you know what your tariff will be upon entry to the U.S.?

• What is your recourse if shipments are delayed or products turn out to be non-conforming?

• Are there cultural or customary business differences between you and your supplier that you need to be aware of to avoid misunderstandings?

• How will you handle currency fluctuations?

• Have you chosen the right payment and financing vehicles for the transaction? Letters of Credit afford protection against non performing suppliers but only if they are structured properly and are in agreement with performance requirements in your Commercial Invoice.

• When do you want title and risk to pass to you? There are several choices: FAS, FOB, CIF, for example, and each one means title passes at a different point and you become responsible for loss and insurance at a different point.

• Do you know every cost of importing that affects your gross profit margin? Example: procurement, inspections, ground transportation, marine transportation, insurance, tariffs, customs fees (both departure and entry), brokers fees, etc.

• Do you understand the roles of main players along the way: freight forwarder and customs brokers and know how and where to hire them?

• Have you followed tips for packaging and loading that reduce breakage and help expedite your shipment through customs?

• Do you understand the process of “gaining entry” at customs and what is required of the importer of record at this point?

Surfaces 2010: International Trade Expert Panel

Although it takes place a few weeks after DOMOTEX, Surfaces 2010 offers an opportunity to learn about international trade and importing flooring products. More specifically, I will moderate a panel of international trade experts as we discuss the potential pitfalls to be avoided when importing. It will cover important requirements for foreign manufacturers wishing to export to the U.S. as well as for American buyers wanting to procure product abroad.

We will answer some important questions but more importantly show you how you can avoid situations such as:

“What recourse do I have with a supplier that is 8,000 miles away and has already exercised my Letter of Credit but his product does not meet my expectations?”

The quick answer to this is that protection has to be put in place in advance. Product quality expectations must be clearly detailed in the purchase order. Conditions must be placed in the Letter of Credit that restricts release of funds until after the goods are inspected and determined to conform. And, a plan for dispute resolution has to be agreed upon before orders are placed.

“When does title and risk pass to me?

This depends upon which international terms you choose, for example, FAS, FOB, or CIF. Title and risk can pass at various stages along the importing route, depending upon how you structure the deal.

For more information about the seminar, read Find Out What You Don't Know About Importing Before the Ship Sails.

Floor covering is a global industry and opportunity abounds for aggressive entrepreneurs importing or exporting. Just be prepared!

I'd love to hear about your experiences and what you have found most beneficial in achieving success with flooring, international trade and importing.

Thanks, and I look forward to seeing you at DOMOTEX as well as Surfaces.

Jim

jgould@FloorCoveringInstitute.com

DOMOTEX Hotel Service

DOMOTEX Hannover Web-based Hotel Service Offers Valuable Travel Resources

Have you checked out the new DOMOTEX HotelService resources? It's an ideal resource for searching on the hotels available in the Hannover area. You can do so based on star [i.e., 'sterne'] ratings, location as well as price.

The site also offers links to many other resources about Hannover, Germany.

The HotelService site is accessible from the home page of the official Domotex Hannover site via an eye-catching red box [see below] or by going directly to the HotelService site.

In case you are at a different stage of planning for your trip to Hannover, listed below are contacts from the DOMOTEX HotelService. They can answer your specific questions and help make your stay in Hannover that much more enjoyable and productive.

Contact persons at HotelService Hannover Marketing und Tourismus GmbH

Accommodation service

Placement of hotel rooms in Hannover and the Hannover Region
Public hotlines:
Tel.: +49 (0) 511 – 12345 – 555
Fax: +49 (0) 511 – 12345 – 556
Email: hotels@hannover‐tourismus.de
Contact person: Mr. Benjamin Wirtz Tel.: +49 (0) 511 – 16849792

Tourist information service

General information on Hannover, HannoverCard, information material
Public hotlines:
Tel.: +49 (0) 511 – 12345 – 111
Fax: +49 (0) 511 – 12345 – 112
Email: info@hannover‐tourismus.de
Contact person: Ms Gönül Tut Tel.: +49 (0) 511 – 16849731

Ticket service

Information and tickets for trade fairs and events of any kind in Hannover
Public hotlines:
Tel.: +49 (0) 511 – 12345 – 222
Fax: +49 (0) 511 – 12345 – 112
Email: tickets@hannover‐tourismus.de
Contact person: Ms Azadeh Joze‐Delshadian Tel.: +49 (0) 511 – 16849721

Transfer services, assistances and travel escorts

Transfers of any kind, placement of coaches, placement of assistances and travel
escorts also in foreign languages
Public hotlines:
Tel.: +49 (0) 511 – 12345 – 333
Fax: +49 (0) 511 – 12345 – 334
Email: staedtereise@hannover‐tourismus.de
Contact person: Ms Nadine Riegel Tel.: +49 (0) 511 – 16849734

City tours

Organisation of city tours and guided city walks
Public hotlines:
Tel.: +49 (0) 511 – 12345 – 333
Fax: +49 (0) 511 – 12345 – 334
Email: staedtereise@hannover‐tourismus.de
Contact person: Ms Nadine Riegel Tel.: +49 (0) 511 – 16849734

Accompanying programmes

Accompanying tourist programmes in Hannover and the Hannover Region
Public hotlines:
Tel.: +49 (0) 511 – 12345 – 333
Fax: +49 (0) 511 – 12345 – 334
Email: staedtereise@hannover‐tourismus.de
Contact person: Ms Nadine Riegel Tel.: +49 (0) 511 – 12345 – 333

Congress– and incentives service

Organisation of events und incentives during trade fairs
Email: info@hannoverkongress.de
Public contact person: Ms Britta Garvens Tel.: +49 (0) 511 – 16845313, Fax: +49 (0) 511 – 16845314

NOTE: You may also want to refer to Jim's post about Domotex First Time Travel Tips.

As always, if you have any questions, please don't hesitate to contact me. See you in Hannover!

~ Rita

Rita Dommermuth, Hannover Fairs USA
rita@hfusa.com - Tel: 562-901-9191

Hannover Holiday Traditions

Holiday Traditions in Hannover & Germany Anticipate DOMOTEX 2010!

Season's Greetings and Happy Holidays! Donna Hyland, who wrote about Navajo Textile Weavers demonstrating their rug art at Domotex, shares a few holiday traditions famous in Germany and Hannover. We hope they get you in the mood for the Holiday Season as well as for DOMOTEX 2010!

----------------

In German families, for about two weeks before Christmas the room where the tree will be (and usually the focus of the house for holiday celebration) is locked so children can not enter. As German homes have a lot of interior doors (actually for heat conservation as well as for privacy), it’s common to have to go through a doorway into the kitchen, living room, dining room, etc.

In that room is where all the preparations for Christmas are going on; the parents put up the tree and decorate it. There is usually a glass pickle hidden on the tree; the first child to find it receives a small extra gift. On Christmas Eve, a festive dinner is prepared and the door is ceremoniously unlocked/opened for the sparkling lights and ornaments to be observed. Afterwards the children are hurried off to bed to sleep in anticipation of the arrival during the night of Saint Nicholas and his gifts.

Beginning around the first week of December, another wonderful Christmas tradition takes place in towns all over Germany known as Kris Kringle Markt, all festively lighted and well attended at night. At the Christmas market you’ll find beautiful glass and wooden ornaments, wax angels (most famous from Nuremburg), fancy candies, food specialties and very nice hand made wooden toys, especially marionettes and hand puppets. The famed nut crackers represented in all kinds of characters are made near Hannover; visitors can take a tour.

Hannover is known for its cookies (Bahlsen world headquarters are in Hannover). Everyone simply must try the gingered cookies, pfefferneuse, and chocolate rolled wafers, these are spectacular and come in standard packaging as well as tins. Special Christmas production emphasizes the holiday. In the 1990s, when I first started going to Domotex, I would bring home a box full of different Bahlsen cookies, purchased at the factory. Then one year I realized the cookies could be bought at the Shop-Rite in my own New Jersey town!

Beginning the first week of January you will encounter the very fragrant remains of cut trees mounded for recycling at the street squares where subway stops are located. Of all the times I’ve gone to Hannover (54 to be exact but that’s for other exhibitions as well), the pine smell is a fond remembrance of Domotex time.

Makes me want to jump right on that plane and head to Germany today! Not too long now for DOMOTEX 2010!

------------

Thank you, Donna!

From all of us at DOMOTEX, we wish you very Happy Holidays, Frohe Weihnatchten, and best wishes for 2010!

We also can't wait to see you in Hannover for DOMOTEX 2010.

~ Rita

Rita Dommermuth, Hannover Fairs USA
rita@hfusa.com - Tel: 562-901-9191

AFA's Wanda Ellis Urges Going Global At DOMOTEX

Meet Wanda Ellis, Executive Director of the American Floorcovering Alliance (AFA)

Why AFA Considers Going Global and DOMOTEX So Important To The Floor Covering Industry.

Dear DOMOTEX blog readers,

It is my pleasure to introduce Wanda Ellis, executive director of the American Floorcovering Alliance (AFA).

For those who do not already know her, Wanda has organized an AFA Pavilion at DOMOTEX for quite a few years and, before that, she contributed to the USA Pavilion. Wanda has made sure that the participating AFA members and especially those located in Georgia have fully benefited from the international sales platform that DOMOTEX can offer and has coordinated her activities closely with the State of Georgia, another strong supporter of the industry.

Wanda has taken her members to Hannover, Shanghai and Dubai. The Domotex staff here in the US and in Hannover appreciate her dedication and hard work. She is a strong believer in creating worldwide sales opportunities for her members.

We would also like to congratulate the AFA on its 30th year and look forward to welcoming the AFA members at DOMOTEX 2010!

Here is Wanda on some of her experiences.

--------------------------

This year, AFA is celebrating its 30th anniversary, with a members’ reunion mixer. AFA (or CMMA back then) was started in 1979 by mid-sized carpet manufacturers for the purpose of bringing dealers/distributors to town to sell products. After all, Dalton was known as the “Carpet Capital”.

Not being around during that era, I missed out of cleaning out the local Holiday Inn guest rooms to make room for the carpet samples. I have to rely on tales told by the founder members that were involved! But, the stories abound about the markets back in the good ole days at the Holiday Inn. They all say those were the times when shows were fun and they made money. Certainly, life was a bit easier. I will enjoy talking to some of the manufacturers at our reunion party to learn more.

With consolidation, mergers, & acquisitions, CMMA had to undergo some changes. No longer could the regional markets survive. In 1991, CMMA became DFCMA (Dalton Floor Covering Market Association) to keep pace with the industry changes.

By 1997, it was apparent that DFCMA had to go global. So, in 1998, I teamed up with the State of Georgia to develop international export programs for mid-sized mills. Our first venture was Domotex in Hannover. Thinking that we could take some sample books, meet customers, and bring back orders was naïve at best. After the first year, I realized that there had to be a long term commitment from our association, as well as the mills, in order to make it worthwhile.

This started what I term to be one of the most important programs for AFA & our industry. Being located in the Domotex USA Pavilion in the beginning, we were able to help our exhibitors have a presence at one of the most important international marketplaces in the world.

Year after year, we gradually developed a network of customers from around the world, looking to buy USA goods. At the same time, we were building a strong support system for our group of exporters. We wanted to make it as easy as possible to help a company go global. Everything but samples are provided for our exhibitors to simplify the process.

Now, more than ever, it is crucial that any manufacturer look to cost effective ways to develop business in new markets. With the US market down, new emerging markets overseas is the next place to look.

2010 will be an extremely difficult time for any US manufacturer to hold steady with what production base they have been able to maintain over the last 18 months. Hopefully, by taking a small stand with AFA at Domotex, more will survive until our economic situation takes an upward turn.

Look for us at DOMOTEX 2010 in Hall 5, Stand B29. We have 12 AFA members (45 people) exhibiting in our Pavilion and an additional 5 non-exhibiting members visiting Domotex with us. On hand to assist are representatives from the Georgia Economic Development - Alice Carson from Atlanta, Nils Gerber from the Germany office, and an interpreter/hostess.

See you in Hannover!

----------------------------

Thank you, Wanda!

Wanda Ellis has been with the American Floorcovering Alliance since 1993. In addition to her role as executive director, where she handles marketing, membership programs, press releases, meetings, trade shows, and financials for the AFA, Wanda serves on the North Georgia Export Council ETAC Committee and is a prior board member of the American Red Cross, Big Brothers/Big Sisters, and Georgia Sheriff’s Home for Girls.

If you have questions for Wanda or me, please don't hesitate to ask. See you at DOMOTEX 2010!

~ Rita

Rita Dommermuth, Hannover Fairs USA
rita@hfusa.com - Tel: 562-901-9191

Anticipating DOMOTEX: Russia Opportunities

Continuing on with our series about anticipating DOMOTEX 2010 and the opportunities for flooring, here is a report on Russia that Catherine Meyer from the U.S. Commercial Service shares with us courtesy of her colleague Valeria Khalina.

As Catherine explains, Russia is an interesting market because many DIY stores are opening there (10 in the 1st half of 2009 and another 214 are in planning) as well as in Poland (24 in 1st half of 2009 and 11 in planning).

Furthermore, German and French DIY companies are expanding into Eastern Europe.

According to statistics, many DIYs are being planned for Romania. Unfortunately, this report is only in German, but if you have an interest, let us know and Catherine can bring some information to Domotex.

If you are interesting in DIYs, be sure to contact Jim Gould know so you can take part in the German DIY tour he is organizing for North American VIP Delegates.

Opportunities in Russia

(Note: a full length report will be available to U.S. firms at Domotex)

The market for building products was actively developing until the fall of 2008, growing at an average of 20-25% per year, when the global financial crisis arrived in the Russian market. One of the industries that was heavily impacted by the crisis was the construction industry. The market for building products is very dependent on the overall construction activity in the country. Therefore, when there was a drop in the rate of construction, the demand for building products and materials dropped as well, causing the building products market to stagnate. Experts predict the market for building products to resume its growth in 2011.

Floor coverings

In this industry segment before the financial crisis, experts were forecasting steady growth. The most popular product in this segment is linoleum. It accounted for 61.4% of the market in 2008. The total market volume in 2008 was 272. 8 million square meters out which 128.6 million square meters was produced locally and 161.5 square meters was imported. The local Russian market is heavily dominated by a German company called Tarkett, which has a production facility in Samara. They manufacture 80% of all linoleum sold in Russia. In 2009, it is expected that the market volume will considerably decrease given the continuing financial situation.

The other popular product that is used for floors is ceramic tiles (22.5% of the market). The total market volume in 2008 was 102 million square meters out which 73.8 square meters was produced locally and 34.6 square meters was imported. There are about 25 main local manufacturers of ceramic tiles in Russia. Experts also predict the decrease in market volume in this segment in 2009.

During recent years, laminate has become popular among Russian consumers (11.2% of the market). This segment was one of the most promising as its growth rate during the past several years was 40-50% per year. At the moment, imports of this product are higher than exports; however, experts predict that in a couple of years the market share of local manufacturers will reach 65% because of foreign manufacturers such as Kronospan and Swiss Krono Group. Both companies have production facilities in Russia.

Parquet is also becoming more popular in Russia (2% of the market). The total market volume in 2008 was 7.3 million square meters out of which 6.5 square meters was produced locally and 2.0 square meters was imported. Experts predict a small increase in 2009 market volume. Even though parquet boards are cheaper than piece parquet, its market share is only 30%. Before 2004, the main suppliers of parquet boards were foreign companies (65%). Over time, Russian manufacturers have become more aggressive and today they account for about 60% of the parquet board market. In the piece parquet segment, the Russian manufactures are dominating; however, imports are growing. In 2000, imported products took 5% of the market and in 2007 – 20%. This is related to the fact that floors made out of exotic woods are very popular among Russian consumers.

Other products (3% of the total market) such as synthetic carpet, carpet (from such natural fibers as wool), cork floors, etc. are also growing their presence in the Russian market, but at the moment are not as popular among consumers.

Best Prospects

Best prospects include parquet (especially from exotic woods), laminates and other flooring products that are not actively present in the Russian market. U.S. companies need to create an aggressive marketing campaign and introduce those products to the Russian consumer.

Potential Barriers

• Language: most communication is done in Russian.
• Distance from the United States
• Tough competition from European and Asian companies
• Possibility of corruption and bureaucracy in many areas of business
• Certification issues
• 18 % VAT plus high import taxes (vary from 15 to 20%)

For more information about doing business in Russia, please contact:
The U.S. Commercial Service, Moscow, Russia, via email at: Valeria.Khalina@mail.doc.gov.

Or, visit our website: http://www.buyusa.gov/russia/en/

The U.S. Commercial Service — Your Global Business Partner

With its network of offices across the United States and in more than 80 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://www.export.gov/eac.

Disclaimer: The information provided in this report is intended to be of assistance to U.S. exporters. While we make every effort to ensure its accuracy, neither the United States government nor any of its employees make any representation as to the accuracy or completeness of information in this or any other United States government document. Readers are advised to independently verify any information prior to reliance thereon. The information provided in this report does not constitute legal advice. The Commercial Service reference to or inclusion of material by a non-U.S. Government entity in this document is for informational purposes only and does not constitute an endorsement by the Commercial Service of the entity, its materials, or its products or services

International copyright, U.S. Department of Commerce, 2009. All rights reserved outside of the United States.

Thank you, Catherine, for this report!

As it relates to DOMOTEX, the U.S. Commercial Service in Frankfurt is your contact for export assistance. Although each country has a trade specialist, the Frankfurt office - and Catherine Mayer - coordinates those offices. Catherine Mayer will be at DOMOTEX 2010 and scheduling meetings with American visitors and foreign buyers to promote the sale of American made products.

If you are attending DOMOTEX and want to benefit from the services provided by the US Department of Commerce, Commercial Services Division, please be sure to contact Catherine Mayer, Jim Gould or me to schedule an appointment. US DOC services include market research, introductions to foreign markets and guidance on how to do business in any specific foreign country.

~ Rita

Rita Dommermuth, Hannover Fairs USA
rita@hfusa.com - Tel: 562-901-9191


Technorati Tags: BuyUSA Russia export opportunities Russia flooring opportunities US commercial service Domotex 2010 department of commerce foreign trade support Valeria Khalina