1. Topics An overview of MFI The furniture marketplace
MFI’s product offer
Sourcing from Asia
Opportunities
MFI’s product offer is constantly updated, and style trends are very different from the USA. In this section I would like to show you some product shots to demonstrate this.

2. MFI fitted kitchens flat pack carcase lower/mid price range
rigid carcase
mid/upper market pricing
appliances
Moving on to look at the sorts of products which are successful in the UK market:
Hygena kitchens offers smart solution to kitchen renewal. The flat pack carcase means they can be priced competitively, and the styling interprets trends in an affordable way.

3. Valencia
Only a year old, Valencia is the most popular kitchen range. Its contemporary styling has wide appeal in the UK market.

4. Rimini
Rimini is one of the best selling Hygena ranges. It reflects the style of the Schreiber Valencia range, but in a more economical format.

5. Hudson
Hudson is brand new to the Hygena range.

6. Tuscany
Like the Hudson Hygena range, Tuscany is part of the latest set of new products to be introduced.

7. Appliances: cook centre in Tribeca
Many up-to-date appliance manufacturers have been developing stainless steel appliances, to give kitchens a professional look. The new Tribeca range features stainless steel appliance surrounds, and stainless steel drawer cabinets, to integrate the new-look appliances.
MFI’s approach to selling appliances is to offer both exclusive brands, and brands of international renown. For the last 18 months we have been selling Bosch and Smeg appliances very successfully.
The white Tribeca doors are made of high gloss PVC laminate, a material which has taken the UK market by storm in the last year or two.

8. MFI bedrooms flat pack low/mid price range adult and kids
mid/upper pricing
adult
We used to develop separate ranges for fitted or freestanding bedroom furniture. Whilst this is still the case for some products, increasingly one style will be developed in both formats.
As in kitchens, Hygena and Schreiber ranges target different parts of the market. Because of the greater bulk of bedroom furniture, and the difficulty of access to many bedrooms, all furniture in this category is based on a flat- pack carcase

9. Genoa
Genoa, a distinctive blue style, is our biggest volume bedroom range, launched some 18 months ago. It is typically used in childrens’ rooms.

10. Fjorden
The recently launched Fjorden has a cool sophistication, and is proving very popular

11. Loire
Schreiber Loire is one of the few recent launches featuring a darker wood.

12. Boston
Boston, with its mirrored doors, is about to be launched

13. MFI ‘centre floor’ Beds
MFI describes products other than bedrooms and kitchens as ‘centre floor’ simply because that is where they are displayed in store.
We have a very wide range of beds, many of them branded.

14. Beds: Ocean However, we are developing our own products in this area.
Ocean, a stylish metal bedstead, was jointly developed with our Taiwanese partners, and is typical of our transition towards European styling.

15. MFI ‘centre floor’ Beds Home office
Home office is a fast-growing market, and naturally sells particularly well online.

16. Home Office: Aquarius
Aquarius is an example of a full-scale home office product, elegant but functional. There is little place for old-fashioned heavy desks in the UK home of today.

17. Home Office: Cosmos and Akira
One of the most popular types of home office furniture is the compact workstation, which can be sited in the kitchen, living room, or kid’s bedroom.

18. MFI ‘centre floor’ Beds Home office Dining Shelving/storage
Living room furniture, in the shape of dining tables and shelving/storage, is, like home office, almost exclusively made for us by third parties.

19. Dining plus: Lyon
Here again, the emphasis is on a contemporary look. Details like the metal feet on the cupboard are important for our customers.

20. Dining plus: Barcelona
Barcelona is another example of a modern range, and one which has a number of options, allowing customers flexibility in designing their living space, while being able to achieve a co-ordinated ‘look’.

21. The Importance of NPD Product lifecycles are shortening
14 new kitchen ranges introduced in last 12 months
They account for 43% of sales
6 feature in the top 10 ranges and they account for 30% of sales
To conclude this section on product, I would like to re-iterate the importance of new product development to our business. It truly is the lifeblood of our business.
We are heavily reliant on new ideas to maintain our sales and profitability, and customers are demanding new and interesting products to stimulate purchase.

22. Topics An overview of MFI The furniture marketplace
MFI’s product offer
Sourcing from Asia
Opportunities
We have experience of sourcing from Asia, and in particular from Taiwan. I’d like to share with you what it is we look for in our trading partners.

23. Sourcing from Taiwan: a UK perspective
Heritage of furniture production
Strong production and marketing management
Regional production capabilities
Existing strengths
From our viewpoint, Taiwan has a number of advantages as a source of product:
There is long experience of furniture production - many companies have been operating for 20 years or more. This confers a significant advantage compared with emerging producers.
This experience has produced good management capabilities, giving us a confidence in our working relationships.
And because many companies have now expanded to set up production sites in other Asian countries, we and they can benefit from competitive labour costs, access to raw materials, and local government incentives.

24. Sourcing from Taiwan: a UK perspective
UK or European-based admin/marketing office
UK or European-based warehousing
Additional benefits
In selecting partners, we know that the existence of a local marketing office makes working together far easier.
UK or European warehousing addresses the one permanent logistical problem; the transit times involved in supply.
The delivery time expected by the UK customer is continually shortening, and we must match their needs to stay competitive.

25. Skills of preferred partners (1)
Competitive pricing
Short lead times
Accurate delivery quotes
Good communication skills
Commercial
In thinking about what it is that differentiates our preferred partners from others, I came up with two skill sets.
The first are broadly commercial, and relate to pricing, logistics, and communication.
Competitive pricing is clearly the essential basis of an enduring relationship.
I have already mentioned the need to find ways of ensuring reliable supply
Communication is not just a question of language, but also of a willingness to be open, and to help us ensure that all issues have been discussed and resolved before they might become a problem.

26. Skills of preferred partners (2)
Recognise lower volume/higher price opportunities
Fast product development from specification drawings or samples
Good quality assurance
Product focussed
The second set of skills relate to my recurring theme - the importance of product design and development.
Our business future is based not on high volume lines of low quality, but on products which our customers recognise as being ‘leading edge’ design’.
To achieve this, our partners need to be proactive in product development, and adept at all stages from concept through prototyping to production.

27. Topics An overview of MFI The furniture marketplace
MFI’s product offer
Sourcing from Asia
Opportunities
To finish, I will outline where we see the biggest opportunities for co- operation between MFI and Taiwanese companies.

28. Opportunities to supply the UK market
Understand and capitalise on market trends (development of contemporary designs)
Invest in production of new style products
Respond to market-driven speed and reliability of delivery
Use experience and financial strength to maintain reputation for best price and quality
In summary I would characterise the opportunity in the UK market as coming from an understanding of the trends which are driving sales. These are both design trends, and service factors such as required delivery standards.
In Taiwan these factors can be based on your extensive knowledge of this industry, to ensure excellent prices and quality, and thus an overall package which makes ROC companies highly competitive.

29. MFI looks forward to a growing partnership with ROC suppliers Thank you
I hope that together our businesses will continue to prosper.
Thank you.