Milan Furniture Fair

Large projects, over 68 billion market protagonist at the Show

New contract space launched, to be officially opened next year. Porro: "A boost for Italian companies"

by Giovanna Mancini

3' min read

Translated by AI
Versione italiana

3' min read

Translated by AI
Versione italiana

A potentially huge market, estimated at around EUR 68 billion, but set to exceed EUR 110 billion in the next decade, according to forecasts by Global Market Insight.

The 'furniture contract' segment (a term that takes on several meanings, but which we use here as a synonym for large, prestigious projects) represents a great opportunity for Italian furniture companies and is in fact the one that has grown the most in the last two years, effectively supporting the development of the Italian furniture industry in a phase that has seen, conversely, a slowdown in retail sales.

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This is confirmed by what is happening in the Gulf countries where, even after the outbreak of the war in Iran, major real estate projects have not come to a halt and, as a result, orders for furniture companies are continuing to come in, while sales in shops (particularly in the areas closest to the conflict) are slowing down further.

It is therefore no surprise that the Salone del Mobile - which has always been an interpreter of the market's main evolutions and a tool for accompanying companies to seize its opportunities - has decided to dedicate an exhibition space to this world, entrusting the OMA studio of Rem Koolhaas and David Gianotten with the design of the new Salone Contract that will debut in 2027, but which already saw its first launch yesterday at the trade fair underway in Rho until Sunday, with a Forum in which companies and operators discussed the opportunities and distinctive features of this sector and during which the masterplan of the new event was presented.

Opportunities for evolution and growth

"Contract is today one of the segments where the most significant transformations are concentrated, from an industrial, operational and market point of view," recalled Maria Porro, President of the Salone del Mobile. "The world of design and furniture is changing a lot and the way furniture is distributed is also changing," she added.

According to a study by Csil, contract furniture in Europe represents a market of over 13.5 billion euro of production, with consumption of around 11 billion euro. Contract production remains largely concentrated in Europe, while less than 20% of output is destined for projects outside Europe, mainly in North America, the Middle East and Asia-Pacific. The United Kingdom, Italia, Germany, Poland and Sweden, which together account for over 60% of total European production, confirm the continent's role as a production and design hub with global projection.

We are witnessing a shift in customers' interest 'from the objects themselves to the design of an environment as a whole. The focus of companies is therefore shifting from the production of individual pieces to the design of systems, from the moment of sale to a long-term commitment to all players who will use a given ecosystem,' explained David Gianotten, architect and managing partner of OMA.

Target sectors

Doing contract, therefore, means for a company to work with a completely different approach compared to the way the retail market is approached. Ad hoc" divisions need to be created internally, with dedicated teams of people able to address different interlocutors than the traditional "consumer" customers (developers, architects, interior designers, etc.) and to respond to the specific needs of this distribution channel, both technical (certifications, standards, etc.) and service-related (customised solutions, design flexibility, etc.). This is precisely what many Italian furniture brands are doing, which in recent years have increasingly invested to increase the contract channel's share of total sales. Many companies, for example, have expanded their product and service range (either by creating it in-house or by acquiring other already specialised companies) in order to be able to offer the market complete solutions. At the same time, the way in which shops and showrooms are conceived has also changed. In addition to maintaining their traditional retail function, they have progressively evolved into spaces for design, meeting and discussion with market specifiers.

A platform to support businesses

The Salone Contract was created precisely with the aim of accompanying, advising and supporting companies in this transformation - and not only smaller companies or those who have not yet tackled the large project sector, but also those already established in this field.

Also because, as Porro reminds us, "the word contract encompasses a world": in the furniture industry it indicates activities that are also very different from each other, from the supply of products or elements in large quantities for large projects and public spaces (offices, hotels, residences, theatres, airports, hospitals, conference centres, etc.) to customised and turnkey systems for small to medium-sized prestigious projects, such as villas or luxury yachts. Italian companies are especially competitive in this second area, which requires special and complex expertise in design and production, but also in order management.

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