Short Title:
Finding buyers in the European timber sector
Sector:
Timber and Timber Products
Reading time:
16
Updated at:
Wednesday, April 20, 2016
Document name:
Finding buyers in the European timber sector (2016)
Intro:
This CBI Finding Buyers document answers the question: How can I find European buyers for my timber product? It provides you with ten concrete tips about how to find the buyers you are looking for, but it does not guarantee business success after finding potential buyers, you still need to offer the right quality at the right price, to the right buyer and in a professional manner.
Content study:
Title:
Do your own market research
Body:
The first step in accessing the market is always thorough market research. Start by identifying which European countries offer the best opportunities. Realise that there is a difference between EU countries with regard to the quality levels, pricing, design and timber species demanded.
After selecting the country, identify the channels you should use to sell your product. Think about matching your delivery capacity with the buyer’s scale of operations, and find a buyer who imports the type of product (and the level of added value) you are selling. You would be well advised to do this matching yourself instead of leaving it to an agency, as you know the ins and outs of your product in detail.
Read the CBI studies about the opportunities in specific European timber market segments, such as Certified Tropical Timber in the EU, Garden Furniture in the UK, Decking in the EU, and others.
To find out what kind of buyers you should target in your market segment, you should also consult the CBI study on channels and segments in the timber sector.
Title:
Check the websites of sector associations
Body:
Almost all importers in the timber sector are member of a sectoral association. These associations often publish membership lists on their website. Studying these lists can help you pinpoint potential clients. Check the website of the sectoral association in a country or segment that might offer opportunities for you. The most important timber sector associations are:
Europe in general
European Timber Trade Association (ETTF). The ETTF represents national timber trade federations in Europe (listed on their website) and can be a starting point for further research.
The Timber Trade Action Plan for Good Governance in Tropical Forestry (TTAP). This project concentrates on the eradication of illegal tropical timber from the supply chains of the above-mentioned timber trade federations. Check the members of TTAP.
Association Technique Internationale des Bois Tropicaux (ATIBT). The ATIBT focuses on the promotion and study of tropical timber. It has an international list of members.
European Federation of the Parquet Industry (FEP). FEP brings together national parquet federations within the EU, but also individual parquet manufacturers and suppliers to the industry. It currently has over 70 members. The website provides a membership list.
The European Furniture Manufacturers Federation (UEA). The main role of this federation is to act as the voice of the furniture manufacturing industry in Europe. UEA has 23 members that are national associations of furniture manufacturers. Study the membership lists of these national organisations to find the actual importers, who might be potential buyers of your timber or timber products.
Belgium
The Belgian Timber Importers Federation (BTIF). The BTIF has about 50 member in Belgium (including both importers and agents). Its website lists 20 tropical hardwood importers.
Union Nationale des Entreprises du Bois (UNEBO)/ Nationale Unie Houtsector (NUHOS). Represents the Belgian timber merchants sector, including wholesalers and retailers. It has some 250 members. The website has a search option, but is only available in Dutch and French.
France
Le Commerce du Bois (LCB) is an association representing French companies in the timber trade industry. A list of all 153 members can be found on the LCB website.
Fédération du Négoce de Bois et des Matériaux de Construction / French Timber and Builders Merchants Federation (FNBM). It has more than 1,100 members, but they are not listed.
Germany
The German Timber Trade Federation (GD Holz) is a neutral association for the timber trade representing the interests of 900 members in Germany. No membership list is available, but there is a search option to find potential suppliers for certain products.
Italy
Fedecomlegno, the Italian national timber association, represents importers, merchants and agents trading in timber, semi-processed and finished wood products. It has around 100 members.
Netherlands
The Netherlands Timber Trade Association (NTTA) represents 259 timber companies (link to members), which account for 65%-70% of all Dutch timber imports.
The Sustainable Trade Initiative (IDH) is a Dutch foundation with an international scope. It creates alliances of leading companies, civil society organisations and governments to guide markets towards sustainable production and consumption worldwide. It operates in a number of different sectors, of which tropical timber is one. Members associated with the timber trade are combined in the European Sustainable Tropical Timber Coalition (STTC). A membership list is available.
United Kingdom
The Timber Trade Federation (TTF) represents the timber industry in the UK. Its website has a Members’ directory listing all 469 members with their details.
Spain
The Spanish Timber Importers’ Association (AEIM) is a private organisation set up to represent the interests of timber importers in Spain. Its website has a Spanish and an English version, and includes a membership list giving details of the association’s 92 members.
Title:
Visit or participate in trade fairs
Body:
Trade fairs provide an excellent opportunity to meet potential customers. Timber traders use them mainly to make new contacts or to meet existing trading partners.
Being an exhibitor at a trade fair is an expensive matter. You should visit the trade fair you are interested in first. If appropriate, you can then make arrangements to have your own stand there next year. Prepare your first visit well and make appointments to meet importers you are interested in before you go.
If you can’t visit trade fairs, at least have a look at the lists of participants and exhibitors they offer. These are your potential clients. Most trade fairs have an index of participants and exhibitors on their website.
The main timber trade fairs in Europe from January 2016 to the spring of 2017 are listed below in chronological order. Stars (up to a maximum of five) are used to indicate the relative importance of the fairs as regards EU trade:
Polyclose, Belgium, small biennial fair for doors and windows (14-16/1/2016).*
Domotex, Germany, medium-sized biennial fair for flooring (16-19/1/2016).**
Fimma Maderalia, Spain, medium-sized biennial fair for timber products in general. Best fair in Spain. (2-5/2/2016).***
Dach+Holz, Germany, medium-sized biennial fair for roofs, walls, buildings etc. (2-5/2/2016).*
ZOW, Germany, medium-sized annual fair for furniture components (16-19/2/2016).*
EFWEX, Belgium, small biennial fair for flooring, walls etc. (13-15/3/2016).*
Fensterbau frontale, Germany, medium-sized biennial fair for doors, windows, frames, walls etc. (16-19/3/2016).*
Salone del Mobile, Italy, big annual furniture and design trade fair. A must if you are in the furniture sector (12-17/4/2016).****
Usetec, Germany, medium-sized biennial fair for second-hand machinery. This is the only trade fair that buys used timber processing machinery. (25-27/4/2016).***
Techno Domus, Italy, medium-sized biennial fair for wood technology (This event may have been cancelled; no editions are currently scheduled for the coming years).*
Xylexpo, Italy, medium-sized biennial fair for technology and furniture supplies (24-28/5/2016).*
Carrefour International du Bois, France, big biennial fair for general timber products. Most important trade fair in this sector in the EU (1-3/6/2016).*****
Spoga, Germany, medium-sized annual fair for garden products (4-6/9/2016).***
Wood products & technology, Sweden, small biennial fair for the timber industry (6-9/9/2016).*
SICAM, Italy, medium-sized annual fair for furniture components (13-16/10/2016).**
Prowood, Belgium, small biennial fair for the furniture sector (18-22/10/2016).*
Timberexpo UK, small annual fair for the timber sector, but crucial for would-be entrants to the UK market (Oct. 2016). ****
Timber & More, Netherlands, small biennial fair for timber products (not currently scheduled).*
HoutPro+, Netherlands, small biennial fair for timber products in general (Nov. 2016).*
Batimat, France, big annual fair for the construction sector (Nov. 2016). ***
Hout en habitat, Belgium, small annual fair for the timber sector in general with focus on furniture (Nov. 2016).*
Bau, Germany, big biennial fair for construction materials (Jan. 2017). ****
Bouwbeurs, Netherlands, medium biennial fair for the building industry (Feb. 2017). ***
Interzum, Germany, big biennial fair for furniture production and interiors. Not much about timber in the last few editions (May 2017). ***
Ligna, Germany, big biennial fair for machinery (May 2017). ***
Title:
Check online sales platforms
Body:
There are two major online sales platforms in the timber sector through which you can find buyers. They are also particularly useful for checking out the competition, as many exporters are also listed. Of course, you can also become registered on these platforms yourself to promote your company and your products, but a direct approach to buyers is generally better. Professional importers do not usually look for exporters on these platforms.
FORDAQ. With more than 110,000 wood professionals enlisted as members (log producers, sawmills, veneer mills, panel producers, importers and large industrial users), FORDAQ is the biggest online platform. It also includes an up-to-date news section that you should consult frequently.
TimberWeb. TimberWeb has been an important internet player in the global timber and lumber marketplace for well over a decade. It has 50,000 registered members from nearly 200 countries.
Title:
Check online databases for importers
Body:
Apart from the online sales platforms and sectoral organisations mentioned above, there are some interesting databases that you can consult in your search for potential buyers.
Certification bodies’ websites. If you supply FSC or PEFC timber, your first option is to approach an importer who is also certified. There is a fair chance that he will be interested in your products, as FSC/PEFC certified tropical timber is not easy to find. Check the FSC database and the PEFC membership list for details of such importers.
Some national FSC offices have their own lists of FSC suppliers or other members you may be interested in. For example, check this list of the signatories to the FSC-sponsored Construction and Timber Convention (aimed at promoting the sustainable use of timber in the building industry) and this link to FSC-certified construction companies in the Netherlands and Belgium (both of which are in Dutch only). Or check the search options on the FSC Belgium website (also in Dutch). You can also check this link for German certificates.
The Global Forest & Trade Network (GFTN) of the World Wildlife Fund WWF. This lists companies that are either FSC certified or are in the process of becoming so. The membership list might be a starting point in your search for buyers.
Title:
Read more about niche markets and find the right buyers for you
Body:
It can be very difficult to find buyers or to understand who the actual importers are in some timber niche markets or highly specialised trade channels. The tips and tricks given below may help you here.
Public procurement. Tropical timber is used in many public construction projects such as the building of waterways or big office complexes, but you cannot sell your timber directly to the governments of EU Member States. In almost all cases, construction projects are put out to tender and awarded to big construction companies, who buy the timber they need from big timber importers and wholesalers. It is thus better to contact these timber importers (such as Vandecasteele Houtimport (Belgium), Dekker Hout and Wijma (Netherlands)) directly. See also the CBI Factsheet on Channels and Segments for the timber sector.
House construction in the private sector. In some countries such as Belgium, Germany and France, people usually commission a local construction company to build their houses. The architect involved will generally be the person who makes decisions about the use of timber in doors, windows, frames and external cladding. The construction company will then buy the material, sometimes from suppliers selected by the architect.
Architects who work at the top end of the market may prove to be very valuable customers. Most EU Member States have one or more professional associations of architects, which can be very useful sources of information in this field. You can for example consult the membership list of the Royal Institute of British Architects (RIBA) in the UK, or visit the (Dutch-language) website of the Belgian “Orde van Architecten’”.
Component market. Suppliers of tropical timber may find interesting opportunities in the export of components for such products as furniture and kitchens. Outsourcing is a growing trend that you may be able to benefit from. To do so, you need to contact EU manufacturers of such products, who are often located in Eastern Europe (for furniture) and Germany and Italy (for kitchens). Consult the relevant CBI product factsheets for further information.
Title:
Ask your commercial attaché for help
Body:
When you have selected a target country, it can be very useful to contact your own embassy in that country. They will usually have a commercial attaché whose job is to help you with your enquiries.
Make sure that you have formulated your question clearly and in detail. Commercial attaches are not sector specialists and often rely on other contacts within their own network to answer questions.
Title:
Build your image, website and social media tools
Body:
While you should do your best to find customers, they will also be able to find you if you are well prepared. This means presenting a professional image to the outside world. Your website should be professionally designed to be in the same corporate style as your business cards, the contact details at the bottom of your E-mails, your brochures and the advertisements you place online and elsewhere. The first impression a buyer gets may well determine whether he pursues contact with you or not. Use the following advice to build yourself a professional image:
Treat your online presence like a digital showroom and more than that: it gives your business visibility on a worldwide scale. Design and maintain it carefully, knowing that if you do this well it can capture the attention of your prospects and, more importantly, generate business. Place the design in professional hands and make sure your website is up to date to show visitors that you are a proactive entrepreneur. This may cost time and money, but it will pay off in the long run.
Make sure you visually separate the export products from the local sales, include a small story about the history of your company, indicate the size and capacity of your company, include mission and vision statements on your site to show your long-term goals and targets, give details of your certification if any, include pictures of employees working on the shop floor, list the types of woods you are using (with technical data sheets for each species), include a map to show where your company is located and introduce a sales managers with his contact details.
If you optimise your website for search engines, buyers will be able to find you more easily. Have a look at the Google Search Engine Optimization Starter Guide for tips on how to improve the ranking of your search engines.
Create links from your website to all the main modern social media tools, as this is a good way of exposing your business to a wider circle of potential buyers. Facebook, LinkedIn, Instagram, Pinterest and Twitter all offer access to new networks. These social media tools need to be actively managed.
Title:
Advertise online or in magazines
Body:
Advertising can be an excellent way of telling potential buyers about your products, but you always have to weigh up the advertising costs against the income you can generate in this way. Start with a careful analysis of the groups you are targeting (by a magazine advertisement for example). If the target group of the magazine mainly consists of consumers, you may not be able to find many importers to whom you can sell construction timber by the container loads by advertising in its pages. Nevertheless, there are some websites and magazines that you may like to consider:
The above-mentioned FORDAG and TimberWeb offer the opportunity to place advertisements on their home page for a certain period of time (this has to be paid for, of course).
If you are an exhibitor at a trade fair, you can generally pay a little extra to have your advertisement shown on the home page of the trade fair’s website.
Some trade journals may meet your needs very well. Most of these exist in both a paper version and an online version, and some have an associated online newsletter too. We may mention in this connection the UK Timber Trade Journal, the German Holz, the French Bois International, the Belgian WoodForum (available in both French and Dutch), the Dutch Houtwereld and the Spanish El sector de mueble y madera.
Title:
Get to know potential buyers before you contact them
Body:
Buyers in the timber sector are often approached by producers, suppliers and traders. The only way to convince them that you are a supplier who is worth doing business with is to prepare yourself very well. And most of the time you only get one chance to prove yourself. Consider the following points when you are preparing for a meeting:
Make sure your corporate style is in place and online (see tip 8 above). The products you are going to offer should all listed on your website.
Remember that a trustworthy image and a positive track record in doing business and delivery are much more important to any EU buyer than quality and price.
Make sure you offer the right product to the right buyer at the right price (all on the basis of your market research and customer selection).
Read the CBI document on “Doing business with European buyers” to learn more about cultural differences, communication style, language, informal or formal business approaches and much more.
Speak the right technical language and be prepared for technical questions. You might prepare in advance a short list of questions potential importers might ask during an initial phone call or Skype conference, together with answers you could give.
Frequent communication is crucial. If you do not have an immediate answer to questions about delivery times, inform your buyer when the answer will be available instead of simply saying “I don’t know”.
If you follow all the above tips and you still find it difficult to contact buyers, be proactive. Send them an E-mail followed by one or at most two reminders and then call to make an appointment for a telephone or Skype conference.
Good luck!
“Tell us about an innovative aspect of your product, or something that could be of interest to us as well. Apart from that, you should make it perfectly clear that you understand the quality and safety demands made on glued laminated timber. We always look at the website of a new supplier before we make any decisions.”
Ewalt Nijsink, Woodteq
“I always advise any exporter to start by building a positive company image. Make sure you have a professional website and that your business cards, house style and even your E-mail footnote have the same design and convey the same message, which is that you are trustworthy, professional and care for the forest and the climate.”
Marco Bijl, CBI expert
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