CBI Product Factsheet:
Home Accessories in Finland
‘Practical market insights on your product’
A decline in the Finnish production of home accessories opens up new
opportunities for small exporters from developing countries as demand is
growing. Additionally, Finnish exports of home accessories, supplied
almost entirely to other European destinations, are making Finland a
possible entry point for reaching surrounding markets.
Product
Product specifications
Quality
Candles: The quality of a candle depends on the quality of the raw material. The cotton wick should be well suited to the candle type, candle
diameter, manufacturing process and burning mass. According to the European Candle Association, a good candle has impeccable burning
characteristics:
 bright, steady flame
 ideal wick curvature
 no carbon black in home from candle burning
 no dripping
 adherence to the nominated burning time
 minimum wax remaining
Storage: Storage products may consist of boxes, baskets or any containers made from many different materials such as natural fibres (e.g.
bamboo, rattan) plastic (environmentally-friendly or not), paper, wood and fabric, depending on the exact application. Basic storage products are
usually designed for functionality, with a basic shape, material and price. In higher segments, storage products are also widely used as quality
decorative pieces made from high end materials and employing multiple production methods.
Decorations: Decorative products may consist of statuettes, (photograph) frames, marquetry, caskets and cases for jewellery made from many
different materials such as (tropical) wood, ceramic, stoneware, pottery or base metal. Basic as well as higher end decoration products are used
for decorative purposes and less for functionality. The most important quality of decoration items is, therefore, appearance. Accessories differ
greatly in shape, material, price and production methods.
Seasonal/party decorations: Seasonal and party products may consist of Christmas, festival, carnival or other entertainment articles made from
glass, wood and other materials. Basic as well as higher end accessory products are used for decorative purposes and less for functionality. The
most important quality of seasonal and party products is, therefore, appearance. As they vary widely according to tradition, seasonal and party
products come in different sizes, shapes, prices and materials.
Size(s)
Sizes for home accessories can vary widely depending on the type of product. Below, you can find common standard sizes (in cm) for the different
products
o
Candles: regular sizes are 22 mmx18 cm/ 22 mmx23 cm/ 22mmx35 cm/ 7x10 cm/ 7x14 cm/ 7x15 cm/ 14x14 cm
o
Storage: there are no standard sizes for storage that a product must meet and so this is completely dependent on the type of storage you
offer.
o
Decoration: there are no standard sizes for decoration that a product must meet and so this is completely dependent on the type of
decoration you offer.
o
Seasonal/party: there are no standard sizes for seasonal or party decoration that a product must meet and so this is completely dependent
on the type of decoration you offer.
Labelling
Your label on the outer box should include information concerning the product (order no, product code), producer, consignee, material used,
quantity, size, volume, and caution signs. Information on the carton should correspond to the packing list sent to the importer.
o
Candles labels should also include burning time
o
Higher-end boxes and basketry will have branding in the form of swing tags.
o
For all glassware and porcelain articles it is strongly recommended to label all boxes with warning notices such as “FRAGILE!” or “Handle
with care!”.
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CBI Product Factsheet: Home Accessories in Finland
Fragile!
This side up!
On the product label, EAN/Barcodes are widely used within Europe. Furthermore, a small label on the bottom of each product with the name of the
producer, the country of origin and the material used gives the main information consumers might need for their purchase. Again, your buyer will
specify what information he needs on product labels or on the item itself (logos, 'made in..'). All labelling must be in English.
Packaging product
Home accessories should be packed in accordance with the importer’s instructions. Every importer will have their own specific requirements
related to the use of packaging materials, the filling of cartons, palletisation, and the stowing of containers. Always ask for the importer’s
specifications as part of the order specifications. The balance is between using maximum protection and avoiding excess materials (waste removal
is a cost to buyers) or shipping ‘air’.
As home accessories are often sold as gift articles, attractive consumer packaging can be an important sales feature. The exporter is not always
responsible for attractive consumer packaging, as such packaging is usually designed by the importer and reflects the brand’s identity. More
specific packaging information for the different home accessories can be found below:
Candles: Proper packaging of candles can minimise the risk of damaging through fluctuations in temperature, humidity and shocks. Candle
packaging usually consists of firm corrugated carton boxes of easy to handle dimensions and weight (not exceeding 25kg per carton). Preferably,
they are placed together on a pallet. Quite often, gift candles are offered in containers of glass or other materials.
Storage: Storage products are mostly flat-packed (collapsible) or stacked for transport. The better they fold or compact, the less ‘air’ the importer
will ship in his container, thus keeping his costs down. Consumer packaging is relatively unimportant in this category when compared to the other
products; flat-packed items will often come in a simple plastic cover for protection, and may be offered in sets.
Decoration and seasonal/party decorations: Proper packaging minimises the risk of damage due to fluctuations in humidity and especially
shocks. Packaging usually consists of plastic wrapping to protect the fabric from water and staining. Packaging dimensions and weight should
make it easy to handle. Ideally, it should be possible to place the boxes or bales together on pallets.
In general, it is good marketing policy to have consumer packaging when supplying the mid-high or high-end segments or when sold as gift
products. This should match the design, quality and price of the product sold.
Illustration
Candles sold in Finland
Storage sold in Finland
Source: IKEA & Zara Home
Decoration articles sold in Finland
Source: IKEA & Zara Home
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CBI Product Factsheet: Home Accessories in Finland
Seasonal articles sold in Finland
Source:
Kainuu, Iitala,
Finnishdesignshop
Legal requirements
Brief description
More information
General product safety
The General Product Safety Directive applies to all consumer products marketed in the EU. The Food and Consumer Product Safety Authority
purpose of the legislation is to ensure consumer safety.
Control on chemical
substances - REACH
REACH is the EU chemical legislation that came into force in June 2007. REACH is
implementing a new, multi-phased system for existing and new substances and is setting
requirements for manufacturers in the EU and EU importers of chemicals and products
containing chemicals.
EU legislation: Chemicals REACH
Packaging and packaging EU packaging legislation restricts the use of certain heavy metals, among other requirements. EU legislation: Packaging and packaging waste
waste
Directive 94/62/EC
Wood packaging
materials used for
transport (including
dunnage, directive
2000/29/EC
The EU sets requirements for wood packaging materials (WPM) such as packing cases, boxes, EU legislation: Wood packaging materials used for
crates, drums, pallets, box pallets and dunnage (wood used to wedge and support non-wood transport (including dunnage)
cargo).
Prevention of illegal
logging (FLEGT)
Regulation (EC)
2173/2005
An EU Action Plan for Forest Law Enforcement, Governance and Trade (FLEGT) has been
EU policy: Prevention of illegal logging (FLEGT)
published to improve governance in wood-producing countries, and a licensing scheme is set
up to ensure that only legally harvested timber is imported into the EU.
Liability for defective
products
Directive 85/374/EEC
The Product Liability Directive states that the EU importer is liable for the products put on the
European market. The EU importer, however, can in principle pass on a claim to the
producer/exporter.
EU legislation: Liability for defective products
The Business Social Compliance Initiative (BSCI) is an auditing system to monitor the social
performance of suppliers. It has been developed by European retailers to improve social
conditions in sourcing countries.
http://www.bsci-intl.org
Non-legal
requirements
ISO 14001
Certification scheme which provides generic requirements for an organisation's environmental http://www.iso.org
policy.
SA 8000
Certification standard by Social Accountability International (SAI) for the improvement of
working conditions.
http://www.sa-intl.org
Besides social and environmental aspects of production, Fair Trade certification also covers a http://www.fairtrade.net/
fair wage to labourers involved in the production of candles. Still a small, but growing
segment. Fair Trade candles are often made of alternative base materials, like palm wax or
beeswax.
FSC certification assures environmentally appropriate use of the forest.
http://www.fsc.org
Note that BSCI has become a standard requirement of many importers, while ISO, ASA, Fair Trade standards can differ for each importer.
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CBI Product Factsheet: Home Accessories in Finland
Price
Table 1: Indicative retail prices per segment
Within the Finnish market, prices of home accessories can differ
substantially. The price of accessories is mainly based on the
product’s size, composition and design.
Your products will be sold to Finnish consumers at a price that is
many times higher than your selling price. The consumer price is
approximately 4-6.5 times the FOB price in the country of
origin (Table 2). The margins are divided among the different
players in the trade channel. In the event that retailers trade
directly with exporters, the entire margin (including the wholesaler’s
margin) goes to them.
Besides energy, labour and transport costs, FOB prices depend
heavily on the availability and prices of the raw materials. Price
increases of raw materials are not usually passed on to consumers
directly but, instead, are deducted from the exporters’, importers’
and retailers’ margins.
Low end
(IKEA)
Middle
(Zara Home)
High end
(Stockmann)
Candles
€1.50 - €13
€10 - €25
€20 - €40
Storage
€1.50 - €20
€10 - €65
€45-€150
€1-€30
€13-€40
€30 -€90
n.a
n.a.
€10-€30
Accessories
(photo frame)
Seasonal/party
Table 2: Indicative price breakdown per segment (FOB price =100)
Table 2: Indicative retail price breakdown
Low
margin
100
100
100
+20
120
+15
115
+15
115
Wholesalers' margins
(50/75/90%)
+60
180
+86
201
+104
219
+162
342
+222
423
+327
546
+68
410
+85
508
+109
655
Selling price, VAT (24%)
Promotion
Product presentation
Candles:
o
o
o
Candles are no longer just a functional item but have become a decorative home
accessory in their own right, influenced by trends in home decoration. Besides
appearance, scent has also gained in importance.
Low-end segment: basic candles are normally imported in simple consumer packaging,
packed in sets, stating the burning time.
Mid-end segment: fancy candles are typically seen as gift articles. They are normally sold
through department stores and specialty home accessories and gift shops. Fancy candles
are imported without consumer packing. The retailer takes care of the in-store promotion
and will offer a branded carrier bag at point of sale. In retail, fancy candles are usually
offered without any consumer packaging, but may carry a tag or sticker carrying the brand
name as well as any specific features (origin, material).
High-end segment: scented candles or other high-end candles are often sold under
specific brand names in the market. The exporters typically supply tailored products on
request, including packaging. Retailers will offer them in display units in their shops.
Storage:
o
o
High
margin
FOB Price
Transport, handling
charges, transport
insurance, banking
services (20/15/15%)
Retailers' margins
(90/110/150%)
o
Middle
margin
Storage products are amongst the most important categories in home decoration. They
have multi-purpose uses (for example, to store jewellery or laundry), and can be found
inside the house as well as outside.
Low-end segment: price and volume are most important. Boxes and the like are often
offered in sets, stacked or nested to indicate their functional purpose. Low-end storage
products can be found at many different types of outlets, from general interior stores
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CBI Product Factsheet: Home Accessories in Finland
o
o
o
(IKEA), to supermarkets (S Markets, K-Citymarkets and Tarjoustalo) and lower-end
department stores. Little care is taken to brand or package them.
Mid-end segment: products are trendier, but compared to the high-end segment, there is
less focus on new or innovative shapes or hand-made effects. Some material
combinations (e.g. wicker and fabric) and accessories are added (e.g. screen-printed
text) for effect. They are promoted as a feature of the retailer’s own brand collection.
High-end segment: hand-made, intricate weaving techniques and ‘origin’ are well
appreciated and promoted. They will be displayed as stand-alone objects or as part of
collections of decorative products, and promoted as a beautiful gift.
Opportunities are mostly found in the mid-high and premium market, as Finland is
considered one of the mature markets1. Any exporter entering a mature country, like
Finland, will have to offer clear and different benefits from what the consumer has
already seen. It is crucial to pay special attention to design, accessories and handweaving.
Decorations:
o
o
o
o
Low-end segment: products are often purchased to refresh the home interior at low cost.
Some of the old accessories are replaced with new ones matching the style and colour of
the room.
Mid-end segment: especially in this category, trends are decisive factors in the saleability
of the products. Products should also promote a certain atmosphere/mood. This can be
done by using special colours, materials, forms, fragrance, etc. All these tools should
give the customer a specific, personal feeling, like ‘home’, ‘relax’, ‘strength’, ‘active’, etc.
High-end segment: consumers appreciate the fact that articles are hand-made, provided
they clearly radiate this in terms of uniqueness and exclusivity; of course, their quality
and finish should be comparable to machine-made products. The emphasis in this
segment lies on objects in small series, using innovative ideas. They must be clearly
distinguishable by consumers with a strong individual preference for quality.
Attractive consumer packaging is important, especially for home decorations that are
sold as gifts. Consumer packaging should attract attention, clearly show the contents either by picture or by see-through packing - and contain information on the use of the
product. In other words, the packaging should match the design, image, quality and price
of the product.
Seasonal/party:
o
o
o
o
Bonding, creating nostalgia and cosy atmosphere, eating together are part of this market
segment. Especially in times of adversity, like the current economic crisis, people want to
make home cosy and tend to spend more on items that can bring this about. Christmas is
one the main festivities in Finland. Other festivities are birthdays, school/study
graduation, Mid-summer, Easter and Vappu2.
Low-end segment: basic decoration is still important. Cheaper materials are used;
decoration is made of plastic rather than glass, and the finishing of products is of basic
quality. Products are machine-made and more standardised.
Mid-end segment: products are purchased to create the atmosphere of the festivity,
rather than to show one’s identity. Note that the mid-market is usually trend sensitive,
but for Christmas/Easter articles, consumers remain rather conservative. Product design
should, therefore, stay within their comfort zone. An example is the use of traditional
colours, like baubles in red, green, silver and gold.
High-end segment: articles are in a variety of materials, ranging from paper maché to
glass. The hand-made is again important. Also the ability to “collect” by adding new
items to the old ones is popular, instead of acquiring an entirely new collection.
1 A mature market is a market that is extremely segmented. In all segments of the market (low-end, mid-end, high-end) sub-segments
can be found. In these markets, most opportunities can be found in the higher market segments, where you can differentiate from
competitors. Designs, hand-made and branding are of utmost importance when targeting these segments. European mature markets are:
Austria, Belgium, Denmark, Finland, France, Germany, Luxemburg, the Netherlands, Norway, Sweden, Switzerland and United Kingdom
2 Vappu is celebrated on the evening of 30 April and continues to 1 May, with Finnish traditional drinks and food.
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CBI Product Factsheet: Home Accessories in Finland
o
‘Celebrating and celebrations’ offers important opportunities for exporters from
developing countries to adapt to or adopt a ‘moment’ market – a market that focuses on
a moment in consumption rather than on a general or permanent functional or emotional
consumer need or demand.
There are many different ways to stay up to date with your product development. By taking some
time to read magazines and visit trade fairs, you can get an idea of what is happening in the home
sector.
Marketing:
o The best opportunities in Finland for DC exporters can be found mostly in the mid-high to
premium market, meaning you have to pay special attention to design and quality. Please also
refer to CBI’s Trend Mapping for Home Decoration and Textiles for more information.
o In general, the low-end market is dominated by products from cheap mass-production areas
and it will be almost impossible to compete with this. If you are able to consistently supply large
quantities at low prices, large retail chains may be interesting partners to target for this
segment.
o The influence of large chain store retailers in the value chain of home accessories has increased
significantly in Finland at the expense of the position of wholesalers and importers.
Nevertheless, wholesalers/importers are still an interesting option as they are specialising in
terms of products, quality and design in order to cater to the middle-high market. DC exporters
can supply wholesalers/importers, but they have to be able to meet the high requirements of
these players in the value chain. Large chain stores operating in Finland include Stockmann,
Kesko, S-group, Ikea, H&M, Hemtex, Tokmanni group and Anttila (Kodin 1). Examples of other
design stores in Finland are Globe Hope, Peroba, Nougat, Mifuko and Indiska.
o In order to access the mid-high and premium segments, you need a promotion strategy, where
you tell the story of your product (please also refer to CBI’s Trend Mapping for Home Decoration
and Textiles for more information). Features that may be of interest to Finnish buyers are:
- Hand-made: home accessories can be hand-made and are usually sold at a premium
compared to mechanically produced products.
- Traditional designs or handicrafts: home accessories are often based on traditional and
ethnic designs. These products are often purchased as art and considered heirlooms.
- Promote naturalness: exporters can promote the use of natural products as a premium.
Besides the use of wood as the main raw material, other products can be used in this
industry as well.
o As in other mature markets, Finnish consumers are increasingly interested in products which are
produced in a sustainable and ethical manner. Take notice of the importance of environmental
and no such things as child labour issues.
o If a DC producer of home accessories wants to export modern products (in terms of design) to
Finland, it is essential to partner with Finnish/European buyers. They can assist with designs
that are in harmony with Finnish fashion, for it is very difficult for exporters to familiarise
themselves with Finnish taste within this small niche segment.
o Trade fairs are still the most important way to meet new clients within the home accessory
sector. No important international trade fairs are held in Finland for exporters of home
accessory products. Therefore, your best options to meet potential Finnish buyers are:
 Ambiente : http://www.ambiente.messefrankfurt.com
 Tendence: http://tendence-lifestyle.messefrankfurt.com
 Maison et Objet : http://www.maison-objet.com
 Xmas world: http://christmasworld.messefrankfurt.com
 Spoga : http://www.spogagafa.com
Doing business in Finland:
o When intending to sell products to Finnish partners, it is advisable to learn what they value when
doing business: efficient negotiations, explicit offers and terms, even quality, punctuality, as
well as compliance with law, contracts and other specified requirements.
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CBI Product Factsheet: Home Accessories in Finland
o Be honest about the product and be realistic about your delivery times. Do not make claims
which cannot be substantiated.
o Respond swiftly in your communications with potential clients. Provide them with prompt and
accurate information
o Ensure your product documentation is ready and up-to-date.
For more information on promotional assets and skills, see the CBI Buyer’s Black Box for Home
Accessories.
Place
Figure 1: Apparent demand for home accessories in Finland, value in €
thousands
o
o
o
Figure 3:
Figure 2: Production of home accessories in Finland, value
in € thousands
Apparent demand for home accessories in Finland amounted to € 72 million in 2011. Over
the period 2007-2011, demand increased by 0.5% annually.
Finland’s GDP remained relatively stable in 2012, and it is predicted to remain this way in
2012-2013 and to grow by 1.2% in 2014. Nevertheless, the construction sector in Finland is
anticipated to decline annually by 9.5% between 2011 and 2013. In the short- term, this is
likely to have a negative impact on home accessories, given that new housing and people
moving house usually have a positive influence on home accessory sales. However, even
though the housing market will remain vulnerable, the forecast shows that it will slowly pick
up again after 2013.
Between 2007 and 2011, production of home accessories in Finland decreased
slightly by 0.8% annually, amounting to €22 million in 2011. The decrease in the
domestic production of home accessories is likely to be replaced by imports from DC.
DC share in Finnish imports of home
accessories, in % of total imports
Figure 4:
80%
60%
2007
40%
2009
20%
2011
0%
8
7
6
5
4
3
2
1
Finnish imports of home accessories from
DCs, value in € million
000
000
000
000
000
000
000
000
0
decoration
storage
seasonal
candles
2007
Source: Eurostat, 2013
2009
Source: Eurostat, 2013
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2011
CBI Product Factsheet: Home Accessories in Finland
o
o
After the Netherlands (which has a 30.7% share of total supplies, mainly re-exports), major
suppliers to Finland are China (22.8%), Sweden (16.8%) and Estonia (11.8%). Imports from
DCs decreased by 5.2% in the period 2007-2011 and accounted for 26.6% of total imports
of home accessories in 2011. During that period, China remained the leading DC supplier.
People tend to reduce their spending on home accessories during an economic crisis, which
might explain the total decline of 0.4% in imports and a decrease of 5.2% in imports from
DCs. In the longer term, however, it is expected that as Finnish production of home
accessories declines DC importers will grow in importance.
Figure 5: Finnish exports of home accessories, value in € thousand
12 000
10 000
8 000
Candles
6 000
Storage
Seasonal/party
4 000
Decoration
2 000
0
2007
2009
2011
Source: Eurostat (2013)
o
Finnish exports of home accessories are supplied almost entirely to other European
destinations (such as Sweden, Estonia and Russia) making Finland a possible entry point to
reach surrounding markets, including BRIC market Russia.
This survey was compiled for CBI by ProFound – Advisers In Development.
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