GRANTEE SPOTLIGHT INTERVIEW: VALENTINA KHYSTOVA, CEO OF UKRAINIAN ASSOCIATION OF FURNITURE MANUFACTURERS
The Ukrainian Association of Furniture Manufacturers (UAFM) is a multi-level professional service organization for domestic and international furniture manufacturers, serving as the largest service platform for the industry in Ukraine since its establishment in 2001. Can you tell us more about UAFM’s mission and its role in supporting the furniture industry in Ukraine since its establishment? What are some of the key achievements and milestones that the organization has reached in fulfilling its mission?
The Ukrainian Association of Furniture Manufacturers (UAFM) stands as a pivotal force in the nation’s furniture sector since its inception in 2001. UAFM’s mission revolves around being a comprehensive service platform for both domestic and international furniture manufacturers. Over the years, its role in supporting the industry has been multifaceted, encompassing export promotion, professional business academy, and collaboration. One of its key achievements lies in elevating industry brand “FURNITURE OF UKRAINE”, ensuring that Ukrainian furniture manufacturers align with global benchmarks. Milestones include fostering international partnerships and establishing itself as the go-to resource for industry players seeking expertise and support.
With over 350 member companies, UAFM seems to be making a significant difference in the furniture industry in Ukraine. How has UAFM leveraged its extensive network to support and enable the success of individual members, particularly in the context of furniture exports, and could you share an example highlighting this impact?
UAFM has significantly influenced the Ukrainian furniture industry. The organization has leveraged this extensive network to foster the success of individual members, particularly in the realm of furniture exports. Through collaborative efforts, UAFM facilitates knowledge sharing, market insights, and collective problem-solving. An illustrative example of this impact is seen in the collaborative approach taken to navigate complex international trade opportunities, enabling member companies to overcome export barriers and thrive in global markets. We are also very proud of our networking spirit between UAFM members — they are learning, growing and working together.
In the recent partnership between EDGE and UAFM, 29 Ukrainian furniture manufacturers received support to participate in two trade fairs in Germany, namely the IMM in Cologne and MOW in Bad Salzuflen. Could you kindly provide further insight into how the involvement of these Ukrainian furniture manufacturers has positively impacted their business growth and market expansion goals? Moreover, can you pinpoint the specific strategies or outcomes directly linked to their participation in these events?
29 Ukrainian furniture manufacturers under the support of USAID EDGE participated in two trade fairs in Germany, namely the IMM in Cologne and MOW in Bad Salzuflen in 2023.
The exposure gained through these events resulted in heightened visibility on the international stage, fostering new partnerships and distribution channels. Specific strategies employed include tailored marketing campaigns, product showcases, and networking events, all contributing to tangible outcomes such as increased export volumes and strengthened brand recognition.
It helped us to increase the visibility and recognition of the Ukrainian furniture industry on the international stage, particularly in Germany and other EU countries.
Participation in these fairs has helped to drive export growth by leveraging the exhibition to establish valuable connections, negotiate partnerships, and explore new business opportunities within the German and broader European markets: more than 1000 B2B meetings and more than 100 new buyers’ contacts.
According to the inquiry among the participants at the end of 2023, we have 25 signed export contracts, 18 signed contracts with domestic buyers and about 10 contracts are in the process of negotiation. The total amount of export contracts is more than 350,000 EURO and about 100,000 EURO is the amount of contracts with Ukrainian buyers. As the profile of buyers is mostly retail, the total amount of purchasing during the nearest 2 years can be increased up to 1–1.5 million EURO.
As one of the EDGE grantees, in collaboration with your partners, you are currently overseeing the execution of the online special course titled “B2B Sales in Crisis Conditions,” focused on addressing the economic challenges faced by small and medium-sized businesses in the furniture and textile industries within Kosovo, Moldova and Ukraine. Could you provide an update on the current status of this course, along with any initial outcomes or insights you can offer regarding its influence on the businesses involved and the progress made towards achieving project objectives?
“The B2B Sales in Crisis Conditions” course focused on economic challenges faced by small and medium-sized businesses in the furniture and textile industries across Kosovo, Moldova, and Ukraine, is currently underway. Preliminary outcomes indicate enhanced business resilience, improved sales strategies, and notable progress toward achieving project objectives. Participant feedback highlights the practical applicability of the course content, contributing to the overall empowerment of businesses in navigating challenging economic conditions.
The furniture industry has seen a growing emphasis on sustainability and eco-friendly practices in recent years. How is UAFM addressing these environmental concerns within the industry, and what initiatives or programs is the organization involved in to promote sustainable practices and materials among its member companies?
Recognizing the global shift towards sustainability, UAFM is actively addressing environmental concerns within the furniture industry. The organization is involved in various initiatives promoting eco-friendly practices and materials among its member companies. This includes advocating for sustainable sourcing of raw materials, implementing waste reduction programs, and raising awareness through educational campaigns. By encouraging responsible manufacturing practices, UAFM is contributing to a greener and more sustainable future for the industry. We are actively promoting lean manufacturing in our special tours around factories in Ukraine. These tours aim to showcase efficient furniture production and increase awareness of a lean approach.
In the ever-evolving furniture industry, consumer preferences and design trends can change rapidly. How does UAFM stay informed about emerging trends and consumer demands, and how does the organization help its member companies adapt to these shifts to remain competitive in the market?
In the dynamic landscape of the furniture industry, UAFM remains vigilant in staying informed about emerging trends and consumer demands. The organization employs a multifaceted approach, including continuous market research, collaboration with design professionals, and the organization of industry events. By disseminating trend insights and facilitating knowledge exchange, UAFM ensures its member companies are well-equipped to adapt swiftly to evolving consumer preferences and design trends, enabling them to stay competitive in the market.
