The furniture maker wants to improve brand awareness and global image

HANGZHOU -The Chinese furniture-maker Markor Furnishings Co Ltd is accelerating its expansion in the country and plans to have 100 franchised stores within two years, despite the country's sluggish property market, according to top executives.

The company is also seeking mergers and acquisitions opportunities in overseas markets, in a bid to serve international customers.

"Currently, we have 64 stores in 30 cities across the country, 20 of which have opened this year. We expect the rate of new-store openings will remain steady or possibly rise during the next few years," said Zhao Ge, general manager of the company's stores nationwide.

"The number of stores will hit 100 within two years," said Zhao, adding that the company will also focus on second- and third-tier cities as consumer incomes rise in those areas.

Although China's property market has recently seen a slump in transaction levels - to the detriment of the furniture industry overall - the company remains buoyant about the long-term future, said Zhao.

In January 2009, the company's parent, the Shanghai-listed Markor International Furniture Co Ltd, bought the US upholstery and timber importer Schnadig Corp for $8.94 million.

The acquisition helped to expand Markor Furnishing's footprint outside the domestic market through Schnadig's marketing channels in the Americas, the Middle East and Asia.

"Looking forward, the company will further accelerate its globalization process by seeking more opportunities for mergers and acquisitions in overseas markets," according to Zhao.

Markor Furnishings generated 1.08 billion yuan ($170.3 million) in sales in 2010, an increase of 30.88 percent from the previous year, according to the company's annual financial report.

Liu Chunjie, brand and public relations director for Markor Furnishings, said China's furniture market is already enormous, but the industry lacks big homegrown brands and the company will strive to strengthen its brand.

At present, China has at least 50,000 furniture companies, most of which are small-scale operations accounting for less than 1 percent of the market share, according to Yang Long, a senior industry consultant at Yuanda Management Consulting Co Ltd.

The current situation in the Chinese furniture industry is not in accordance with the country's status as the world's second-largest economy and the largest furniture-manufacturing base, said Yang.