The Moldova Competitiveness Enhancement and Enterprise Development II (CEED II) project

The project focused on the home furnishings sector, which is valued at over $140 million and is a pillar of Moldova's sustainable economic welfare. The sector is highly fragmented, with more than 60 percent of production done by a select number of large-scale companies. Local production, valued at $70 million, accounts for an estimated 50 percent of domestic consumption, highlighting that home furnishing consumers are dependent on more competitive prices and sophisticated designs of imports. With approximately 400 home furnishing enterprises in Moldova, an estimated 4,400 employees working in the industry, and a wealth of market demand, supporting the sector to meet its full potential is an economic priority for the country. USAID's CEED II program began providing support to the sector in 2011, with efforts to increase the competitiveness of this powerful sector centered around creating innovative joint marketing opportunities, developing stronger brand recognition and business strategies for Moldovan firms, raising industry cooperation, and expanding domestic market presence. Support to the home furnishing sector was established strategically to provide targeted activities with an exit strategy. Activities supported the goal of sustainable collaboration among players in the sector to drive positive economic impacts. The home furnishing sector graduated from CEED II support in 2013 after successfully facilitating impactful changes, including the creation of the Association of Furniture Producers, the first common furniture shopping center – Mobimall, and improved design and branding. With a 2 million Euro private investment, Mobimall was launched in August 2013, highlighting more than 20 brands and placing 3,000 furniture and home products on sale in 15,000 square meters of retail space, which was a milestone in the development of Moldova's home furnishing sector. CEED II placed special emphasis on sustainability in its approach. Mobimall is properly established and operates on a commercial basis consistently bringing in more than 300 customers per day. The project assisted the industry in fostering a collaborative home furnishing sector, with key indicators including a Moldova furniture market valued at over $140 million, domestic furniture manufacturers able to compete with imports, and 4,000+ employees and 400+ companies. The success of Mobimall inspired five furniture producers to open Cristan, a common shop in Comrat (southern Moldova) on nearly 2,000 square meters of space. CEED II also supported the development of the Union of Furniture Producers (UPM), a fully functioning and sustainable body that brought the main furniture players in the country together to discuss ways to improve the competitiveness of their industry. The Association has 17 active members that produce more than 70 percent of domestic furniture, demonstrating the benefits of collaboration and joint initiatives to maximize sales. The Association expressed gratitude for the support and role of CEED II in the development of their companies, stating that they had succeeded with their help to get to know each other and join forces to help each other and collaborate like friends and colleagues. The project's objectives were fulfilled, and their successes will always be the project's successes.