The fair creates my interest as few years ago I did have experience working in a company which manufacture and market furniture which was mainly rubberwood for local and export markets. So off I went to the brand new Persada Johor International Convention Centre, Johor Bahru on 20 September 2007 which was the venue of the fair to view the products on display and understand the in-thing in the furniture production industry. When I was there it was Saturday and mostly the visitors were from the public especially so with the upcoming Hari Raya, Malay term for the Muslim festival of Eid ul-Fitr. I would rate overall the furniture are tasteful and meet international standards in terms of quality and design. Covering an exhibition space of 70,000 sq ft, the fair showcased a comprehensive selection of new products, designs, styles, concepts of around 380 booths. The fair displayed a wide line of related items such as household/outdoor/office furniture, furnishing items, building materials, household appliances, kitchen utensils, landscaping, bathroom accessories, lighting etc. It was the biggest furniture fair in Johor thus far.
Malaysia exported RM6 billion worth of furniture last year which was mainly wooden furniture, of which Johor produced 45% of the country's furniture. Most of Johor furniture factories are located in Muar, Kluang and Johor Bahru. 90% of Malaysian-made furniture were exported to United States, Britain and United Arab Emirates and each country has its own furniture design and style preference. The export value will increase over years as demand is building up due to commendable Malaysia-made furniture and increasing world population. In Asia, Malaysia stands out as second to China in furniture production. However, Malaysia cater to medium-end market while China targets the lower-end market. Malaysia manufacturers need to focus on high-end market and emphasise on value-added manufacturing with more creative and innovative design. Thus, Malaysia needs to shift from Original Equipment Manufacturing (OEM) to Original Design Manufacturing (ODM) to stay competitive in the global arena. The manufacturers need to outline its strategic planning to resusitate furniture industry according to value chain. In future, perhaps, furniture manufacturers should consider establishing joint ventures and acquisitions (M&As) to expand and counteract the stiff competition of export market. Furniture industry is plagued by several requirements by importing countries to adhere to several sustainable and environmental guidelines and producers need to mitigate by using planted species such as rubberwood, golden teak, sentang and acacia. Supply chain links between downstream and upstream activities need to be enhanced while benchmarking against better competitors. Local furniture manufacturers have to view options of shifting from local raw materials to imported sawn timber such as oak and pine. With competition from low cost producers like China and Vietnam, local players must improve their product range by manufacturing high-end furniture to capture a bigger export market.
Malaysia exported RM6 billion worth of furniture last year which was mainly wooden furniture, of which Johor produced 45% of the country's furniture. Most of Johor furniture factories are located in Muar, Kluang and Johor Bahru. 90% of Malaysian-made furniture were exported to United States, Britain and United Arab Emirates and each country has its own furniture design and style preference. The export value will increase over years as demand is building up due to commendable Malaysia-made furniture and increasing world population. In Asia, Malaysia stands out as second to China in furniture production. However, Malaysia cater to medium-end market while China targets the lower-end market. Malaysia manufacturers need to focus on high-end market and emphasise on value-added manufacturing with more creative and innovative design. Thus, Malaysia needs to shift from Original Equipment Manufacturing (OEM) to Original Design Manufacturing (ODM) to stay competitive in the global arena. The manufacturers need to outline its strategic planning to resusitate furniture industry according to value chain. In future, perhaps, furniture manufacturers should consider establishing joint ventures and acquisitions (M&As) to expand and counteract the stiff competition of export market. Furniture industry is plagued by several requirements by importing countries to adhere to several sustainable and environmental guidelines and producers need to mitigate by using planted species such as rubberwood, golden teak, sentang and acacia. Supply chain links between downstream and upstream activities need to be enhanced while benchmarking against better competitors. Local furniture manufacturers have to view options of shifting from local raw materials to imported sawn timber such as oak and pine. With competition from low cost producers like China and Vietnam, local players must improve their product range by manufacturing high-end furniture to capture a bigger export market.
1 comment:
Really miss my previous involvement in furniture fair in PWTC many years ago. How time has passed.
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