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SINGAPORE: Singapore's furniture exports took a dip last year totalling some S$4.7 billion. This is down by four per cent from 2008.
Observers said there is no cause for alarm given the tough business conditions last year and they remain optimistic about the long term prospects for the sector.
Focusing more on design is taking one Singapore company to the next stage of growth.
Admira specialises in laminates which are used to coat furniture.
Laminates are typically used to coat furniture such as tables for aesthetics and protection.
Last year, it started collaborating with suppliers to offer exclusive designs and this has helped grow its sales revenue by some 20 per cent.
Admira is banking on this strategy to tap new markets overseas, such as Malaysia, Indonesia and Vietnam.
Jake Tan, executive director, Admira, said: “Laminates used to be a very commodity product where everything used to be very cheap and we're all fighting on pricing. So by going more into design, we are differentiating ourselves from the market a bit more.
“Right now there are lot of very cheap products that's coming in from China selling at a much cheaper and lower price that's killing our market. So we need to be more unique where we sell not just on the pricing but on the design that our customers want.
“We're going to focus on branding and design to go overseas and this will give us a better edge. So we're competing on branding and design and not only on pricing.”
Industry players said Singapore can position itself for further growth by focusing on design, branding, and collaborations with overseas partners.
The country posted export sales of S$4.7 billion last year which is expected to be on track to hitting the industry's target of capturing one per cent of the global pie.
Based on 2008's exports worth S$4.9 billion, Singapore's market share currently stands at 0.92 per cent.
And according to Singapore's minister for trade and industry, the long term outlook for the furniture industry looks promising.
Minister for Trade & Industry Lim Hng Kiang, said: "The long term outlook for Singapore's furniture industry looks promising. Last year saw export sales of S$4.7 billion.
“Considering the tough economic conditions, this is still a creditable performance and represents an increase of 47 per cent from 2007. To grow our world market share, many of our furniture companies have also ramped up their exploration of new growth markets.”
Government efforts by agencies such as IE Singapore and SPRING Singapore last year helped furniture companies forge links with more than 1,200 new furniture buyers from over 17 countries including Russia, Mexico, India and the US.
This was through business missions, trade fairs and business matching platforms.
Some observers said demand from the hospitality sector will present growth opportunities.
Andrew Ng, president, Singapore Furniture Industries Council, said: “We see a very strong growth in this area especially with our integrated resorts and there's going to be a lot of spin-offs from here.
“And with the request from the industry players, we've got to see how we got to profile our local talent in this area, this is why we want launch Hospitality Asia.”
The biggest markets for furniture worldwide currently are the United States and Germany.
This is according to the 2009/2010 outlook report by the Centre for Industrial Studies.
Furniture industry players across the region have also been working behind the scenes to further their collaboration.
Another possible change next year will be more collaboration between the dates of furniture exhibitions to make them more complementary to one another.
Jerry Tan, chairman, ASEAN Furniture Industries Council, said: “Within the ASEAN furniture industry at the moment, there are several furniture exhibitions, and that one issue here is that some furniture exhibitions have the same dates.
“So what we are trying to do is to see how to organise the ASEAN exhibition circuit where the dates will just overlap and then the buyers can hop from one show to another within the same furniture circuit." - CNA/vm
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