Asian shows ponder the China question
By Gary Evans -- Furniture Today, March 17, 2002
SINGAPORE — An uptick in the global economy put a bounce in the opening round of the Asian furniture shows, but it did not quiet producers' fears that a lot of their business was now being taken by factories in China.
The sponsors of shows in the Philippines, Singapore and Bangkok, Thailand — the first in a series of about a dozen Asian markets scheduled through March — reported that, while attendance was flat, business was up slightly and exhibitors were pleased with results. But the tenor of trade organizations and exhibitors alike was what action to take in the face of a growing China market.
The response of the shows to China, now with 55,000 registered furniture manufacturers, was to veer from touting low labor costs to stressing product quality and design. But, with China attracting designers and engineers from across Southeast Asia, even that seemed like a thin response.
"The Philippines will never run out of good designers," said Emily B. Nunag, import/export director for Las Palmas Furniture, showing in Manila. "If China gets some of them, we will still have more."
In Cebu, Philippines, one of the first Asian shows to open, sponsors were clearly disappointed in attendance but ended up elated over the show's results. Love Joy Malicay, a spokesperson for the show, said there were 1,182 buyers compared to last year's 1,500. But she noted that the 161 exhibitors booked sales for US$27.4 million, 33% ahead of last year — and the largest increase in the last five years.
She said the figure doesn't include sales "under negotiation" or from nearby factories, which have their own showrooms and where a great deal of business is conducted. Those figures, when in, are expected to boost the market here to its highest level in years.
More than 65% of the region's furniture is sold in the United States, and visitors said the design and innovation of products was higher than previous years. "Participants are screened on the products they presented during application (for show space)," Malicay said, "and for those who did not pass, we required them to take basic courses in design and booth presentation."
She said that some American buyers came in a week before or after the show, and even last week there were still buyers in the area. "As it is, everyone is very happy in the industry as manifested by the number of thanksgiving parties that have been thrown by various companies."
Likewise, traffic appeared slow in Manila, but manufacturers seemed optimistic the year was going to be much improved over 2000, with some manufacturers predicting growth of 10% to 20%. "Last year was not that good," said Ging-Ging R. Vallarta of Sindo Resources, a Philippine case goods and upholstery company. "But it's gradually moving up."
The International Furniture Fair in Singapore, largest of the Southeast Asia shows, collects traffic and sales data, which are audited by PriceWaterhouseCoopers, so figures aren't quickly available. Show spokesman Gerard Ong said attendance was at 15,232 visitors through the third day, and with two more days to go was expected to exceed last year's five-day count of 17,011 "by quite a bit."
He added, "In view of the more stable political environment worldwide, exhibitors and buyers seemed more confident of increased transactions and orders."
The exhibitor count at Singapore, sometimes called "the High Point of Asia," was 507, down from 600 in 2001, and the number of countries participating dropped to 29 from 34. Larger companies expanded into the vacated space, sponsors said, and the show expanded with new sections for office furniture, kitchen furniture and appliances.
With only Lane, Sauder and Stanton International, the United States had a small presence at the show. But David G. Wormald, merchandise manager for Lane leather and upholstery, said the company was getting a great response from Korea, Australia, New Zealand and India.
"It's difficult for an American company to develop relationships and set up a dealer structure," Wormald said, noting that Lane had exhibited in Singapore for four years.
"Buyers will come by for a couple of markets and know that we're here to stay," he said. "We're writing some business, but there's a lot of shaking hands going on."
In its 10th year, Sauder is the show's oldest U.S. exhibitor. "Through the years it has been a wonderful show for us to develop our distribution base," said Don Carlson Jr., sales manager for overseas operations. "We're not going to do big numbers while the dollar is as strong as it is."
| Nunag |
| Malicay |
-
Best Vegas show in years
Feb 22, 2012 -
Upholstery Holds its Own in Tough Economy
Aug 16, 2011 -
Malaysia sees positive signs
Mar 25, 2011 -
Brazil show reports record attendance
May 15, 2012
Featured Company
-
Wright Labels
Bill and Tom Wright founded Wright of Thomasville in 1961 on the idea that printing was a creative medium and the belief that "a promise made is a promise kept." The Wright brothers focused their attention on providing exceptional printing for the... more
VIEW ALL GALLERIES
