China's neighbors ready to capture some business
By Thomas Russell -- Furniture Today, July 12, 2004
Kuala Lumpur, Malaysia — If U.S. buyers are looking for alternatives to China for wood bedroom furniture, some neighboring Asian manufacturers say they are ready to capture some of the business.
At furniture markets in here and in the Philippines earlier this year, some exhibitors were ready for additional bedroom orders that could come their way. Now that the U.S. Department of Commerce has decided to impose preliminary duties on Chinese-made bedrooms, some are ready to move forward with those plans.
One is Philippines-based case goods manufacturer Pacific Arts & Décor, which has bought six bedroom production machines from Japan and said it planned to spend about $1 million for related equipment.
That investment is largely in response to inquiries from importers looking for alternate Asian sourcing partners. Pacific Arts & Décor had one bedroom in its line in early March and was looking to add more. President Emmanuel P. Padiernos said an importer, whom he declined to name, was talking to Pacific Arts about supplying additional bedroom furniture.
Tomisho, a Malaysian case goods manufacturer, spoke with several importers seeking information about products and prices during the Malaysia market in Kuala Lumpur in March.
At the time, Tomisho said it was well positioned to take on new orders. It introduced eight bedrooms at the show and can ship about 180 containers a month, up from 120 five years ago.
Price is a major consideration for importers seeking alternate sources. Here too, Tomisho said it could be well positioned, with its typical five-piece bedroom ranging from about $350 to $450 wholesale. Marketing Manager Betty Yeow said that with the duties on Chinese wood bedroom, Tomisho's bedrooms could be slightly less expensive than similar Chinese products.
"We think we are reasonably priced, but we can't go any lower because of our overhead," she said.
Siew Ong Tan, a marketing manager for Malaysia-based DZI Craft Woodwork, said U.S. duties could help restore Malaysia's bedroom production capabilities.
"When they built huge factories in China, of course it affected our business here," she said. "We can see from (the Malaysia) show that buyers are coming back for bedroom furniture."
Like other manufacturers at the show, DZI also got inquiries from importers seeking alternate bedroom sources. DZI subsidiary Poh Huat makes bedroom, office and entertainment furniture in Vietnam. Tan said that factory is large enough to take on more orders, possibly in bedroom.
Despite their resources, some companies might not be able to meet all the demands, said Koda Senior Vice President Ernie Koh. His company is a Singapore-based casual dining manufacturer that also produces bedrooms.
"Our existing customers are concerned about (potential duties) and are looking for double sourcing," said Koh. "But I don't know (if other countries) can absorb their volume."
