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Market boosts hopes in Malaysia

By Thomas Russell -- Furniture Today, March 29, 2010

KUALA LUMPUR —

Malaysian Furniture suppliers were no strangers to hard times in 2009, but their experience at the 2010 Malaysian International Furniture Fair bolstered their confidence that a rebound is around the corner.

Held March 2-6 in Kuala Lumpur, the show included some 500 exhibitors showcasing product in more than 800,000 square feet in three venues in and around the city. Final show results weren't available by press time, but the event usually draws about 19,000 visitors, including 6,800 from nearly 140 foreign countries including the United States.

Buyers here saw a wide variety of case goods and leather and fabric upholstery. While there were some heavily carved traditional pieces, designs were mostly clean-lined transitional and contemporary.

Some pieces had a cottage or coastal flair with painted white finishes. But most bedroom and casual dining sets bore dark finishes — familiar territory for buyers looking to appeal to young urban consumers.

Exhibitor Green River Wood & Lumber Mfg. showed five new transitional casual dining sets priced to retail at $599 to $699 for a table and four chairs and $799 to $899 with six chairs. While the company said overall attendance was down some the first two days of the show, it still wrote orders.

“Retailers have seen some pickup in their business and they are hoping that will be the trend,” said Albert Hsueh, a company marketing official.

Dining and occasional producer Hume Furniture Inds. showed new dining and occasional pieces, including an occasional group made with mahogany veneers with cocktails and nesting end tables targeted to retail from $199 to $249.

“This year, we will see some pickup in business,” said Sim Lim Shen, marketing executive. “We believe the worst is past. We hope 2010 will be better than 2009 and that 2011 will be better than 2010.”

Dining and bedroom producer Shantawood Mfg. also is looking for business to pick up. Its revenues fell about 20% last year and the company is hoping for a comeback with an aggressive new product launch this year.

Among its new introductions at the show were 12 new casual dining groups, many of which were transitional. A set with a table and six solid rubberwood chairs in multiple finishes was targeted to retail from $799 to $899.

“We are trying to develop volume with big retailers in the U.S.,” said Jo Loh, senior marketing manager, adding that business has picked up in the past few months. “With smaller retailers, it is getting less and less because of their inability to buy and store products.”

The U.S. remains a key market for many Malaysian producers, accounting for about 28.5% of the company's exports, according to the Malaysian Ministry of International Trade and Industry.

One U.S. buyer at the show was Joe Elmore, senior vice president of merchandising, sales and product development at case goods importer Fairfax Home Furnishings. He has been to the Malaysia show many times, and said he was impressed this year with the number of case goods groups with functional features such as touch open-and-close drawer guide systems.

“This time, there was a lot more in value and function than we have seen come out of Malaysia in a while,” said.

In addition to Malaysian producers, exhibitors at the show included a number of Chinese manufacturers and materials suppliers along with U.S. marketing companies such as Lifestyle Enterprise and Coe Ltd.

About 80% of Lifestyle's space was devoted to leather upholstery and the rest was case goods. “The line is very well received,” said Gabriele Natale, president of the company's leather division. “Business has picked up and we are writing orders.”

Coe received orders for 50 containers during the first three-and-a-half days of the show and was expecting many more orders after the show, said Bob Wu, a company sales manager.

“It is a very good show for our company,” Wu said.

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