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Singapore sources aim to boost U.S. exports

New opportunities open for Singapore furniture manufacturers

Gary Evans -- Furniture Today, May 23, 2008

SINGAPORE — Singapore’s furniture industry expects to more than double its share of the world export market by 2015 by turning its products into a brand based on design and not low cost.

That was the word here at the recent Singapore International Furniture Show/25th ASEAN Furniture Show. Several government and industry officials said they expect Singapore’s share of the world market to increase from its 2006 share of 0.7% to 2% — from $2.4 billion to $11 billion — in less than a decade.

“The outlook for Singapore’s furniture industry is clearly optimistic and buoyant,” said Dr. Lee Boon Yang, minister for information, communications and the arts, speaking at the opening of the annual furniture show held in March.

Halo’s rustic new line, Salvage, takes old wood, nails, metal and even wheels and recycles them into pieces like this mobile console.

Koda added lots of bling to its black lacquer dining table by dressing it up with Swarovski crystals.

Rachin Furniture Décor, which owns manufacturing facilities and retail operations in Vietnam, specializes in upholstered furniture for international markets. Its introductions included this low-profile contemporary bed.

Cellini, which has factories in Malaysia and Indonesia and 32 retail outlets in Southeast Asia, puts the cool into this sleek Italian-inspired recliner.

The Life Shop was part of a recent delegation of Singapore producers that traveled to New York to explore export opportunities. This is one of the Life Shop’s signature pieces.

But, he cautioned, “Like other competitive sectors, there is no room for complacency. As furniture manufacturers, you must continue to sharpen your competitiveness to grow the business and win new market share. This is where having distinctive branding and strong design capability could make a huge difference in the future of Singapore’s furniture industry.”

The industry here has grown by 10% annually over the past five years, according to Spring Singapore, a leading industry group. That’s outpacing world furniture growth, which has increased a healthy 6% to 8% over the same period and now accounts for more than $300 billion.

Singapore officials said the industry’s growth is driven by a vigorous domestic housing market, consumer spending in the United States and Europe, and growing demand in China, India and the Middle East, which have opened new opportunities for Singapore furniture manufacturers.

A number of exhibitors at the show, which drew 18,361 attendees from 129 countries, said that robust business in emerging countries was taking up the slack left by the fragile U.S. economy and the weakened dollar. Despite what’s happening in the U.S., exhibitors at this year’s show — from Singapore and elsewhere — remained enthusiastic that the States would bounce back and continue to be a powerhouse importer.

“The outlook is huge,” said Luke Jones, managing director of Halo Asia, which covered its showroom from floor to ceiling with its trademark white faux fur.

“Our target is substantial,” he added. “We see the U.S. as the largest market in the world.”

Halo sells containers direct to retailers and through U.S. sources such as Four Hands. Recently, Halo has cut the number of export partners with whom it works.

“It was intentional,” Jones said. “We were supplying too many wholesalers and competing against ourselves.”

At this year’s show here, the company introduced more than 300 products, most of which could be sold in the United States. It also touted a new line of wood products made of old beams and recycled nails and metal from demolished buildings in the United Kingdom.

Koda, one of Southeast Asia’s largest dining room manufacturers, featured a number of products aimed at existing customers in the Europe and the U.S., each accounting for 40% of the company’s output. Some introductions were in wood solids and veneers, which the company said was an “upcoming trend” in both the U.S. and Europe.

In addition, Koda introduced an environmentally friendly range of products called the Hiro collection, which includes sustainable bamboo, water-based finishes and recyclable packaging.

Ernie Koh, executive director of marketing, said the company isn’t completely green but is making a start.

“Starbucks will tell you that it’s an ‘evolution, not a revolution.’ ”

Key developments at the show here included the announcement of a new branding effort called Moziac, whose purpose is to showcase Singapore companies for international promotion.

The show also staged a large design event called Platform, a program that provides emerging furniture designers with an opportunity to exhibit prototypes and develop partnerships with international manufacturers and buyers. Lee, the cabinet minister, said that a 2007 National Design Industry Study by Ernst and Young showed that 44% of businesses acknowledge that design gives them a competitive edge (up from 32% in 2005).

Recently, a group of 17 Singapore companies participated in a trade mission to New York, where they exhibited at the International Contemporary Furniture Fair and visited design-oriented retailers to study the needs of the U.S. market.

“It’s paramount that our local designers are given opportunities to network overseas and explore international markets,” said Neo Nia Meng, vice president of the Singapore Furniture Industry Council and executive director of Four Star Inds. He said the mission and the ICFF provided a “good avenue for marketing opportunities and potential partnerships” for the design-centric companies that participated.

Singapore sources launch branding effort

By Gary Evans

SINGAPORE – The Singaporean furniture industry has created a new global brand for its furniture products called Singapore Mozaic.

The brand aims to position Singapore as a leading source for fashion-forward furniture designs and provide a focal point for the promotion of Singaporean products overseas.

Established in markets in Germany, Denmark and Morocco, Mozaic member Air Division has turned its sights on the United States with design-oriented pieces like this sleek, low console.

“With this collective branding of the industry, we hope to sharpen our competitive edge as we challenge ourselves further in design and innovation in the international arena,” said Andrew Ng, president of the Singapore Furniture Industries Council (SFIC), the campaign’s main organizer.

“This brand positioning will harness the collective strength of industry players to differentiate their products and enhance the recognition of quality, design, reliability and value” offered by Singapore furniture companies, he added.

Mozaic members, called brand ambassadors, range from upholstery maker Abitex Designs to contemporary case goods and upholstery maker Urban Foundry. Mozaic members must belong to the SFIC, which represents 95% of Singapore-based companies that sell their products abroad.

About one-half of the Mozaic participants have expressed interest in doing business in North America.

The Mozaic brand made its first appearance at this spring’s Salone del Mobile fair in Italy. The group also plans to participate in other key overseas furniture shows this year and will conduct a trade mission to Las Vegas and High Point.

Since many companies are based here but manufacture in other Asian countries, the organizers of Moziac require members to have at least a 30% Singaporean equity stake. Members also must have the infrastructure and workforce to keep up with export demand, use a blend of Eastern and Western business practices and be able to respond to customer needs and market conditions.

In addition, visitors at the recent International Furniture Fair Singapore and the 15th ASEAN Furniture Show here saw the market debut of a new exhibition center to promote international companies and trade. The $17 million International Furniture Center is a one-stop, year-round platform for export business built to complement the annual furniture show.

The new center opened with 28 furniture exporters showcasing items made in Singapore and the region. Two more centers are planned. The IFC also will serve as a center of learning for furniture manufacturing, design, marketing, sales, logistics and management through the Furniture Learning Institute that is located on the premises.

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Singapore sources aim to boost U.S. exports

May 25, 2008

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