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wooden furniture industry: its potentials and market opportunities.

by:GOJO     2020-07-02
Since the government banned log exports in 1985,
The processing industry, including the wood furniture industry, has been growing rapidly, especially since the 1990 release of a policy restricting the export of processed wood.
The export volume of the wooden furniture industry continued to grow.
For the period from 1990-
1997, Indonesian wooden furniture exports rose from 111.
8,000 (worth US$ 89. 5 million)in 1990 to 326.
2000 (worth US$ 566. 35 million)in 1997.
In 1993/1994, due to its rapid growth, the demand for logs soared, and the wood furniture industry found itself somewhat difficult.
Producers who are not integrated into the wood
The processing industry has not caused serious trouble to the production of logs, especially the purchase of basic materials, because the price of such basic materials has risen sharply.
Therefore, although the export performance of the wood furniture industry continued to grow, the overall performance fell sharply in 1994.
Outbreak in the middle
In 1998, 1997 of the currency crisis began to affect the export performance of wooden furniture.
For the period from January-
In July 1998, the export of wooden furniture in Indonesia reached only 80,878 m³, only 24 m³.
8% of 1997.
The decline in exports has dealt a considerable blow to the wood furniture industry as they need to earn income in the United StatesS.
Dollar currency to make up for the decline in domestic demand due to the decline in people\'s purchasing power.
The decline in exports in the wooden furniture industry was not only caused by the global economic crisis, which affected wooden furniture
Importing countries like Japan are also affected by high prices of basic materials in the domestic market.
It is difficult for wooden furniture manufacturers to obtain wood (
Teak and mahony)
Directly from PT inhuani at a standard price;
They had to purchase timber from the company through a broker, which made the price very high.
Nevertheless, with the performance of the wood --
The processing industry has declined, and the supply of logs in the domestic market is considerable.
However, as the government lifted the ban on the export of logs in the middle of the year
1998, the price of this material is adjusted to the level applicable to the international market, which is set in the United StatesS.
Dollar currency.
However, although the situation in the wood furniture industry seems bleak, foreign investors have not lost interest in investing.
According to the data of the Investment Coordination Committee (BKPM)
In 1998, as many as 34 new investment projects in the wood furniture industry were approved, 28 of which were approved under foreign investment (PMA)scheme.
This phenomenon is worth studying in this report, which will also analyze the potential of some export markets for Indonesian wooden furniture.
Data from the Ministry of Industry and Trade show that the furniture industry has been growing rapidly, indicating that its overall production capacity has increased from 1,600,000 m³ per year in 1991 to 4,034,000 m³ in 1997, by the end of 1997, Indonesia had more than 4,000 furniture producers.
These figures include the furniture business of small farmers.
As for media-and large-
Furniture producers of scale registered with the Ministry of Industry and Trade, whose population is 594 companies by the end of 1997, have a joint licensed production capacity of 2,785,000 m³/year.
In 1998, their population grew to 625 companies and their licensed production capacity reached 2,831,000 m³ per year.
The furniture industry produces a wide range of products including cabinets, chairs, shelves, beds and tables.
In the course of their productionand large-
Most furniture manufacturers use machinery.
Medium in general-and large-
Furniture manufacturers of scale integrate into molding, Windows/doors-
Framework and other woodworking industries.
Another band, little-
Large-scale furniture manufacturers mainly use manual labor in the production process to produce products that can be classified as handicrafts.
They use tools/machinery only when shaping the basic pattern. Medium-and large-
Furniture manufacturers of scale usually divide the quality grades of oats products into 1st and 2nd
The price is quite high.
They supply their products to the export market and to the medium market.
High income class in the domestic market including offices, hotels and restaurants.
Among the more famous local brands of wooden furniture products, Ligna (
Produced by PT Hadinata brothers), Olympic (
PT Cahaya Sakti Furintaco), Palma (
PT Palapa Utama)
Linda, Victor and others.
On the other hand, small-
Wooden furniture producers of scale usually produce crafts of 3rd and 4 quality grades
Domestic market segments with lower revenue as their marketing target.
However, the people who were excluded from them ate the handmade ones
Carved wooden furniture in the style of jepala, Bali and classic, its marketing objectives are export market and Upper
Revenue in the domestic market.
The center of such a hand-
Wood carving furniture is produced in Jakarta, West Java (
Bandung and becasea)Central Java (
San Po Ridge, in Jepara, Volcano Merapi, sukohago), East Java (
Surabaya, Kediri and ponogo), and Bali (Denpasar).
There is a well in these areas
Build the hand
So they have quite a supply of craftsmen. As for large-
Furniture manufacturers of scale without brands, they are usually integrated with the styling industry.
They produce complete sets of furniture (e. g.
Garden furniture, office furniture, kitchen furniture)
, They can produce various types of furniture according to the buyer\'s order (or exporters).
In addition, they also produce various furniture components such as chair body, chair leg, chair arm, etc.
They supply these products to the domestic and export markets. Both small-and medium-/large-
Furniture producers of scale use various types of wood.
As for the main components of certain types of furniture, E. G. g.
Cabinets, shelves and some others, some made of sawwood, others made of various types of boards such as plywood, scrap boards and medium density cardboard (MDF). Table -
1 Indonesian furniture production capacity, 1993-1998 (*))Data corected; (**))
Tentative figures: Ministry of Industry and Trade/Ministry of data and information, the Olympic endurance crisis until the current currency crisis broke out,
With the rapid increase in the number of mid-range furniture
High-income consumers in Indonesia have increased.
This is because the industry is middle class oriented.
High-end segment.
One of the big ones
The scale participants in the industry are PT Cahaya Sakti Furintraco, which was established in Bogor in 1981.
Initially, the company produced panel furniture in the form of study tables.
On the evening of 1983, PT Cahaya Shakti Furintraco launched its own brand and Olympic Games.
The company\'s success in creating the production of panel furniture and creating the demand side of this furniture makes it aware of the importance of having its own well --
A distribution network has been established.
Therefore, in 1986, the company established a subsidiary called PT Cahaya Sakti Multi o, whose main responsibility is to handle the distribution of Olympic products.
At present, PT Cahaya Sakti intracti Intraco has no less than 45 branches and more than 5,000 furniture stores throughout Indonesia.
Of these stores, more than 30% of the stores, Olympic furniture accounts for more than 65% of the total number of furniture they provide.
Since its inception, PT Cahaya Sakti Furintraco has produced 1.
There are 5 million sets of furniture, of which 80% are supplied to the domestic market and 20% are supplied to the export market.
In the current crisis, the Olympic Games were appreciated by the United States. S.
Dollar against rupee.
But the company acknowledged that its exports have been declining since the beginning of the financial crisis.
Despite this, PT Cahaya Sakti Furintraco managed to continue operations with annual sales of Rs 100 billion, thus maintaining the work of 4,000 employees.
The current crisis has not prevented PT Cahaya Sakti Furintraco from continuing its 70-
A hectare of land in San Tu of Pogo.
To improve overall efficiency, the company plans to relocate all its subsidiaries and support units to a new location in St.
The company will also set up a timber industry training center, design center, office building, shopping center, staff quarters, playground and worship facilities on the website.
In addition, the company will also start to produce upstream products, namely medium density cardboard (MDF)
And particle plates.
Another large-
Scale producer of Knocked-
Down furniture is PT Hadinata Brothers & Co that produces \"Ligna\" furniture.
Founded in 1975, the company is currently located in Tapos in the Cibinong Boger area.
Domestic investment and operation (PMDN)
The company currently operates no less than 45 exhibition halls in several cities in Indonesia, selling its extensive range of products, including wooden rattan chairs, wooden cabinets and wardrobes, tables and desks, beds, office furniture.
To promote export marketing of its products, PT Hadinata Brothers & Co has set up some marketing offices in several countries that are classified as medium quality products.
In addition to the Olympics and Ligna, there are two other popular local brands in the domestic market, namely Palma and Linda.
Produced by PT Palma Utama, the company was founded in 1976 and the factory is located in Cengkareng, Jakarta. As for large-
Wooden furniture manufacturers of scale without their own brands are mostly integrated with the upstream industry.
As a result, they not only produce finished furniture, but also produce basic materials such as sawwood, stakes and formwork, and logs.
One of them was PT Bumi Indah Raya, established in 1969 by Soenaryo Priosoetanto and his brother Adijanto.
On 1993, Adijanto and his son withdrew from PT Bumi Indah Raya, and the full ownership of the company was transferred to Soenaryo and his son.
Now, PT Bumi Indah Raya has developed into the Bumi Raya Utama group, which is responsible for overseeing 23 subsidiaries that operate various businesses such as wood
Processing, agriculture, chemicals, etc.
Original timber of the company
The processing plant is located in Kapuas in the region of Pontianak West Kalimantan and continues to produce with Taiwan, Japan, China and China-
Eastern countries as importers.
Similarly, as the company is integrated with the upstream furniture industry, the company\'s furniture production business has managed to endure a shortage of basic materials.
As a result, the Bumi Raya Utama group maintained its furniture export performance. One large-
Furniture producers of scale have been listed on the Jakarta Stock Exchange (JSX)
It is PT Rimba Niaga since 1990.
The company exports about 40 containers a month.
PT Rimba Niaga was founded in 1975 by Tan Tek Hui and produces carpets in addition to furniture. Table -
Large furniture exporter-
Production, source 1997: Asmindo/Dam consultation is clearly attractive to foreign investors, furniture industry-which is labor-intensive--
It is very attractive to foreign investors, especially those who want to move their factories to Indonesia to ensure basic material procurement and maintain low production costs.
This is because Indonesia has a large number of furniture production technicians.
Foreign investors\' interest in entering the Indonesian furniture industry seems to have never subsided, although foreign investors\' interest in other Indonesian businesses has fallen sharply during the current crisis.
In 1998, there were as many as 34 furniture projects approved by the Investment Coordination Committee (BKPM)
Among them, 24 are approved under foreign investment (PMA)
6 Other items under the plan and domestic investment (PMDN)scheme.
Almost all new projects.
Only one is the expansion project, which belongs to PT Cahaya Samtraco Utama, which operates according to the PMDN plan and the factory is located in Samaringa, East Kalimantan.
This is an interesting phenomenon because domestic demand for furniture has been declining, and exports in the furniture industry have shown a downward trend last year.
As for the PMDN project, the largest project belongs to CV Ultra Megah Majalaya, which will establish Rp 10.
5 billion furniture factories in margaraya, West Java, with an annual production capacity of up to 2,000 m³.
The company plans to start commercial operations of the plant in 2000.
The second largest plant belongs to PT Cahaya Samtraco Utama, which will expand the production capacity of its furniture factory in Samarinda, East garimantan, with an investment commitment of Rp 4. 8 billion.
The expansion is expected to increase the company\'s monthly production capacity by 40,000 units and is scheduled to be completed by 2000.
As for the PMA project, the investment commitment for most projects is less than $1 million.
Only a small number of people have committed more than $1 million in investment, and they belong, among other things, to PT Deakin, woodland furniture and new Antik, Indonesia.
Indonesia\'s Daiken company is owned entirely by foreign investors. Ltd. (of Japan).
The company will build a $3.
Furniture factory with 4 billion production capacity in 10,196 months.
The project is scheduled to be completed in 2001.
The new PMA furniture project will also begin production in the same year.
It is located in q in Central Java and is owned by Indonesia, Singapore and Taiwan businessmen.
About $2 will be invested in woodland furniture.
1 million in this project, the annual production capacity of the project should reach 1,500 m³ per year. Table -
3 New and expansion projects in the furniture and furniture parts industry (
(Approved by the Investment Coordination Committee in 1998)(*))in \"sets\"; (**))
In \"ton\" PMDN = domestic investment;
PMA = source of foreign investment: As of now, the Investment Coordination Committee/data consultation log for export, a major problem facing the wooden furniture industry is the supply of basic materials.
A few years ago, there was no forest concession, so the furniture producer who did not guarantee access to basic materials complained that getting good furniture was getting harder and harder
Quality log from free market.
Logs are then not only scarce, but increasingly expensive, as it is priced in dollars, whether it is logs produced by Forest franchisees or to produced by inhuani from its timber estateTeak mahony).
In the current crisis, the appreciation of the US dollar against the Indonesian rupiah and the recently issued policy to lift the ban on log exports led to an increase in log exports, resulting in a shrinking supply of logs in the domestic furniture industry.
Thus, the practice of purchasing tog from illegal sources is suspected to be on the rise.
Nowadays, it is difficult for local furniture producers to purchase teak directly from inhuani.
They have to get such logs through brokers who set the price to double or triple the standard price set by inhuani.
At the same time, the price of logs in the free market has soared due to the economic crisis.
Despite the lifting of the ban on the export of logs, the government continued to guarantee the provision of logs to local furniture producers.
However, some furniture producers have to stop their operations, especially small furniture producers. and medium-
Fully oriented to the size of the domestic market.
This is so confused that in the case of declining purchasing power of the people, it is difficult for these furniture producers to increase the price of the products.
Furniture manufacturers so far-
It is mainly located in Java--
Not only was the basic material obtained from inhuani (
Through its timber estate)
There are also dealers who purchase from illegal sources and small farmers in Sumatra and garimantan.
A few years ago, the supply of logs from illegal sources of small farmers and Java dropped sharply as the government increased its control because the illegal transaction log damaged the government.
As a result, the wooden furniture producer of Java screamed for help because of the supply of logs from legal sources (
With official log shipping files such as SAKO and SAKB)
Also shrinking.
Basic materials for general export-
High quality furniture products can be teak, Remin, mahony or sonokeling wood.
The global demand for furniture continues to increase, and other types of wood can also be used as basic materials. They are nyatoh, merbau and red meranti wood. As for hand-
Carved wooden furniture products, in addition to other types of hard wood such as mahony, sonokeling and sungkai, are generally made of teak.
Although the amount of hands in Indonesia-
The export of carved wood furniture has always been relatively low, because the price of such furniture is higher than that of other types of furniture, so the value has always been relatively high. Table -
4 Types and geographical distribution of basic materials of Indonesian furniture (*))
1: Sumatran 2: Java 3: Kalimantan 4: Sulawesi 5: Maruku 6: Noosa Tenggara from 1985 to 1998 this policy prohibits the export of logs, however, due to the rapid growth of forest development, this policy has not managed to reduce wood-
The processing industry, especially the plywood industry, accounts for 48% of the wood output.
Total annual log demand in the processing industry (Estimated at 41.
45 million).
Therefore, the production potential of logs in Indonesian forests has dropped rapidly, as has the actual production of logs.
The output of logs in Indonesia returned to life in 1997, when it rose sharply. 2%.
However, the increase in log production this time does not mean much to the furniture producers, because of the El-
The Nino weather phenomenon makes it impossible to transport logs from the production site to the furniture production plant.
At that time, the stocks of logs in Indonesian forests were in danger of decay.
In view of this, while lifting the ban on the export of logs, the government has set Indonesia\'s export target of 5 million cubic meters, accounting for 1998, assuming that the reserve of logs in the forest has reached 12 million cubic meters, the demand for domestic logs for three months is only 6 m³.
9 million.
The current supply of logs is completely different from before the economic crisis.
Almost all the wood before that.
The processing company screamed at the logs, some of which even had to import the logs.
Now, with the performance of wood
The processing industry declined, and the supply of logs in the domestic market was quite high.
However, because of the high prices, furniture producers who are unable to enter the export market find it difficult to continue to survive, and the purchasing power of the domestic market has been severely weakened due to the currency and economic crisis. Table -
5 Indonesian logs and processing-
Production of wood, 1993-
1997 Source: As mentioned earlier, forestry furniture production declined in 1994, with a shortage of 1993/1994 of basic materials leading to a shortage of wood
Processing companies, especially smalland medium-
Most of them are not integrated into any domestic source of basic materials.
On the other hand, big-
The producers of large-scale wooden furniture managed to get rid of the situation because they were either integrated with the Forest franchisees or had a commercial relationship with the producers of logs.
According to the Ministry of Industry and Trade, the output of wooden furniture in Indonesia fell by 60% to just one piece.
1 million cubic meters in 1994.
Wooden furniture producers who managed to survive the crisis of basic materials, among other things, were those that produced
Down Products with granular plates and block plates as basic materials.
These materials are not only cheaper than sawwood, but also easier to buy in the market, with more and more production units of pellet boards and block boards established as plywood producers anticipate a shortage of logs.
Over the past two or three years, Indonesian wood furniture production has been growing at an alarming rate.
1996 reached 1,649,000 m³, an increase of 54% over the previous year.
This increase is partly due to the increasing number of foreign investors moving their wooden furniture factories to Indonesia.
Most of them come from Taiwan, Hong Kong, South Korea and Japan.
Since the release of Government Regulation No. In 1994, foreign investors\' interest in Indonesian wooden furniture industry has been rising.
In 1994, foreign investment projects in the wooden furniture industry were allowed to have full ownership.
Despite the currency crisis, the output of Indonesian wooden furniture has increased by 1. 3% in 1997.
However, in 1998, global demand fell due to the global monetary crisis, which is expected to fall sharply. Table -
6 Indonesian wooden furniture production, 1993-
1997 source: the wood furniture export sector of the Ministry of Industry and Trade can optimize almost all new members of the wood industry
The processing industry is export-oriented, especially the processing industry operating under the PMA or PMDN program.
This is in line with the government\'s policy of guiding timber --
Processing furniture industry, export high value-added products. g.
Carpentry and furniture.
As the number of players grows, wood-
The capacity of the processing industry to export finished wood products is also continuing to improve.
In terms of the furniture industry, exports in the past five years grew by 88% from 173.
Between 1,000 m³ and 326 m³ in 1993.
2000.
At the same time, the value of these exports has risen by 64. $ 7%, $343.
$82 million to $566.
35 million in the same period.
Compared with the total export value of Indonesian wood products (US $5. 561 billion) in 1996 ,(that year/1996)
Very low, $0. 604 billion or $ 10%.
Of the wooden products, the largest
Exchange earner is plywood, followed by sawwood and house components.
In other words, the value of processed timber exports in Indonesia is not optimal, not only because of the relatively small quantity, but also because of the low added value.
As we all know, Indonesian furniture manufacturers mainly rely on orders from overseas buyers.
Because of their low bargaining position, they are unable to reach their export prices.
Instead, they only accept the price set by the buyer.
The facts show that although Indonesian furniture exports grew by 18.
8%, the value fell by 6 in 1997. 2%.
Overseas buyers go directly to the furniture production center in Indonesia to buy.
In addition, some furniture companies set up under Indonesian law on behalf of Indonesian nationals are actually managed and owned by overseas buyers.
These overseas buyers get a double benefit from this practice: they can control the quality while maintaining the purchase cost (
Or production cost)low.
Most overseas buyers involved in this business practice collect the output of small loans
Furniture manufacturers (craftsmen)
Handle the finishing process by themselves, enabling them to keep production costs low.
Since Flint\'s products are ordered from these furniture producers
After completion, these overseas buyers can often force the former to sell at a low price.
Due to the increasingly fierce competition in the domestic market, these small-
Furniture producers of scale usually can do nothing but accept such orders, although this will only give them a very low profit margin.
In order to add more value to Indonesian furniture products, manufacturers need to have brands.
It is very important for local furniture producers to have their own brands, especially with the advent of the era of free trade.
The current buyer market situation does not allow producers to add more value to their own products, nor does it allow to increase profit margins, because they can only consider the cost of purchasing basic materials, the level of production costs is low in calculating profit margins.
In developed countries, furniture producers consider not only these two elements, but also other elements such as technology, skills to design and calculate profit margins, enabling them to sell products at high prices. Table -
Indonesian wooden furniture export, 1993-
$1998 tons (*)January -
July Source: CBS/Dam consulted different categories of wooden furniture. 1997 of Indonesia\'s wooden furniture exports are mainly wooden seats and knot products, with an export volume of 112.
3,000 tons (worth US$ 159. 03 million).
On the other hand, in terms of value, the furniture is dominated by other furniture, including kitchen furniture with export value of $250. 59 million (94. 1,000 tons).
However, of the different furniture products, 1997 of Indonesia\'s wooden furniture exports are mainly bedding (
66,000 tons worth $65. 57 million).
In terms of value, the United States is Indonesia\'s largest importer, mainly exporting wooden furniture to Japan, the United States and Western Europe.
In 1997, Japan was the largest importer of Indonesian wooden furniture, with 61 imports.
25,000 tons (worth US$ 90. 46 million).
On the other hand, in terms of value, Indonesia\'s largest importer of wooden furniture is the United States (US$ 112. 56 million)
Although the number of exports to this country is relatively low (30. 2000 tons).
Similarly, only 14 were imported from Australia.
Indonesia produced 1,000 tons of wooden furniture in 1997, but it was worth $62. 27 million.
Other important importers of Indonesian wooden furniture are South Korea, Taiwan and some European countries.
For example, 88 vehicles were imported from the Netherlands.
7,000 tons worth $44.
66 million and 27 in the UK.
7,000 tons worth $39.
1997 46 million.
Obviously, given the great potential of Indonesia to absorb wooden furniture, the number of wooden furniture exported by Indonesia to the United States may be optimized.
However, there is an obstacle to increasing exports to the United States, which is that the country has put strict demands on the import of wooden furniture.
One requirement is the material used.
For example, the lining and foam should be made of refractory material (non-flammable).
Another requirement involves design, which is a problem that Indonesian furniture producers cannot cope.
In this regard, they lag behind Taiwan, Hong Kong and South Korean furniture producers who are more experienced in dealing with the United States than Indonesian competitorsS. market.
The markets in Taiwan, Singapore and South Korea not only consume their wooden furniture products imported from Indonesia, but also re-
Because these countries have moved many of their furniture factories to Indonesia and have established good exports --
Marketing network.
Meanwhile, Australia-
Indonesian wooden furniture export market is relatively new-
The fact that it has proved to be a potential importer of such products shows that the quantity and value of 1997 pieces of furniture imported from Indonesia are higher than those of Western European countries, although these countries have imported Indonesian wooden furniture for a longer time than Australia. Table -
Indonesia 1996-
1997 wooden furniture export market by country of export destination is still passive
Furniture producers of scale in Indonesia are also often exporters.
They introduce their products to overseas consumers through exhibitions held in Indonesia and abroad.
In most cases, export transactions will not end unless potential overseas buyers visit the production plant.
However, some furniture exporters
Producers not only sell products to overseas buyers in the above direct model, but also indirectly sell products to overseas buyers through the services of brokers, usually foreign furniture dealers that already have good
Marketing networks have been established in their respective countries.
In order to facilitate the export marketing of their products, some large enterprises
Large-scale furniture producers have also set up marketing branches in target countries.
Direct export marketing approach as described above, whereby potential buyers come to Indonesia, visit the furniture production center, order furniture according to the specifications they have determined, in most cases, because they can\'t set their own prices, it\'s not good for the producers involved.
Instead, they have to accept the prices set by potential buyers.
Another problem for local furniture producers is their low mastery of finishing techniques.
This explains why a large part of Indonesian furniture exports
Finished products with low added value.
As mentioned earlier, more important importers of Indonesian furniture products are Japan, the United States, Australia, South Korea, Taiwan, and Western European countries.
The wooden furniture produced by Japan itself has two major styles: Japanese style and Western style.
Japanese furniture with Japanese style includes products that are usually used as part of the Japanese lifestyle, including low kitchen tables/guest tables, tea boxes
There are other typical Japanese wine boxes.
On the other hand, Japanese furniture with Western style will be those products born from the \"sitting\" lifestyle, such as restaurant furniture, living room furniture, tables and chairs, and beds
Currently, the West
Style furniture is widely used in Japan.
In Japan, what does a set of furniture mean, including dining room furniture and living room furniture (i. e.
A sofa and two chairs, either with arms or without arms)
Sold as a set.
The number of Indonesian furniture producers supplying furniture to Japan has been high because the country has not set any obstacles to these imports.
As long as the furniture products involved meet the Japanese Industrial Standards (JIS)
It can enter the country for furniture.
Another reason is that Japan imposes a special import tax on products from developing countries, but such imports do not exceed the applicable maximum.
According to the statistics of the Japan Furniture Industry Association, the total value of imported furniture in Japan is [yen]297 billion (
$2. 73 billion)
In 1996, an increase of 30% over 1995. Table -
9 imported Japanese furniture, 1989-
1996 Source: IDAFU is different from the increasing import of furniture, and the Japanese furniture industry is facing certain problems in terms of demand.
There are many reasons for these problems, including: Imported furniture products are becoming more and more popular because of their wider variety than local products;
With the emergence of importers with good business relationships with overseas suppliers, retailers are increasingly aware of the importance of increasing the variety of products they offer to meet consumers\' demand for certain specifications that are not produced in Japan. Table -
Top ten furniture suppliers in Japan (million Yen)
Source: different types of furniture products from IDAFU, mainly wood imported from Japan. Table -
11 Japan 1995-
1996 furniture imports by material category, 1995-
1996 Source: IDAFU young Japanese couples are increasingly inclined to use the same style of furniture throughout the house and choose furniture with modern Western design.
The furniture market in Korea is developing rapidly.
It was worth $4 in 1995.
4 billion. Some of US $0. 288 billion are imported products.
Imported furniture products in the past few years-
Like other imported consumer goods ---
With the growth of South Korea\'s economy, South Korea continues to be welcomed.
Although South Korea has also been affected by the economic crisis in the past 18 months, market liberalization has improved the position of imported goods in the country\'s market.
One sign is that Indonesia\'s chances of increasing its furniture exports to South Korea are good, that is, the country\'s furniture imports rose by £ 3 during 1990. 1995.
One thing that triggered the growth of furniture exports in China is increasingly inclined to 40-in South Korea-
Choose the grade group and newlyweds of modern and comfortable furniture products. Would-
Couples who get married in South Korea usually need a complete set of high
They got married with quality home furniture.
They mainly choose wooden furniture.
Furniture products of modern design are usually placed in the living room and kitchen, while furniture products of classic and traditional design are placed in the master bedroom.
In addition, there are furniture products with leisure design in the children\'s bedroom.
The most popular types of furniture and wood in Korea are oak, baolavonia, walnut and teak.
There are three main market segments in Korean furniture market:
Revenue Segments for wooden furniture products from European countries (
Italy, France, Germany, Spain)and the middle-and lower-
Revenue Segments for wood rattan furniture products imported from Indonesia, Malaysia, China and Taiwan.
Furniture importers in South Korea usually find their suppliers by publishing and holding furniture magazines and exhibitions in South Korea and abroad.
For Korean importers, the most important furniture exhibition is KOFURN in Korea and High Point in the United States. Table -
12 top five furniture suppliers in Korea, 1995 Source: ITC/Unstat-for different furniture-
The country with the greatest market potential is the United States.
In 1995, for example, the United States imported a total of $2.
Furniture is worth $7 billion, of which only $134.
85 million or 5% are from Indonesia.
This means that Indonesia still has a good opportunity to increase its furniture exports to the United States.
As for the Netherlands, its market potential can be seen from the amount of money consumers spend on 1995, estimated at $3.
7 billion $1 in furniture.
4 billion in the case of the kitchen, $1.
Floor covering $1 billion, curtains $0. 78 billion, $2.
7 billion in the case of other Decorative Products.
In the Netherlands, furniture and decorative products are mainly sold by specialized retailers and department stores, which have a total of 8,500 stores.
The furniture products in these stores account for 24% of them.
German and Italian style furniture is the first choice for Dutch consumers, but they need American style furniture
Style of furniture products as they live in less spacious houses.
In the UK, the wooden furniture market includes 25% chairs, 30% kitchen furniture, 17% bedroom furniture and 10% dining rooms.
Room furniture, 18% other furniture.
Demand for garden wood furniture products has begun to increase in the UK market, although it is still much lower than chairs and tables made of metal or coated plastic.
Import knock-
The demand for furniture in the UK is greatest because the cost of transporting assembled furniture is very high.
Major retail groups like Texas home care also prefer to sell
Because furniture products do not take up too much storage space, they can be stored in large quantities to cope with high demand. Table -
13 1995 furniture import sources in the United States, the Netherlands and Australia: ITC/Unstat barriers to export penetration efforts to date, export marketing of Indonesian wooden furniture products has been low
Prime Consumer Segmentdown furniture. High-
Quality wood commonly used to make outdoor furniture, such as teak, nyatoh and sunkai.
Indonesian furniture products with high quality and high added value are still difficult to compete with advanced countries to adopt high-tech and well-designed similar products.
Some of Indonesia\'s furniture products sell well in the export market.
Carved furniture and knock
Furniture made of ramin wood.
For example, Ligna has managed to get into the media --
Quality market segments in export markets
Furniture products.
Some of the more important export destinations of Indonesian furniture products, such as the United States, Japan and Western European countries, will be so-
Quality cost delivery policy for imported furniture products.
This makes it difficult for Indonesian furniture producers to increase their exports to these countries because they have the skills and design capabilities.
Although global demand for wooden furniture continues to rise, this is not the case.
In Asia alone, Indonesia still lags behind Taiwan, Hong Kong, South Korea and other countries in mastering furniture technology.
However, since Indonesia exports more furniture than any of these countries,
The foreign exchange income of these exports is also higher than that of them.
Recently, with the application of CNC, advanced countries have further improved their mastery of furniture Technology (
Computer numerical control)
Furniture Machinery with very high precision and efficiency. Their previous-
Furniture Machinery has been transferred to other furniture-
Countries such as Thailand and the Philippines.
Although the number of furniture companies operating under the PMA program in Indonesia has been growing, this does not guarantee a smooth transfer of technology to local furniture producers.
This is because the technology used by furniture factories in Taiwan and Hong Kong to move to Indonesia is not very mature.
On the other hand, those who adopt advanced technology, such as those who have moved to Indonesia in Japan, are very reserved when transferring technology to local furniture producers.
Another obstacle to Indonesia\'s export penetration efforts in the furniture industry is the frequent shortage of supplies of basic materials, which makes it difficult for producers who receive large orders from overseas buyers to obtain orders, either directly or through exhibitions, finish on time.
Basic materials obtained from the free market in the furniture industry generally have wood specifications used as building materials.
Therefore, the production process efficiency level of local furniture manufacturers has been very low: 40%-50%.
In developed countries where there are usually wood centres, the level of this efficiency is 60%-70%.
In addition, the machinery used in Indonesia\'s furniture industry is too old and inefficient.
If it is replaced by a new machine, the industry will be able to improve its efficiency by 15%. Table -
14 furniture import and export of Southeast Asian countries 1997 (US$ \'million)
Source: AFIC Indonesia share is only 2.
58% with the growth of furniture imports in the world, Indonesian furniture exports are also increasing year by year.
In 1996, the total value of global furniture imports was $41. 5 billion, up 2.
Growth of 27% over the previous year.
Even so, Indonesia Furniture export ratio is 2.
Accounting for 58% of the world\'s total furniture imports. Table -
Indonesia\'s exports account for 1995 of global furniture imports-1996 (US$ \'million)
Source: World Import (ITC Geneva)
/CBS\'s prospects and conclusions in the early 1990 s, the wood furniture industry in Indonesia grew very rapidly due to the ban on log exports that came into effect in 1985.
In 1997, the industry\'s annual production capacity reached 4,034 m³.
With the growth of the wood furniture industry, its exports also increased significantly from $137.
Between $1 million and $556 in 1991.
1997 35 million.
Compared with other Southeast Asian countries, Indonesia\'s furniture export performance was $1997, or 722.
26 million, with Thailand (US$ 725. 70 million)
But much higher than the Philippines. US$ 321. 91 million)
Even Singapore (US$ 183. 79 million).
Some of Singapore\'s furniture products are exported from Indonesia, which is Singapore\'s most important furniture supplier.
High availability-
High-quality timber and Indonesian furniture production technicians have made the country an advanced country, especially the preferred area for furniture investors in other Asian countries such as Japan and Taiwan, as well as South Korea.
Foreign investors\' interest in entering Indonesia\'s furniture industry has never diminished.
In 1998 alone, Indonesia approved 28 new furniture projects for foreign investment (PMA)
Plan, some of which are completely foreignowned.
However, despite the rapid growth of the wood fur furniture industry in Indonesia, there is still a classic problem in purchasing basic materials: either this material is scarce, or the price is very high, or both.
Another problem is that the export performance of the Indonesian wooden furniture industry is still fragile, as most producers only export products when they receive orders from overseas buyers.
This is because, because of their low level of mastery of furniture technology and design capabilities, they are unable to produce products with high added value.
Indonesia\'s success in reaching the wood furniture export market will depend on whether it can solve the basic shortage of materials and improve its mastery of technology and design capabilities.
One way to overcome the shortage of wood is to diversify the use of basic materials.
Indonesia has a rich source of goods-
High quality wood should be able to produce
Quality of furniture products.
This will only be achieved if the basic material shortage is overcome.
In this regard, the government needs to allocate part of Indonesia\'s high-tech industry.
The quality timber output in the furniture industry enables the latter to produce products with high added value.
This policy needs to be developed, and more importantly, since the ban on log exports has been lifted, a greater possibility has been opened for high timber supply
Quality wood that disappears from the domestic market.
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