Indonesian furniture exports aim at Chinese market furniture companies how to fight back

The head of the Export Development Bureau of the Indonesian Ministry of Trade recently said that with the continuous improvement in the production of furniture including wood products, metal products, rattan products, plastic products and bamboo products, the international market demand has rebounded, and various types of furniture have become Indonesia’s exports. One of the superior products. Indonesia’s furniture exports last year reached $1.41 billion, up 5.63% year-on-year.

In addition to traditional markets such as the United States, France, and Japan, the Indonesian furniture industry regards the Chinese market as a key export expansion target. The chairman of the Indonesian Furniture Industry Association said that Indonesia exported US$60 million worth of furniture to China last year and hopes to increase it to 200 million U.S. dollars this year. As the economic development of Europe and the United States slows down and trade barriers continue to increase, the business of the European and American furniture market is getting worse and worse. Therefore, in the past two or three years, furniture companies have been exploring new markets. As the ASEAN market slowly recovers, it has gradually become one of the important destinations for China's furniture exports, especially Guangdong.

In fact, ASEAN was the traditional exporter of Guangdong furniture. As early as the early 1980s, Guangdong's mahogany furniture performed well in the ASEAN market. At the same time, Guangdong merchants in the early Nanyang also formed a group with certain consumption power. With the great shift of Taiwan's furniture industry in the mid-1990s, more Taiwanese companies settled in the mainland, 70% of which were rooted in Guangdong.

The furniture manufacturing base exported to the United States also moved from Taiwan to Guangdong. The export channels of Guangdong furniture changed instantaneously, and the export pattern changed greatly. Especially in 1997, the Asian financial crisis broke out, and the sales share of Guangdong Furniture and ASEAN fell sharply. Data show that in recent years, Guangdong's furniture exports to the United States and the European Union account for more than 80% of global exports. So now, what are the pros and cons of China’s furniture enterprises to “kill” back to Southeast Asia?

First of all, the Southeast Asian market is geographically close, and the transportation cost is low. In addition, the humanities, aesthetics and climate of Southeast Asian countries and Guangdong are relatively close. Especially the redwood homes in Guangdong are highly sought after, so enterprises are more close to product manufacturing and design. consumer. The most important thing is that there are no technical barriers and trade barriers in Southeast Asia. The standard requirements for furniture are not high. Compared with Europe and the United States, the threshold for export is very low. Guangdong furniture not only has a certain market reputation in Southeast Asia, but also has the advantage of being cheap and affordable.

In addition, the "China-ASEAN Free Trade Area" is about to be formed. It will be an economic region with 1.7 billion consumers, a GDP of nearly 2 trillion US dollars and a total trade volume of 1.2 trillion US dollars. The market share of the most populous free trade zone is incalculable. However, the drawbacks of the Southeast Asian market are also obvious.

Third, in Southeast Asian countries, such as Malaysia, Vietnam and other countries, the furniture manufacturing industry is also gradually emerging. Southeast Asian furniture enterprises occupying home advantage are one of the main competitors of China's exports to Southeast Asia. It can be seen that there are many advantages and disadvantages of exporting furniture to Southeast Asia. It depends on the positioning of the company itself and the planning of the future direction of the company. It is necessary to follow the plan.

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