SINGAPORE furniture makers did $1.2 billion worth of trade last year, up 16.3 per cent from 2006. Not bad for an industry that was once written off as being on its last legs.
At last month's week-long imm cologne 2008 furniture trade show in Cologne, Germany, Singapore furniture manufacturers bagged $12 million worth of sales - and another $100 million in deals are still under negotiations.
They have not only survived but thrived. Furniture manufacturers here have overcome the high cost of production and the limitations of a small home market by shifting their factories to cheaper locations abroad and expanding sales overseas.
At the same time, local furniture manufacturers have developed a flair for marketing, design, branding and product development that has made a mark on the furniture business.
'The Singapore players have earned a strong reputation based on their ability to leverage on Asia's competitive production costs and abundant raw materials while developing marketing, design, branding and product development in the Singapore headquarters,' says Tan Li Lin, director of corporate group for lifestyle and business service at International Enterprise Singapore.
'The result is innovative, well-designed and high-quality furniture which is widely accepted worldwide,' she says. 'In addition, the probability of default is a rarity that has increased our Singapore companies' standing in the eyes of the world.'
And taking part in international trade shows is one key marketing effort that IE Singapore, which is leading the push for Singapore companies to go global, strongly encourages.
'International trade shows are important platforms for furniture companies to showcase their best offerings, meet new buyers, renew relationships with old buyers and maintain friendships with existing customers,' Mrs Tan says. 'For almost two decades - since its days at the Trade Development Board - IE Singapore has been supporting Singapore furniture companies' participation in overseas furniture and furniture-related trade shows through its iMap programme and bringing in buyers and media to showcase Singapore companies.'
The International Marketing Assistance Programme, or iMAP, aims to encourage trade associations and chambers to work with IE Singapore to help Singapore-based companies make it internationally. The six-year-old programme pays part of the costs of organising business missions and Singapore pavilions at international trade fairs.
IE Singapore reimburses up to 70 per cent of eligible expenses to the trade associations and chambers. The percentage of reimbursement will be in proportion to the total number of companies participating in the activity or the amount of space occupied (for trade fairs only).
Savings obtained under iMAP will be disbursed to Singapore-based companies participating in the trade missions and trade fairs. This will help companies pay part of their costs of participation.
Mrs Tan says with the expansion of the European Union, many buyers of European furniture houses who used to source from Eastern Europe are now looking for alternative sources of supply.
'Singapore furniture companies have a good track record in Europe and are well poised to extend their presence to Europe by offering good quality furniture for the middle-high market,' she says. 'The Singapore-based players already earned a strong reputation for their ability to produce innovative, well-designed and high-quality furniture.'
imm cologne would have been a good launching pad for Singapore furniture players.
'imm cologne represents the global market place,' Mrs Tan says. 'It's the international trade and communication platform for the furniture sector that features outstanding export opportunities.'
Eighteen Singapore companies participated in last month's fair - the biggest ever Singapore contingent and, according to Mrs Tan, reflects the steady inroads Singapore furniture makers are making into the global market, especially in Europe.
'The industry's success at imm cologne tees us nicely for the International Furniture Fair Singapore/Asean Furniture Show (IFFS/AFS) in March where buyers from major countries are expected to convene here for the premier furniture event,' she says. 'With our companies doing well in overseas sales and with platforms such as the IFFS and the International Furniture Centre, the outlook for the furniture industry remains bright.'
The International Furniture Centre, launched in December last year by Trade and Industry Minister Lim Hng Kiang, aims to be a one-stop, year-round platform for the furniture export business in Singapore.
IE Singapore does not stop at pushing and helping Singapore furniture markets to take part in international trade shows. It has also led overseas business matching, market studies and marketing missions.
It has also organised 'reverse missions' which bring in foreign buyers and media to get to know Singapore companies.
'These missions allow buyers and media from Europe, Latin America and India to visit the Singapore companies' local showroom and booths at trade shows such as the International Furniture Fair Singapore/Asean Show 2007 in Singapore and the Shanghai Fair,' Mrs Tan says.
