Tuesday, July 2, 2013

Indonesia: Furniture Export Aimed At China's Huge Market


Recently, the leader of Indonesian Export Development Board said, as continuing improvement of furniture production growth,including wood products, fabricated metal products, rattan products, plastic products and bamboo products,and the international market demand is rising, all kinds of furniture has become one of Indonesia's exports advantage products. Indonesia's furniture exports reached $1.41 billion last year, increased by 5.63% year-on-year.

In addition to the traditional markets such as the United States, France, Japan, Indonesia, furniture industry will mainly exports expanding China market as object. Indonesia furniture industry association chairman said that Indonesian exports to China last year for $60 million worth of furniture, hoping to increase to $200 million this year. With Europe and the United States economic development speed is slow, and more trade barriers, so the European and American furniture market is become more and more to the bad business. So furniture companies in recent three years, unceasingly in the new market, as the Asean market recover slowly, gradually became especially Guangdong furniture export one of the important destination in China.

In fact, the association of southeast Asian nations (Asean) this is a traditional Guangdong furniture export market, in the early 1980 s, the annatto furniture of Guangdong performed well in the Asean market, at the same time, Guangdong businessmen formed early next Nanyang has a certain spending power. As the furniture industry of big transfer in the mid - 1990 - s Taiwan, more and more Taiwan enterprises in mainland China, 70% of them took root in Guangdong.
Furniture manufacturing base of exports to the United States from Taiwan also transferred to Guangdong, Guangdong furniture export channels to instantly change, export structure changes greatly, especially in the 1997 Asian financial crisis, the Guangdong furniture with Asean sales plummeted. Statistics show that in recent years, Guangdong furniture exports to America and the European Union accounts for more than 80% of the global export quotas. So now, "kill" back in southeast Asia furniture enterprises in China, what are the advantages and disadvantages conditions?

First, due to geographically close to southeast Asia market, transportation cost is low, other southeast Asian countries and Guangdong cultural, aesthetic, and climate are close to, especially in Guangdong, the popular new Annatto furniture, so that enterprises in product manufacture, design, etc, more press close to consumers. The most important is no technical barriers and barriers to trade in southeast Asia, the furniture of standard requirement is not high, compared to Europe and the United States, its export threshold is very low. Guangdong furniture not only has a certain reputation in the market in southeast Asia, inexpensive advantages also make it more accepted by consumers.
In addition, the "China - asean free trade area" is coming to an end, it will be a 1.7 billion consumers, nearly $2 trillion in gross domestic product, total trade volume amounted to $1.2 trillion in economic area, is the world's most populous free-trade area, its market potential is huge, is immeasurable. However, the disadvantages of southeast Asia market is obvious.

First of all, the economy of southeast Asian nations is far from the European and American countries developed economy, national development is unbalanced, so the market is more complicated, which requires companies to spend more on business layout, choose our dealers also want to compare.

Second, Asean's consumption level is relatively low, which makes the domestic export commodity prices is limited by the space, profit is not top the common problem.

Third, in the southeast Asian countries, such as Malaysia, Vietnam and other countries of the furniture manufacturing industry are also gradually rising, Southeast Asia furniture enterprise,who occupies home-court advantage, is one of main rival of China's exports to southeast Asia.So we can see that,the advantages and disadvantages of China furniture exports to southeast Asia are so many, it depends on the China exporter itself, and the enterprise for the future direction of the planning and detailed planning, must not blindly follow suit.

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