DECEMBER 2019 FEATURE:

The ongoing US-China trade war has offered yet another compelling reason for enterprises to look to Asia for growth opportunities.

2019 saw a series of SFIC business development missions led by SFIC to the region. These missions help players understand the competitive landscape as well as explore market entry opportunities. At the same time, networking events are weaved into the itinerary to help connect with potential collaborators within and beyond furniture.

In a recent SFIC membership survey on digitalisation and overseas expansion, Vietnam, Indonesia and China were some of the key areas that members were keen to explore.

Indonesia

Under Indonesian President Jokowi’s capable leadership, the country has become an investment magnet in recent years. SFIC in collaboration with Enterprise Singapore (ESG), organised a furniture-focused mission to Surabaya and Central Java (Semarang/Kendal) from 30^th April to 3^rd May 2019, led by ESG’s CEO Png Cheong Boon and Assistant CEO Tan Soon Kim.

The growing domestic middle class and resource-based economy, as well as the relatively lower cost of production, has made Indonesia a cost-efficient location for production for both the domestic market and for exports.

Networking with Indonesian players, as well as key multipliers and supporting services was a key part of the programme, with factory visits offering an understanding of operational challenges and a chance to assess sourcing opportunities.

The mission also provided first-hand insights into opportunities in furniture manufacturing in Indonesia and potential sites as well as industrial parks for the setup of manufacturing operations, especially in labour intensive industries. As a result of the mission, both SFIC and Sembcorp have signed an MOU at the former’s recent D&D event to raise awareness amongst SFIC members on the potential that Kendal Industrial Park offers as an alternative manufacturing location.

Shanghai

From 8-12 September 2019, Enterprise Singapore (ESG) together with Singapore Furniture Association (SFA) and Singapore Furniture Industries Council (SFIC) led a total of 15 companies comprising 30 delegates to understand and explore the opportunities that China has to offer. The city of Shanghai was the main area of visit. This mission was to get an updated and real-time feel of the furniture industry in the world’s second biggest economy for Singapore companies.

The delegation visited three major exhibitions, China International Furniture Fair (CIFF), Furniture Shanghai & Maison Shanghai, which was held during that period to assess the potential business collaborations available.

Visits to major furniture retail malls like Yue Xing Jia Ju and Red Star Macalline, as well as standalone retail brands, Norhor and ZaoZuo, provided an in-depth assessment of how Chinese retail environment and brands have evolved as well. There was also networking sessions held with local property developer, CapitaLand as well as intimate sharing session with Shanghai-based Singapore interior designer, Mr Robert Su of Portfolio Design Partnership. Existing bonds was strengthened while new friendships was fostered during this mission among the delegates and foreign contacts.

Vietnam

A combination of business development mission with the annual ASEAN Furniture Industries Council (AFIC) meeting from 26^th – 29^th November 2019 to Vietnam has ensured a busy itinerary for the SFIC delegation.

From regional conference to a forum, exhibitions and business mission, the wonderful camaraderie amongst ASEAN delegates during this trip means more potential collaborations amongst each other.

An emerging economy that has captured the interest of many companies, the country has been on SFIC’s radar for years. A few industry players have also embarked on a deal hunter programme earlier to explore opportunities.

Come 2020, SFIC will be embarking on more missions in the region.

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