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Euro Holdings Obtains ISO 14001

Selangor Darul Ehsan, Malaysia: Euro Holdings Bhd, a Rawang-based ODM/OEM of office furniture and systems, successfully obtained the ISO 14001 certification early this year. The certification process took place at the end of February.

“The requirement to be environmental friendly and to promote safety is an important feature in today’s society and forms part of the market’s expectation,” the group said in a statement.

Euro says that this expectation is mainly present in the US, Europe and Japan, including practically all developed countries worldwide. “An internationally recognised standard is well accepted by customers, the general public and other interested parties worldwide. It has been well received by our existing customers in meeting their expectations and lending credentials to potential customers,” said the group’s founder and managing director, Lew Fatt Sin.

The ISO 14000 family addresses various aspects of environmental management. The very first two standards, ISO 14001:2004 and ISO 14004:2004 deal with environmental management systems (EMS). ISO 14001:2004 provides the requirements for an EMS and ISO 14004:2004 gives general EMS guidelines.

The internationally accepted standard that sets out a framework for the development of an effective EMS, which specifies a management process for controlling and improving an organisation’s environmental performance. This means that the environmental aspects of the organisation’s business processes that impact on the environment are identified, its significance determined, and its relevance to applicable environmental legislations are understood and complied with.

“Not all materials are necessarily recyclable under the ISO 14001 standard. However, emphasis should be placed upon incorporating use of recycled materials into producing products that are recyclable as an integral part of the sustainable environment initiatives,” the statement said.

Euro also identified in addition, some other green initiatives it has in store, currently and in future. They include:

• Green Mark Certification for products that are friendly to the environment.
• Incorporate the use of recycled and recyclable materials in product development.
• Pursue operational practices that support the rational and sustainable use of environmental resources.
• Pursue green procurement to develop products that are environmental friendly.
• Promote reduction, reuse and recycling of materials through effective implementation of 3R programmes.
• Improve on indoor air quality.
• Promote efficient use of energy and water resources.

“We think it is a trend that is coming on very fast and strong and will be a ‘requirement’ or ‘the thing’ in the future,” the group added.

Jetexim: A Time For ExpaExpansion

Johor, Malaysia: Faced with market uncertainties and slow sales, even major buyers have reduced their purchasing budgets. “Those who used to be buy five containers of one model are now looking to mix five models in one container,” said Jet Lim, Managing Director, Jetexim Business Sdn Bhd.

This spells good news for Lim, who ships mixed containers of product choice from his ready stock of more than 100 items. This way, there is no minimum order for each item. And because of Jetexim’s warehousing capacity, delivery is prompt and almost immediate, like a cash and carry store.

“Manufacturers will not be able to offer these services. This is why I choose to work with sub-contractors who handle the production. My own facilities will just be used for stockholding and warehousing purposes,” Lim said.
Jetexim works with three sub-contractors, and provides them with the raw materials. “If we buy the raw materials in bulk and at lower prices, we can negotiate competitive prices with our sub-contractors too,” Lim explained.
In addition, with lesser orders from other manufacturers, these sub-contractors are eager to work on more flexible terms. Often, this means larger profit margins for Jetexim.

“We cannot do the entire A to Z deal ourselves. The overhead cost will be too high. This model is more efficient than most other factories, especially when each sub-contractor specialises in producing a different range.”

The budgeted and promotional range that Jetexim offers also puts the company is an advantageous position for growth. “The financial crisis really works in our favour and gave us the room to grow. Market demand for our products is the strongest at this time,” Lim said.

One of Jetexim’s expansion plans includes developing a 2.5 acre piece of land in Muar. A 30,000 sq ft factory will be built here within this year. Lim expects the construction to be complete before July.

S’pore Furniture Design Awards Call For Submission

Singapore: Wish to make your mark in furniture design and showcase your creations to the world? Here’s your chance. Registration is now open for the Furniture Design Award (FDA) 2010, organised by the Singapore Furniture Industries Council (SFIC). Similar to last year’s competition, entries are not confined to any given theme, allowing participants the freedom to fully explore and express their creativity.

FDA 2010 consists of three categories – Open, Young Designers and Students. For the first time, participation in the Young Designers category will be extended worldwide. In the past years, this category was only open to the Asia Pacific region.

Said Simon Ong, Chairman of the Design Development Committee for SFIC: “Backed by the wonderful feedback from the international furniture design community, we believe it is the right time for us to extend the depth of the competition by expanding the Young Designer category beyond the region. By opening up the playing field, we want to push local and international young talents to be even more innovative in light of greater competition and bring their designs to the next level.”

The Open category targets companies, seeking participants from all over the world with entries that have already been manufactured and launched commercially; the Young Designers category caters to local and international participants, aged 35 years and below as of March 9, 2010; and the Students category is open to all full-time students from educational institutions in the ASEAN countries (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand, The Philippines and Vietnam).

Entries in the Students and Young Designers categories will vie for the FDA Merits, FDA Honourable Mentions and FDA Grand Awards. An additional Best Use of Material Award will also be presented to a participant from across the three categories. Entries in the Open category will compete for the FDA Honourable Mentions and FDA Grand Award. Winners for FDA 2010 will stand to receive a certificate and trophy and up to S$6,000 in cash.

In addition, the FDA Grand Award winners for the Students and Young Designers categories will also be offered a 12 square-metre exhibition space at PLATFORM 2011, held in conjunction with the annual International Furniture Fair Singapore / ASEAN Furniture Show (IFFS/AFS). With PLATFORM established as the place to see and be seen, this prized space will provide the winners with an avenue to launch their new prototypes to an international audience. Designed to help kick-start their careers after the win, the winners are encouraged to use this opportunity to network with leading manufacturers and buyers and build useful contacts that will serve them well in their foray into the furniture market.

The FDA last year received a record number of local and international submissions – 637 entries from Singapore and 18 countries globally, namely Australia, Belgium, China, France, Hong Kong, India, Indonesia, Italy, Japan, Korea, Malaysia, Mexico, the Philippines, Spain, Taiwan, Thailand, US and Vietnam.
Entries for FDA 2010 will be judged by a panel of prominent industry personalities and renowned international designers. The judging criteria include creativity, marketability and functionality, including aspects of environmental-friendliness and ergonomics.

The closing date for the Students and Young Designers categories is September 1, 2009 and the Open category is December 21, 2009, before 5pm Singapore time.

Singapore Returns With S$1.8m Sales Potential From Milan

Singapore: Singapore Mozaic member returned from the Salone Internazionale del Mobile in Milan, Italy with an estimated S$250,000 (US$171,753) worth of spot orders with additional deals valued at S$350,000 still under negotiation. New business leads established during the fair are expected to generate follow-on sales of S$1.8 million over the next 12 months.

A unique B2B platform led by the Singapore Furniture Industries Council (SFIC) and supported by government agencies, International Enterprise (IE) Singapore and SPRING Singapore, Singapore Mozaic was represented by Air Division Pte Ltd, Getz Bros & Co (S) Pte Ltd, Koda Ltd, Office Planner Pte Ltd and Star Furniture Industries Pte Ltd as well as Exit Design in an expanded showcase with a 129 percent increase in space as compared to last year.

Singapore’s Senior Minister, Goh Chok Tong visited the fair on April 22, 2009 to lend support to the Singapore contingent. Goh’s visit is a strong testimony for the local furniture industry and an endorsement of its efforts to expand internationally. Goh was in Milan to boost political and economic ties and to conclude a bilateral agreement with Milan’s mayor Letizia Moratti.

In particular, several Singapore Mozaic ambassadors used the fair as a platform to launch their exciting new collections. Koda Ltd unveiled its Asolo dining and bedroom collections which have been specially designed by multiple award-winning Italian designer Luigi “Gigi” Garbrino. Star Furniture Industries Pte Ltd premiered its clean and fresh Gavino Bed Set and Saverio Sideboard pieces.

Also hoping to create a buzz is Office Planner Pte Ltd, who debuted PINKER, its collaboration with international celebrity designer Karim Rashid. Centred on the “Happy Office Concept”, the pinker Pine features psychedelic colours, unusual shapes and funky graphics that will inject an element of playfulness into any room.

Exit has also signed a partnership with Kreon, an international company specialised in spot lighting’s design. Kreon will host PC Ee’s creations in its shops in Belgium and Singapore. A cooperation agreement signed between Milan’s Nhow Hotel and PC Ee, will see two of his most prestigious pieces at the “CONmunication”’s gallery that opened at Nhow on the May 7, 2009.

During the six-day event, Air Division signed about 100 orders and Getz received orders amounting to about EUR 100,000 (US$135,937). Koda registered a turnover of EUR 40,000.

The six Singapore representatives showcased their latest collections under the Singapore Mozaic umbrella within a 160 sq m booth (L01/M02) located in Hall 13. These companies’ participation were subsidised by the International Marketing Activties Programme (IMAP) from IE Singapore and Overseas Promotion Partnership Programme (OPPP) by DesignSingapore Council.

Said Tan Soon Kim, Deputy Director, Business and Lifestyle Services, IE Singapore: ”The Salone Internazionale del Mobile, being one of the most prestigious design oriented furniture shows in Europe, enabled our furniture companies to show global buyers that they too are able to produce furniture of top-class original design. Indeed, the encouraging sales registered by our companies is a signal of market acceptance and acknowledgement of our capabilities.”

Said SPRING Singapore’s Director of Lifestyle, Kee Ai Nah: “The ongoing efforts to promote Singapore furniture companies internationally under the Singapore Mozaic brand are showing results. Besides generating greater brand awareness at international platforms, the increased sales orders, despite the challenging times, are testament to the success of this industry-led initiative and the quality of Singapore furniture.”

Indonesian Manufacturers To Expect A Declining Year Ahead

Jakarta, Indonesia: Furniture exports from and sales in Jakarta are expected to continue to decline this year, Indonesian Furniture and Handicraft Association (Asmindo) director Sae Tanangga Karim told The Jakarta Post.
Exports plunged by 27.5 percent in January while 2009 total figure is predicted to drop by 35 percent year-on-year. Domestic sales also declined by five percent.

“I know there are signs of improvement in the country’s first quarter economic reports. It is also true that some Asmindo’s members reported a slightly increase in their May sales. However, furniture sales are yet to recover,” Asmindo chairman Ambar Tjahjono said on June 4 to the newspaper, adding that “the increase was too small” to signal a recovery.

Furniture, bedding and upholstered furnishing decreased 24 percent year-on-year in January-April 2009. April’s total exports of US$141.2 million was nearly 15 percent lesser than March figures.

PT Indoexim International director Basuki Kurniawan said, nonetheless, that local makers should focus on design quality, price, customer service and environmental friendliness in order to get sustainable orders.

International buyers would not trust and eventually reject products without such certification, he said, adding that European countries charged thousands of dollars per year for such certification. This is hardly affordable for most of Indonesia’s small and medium factories.

Domestically, even the wealthier population is buying cheaper Malaysian and Vietnamese imports, Tanaga said. And it was local retailers who saw bigger declines than exports.

According to The Jakarta Post, exports from Nina Curios, a kiosk selling antique and furniture products in Ciputat, South Jakarta, had been stagnant since last year. Tuban of Agung Jaya Rattan Furniture in Kalimalang, East Jakarta, also said his sales had been down. Tuban often exported products to Saudi Arabia.

“I haven’t seen such big problems in exports as with my local sales, which have been down for the past few months,” he said.

Hadi, a rattan furniture seller, said sales have been going down since January. “Actually, this year’s business has been the worst so far. While prices of raw materials have gone up, our rattan furniture prices have stayed the same,” Hadi said.

With the lack of financial support, Alit Wisnawa, a furniture entrepreneur from Denpasar, Bali said that he has repeatedly postponed paying the salaries of his employees. His company, PT Kambuna Jaya’s businesses went down by 25 percent in sales values since November last year.

Raw material prices and availability have been the main causes for slowing sales, apart from the economic crisis. Tjahyono lamented that the government did not do enough to help small and medium enterprises, especially in terms of funding for entrepreneurs.

Tjahyono met government representatives on June 4 to voice the difficulties that the industry faces on behalf of Asmindo members. “From the meeting, I concluded that government does not have any special plan to help our industry. The economic slowdown does not have any impact on their policies,” he said.

Singapore-E. Europe Furniture Trade To Be Strengthened

Singapore: Singapore Furniture Industries Council (SFIC) said on May 26 that it will lead 10 Singapore furniture companies on a business mission to explore new markets in Eastern Europe. The team will visit Hungary, the Czech Republic and Poland.

The companies participating in this mission are SFIC members – Falcon Incorporation Pte Ltd, Jaco Furniture Pte Ltd, Keng Cushions Trading, Koda Ltd, QC@Paul Furniture, Sitra Holdings (International) Ltd, Star Furniture Industries Pte Ltd, Suncoast Sitra Pte Ltd, Univonna Pte Ltd and Valencia Design Pte Ltd.

During the nine days on the ground, the 10 companies will be travelling around Budapest in Hungary, Prague in the Czech Republic and Poznań, Poland, visiting a mix of retail outlets as well as meetings with major furniture importers, retailers, manufacturers and trade associations.

In particular, the delegates will be meeting with the heads of the Association of Czech Furniture Manufacturers and the Poland Chamber of Commerce to explore potential tie-ups between Singapore and the two republics. They will also tour the Poznań Furniture Fair and attend the Home Decor, Furniture, Budma Interior and Luminexpo “Business Mixer”, a business networking session jointly organised by SFIC, the World Trade Center Poznań and the Polish Information Centre in Latvia. The delegates will be meeting with over 100 Polish and foreign companies from the furniture and interior design sectors.

Singapore’s total trade in furniture with Hungary, Czech Republic and Poland registered S$8 million (US$5.5 million) last year. The bulk of the revenue generated was from furniture imports which accounted for an average of 97 percent of Singapore’s total furniture trade with the three countries.

Consumption of home furniture in the new EU Member States amounted to EUR 6.1 billion (US$8.51 billion, at factory prices), over 80 percent of which was absorbed by Poland, the Czech Republic, Romania and Hungary, according to a research by CSIL Centre for Industrial Studies Milano, an Italy-based furniture research.

Nonetheless, the region is “still relatively untapped by our local furniture companies”. “Given Singapore’s strategic location, our local furniture companies are able to offer buyers the best of both worlds through its unique blend of Eastern and Western business practices, dynamic design capabilities and versatile production resources – as encapsulated in the industry’s modus operandi ‘Conceptualised and designed in Singapore, Made in Asia, Sold to the World’”, said Jerry Tan, vice president of SFIC, who will be dealing the delegation.

Added Kenny Koh, Deputy Mission Leader, Vice President of SFIC and Managing Director of Star Furniture Industries Pte Ltd: “Many Singapore furniture companies tend to rely on the traditional markets like Asia, Western Europe and North America for a steady stream of business. But for significant growth to happen, we must expand our reach. We cannot afford to ignore the new emerging markets as they potentially offer the biggest rewards. This business mission will drive understanding, networking and partnership opportunities between the Singapore and Eastern European furniture sectors. With the support from IE Singapore, we believe that this trip will be a fruitful experience for all of us.”

Said Tan Soon Kim, Deputy Director, Business and Lifestyle Services, IE Singapore: “Eastern Europe is a market our furniture players are keen to explore. IE had conducted a mission to the Russian market in 2008 with SFIC. We had also helped to invite some Russian buyers down to Singapore for the International Furniture Fair Singapore 2009/26th ASEAN Furniture Show in March 2009. Discussions between Singapore companies and the Russian buyers are on-going as a result. To keep the momentum for Eastern Europe going, IE and SFIC aim to deepen our engagement by conducting a business mission across Hungary, Czech Republic and Poland.”

IFFS Appoints New COO

Singapore: Richard Koh is appointed Chief Operating Officer of International Furniture Fair Singapore (IFFS) Pte Ltd with effect from May 4, 2009. A veteran in the Singapore and international furniture scene, Richard brings with him close to 30 years of hands-on, leadership experience in the business, particularly in the areas of export, sourcing, marketing and product development. Prior to joining IFFS Pte Ltd, Koh was the Chief Operating Officer of Buylateral Group Pte Ltd, a subsidiary of Nobel Design Holdings Ltd.

Koh has also been actively involved in the growth and development of the local furniture industry. Since the beginning of the SFIC in 1981, he has sat on the Executive Committee and taken on several key office bearer appointments. Koh has contributed to the successful implementation of various key international marketing and local enterprise development programmes and served on the International Furniture Fair Singapore/ASEAN Furniture Show (IFFS/AFS) Organising Committee since 1986.

“With his all-embracing experience of the furniture industry, as well as the international market scene knowledge, Richard will be a positive force and asset to IFFS Pte Ltd as we work together towards another successful international furniture trade event at IFFS/AFS 2010,” Shermaine Ong, Executive Director of the Singapore Furniture Industries Council (SFIC), said in a statement via email.

Export Tax Rebates Raised to 15%

Beijing, China: Export tax rebates for furniture was be further raised to 15 percent beginning June 1, 2009, according to a report by People’s Daily Online. This announcement was made by the Ministry of Finance, which said that this is an “urgent” matter.

China’s export enterprises are facing a tough situation which makes full-tax rebates for certain exports more urgent and important, said Yao Jian, spokesman for the Ministry of Commerce on June 5, according to Xinhua news agency. The policy of full-tax rebates for certain exports could help Chinese enterprises to compete equally in the global market, he added.

This is Beijing’s seventh time adjusting rebates of value-added taxes on exports since last summer, so that its manufacturers could be in a better position to compete globally on price. A report by the Associated Press says that economists find this strategy unlikely to do much to boost sales at a time of record-low global demand and might antagonise China’s trading partners.

JYSK Plans 500 Stores In China

Shanghai, China: Danish furniture retail giant JYSK Group will be opening six to 10 stores in Shanghai, China starting April 2010, according to a report by China Daily. Its plan is to cover the entire country with 500 outlets in the coming years. The company did not specify a timeline but said this will depend on its cash flow. It is possible that a new store will open each month from end 2010, a report by the People’s Daily Online said.

“Our stores would be around 1,000 to 1,500 square meters each with a wide range of Danish-style home products,” said Jakob Sonnenberg, China manager of JYSK Holding.

JYSK, with a turnover in excess of EUR 2 billion (US$2.76 billion), makes half of its products for this market locally. There are plans to increase this ratio to 80 percent.

The company currently operates 1,500 stores in 32 countries, most of which are in Europe. According to JYSK’s 2008 financial report, total profit at its 93 stores in Denmark dropped 4.8 percent from the previous year.

Furniture Makers Target Rural Chinese Consumers

Beijing, China: China furniture makers are targeting the rural areas in efforts to increase domestic consumption. According to CCTV news, the China National Furniture Association (CNFA), together with 35 local manufacturers, launched a national sales campaign on June 7, to offer discount and sales promotions countrywide.

Jia Qingwen, president of CNFA, says, “We are working with designated shops and manufacturers. We have to ensure the quality and service of the products. Those products need to meet the market demand in the countryside, and their prices should be agreeable.”

A design competition for rural furniture will be hosted while there are plans to improve logistics and after-sales services in the countryside. However, no timeline was given.

UK Furniture Sales Dip In March

London, UK: Furniture like-for-like sales in the UK dropped by a record 1.2 percent this March, as compared with the same month last year. This fall was, according to the British Retail Consortium (BRC), the biggest since the report began collecting category-specific figures nine years ago.

According to a report by Times Online, furniture sales had recovered slightly after a huge drop last October, following the collapse of Lehman Brothers. UK furniture chains including MFI, Land of Leather and Sofa Workshop have shuttered as a result over the past year, the report added. As the pound weakens, struggling retailers can expect to see even more trying times ahead.

Turkish Furniture Industry Wants More Tax Incentives

Istanbul, Turkey: The Turkish government has previously offered tax incentives to some sectors three months ago as part of stimulus packages amidst difficult business conditions. Value-added tax (KDV) for furniture was lowered to eight percent from the previous 18 percent as part of the incentive schemes. As this period draws to an end, the industries are keen to have the incentive extended, as it has helped to increase sales.

İnegöl Furniture Manufacturers Union head Hamdi İdil told Sunday’s Zaman: “Particularly at the very beginning, when the tax cut was introduced, the market was buoyed, and we saw a remarkable increase in orders”. İdil added that the industry could even do better than last year.

Some in the furniture business have even suggested to the tax rates to be lowered even further to five percent. Hasan Karcı, the general manager of Masko, a large complex selling furniture and home to a number of stores based in İstanbul’s İkitelli district, told Sunday’s Zaman this suggestion and added that a recovery can be expected in the second half of 2010 if this shot in the arm from the government continues.

American Tulipwood Story At Milan Fair

Milan, Italy: The progression of the American hardwood species tulipwood from a functional role in furniture-making to the timber of choice for some high profile design projects is highlighted in the Established & Sons new collection in Milan during the Salon Internazionale del Mobile.

The installation, a 1,340 sq m ‘walled settlement’, was constructed from 30 tonnes of untreated tulipwood panels that create 13 separate zones for the individual designs. The walls range from two to four metres. Working in collaboration with the American Hardwood Export Council (AHEC), Established & Sons created this unique environment for its collection, with low lighting enhancing the variable tones and straight grain of the timber.

Tulipwood’s colour palette varies from pale yellow tones to olive green. And its versatility and easy working means that it can be used for a wide variety of applications. Its renaissance started in 2008 when architect David Adjaye surprised the design world by choosing tulipwood, because of its variable tones and the way in which it reacts with natural light, for his London Design Festival exterior project, the “Sclera” pavilion. The pavilion which stood on the South Bank, close to the Royal Festival Hall during September and October, attracted the interest of architects and designers around the world, many of whom had no experience of using the species.

Adjaye’s “Wooden Eye” launched a series of projects which extended its use and marked its transition from humble applications, such as the interiors of kitchen cabinets, to increased visibility and recognition as an adaptable and aesthetically pleasing timber. In 2009 more projects, including furniture and stand designs at major exhibitions throughout the world, are taking tulipwood to new audiences.

And this year another collaborative venture between the AHEC and the Guardian Hay Festival will see tulipwood used for a massive exterior furniture piece designed by Philip Koomen for the central square at the event. This project is part of an ongoing research and development project (started with “Sclera”) designed to extend its use to long life exterior applications, such as cladding.

March Orders Decrease Rate Slows

High Point, US: According to Smith Leonard Accountants & Consultants’ recent survey of residential furniture manufacturers and distributors, there was finally a bit of easing in the erosion of new orders. New orders for March 2009 were 17 percent lower than March 2008. While nothing to get too excited about, the report added, at least the decline fell below the 20 plus percentages it has been reporting.

Some 85 percent of the participants reported lower order rates compared to 89 percent in February and similar percentages in the last several months. Year-to-date, new orders were 21 percent lower than the first quarter of 2008. This percentage was down from 22 percent last month (remember the fourth quarter of 2008 was down 26 percent). Orders in the first quarter of 2008 were eight percent lower than the first quarter of 2007.

The Conference Board Consumer Confidence Index, which had improved considerably in April, posted another large gain in May. Lynn Franco, Director of The Conference Board Consumer Research Center said, “Looking ahead, consumers are considerably less pessimistic than they were earlier this year, and expectations are that business conditions, the labour market and incomes will improve in the coming months. While confidence is still weak by historical standards, as far as consumers are concerned, the worst is now behind us.”

Consumers’ short-term outlook improved significantly in May. Those expecting business conditions will improve over the next six months increased to 23.1 percent from 15.7 percent, while those anticipating conditions will worsen declined to 17.8 percent from 24.4 percent in April.

Sales at furniture and home furnishings stores were, on an adjusted basis, down 0.5 percent from March 2009 and were down 14.2 percent from April 2008. Year-to-date, sales at these stores were down 14.3 percent from the first four months of last year.