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Sern Kou Furniture Industries Sdn Bhd:
Programmed For Greater Growth

By Nicole Liang

SK Furniture has in place a series of programmes to grow its exports worldwide, with particular emphasis on Europe, given the current eco trend.

Wooden furniture manufacturer Sern Kou Furniture Industries Sdn Bhd (SK Furniture) is riding on the green waves of environmental concerns.
The company, which currently exports most of its products to the Europe, US, Middle East and Australia, says that demand from the European market in particular has been posting a healthy growth. “Our rubberwood furniture is enjoying demand growths, because they are eco-friendly,” said Chua Peng Sian, executive director of the company.

Rubberwood also known as the Malaysian oak, and has better properties compared to other cultivated wood, but at a much more affordable price, Chua said.

“SK furniture products are manufactured using the Malaysian Rubberwood which is a sustainable timber cultivated from plantation forest under strict stewardship. Hence, SK Furniture is the preferred supplier to eco-conscious buyers.”

Known as Hevea brasiliensis in botanical terms, rubberwood is a light hardwood that has a treatability level of “Easy” and its durability is comparable to American red oak, Elm, Hickory and Okoumé, according to a report done by Trada Technology in the UK for the Malaysian Timber Council.

It’s An Added Option

In the company’s efforts towards contributing to a greener environment, SK Furniture has also paid attention to the packaging of its furniture. Chua said the company now has a wider choice of environmentally friendly options for buyers who are keen to use more effective and efficient packaging methods.

“We can offer the option to use carton boxes more effectively and reduce the use of plastic wraps, which are non-biodegradable,” Chua said. “Packaging constitutes a big part of the cost. We will emphasise on cost effective packaging.”

Chua stresses that these are implemented as part of SK Furniture’s contributions towards achieving a greener environment. These options are applicable to its entire range of products, as long as the market demands it.

Not In The Volume Game

SK Furniture started the business as an original equipment manufacturer (OEM) less than two decades ago, Chus said. “But we have now evolved to become an original design manufacturer (ODM) that offers quality modern and contemporary furniture.”

“We are not into the volume game. We have at least six people in our R&D and design team, producing innovative and creative collections,” he added.

The company exhibits at fairs in Germany, Malaysia and China annually, and altogether, up to 100 different products are launched each year.

Targeted Warehousing Programme

SK Furniture is also pushing for its ODM products this year with a warehousing programme in the pipeline either undertaken on its own or with business associates.

According to Chua, most of SK Furniture’s customers are stockists, wholesalers and importers who either have limited or do not have any warehousing facility.

“The warehousing cost in Europe, for example, could be three or four times of that in Malaysia. If our European buyer is confident that a certain model can sell for one or two years, we can stock up on it, and at the same time offer mixed container options for other models with ready stock,” he explained.

“From here, we can help them ship directly to their retail customers. This will help them save both time and cost,” Chua added.

The company prudently points out that this service differs in principle from that offered by many trading companies.

“First of all, we manufacture our own products and have better understanding of what the market demand.

“Secondly, this warehousing programme is designed for buyers from all over the world who want to carry our SK-branded furniture in their countries. It works like a dealership for those who are committed to promoting our ODM products,” Chua shared.

He added that this facility can help SK Furniture’s buyers to sell its ODM products more competitively and ease logistical challenges. The warehouse will only stock bestselling models and new designs that can be shipped directly in mixed containers. Most of these bestselling models will be selected based on customer feedback.

“This programme will allow buyers to respond faster to market conditions and at the same time help them lower inventory risk,” Chua added.

So far, response among existing customers, within and outside of Europe, has been “very promising”. He said most European buyers find the delivery lead time a stumbling block to selling more of a single model, before consumer tastes change. Chua aims to have this warehousing service ready within this year.

Sern Kou Furniture Industries Sdn Bhd is a subsidiary of Sern Kou Resources Bhd (Group), a public listed company in Malaysia. The Group also owns S.K. Furniture Sdn Bhd (manufacturer of metal furniture and parts), Valued Products (M) Sdn Bhd (manufacturing and processing of all kinds of timber, wood and related products), as well as Souncern Timber Sdn Bhd (logging and processing of rubberwood and timber).