The Malaysian International Furniture Fair (MIFF) 2006 took place from March 7-11, attracting more than 440 exhibitors from 17 nations that covered a combined exhibition space of 70, 000 square meters. The exhibitors came from Australia, Belgium, China, France, Hong Kong, India, Indonesia, Italy, Korea, the Philippines, Singapore, Taiwan, Thailand, Turkey, the U.S., and Vietnam, in addition to Malaysia.

The recent popularity of the fair ensured a demand for larger spaces by both exhibitors and buyers, and this year MIFF marked its 12th anniversary by being held for the first time at two of Kuala Lumpur' s leading venues—the Putra World Trade Center (PWTC) and the Kuala Lumpur Convention Center (KLCC).

"For over a decade, we have traditionally showcased Malaysian and international furniture at PWTC. But MIFF—now covering 70, 000 square meters—has expanded to include the impressive new KLCC, which supplements PWTC as a strategic venue, " says Tan Chin Huat, MIFF chairman and managing director.

Statistics show that this year' s MIFF attracted 7, 238 international buyers from 130 countries, exceeding the number set in 2005 of 6, 899, who came from 128 countries. On the whole, MIFF 2006 lured a total of 18, 186 visitors within a span of five days.

"Attracting an increasing number of visitors each year, MIFF creates an annual economic spin-off of 25 million Malaysian ringgits (RM; about US$6.67 million) for many related industries, coupled with generating more than US$550 million in export sales, " Tan analyzes. "MIFF plays an important role in facilitating the tourism industry and promoting Malaysia as well."

The success of MIFF as a prominent export platform has facilitated the Malaysian furniture industry in terms of export revenue, significantly contributing to the export earnings of the nation as a whole. As such, sales generated at MIFF have consistently accounted for approximately 30%-40% of the nation' s total annual furniture exports. Malaysia exported about RM7 billion (about US$1.87 billion) worth of furniture last year compared with RM6.3 billion (US$1.68 billion) in 2004.

"MIFF is proud to contribute significantly as a platform for Malaysian furniture manufacturers and to facilitate in making Malaysia a global player in the international furniture arena. Malaysian furniture exports have annually seen a steady increase and I foresee this trend continuing in the future, " Tan optimistically remarks.

Design development has always taken center stage at MIFF. Each year the show organizes its "Furniture Excellence" and "Best Presentation" competitions in collaboration with the Malaysian Timber Council (MTC) and the Malaysian Furniture Promotion Council (MFPC). The competitions are held to encourage the growth of R&D for design and furniture presentation among the exhibitors at MIFF. The healthy competition allows manufacturers to showcase their competitive edges and their research advantages in various product categories, as well as to display their creativity and ingenuity in presentation.

Taiwanese furniture makers used to be major foreign exhibitors at MIFF; however, the number of the exhibitors at this year' s shows dropped to 20 from last year' s 39. They attribute the decrease to the separate new exhibition site at KLCC, where, they complain, there is much less buyer and visitor traffic than the PWTC, the old main exhibition site.

Chinese Manufacturers Strong in Malaysia' s Furniture Line

An interesting fact about the Malaysian furniture industry is that more than 90% of the country' s furniture manufacturers are either ethnic Chinese or Chinese descendants. With a history of about 17 years, JB Wood Industries is a leading furniture manufacturer in Malaysia, turning out mainly home entertainment items including cabinets and racks for TV sets and audio and video players. The company is owned by a second generation of Chinese immigrants in Malaysia, and the company' s workers mainly come from Malaysia, Indonesia, Pakistan, and Nepal.

"With the government' s assistance and financial support, the furniture industry in Malaysia has been developing very rapidly, particularly in recent years. Thanks to the thriving industry, we have also been developing very fast and have experienced almost double-digit growth every year, " Ho Siong Choon, executive director of the company, says.

Some nine years ago, JB expanded its production lines to office furniture, and has won a pretty good market niche with it. The company has spent years building up its own "Dome" brand and now markets all of its products under that brand. "In the beginning years, we sold about 90% of our products to the local market and exported merely 10% of the products overseas. But today the situation has reversed; we export 70% of the products and provide the remaining 30% to the local market, " Ho indicates.

In addition to having a retailing network in Malaysia, the company focuses on its overseas markets in Europe, the U.S., and Australia. "It' s not easy to establish your own brand in the global market, but we are lucky to have our brand broadly accepted, mainly because of our good quality, image, and complete after-sales services for our products, " Ho adds.

With products that won the "gold award" at the fair, Laval Furniture is one of the most famous design-oriented outdoor furniture makers in Malaysia. "Our products are mainly made of precious, top-quality red meranti wood that grows in Malaysia and some other Southeast Asian nations. The tree is under the protection of the government and cutting it is prohibited if without government approval, " Louis Koo, manager of the company, indicates.

"Malaysian red meranti is a well-known timber in Europe, particularly in the Netherlands, Germany, Belgium, and the U. K., where it has gained a reputation as an excellent material for the production of high-class furniture, " Koo adds. "This is why we mainly export our products to Europe, and have found a pretty good market niche there."

Koo' s father, the owner of the company, is a Mauritian who immigrated to Malaysia some 20 years ago, while Koo' s mother is of Chinese descent. "I received both Malaysian and Chinese education, so I can speak Chinese. The Chinese language is also quite popular in Malaysia, particularly in business circles, because most businessmen here are from China or are ethnic Chinese, " Koo notes.

"My father is a professional furniture designer, and most of the designs for our products come from my father' s ideas. Moreover, we also cooperate with European designers to better understand the market trends there, " Koo says. "Furniture made of wood usually presents a warm, natural, and comfortable atmosphere, and this is the reason why wooden furniture is persistently popular."

Laval' s products are 100% exported and its shipment volume is about two 40-foot containers per week. The price of the company' s exquisite and excellent quality outdoor furniture is roughly 30% higher than that of ordinary counterparts.

Lifestyle Enterprises' 'Forbidden City' Booth a Fair Highlight

Bestowed with "Best Presentation Award" at MIFF, Lifestyle Enterprise is a Taiwanese-owned furniture sourcing company based in the U.S. The company' s gorgeous booth featuring the majesty of China' s "Forbidden City" was the highlight at the fair.

"Lifestyle has manufacturing operations in Indonesia, Malaysia, Thailand, Vietnam and Shanghai and Dongguan of China; as well as marketing operations in Singapore, France, the U.K., Ireland, Australia, Japan, and the U.S. This is why the company has come to be recognized as a global furniture supplier, " the company' s sales representative remarks.

To meet different demands for furniture products, Lifestyle provides almost all kinds of furniture, from bargain-priced items to upper-end lifestyle pieces. The company' s philosophy is to bring the best products at the best prices to the market to create more demand. "The company plays a role as a bridge to link demand and supply in the furniture world, and also offers clients a perfect and complete solution for the products they need, " the representative emphasizes.

Now Lifestyle' s products are all sold under its own brands. "Among our furniture items, mid-market and mass-market wooden furniture products are marketed under the 'Lifestyle' brand, leather sofa products are tagged with the 'Shanghai' brand, and high-end furniture items are sold under the 'Forbidden City' brand, " he points out. "We received many inquires at the fair and expect to receive significant follow-up orders."

Participating in the fair for the first time, K-Yip Furniture Manufacturer is a young furniture company set up in Australia by an ethnic Chinese immigrant from Macao. "We established the company in 2002 in Australia, but our plant is in Zhongshan of Guangdong Province, mainland China, " Francisco Yu, director of the company, states. "The reason for us to set up the plant in the mainland was that we are Chinese and familiar with the manufacturing environment there."

The company fabricates mainly bedroom furniture products, which are made of materials provided mostly by local suppliers, with some sophisticated parts imported from Germany, while high-end planks are brought in from New Zealand. Currently the company ship about 10 containers of furniture products per month.

"We provide 60% of our products back to the market in Australia, with the remaining 40% sold in Canada and South Korea. We were at the fair to find more buyers, " Yu says frankly.

Lico Industry Group Company is a leading furniture company in Hong Kong and expanded its operations to mainland China a decade ago. "We have established a production base in Panyu District in Guangzhou of Guangdong Province, and so far own eight factories there, not to mention our investment in some 60-70 local satellite plants, " Canny Cheung, sales and marketing manager of the company, discloses.

Lico boasts a total workforce of 6, 000-7, 000 persons, who turn out different kinds of furniture products. Among the company' s furniture items, those made of metal and glass materials take the lion' s share at 50%, those of wood take 30%, and leather sofas and related products account for 20%. The company ships around 200-300 40-foot containers per year, with a shipment value of more than US$40 million.

"Our products are quite flexible and are suited for almost any kind of market. We offer mass-market, middle-range, and high-level products at reasonable prices to a variety of customers. "'Lico' is the only brand our products are sold under in Europe, the U.S., Central and South America, the Middle East, and Asia. Although the price levels of the products are different, the quality is guaranteed for all of them, " Cheung affirms.

Compared to some five or six years ago, Lico today has seen its profits cut by half. "In this very competitive market, we still can earn decent profits due to better cost control through integrated manufacturing processes. Besides, we have the strong R&D capability to design and develop products to meet special customer needs, " Cheung remarks.

Lico' s products are 100% exported to some 28 countries, with most going to Europe, which accounts for 50% of the company' s export market. "We sell our products mainly to distributors and importers, but one-third of the products are exported through mail order, " Cheung points out. "We unveil new items four times a year, or once each quarter, and promote them at leading international furniture shows such as MIFF."

Furniture for the Executive Office and Outdoor Settings

With a history of more than 10 years, Global Avenue is a leading manufacturer of executive office furniture in Malaysia. "Before starting up my own business, I worked as the export manager for a local furniture company for many years, which helped me understand that there is a market niche for upscale office furniture products, " C. H. Hay, director of the company and also a Chinese-Malaysian, indicates.

"In the company' s beginning years we worked very hard to make it run smoothly. After years of painstaking efforts, today everything is on track and Global Avenue is growing steadily, " Hay says. The company produces mainly executive office furniture and focuses on upscale markets in the Middle East, Eastern Europe, Russia, Asia, and Africa.

"The upscale markets in the U.S. and West Europe have long been occupied by Italian furniture makers or local suppliers in the areas, so it' s not easy for furniture makers from other regions to make inroads into the market there. This is why we shun the U.S. and Western Europe, which are traditionally regarded as the strongest purchasing powers in the world, " Hay states.

Global Avenue ships 10 or so 40-foot containers of executive office furniture products per month, which are available in more than 10 series. The company' s products are made mainly of medium density fiber (MDF) rubber wood, which is processed half by machinery and half by hand. "Malaysia is rich in rubber wood, which can be sufficiently supplied to local furniture makers, but some of our hardware accessories are imported from mainland China, " Hay says.

Today the company has a total workforce of some 80 persons, most of who are skilled workers that can fabricate sophisticated executive office furniture. "The buyers of executive office furniture are mostly on the top level of the consumer pyramid and not easily be targeted, although they have strong purchasing power. Nevertheless, they are quite stable once they become clients, " Hay analyzes.

T & H Stainless Steel Works is one of a few furniture manufacturers in Malaysia that turn out furniture products made of combined metal and wood materials. "To guarantee the quality of our products, we import high-end materials. We mostly get stainless steel and aluminum from Japan, while we bring in teak wood from Myanmar. The materials from Japan have a lower possibility of being rusty and salty, and the teak wood has better ability to withstand drenching by rain, " explains Polly Teoh, the company' s design engineer.

T & H produces mainly outdoor furniture and sells half of its products in the local market and half in overseas markets, with the U.S. and Europe as its major export outlets. "With experienced workers and advanced techniques, we can defy the growing competition from strong counterparts in both Taiwan and mainland China, " Teoh says confidently.

Taitec Trading Co., a member of TEC Group, is a Japanese-invested company in Malaysia. Taitec also focuses on outdoor furniture made of mixed metal and wood materials. "The company started up with dining room sets and recently expanded to outdoor furniture, " indicates Kong Siew-Sam, marketing and purchasing executive of the company. "Our wood materials are mainly oak and beech, which are imported from the U.S., Australia, and New Zealand. Since the company is Japanese invested, our clients are mainly Japanese, who account for 90% of the company' s customers."

Kids Come First at Tay Huah

With a history of more than two decades, Tay Huah Furniture Corp. is a professional manufacturer of children' s furniture. "We see a potential market for children' s furniture in Asia, and this is also one of the reasons why we participate in MIFF, " explains Tina Chang, assistant manager of the company' s sales department. "Among the international furniture shows in Asia, MIFF has gained a strong reputation and attracted increasing numbers of buyers and visitors year by year."

"Since birth control is a global trend, the number of children in a family keeps declining, particularly in mainland China, where families are allowed to bear only one child. So, children today are becoming precious, and parents incline to treasure their kids and look for ways of materially satisfying them. And this obviously helps boost the children' s furniture market, " Chang comments.

Unlike many Taiwanese furniture makers that have moved their operations across the Taiwan Strait, Tay Huah has kept its full production lines and a workforce of some 40 persons in Taiwan. "Our children' s furniture products are all ergonomically designed and safety- and health-oriented to meet the growth patterns and special needs of children. Most of our products are adjustable depending on user sizing. In addition to obtaining patents in many countries around the world, one of our children' s desks won the "Tokyo Furniture Design Silver Award" at the International Furniture Fair Tokyo 2002, " Chang proudly says.

Tay Huah develops new models every year, and the company' s biggest headache is rampant copycats. "Normally, the life circle of a new product is about three to five years in the market, depending on its popularity. Ironically, the more popular the product is, the higher the possibility it will be copied. So, we have to keep developing new models and items to lead the market trend, " Chang remarks.

About 15 years ago, Tay Hua expanded its production lines to include office furniture. Today the company' s children' s furniture accounts for 60% of its total output, and office furniture makes up of the remaining 40%. The company fabricates around 2, 500 to 3, 000 units of children' s and office furniture under its "Comf-Pro" own brand. About 50% of the products are provided for Taiwan' s domestic market, with the other 50% mainly exported to Germany, Switzerland, Russia, Singapore, Japan, and South Korea.

EZOffice is a Weber Knapp Co. subsidiary in Taiwan that focuses on the manufacture of ergonomic mechanisms for computer furniture products. Among the company' s major items are clamping keyboard metal trays, metal mouse trays, keyboard drawers, stationery drawers, pole-mounted LCD arms, wall-mounted LCD arms, and CPU holders.

"EZOffice is Weber Knapp' s only investment in Taiwan, and was the first company—about seven or eight years ago—to develop the concept of ergonomic solutions in Taiwan' s furniture industry, " Janice Tsai, assistant sales manager of the company, discloses.

"Unsuitable computer desks and keyboards may cause aches, pains, and discomfort in the neck, waist, back, and wrists of users. Our company in Taiwan manufactures its products by adopting the R&D and advanced technologies from its parent company in the U.S., and we market the products around the world, " Tsai says.

"The reason Weber Knapp chose Taiwan as its production base for metal computer furniture items is that Taiwan can provide good steel raw materials and has experienced, skillful workers as well, " Tsai adds. "Since the products are mainly processed by machines, less than a dozen workers are enough to operate all the facilities."

In addition to supplying a couple of clients in Taiwan, EZOffice sells 90% of its products around the world, mainly to the U.S., Europe, and the Middle East. "We attend MIFF because we intend to explore the market in Asia, where the computer-using population is huge and the market for the products is also huge, " Tsai says.

The Pleasures of an Air-conditioned Mattress

Chiu Kuang Hsing Co., one of Taiwan' s professional manufacturers of bedding furniture, has recently developed a temperature-controlled mattress, which attracted a great amount of attention at MIFF. "The company' s newly developed, temperature-controlled mattress is made of high-end latex that achieved approval under Germany' s standard 'GS' certification last year, " Lin Tsai-wei, manager at the company' s research department, points out. "Compared to foam rubber, which is a kind of petrochemical byproduct, latex is natural, healthy, but is a bit more expensive."

The company imports more than 100 40-foot containers of latex per year from Holland, and is now Taiwan' s largest manufacturer of latex products. "We spent about three years in the development of the temperature-controlled mattress, which prevents bacteria, acariasis, and humidity. This mattress is also able to prevent bedsores and allergies and helps improve blood circulation. With a sophisticated circulation system inside, the mattress can convey either warm or cool air to the sleeper, so we also call it an 'air-conditioned mattress,' " Lin reveals.

Chiu Kuang Hsing has long focused its products on the local market, and has recently also begun exploring the overseas market, as the company is actively applying for certifications and approvals for its air-conditioned mattress in the U.S., Europe, and mainland China. Currently it is looking for agents in Japan, Australia, and Europe to market the mattress in those areas.

Established in 1972, Cheau Sheng Furniture Ltd. Is a dynamic furniture maker with long experience in Taiwan. "We used to be a professional wooden furniture manufacturer, but in 1996 we expanded the production lines to metal and glass furniture products," Chou Sen-shion, president of the company, notes.

"We did this because we saw a supply shortage of wood materials. In Taiwan we have an abundant supply of quality metal and glass materials, and besides, many local related furniture parts makers have become our satellite plants," Chou explains. "Today, Taiwan' s furniture manufacturers have not developed many integrated processes for making their products, so they should help each other to save manufacturing costs."

Cheau Sheng is quite flexible in sourcing materials. "We purchase materials both at home and abroad, so long as the providers can offer quality materials at competitive prices. For instance, we import thick glass sheets from mainland China because the prices of the sheets are lower than those offered in Taiwan," Chou notes.

In its first couple of decades, the company exported its wooden furniture products mainly to Japan and the U.S., but today its overseas markets have been expanded to Western Europe, and some clients there have recently placed orders with the company to turn out metal and glass furniture products for them on an OEM basis.

Cheau Sheng has production bases in Taiwan, the mainland, and Vietnam. Today, the company ships around 20-30 containers per month, and 85% of its shipments go to Western Europe. In the future, Cheau Sheng is ambitious to tap the markets emerging in Eastern Europe.

With operations on both sides of the Taiwan Strait, All Win Co. turns out a wide variety of metal and glass furniture products. "We have attended MIFF for several years and found the fair growing very rapidly. However, this year Taiwanese exhibitors were all gathered at KLCC, the new exhibition site, where they attracted fewer visitors than at the old location," Chris Chen, senior official of the company, points out.

Chen believes that lacquering technique is very important for metal furniture, while stylish design is the key to attracting buyers. "The quality of our products is no less than that of similar products made in Italy, so our major export outlet is in Europe, which absorbs 90% of our products," Chen says. "However, the profit margin for furniture today has fallen to below 10% from 20%-30% some 10 years ago."

Creative Use of Materials Sets Manufacturers Apart

Founded in 1989, Chao Ching Woods Corp. is engaged in producing bentwood products in both Taiwan and the mainland, with the former taking charge of one-third of the production and the latter two-thirds.

"We have a plant in mainland China with a labor force of more than 100 persons that produce mainly bentwood chairs. Since bentwood products can be mass-produced with machinery, our monthly production volume reaches about 10 40-foot containers, which are 100% exported. Europe is our major export outlet, taking a lion' s share of 80%-90% of the products," Max Chen, senior official of the company, indicates.

"The market for bentwood chairs is quite competitive and the profit is relatively thin. This is our fourth time attending MIFF and we find the show effective and quite successful," Chen affirms.

Established in 1978 in Kuanmiao, a small town in southern Taiwan noted for the production of rattan furniture, Lung Tru Furniture Manufacturing Co. was once one of the successful rattan furniture makers on the island. "The company was growing along with the thriving furniture industry in Taiwan for about 10 years after its establishment, and most of the rattan materials were then imported from Indonesia. However, in 1985 the Indonesian government announced a prohibition on the export of rattan, and from then on we had to face a shortage of raw materials," Fang Cheng-chung, president of the company, states.

To deal with the problem, Lung Tru moved its production lines to Vietnam in 1990, and established a plant there to turn out not only rattan products, but also bamboo furniture. "Currently Lung Tru is the only rattan furniture plant in Vietnam established by Taiwanese," Fang says. "Compared to rattan, bamboo grows much faster and is much easier to obtain, not to mention the much cheaper prices."

Fang indicates that eliminating pests and dehumidification are important for processing natural materials such as rattan and bamboo. "Usually the materials have to be exposed to sunlight for about two weeks before being sent to the drier or oven. After that, the processed rattan and bamboo products have to be polished and lacquered. So, it takes at least one month to finish the processing of such materials," Fang explains.

Labor wages and industrial land prices are relatively cheap in Vietnam, so manufacturers there can save considerable manufacturing costs compared to Taiwan. "We now have a total workforce of 350 persons at the plant in Vietnam, where their monthly salaries are around NT$2,000 (US$58.82) per person," Fang discloses.

Lung Tru is able to generate a wide variety of Oriental-style rattan and bamboo furniture products. The company' s annual shipment volume amounts to around 350 40-foot containers, with 90% shipped to Japan. The company foresees the shipment volume this year will be better than last year because the economy in Japan seems to be improving.