‘The Asian furniture industry is growing! Asian wood coatings market is witnessing robust growth!’ ‘Manufacturers are reaping huge returns on their investments!’ ‘China is driving the growth in Asia and Vietnam is rapidly emerging as a big exporter of furniture!’
These are some of the views and perspectives that a majority of industry participants would agree to. A detailed analysis of the Asian market would reveal the fact that growth is skewed towards China and Vietnam and rest of the Asian furniture ‘giants’ such as Malaysia, Thailand and Indonesia are witnessing moderate growth. China compensates for the moderate growth in these countries and boosts the overall growth of the Asian market.
Internal rivalry amongst the Asian furniture manufacturers has led to intense competition within these countries and Vietnam has successfully gained customers from other Southeast Asian countries. Malaysia’s wood furniture industry has been the victim of this sudden focus shift and manufacturers are trying to leverage the experience and rapport to retain their customers. The growth in China and Vietnam’s furniture market has also affected related industries such as the wood coatings industry in Malaysia. In order to compete with the manufacturers from Vietnam, the manufacturers in Malaysia are forced to reduce their prices to ensure customer loyalty. Since coatings account for roughly 10 percent of the final cost, furniture manufacturers invariably expect coatings suppliers to share the burden alike as collective responsibility is necessary in tackling competition from emerging markets.