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Furniture exporters carve domestic niche
Furniture export firms in HCM City have joined in focusing on the domestic market in the wake of the global economic crisis.
Although the furniture industry’s shift to the domestic market has happened later than other industries like textiles and apparel, several exporters have already recorded impressive gains.
The Gia Khang Furniture Company Ltd. is a typical example. Before last September, it was specialising in exporting high-grade wooden furniture mainly to the European market but its main customers now are residents of new urban areas.
Increasing incomes
Company director Tran Thi Men said, "For nearly one year we have found it difficult to find export contracts since many of our overseas customers have had to minimise imports to cut costs due to the economic crisis."
Recognising that there was a demand for high-grade wooden furniture among local residents thanks to increasing incomes, the company decided to sell furniture at local stores, Men said.
"To make these high-grade furniture at affordable prices for domestic customers we have had to find ways to cut costs by reducing rentals and water and electricity fees, and also reducing our staff," she said.
"As a result, the selling prices of our wooden furniture have been cut by 15 to 20 per cent. Customers that we target are high-income earners so we have opened our shops in nearly new high-grade urban areas such as those on Nguyen Huu Canh street and in District 2," Men said.
She said the shift to the domestic market had helped her company stabilise and earn enough revenues to see it through hard times.
Hoang Van Chuong, owner of the Hoang Anh fine arts and handicraft firm in District 7, said that in the past, a majority of the company’s products were exported, but the situation was reversed now.
"The rapid development of new urban areas in many districts in the city has increased the market’s furniture demand while exports were faced many challenges in the overseas market.
"To grasp this opportunity, we have strengthened selling in the local market and achieved a positive turnover," Chuong said.
Nguyen Thanh Tung in Binh Thanh District was not involved in export of wooden furniture earlier, but has entered the business by accident.
"Three months ago, I came to know by chance that wooden furniture makers had large stockpiles and that many domestic consumers with high incomes favoured high-grade furniture particularly European-styled ones. So, I decided to invest in trading in them," Tung said.
High profits
"I opened my first shop on Thu Duc District’s Huu Nghi Street and then another one on Nguyen Huu Canh Street to attract customers from nearby new urban areas in the locality and District 2. We have had very positive business results," he said.
Huynh Trung Du, owner of an interior furniture shop in District 7’s Tan Phu Ward, said, "High profit has encouraged many people to open shops that sell export-quality wooden furniture."
On Huynh Tan Phat Street alone, a new shop has opened every two months, he added.
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