Asian Furniture - The High Market Demand and the Reasons Behind it

The unique manufacturing of Asian furniture hasincredible surge for its manufactured goods from
always brought a lot to the market, and in fact, thesome of the world's largest markets namely the United
seven countries in South East Asia: Philippines,States, and this fad is only presumed to continue for
Indonesia, Malaysia, Singapore, Thailand, Korea andmany years to come. Breaking down this trend by
Taiwan, combined have a furniture production of aboutnation, "China and the Association of South East
$12,137 USD. In particular Korea and Taiwan are theNations, "ASEAN", (of which Indonesia, Malaysia, the
largest and most successful furniture markets andPhilippines are major members) were responsible for
although Asian furniture is incredibly popular in the Eastmost gains, while demand held steady for imports from
it is also widely developed in the Western world asKorea and Japan, and Taiwan actually experiencing a
well. The market for Asian furniture has really been ondecline in demand for its Asian furniture exports. It is
the rise since the late 1990s, when "Furniture productionhere that we can clearly begin to see the reasons for
fuelled by export demands reached an estimated USDthis disparity" (Furniture-Asian, 2000). There are
$1,828 million in 2000. Leading overseas importers areproblems with this assumption of a gain in popularity in
the United States, Germany, France, the Unitedthe future however, namely that there would be risks
Kingdom, Japan and Canada" (Furniture-Asian, 2000).to Chinese and ASEAN dominance as the demand for
Malaysia is especially popular in terms of AsianAsian furniture will increase around the world and
furniture manufacturing, and many of the other high intherefore cause the actual production of Asian
demand areas around the world turn to them for theirfurniture manufacturing to rise in the United States as
stocks of this furniture because of its multitude, qualitywell. This would cause worry that the markets in the
and affordable price.East would no longer be so essential, and because of
Any detailed analysis of the Asian market wouldthe United States' dominance in the world in terms of
reveal the fact that "the growth is skewed towardseconomy, China and area would most certainly have
China and Vietnam and the rest of the Asian furniturereason to worry. There is not, however, anything that
'giants' such as Malaysia, Thailand and Indonesia arewould necessary indicate that this would pose any
witnessing moderate growth. China compensates forlong term challenges to the Asian manufacturers, for
the moderate growth in these countries and boots theone because "as the data would indicate that even in
overall growth of the Asian market" (Frost & Sullivan,this climate Asian manufacturers have experienced a
2007). There has always been a sort of internal rivalrysteady increase in demand for their goods. In the
held amongst the Asian furniture manufacturers, ofexample of the textile industry for instance, even after
which has led to some seriously intense competitionthirty years of special protections in the US textile
within these countries. Overall out of this Vietnam hasindustry has yet to pose a challenge to Chinese
worked to successfully gain customers from othermanufacturers even with the exclusive status it enjoys
South East Asian countries, and as well Malaysia'swith CITA and the Commerce Department"
wood furniture industry in particular has come into(Furniture-Asian, 2000).
rather sudden focus.Overall then as a result of this, although only time will
There are many reasons and points of interests whichtell as to what will take place years from now, we can
are involved with the high market demand for Asianonly assume that the manufacturing of Asian furniture
furniture, namely in regards to market drivers andin the United States will become more dominant, and
challenges. After all, the furniture industry in Malaysia isalthough Asian manufacturers may actually tend to
still outperforming the economy and growth in furnituresee a dip in their market, it will most certainly not be
exports in general is expected to only drive the marketlost and they truly do not have to worry in this case.
further in the future. "Although the USA accounted forThe ideal agreement would be that the two locales
almost 34 percent of the furniture imports fromwould work together in the market of Asian furniture
Malaysia in 2005, there are other countries such asbut either way it is unreasonable to believe that any
Australia and Netherlands that have gainedother industry would fare any better than the actual,
considerable share in the recent years. Reliance onoriginal Asian manufacturers. More and more
one single export destination made the Malaysiancompanies are getting into the Asian furniture
furniture industry vulnerable to external economicmanufacturing business and wisely, because there
fluctuations, as evident from the 2001 setback whendoes not seem to be any concern that the Asian
exports from Malaysia plummeted. The diversificationfurniture market, anywhere in the world, is going to
of the export base will definitely reduce the impact ofdrop anytime soon. The beauty, quality and value of
external economic factors and ensure stable demandthis furniture is what keeps it in such high demand in
for wood coatings" (Frost & Sullivan, 2007).the market all around the world, and any decline in this
In terms of what the future of Asian furniture exportsmarket would certainly come as quite a surprise.
is expected to be like, Asia overall has experienced an