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Green Furnishings New trend in Indonesia Home Furnishing Market: Ken Research

Posted on 31 August 2017 by KenResearch Consumer Products and Retail,

Indonesians are greatly interested in home furnishings and design their homes beautiful to show-off to their families and friends. The increasing population in Indonesia triggered a positive growth in new homes and home furnishings market. It is observed that the home furnishings market is continuously growing with the years and will surely grow over the period of time.

The leading home furnishings in Indonesia are IKEA, Kawan Lama Sejahtera group, Olympic, Alga, Ligna and Guhdo. With the introduction of Inter Ikea Systems in Indonesia, the IKEA brand has experienced a tremendous growth compared to the ever growing Kawan Lama Sejahtera group. Olympic is another brand that offers very cheap home furnishings where middle to lower class income consumers can afford.

Indonesia is one of the world’s top furniture exporters along with Japan, France, the UK and the Netherlands. Home furnishing exports by Indonesia has aimed for USD 5 billion by the year 2020. The increased regulatory requirement in Indonesia has made it difficult for small and midsize makers to boost home furnishing exports. A certification that timber is legally acquired is a must in the USA, the EU and several other home furnishing markets. To boost sales in home furnishing, many Indonesia furniture suppliers are intensifying their online marketing efforts by using online platforms. The suppliers in Indonesia are participating in local and international trade exhibitions, workshops and events held by trade associations to widen their network.

According to the report, “Home Furnishings in Indonesia”, the major factors supporting Indonesia’s furniture industry is the domestic availability of various raw materials. The country has a vast forested land with teak, meranti, keruing, kapur and mersawa trees useful for home furnishings. The country has large pool of skilled workers, including carvers and carpenters possessing ancient techniques in carpentry. The government also supports the home furnishings sector which is an added advantage.

Home furnishing industry is involved in creation of more in-house designs. Majority of the companies have limited resources to invest in market research and product development. Investments in Indonesia’s furniture and handicraft industries are expected to decline due to slow down in global demand and less competition. Indonesia’s home furnishings market has been growing steadily in yesteryears due to the increase in the middle class and increased consumer spending limit. The import in home furnishings has increased leading to new opportunities for foreign brands along with local brands.

Indonesia is a highly attractive market as a manufacturing base for furniture companies. Indonesia is the leading manufacturers and exporters of outdoor furniture made from teak, bamboo and rattan as well as carved furnishings. The abundant availability of timber has attracted global attention as a furniture manufacturing base for international brands. With the rising population in Indonesia and increased consumer spending limit has attracted majority of the furniture makers.

Raw material maintenance, sourcing and production methods for Indonesian furniture manufacturers is continuous process as consumers are demanding for environmentally friendly products. Various local Indonesian manufacturers are utilising reclaimed wood in the making of sofas, tables and chairs to harmonize with local reforestation programs. Almost all the large scale furniture manufacturers in Indonesia are also thinking about green furniture and are investing in environmentally efficient production methods.

The new young generation in Indonesia are more concerned about style and durability of the home furnishings. Indonesia is booming in the property sector with the increasing population and there is a demand for furnishings related to office furniture, kitchen furniture, upholstered furniture, non-upholstered seats, bedroom furniture, seats parts and parts of other furniture. The office furnishings are of functionality and ergonomic design as employee comfort is a priority in light of longer working hours and extended periods of sitting. Indonesian furniture industry consists of more than 3,500 companies and over two million workers. The strengths of the Indonesian furniture industry are rich woodcarving tradition, the abundance of raw materials and low cost skilled labour force.

Indonesia is the world’s top producer of non-wood products such as rattan. Home grown components such as rattan and bamboo are widely used in Indonesia to differentiate their products from other products. Majority of the manufacturers are stressing on innovation and differentiation in home furnishings. Wood from old furniture and boats is recycled to satisfy the growing needs for sustainable furniture goods. The home furnishing market will witness a positive growth in the coming years with demand for more eco-friendly furnishings.

To know more about the research report: 

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Ken Research

Ankur Gupta, Head Marketing & Communications