Furniture buyers make switch to ASEAN produce
November 4, 2011 10:02 pm
HO CHI MINH CITY, Nov. 4 — Rising labor costs, increased shipping times due to labor shortage and anti-dumping duties on bedroom furniture were among factors that have prompted U.S. buyers to move from China to ASEAN countries, especially Vietnam, the CEO of online portal TigerTrade said yesterday at a seminar in this city.
Tanjila Islam, who also founded the trade portal, said ASEAN's skilled workforce, innovative designs, steady and ample access to raw materials such as bamboo offered diverse sourcing opportunities for furniture and home decor buyers.
The current situation was a great opportunity for the region to boost exports to the lucrative market, she said, adding that retail furniture sales in the U.S. had increased by 5.5 percent this year.
"Furniture imports have growing importance in the U.S. market, both for outdoor and indoor furniture, accounting for 71 percent of all wooden furniture sold in the U.S.," she said.
The U.S. furniture imports have increased by 19 percent annually since 2009, and are expected to increase further in the coming years.
Islam said she saw high demand in the U.S. market for both outdoor furniture as well as home decor items.
The U.S. was a large and diverse market and buyers pay attention to the source of wood and product quality, she added.
Regarding styles, she said vintage looking furniture and custom-made products were preferred to mass-produced designs.
Vietnam was the third largest exporter of furniture and home decor to the U.S., accounting for 6.5 percent of the market share.
It ranked eighth in the world and first in Southeast Asia in terms of furniture and home decor exports, she said. (PNA/VNS) scs/LAM/rsm
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