Due to the recent natural disaster, including earthquakes and tsunamis in Japan that has significantly damaged many assets, buildings, homes and their economy, KResearch expects that Thai furniture exporters may face lower orders from Japan over the short-term, particularly for wooden furniture as one of our major exports to Japan. It is expected that Japanese consumer demand for furniture will likely increase once again after rebuilding begins in 2H11. Then, overall Thai furniture exports to Japan will likely reach USD220-230 million in 2011, growing 4 percent YoY.
However, Thai furniture exports to Japan may face competition from rivals such as China, Vietnam and Indonesia, major furniture exporters to Japan. It is possible that they will be able to seize larger market shares of furniture exports to Japan. Meanwhile, market shares of Thai furniture exports to Japan may decrease.
As a result, guidelines for adjustments to support rising import demand on furniture in Japanese market include:
- Exporters should improve their products to enhance their competitiveness in the mid- to high-end segments in order to avoid price competition with China and Indonesia.
- They should also select products that focus more on utility, quality of life, health and safety as selling points to better meet Japanese demand. On the part of office furniture, manufacturers should introduce products that meet Japanese Industrial Standard (JIS Mark) to bolster Japanese consumer confidence toward Thai product quality.
- “Product Delivery within due date” is a serious concern of Japanese importers because the Japanese strictly adhere to regulations and disciplines. They also place great emphasis on inventory management. Any delays in product delivery may affect business operation of Japanese importers. That is to say, Thai exporters should manage their production planning so that they can meet scheduled delivery dates in order to maintain their good image with Japanese business partners.
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