Malaysia Furniture Market Outlook to 2020: Ken Research

• How The Malaysia Furniture Market Was Positioned?

• The Malaysia furniture industry has been segmented on the basis residential andnon-residential market, organized and unorganized. Positive repercussions such asincrease in furniture export market, expansion of real-estate sector, increase inglobal demand for Malaysian furniture, booming hospitality industry and someother factors has been driving Malaysia furniture industry

• In 2015, the revenues for Malaysia furniture market was USD Million which hadincrease at a CAGR of ~% during 2010-2015. The growth of this industry has beeninfluenced by rising global demand for Malaysian furniture.

• In 2015, the residential furniture market was accounted for ~ % and non-residential furniture market was accounted for ~%. Malaysia furniture market wasdominated by unorganized sector with the share of ~% in 2015.

• The furniture industry in Malaysia has undergone a dynamic change fromtraditional operations to technology driven industry over the last few years 2010-2015. The growth in the furniture industry in past decades was phenomenal andwas quite evident through consistent surge in exports.

• The growth factors that have boosted the growth are expansion in real estate andhousing activity, increasing growth in travel & tourism industry, growing affluenceboth in the urban and rural areas, remarkable growth of the mass media resultingin large number of middle-class families aspiring for better lifestyle.

• One of the major growth drivers for the Malaysia furniture industry is the export offurniture from Malaysia to other countries. Furniture export had contributed to ~%in overall Malaysia furniture Market in 2015.

• Figure: Malaysia Furniture Market Size by Revenue in USD Million, 2010-2015

2,700.0

2,800.0

2,900.0

3,000.0

3,100.0

3,200.0

3,300.0

3,400.0

2010 2011 2012 2013 2014 2015

USD

Mill

ion

• Malaysia Furniture Market Segmentation by Sectors (Residential & Non-residential) on the basis of Revenue in USD Million, 2010-2015

The Malaysia domestic Furniture market can be segregated in residential and Non-Residential furniture market. Residential sector has dominated the domesticfurniture industry with a share of ~ in 2015, thereby valued at ~ million in 2015.However, Non- residential furniture market in the domestic country was evaluatedat ~ million. Increase in Real-Estate industry and travel & Tourism industry had ledto surge in the demand for furniture in residential & Non-residential sectors.Moreover, the growth of the middle-class income segment in the country has beenregarded as the major source of expansion of furniture sales. Also, an averagemiddle-class individual in the Malaysian society has been observed to aim for ahigher standard of living due to the increase in personal disposable income in thecountry, which had also led to increase the demand of home furniture in thecountry.

• The furniture market in the country had been immensely driven by a substantialgrowth in the real estate, travel & tourism and hospitality domains over the years.The rising number of commercial projects along with a greater spending on theinfrastructure had also provided an enormous growth to the furniture market inthe last few years.

• The government of Malaysia is also taking many initiatives to encourage the localpopulation of Malaysia to enter into the furniture manufacturing industry as thefurniture sector is one of the major contributors in GDP of Malaysia. Governmentis supporting local furniture manufacturers by giving them training on furnitureproduction and also by increasing trade barriers for international players to enterthe furniture market in the country.

• One of the major problems faced by the furniture market in Malaysia has been theExchange rate Fluctuation. In export market Malaysia furniture, is facing the toughcompetition in terms of price & design with other furniture exporting countriessuch as China, Vietnam and others.

• What Is The Role Of Residential Furniture In Malaysia Furniture Market?

• The residential furniture market had witnessed a tremendous growth in Malaysia.The residential furniture includes furniture used in homes and in residential space.

• The residential furniture market size had been driven by the increase in residentialunits in the country, increase in disposable income, the concept of fully furnishedapartments; growth of the middle-class income segment and change in customerspreference towards branded products.

• The growing need for the stylish and latest fashionable furniture in Malaysiancustomers had increased the market share of the residential furniture in 2015. Thegrowth of the Residential furniture segment had played a key role in thedevelopment of the overall domestic furniture market in the country.

• There are many companies in the country who are providing furniture forresidential segment. Companies such as Lorenzo, PohHuat, Macy Furniture andothers are offering wide variety of residential furniture to the customers inMalaysia.

• The arrival of international brands from Italy, Germany, Sri Lanka and othercountries has brought a change in consumer perception and has resulted in thepurchase of more expensive furniture products, which have in turn propelled theoverall revenues of the residential furniture market.

• The residential Furniture Market can be segregated on the basis of types ofmaterial used, by rooms, by product categories, by demand from major cities, byincome group.

• In residential furniture market, the major demand is originated through bedroomfurniture products in 2015, followed by living room, dining room & kitchenfurniture. Bedroom furniture contributed to ~% in 2015 in the overall residentialfurniture market.

• The growth of the Malaysian economy and the gradual rise of disposable incomeshave leveraged the buying capacity of people. This will eventually alleviated thewillingness of the consumers to spend on comfort and luxury, thus leading to anincrease in the demand for High-end residential furniture in the country.

• The urban population of Malaysia is increasing, people are moving from rural areato urban areas in search of jobs, education and other reason, due to this shift thedemand for residential furniture in Malaysia is expected to surge in the comingyears.

• How Malaysia Non-Residential Furniture Has Been Positioned?

• Over the last few years 2010-2015, the rising industrial area, Increase in FDIs hadincreased the industrial sector in Malaysia due to which the demand of officefurniture items in the domestic market had increased. Additionally, the increasingtrend of shopping from malls had also increased the sales of contract furnituresuch as furniture used in food courts, game parlors, bar furniture and others.

• Over the last few years the demand for non-residential segment is increasing withthe rising number of tourist visiting the country and number of foreign companiesentering in Malaysia which is hugely driving the sales of hotel furniture and officefurniture items in the market.

• The Non-residential Furniture market had increased from USD ~Million in 2010 toUSD ~ Million in 2020 at a CAGR of ~%.

• The growing influence of travel and tourism industry and hospitality industry inMalaysia has enhanced the structure of hotel industry in Malaysia in the last fewyears. This has led to a gradual growth in the sales of high-end and luxury furniturein hotels, schools, colleges restaurants and bars across the country.

• How Malaysia Online furniture Market Has been Positioned?

• The online furniture has gained its prominence during the last few years majorlysince the refurbishment of ecommerce sector in Malaysia. The online furnituremarket of Malaysia had also increased from USD ~ million in 2010 to USD ~ millionin 2015. The players which have dominated the online furniture market ofMalaysia are Lazada, Delima, Rakuten, You beli and others.

• Increase in growth of e-commerce market has led to increase the online market forfurniture products in the country. The e-commerce market has been witnessing aparadigm shift in the consumer behavior towards online shopping. This increasingtrend of online shopping among the consumers in Malaysia has given a strongimpetus to the arrival of numerous companies at large and small scale in onlinefurniture shopping business recently.

• It has also been anticipated that the online furniture market in future will increasedue to the increase the in E-commerce & E-tail business of Malaysia. Also, thechanging perception of customers for buying furniture products from offline toonline stores and increase in trust in online shopping will increase the market foronline furniture in coming years.

• What Are The Future Prospectes For Furnture Market In Malaysia?

• In coming years, the size of the furniture industry in Malaysia will increase due tothe increase in infrastructure units, global demand and changing customerpreference in the country. It has been estimated that the market will increase at aCAGR of ~% during 2016-20 to be valued at USD ~ million in 2020.

• The major growth factors for the increase in the furniture market in future will bethe growth in the forest area of Malaysia, Increase in Trend of online shopping,increase in residential and commercial furniture market and increase in exportmarket of Malaysia. Other factors which will also account for the increase ingrowth of furniture industry in Malaysia are government support and increase inpopulation of Malaysia.

• Government is taking many initiatives to increase the growth of furniture marketin Malaysia, the tax exemption, increase in number of FTAs with other countries,increase in foreign direct investment and others which is likely to drive the growthof furniture market.

• E- Tail market of furniture is also gaining attention at a rapid pace, powered byinclining penetration of internet, changing perception of customers towards onlinesegment, growing disposable income and busy schedule of people (who don’t getenough time to go and by the products offline).

• In short term analysis 2015-2017, it has been expected that the risinginfrastructural development in Malaysia coupled with increasing demand for newhome and office space, will lead to a rise in the real estate market in Malaysia

• In long term analysis, it has been expected that perception of customers willchange in Malaysia regarding the buying decisions for the furniture products in thecountry. There will be a shift in the customer’s preference in future; the customerswill choose organized brands instead of developing furniture products fromcarpenters. The increase in knowledge about designs, wood materials and pricingschemes is envisaged to propel the Malaysian customers to choose more brandedproducts. The increase in disposable income in Malaysia in coming years will leadthe customers to buy high end furniture products.

• In future, it had been forecasted that both residential as well as non-residentialsector will increase in terms of revenues.

• Key Factors Considered In The Report

• Comprehensive analysis of the Malaysia Furniture market and its segments

• Industry is presented by residential & non Residential Segment, By organized andunorganized sector.

• Listed major players and their positioning in the market

• Identified major industry developments in last few years and assess the futuregrowth of the industry

• Regulatory framework help to understand investment opportunities andcomplexity involved

• Source: https://www.kenresearch.com/consumer-products-and-retail/home-and-office-furnishings/malaysia-furniture-market-report/7201-95.html

• Contact: Ken ResearchAnkur Gupta, Head Marketing & CommunicationsAnkur@kenresearch.com+91-9015378249

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