How The Malaysia Furniture Market Was Positioned? • The Malaysia furniture industry has been segmented on the basis residential and non-residential market, organized and unorganized. Positive repercussions such as increase in furniture export market, expansion of real-estate sector, increase in global demand for Malaysian furniture, booming hospitality industry and some other factors has been driving Malaysia furniture industry • In 2015, the revenues for Malaysia furniture market was USD Million which had increase at a CAGR of ~% during 2010-2015. The growth of this industry has been influenced 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 was dominated by unorganized sector with the share of ~% in 2015. • The furniture industry in Malaysia has undergone a dynamic change from traditional operations to technology driven industry over the last few years 2010-2015. The growth in the furniture industry in past decades was phenomenal and was quite evident through consistent surge in exports.
The growth factors that have boosted the growth are expansion in real estate and housing activity, increasing growth in travel & tourism industry, growing affluence both in the urban and rural areas, remarkable growth of the mass media resulting in large number of middle-class families aspiring for better lifestyle. • One of the major growth drivers for the Malaysia furniture industry is the export of furniture 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
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 domestic furniture industry with a share of ~ in 2015, thereby valued at ~ million in 2015. However, Non- residential furniture market in the domestic country was evaluated at ~ million. Increase in Real-Estate industry and travel & Tourism industry had led to surge in the demand for furniture in residential & Non-residential sectors. Moreover, the growth of the middle-class income segment in the country has been regarded as the major source of expansion of furniture sales. Also, an average middle-class individual in the Malaysian society has been observed to aim for a higher standard of living due to the increase in personal disposable income in the country, which had also led to increase the demand of home furniture in the country.
The furniture market in the country had been immensely driven by a substantial growth in the real estate, travel & tourism and hospitality domains over the years. The rising number of commercial projects along with a greater spending on the infrastructure had also provided an enormous growth to the furniture market in the last few years. • The government of Malaysia is also taking many initiatives to encourage the local population of Malaysia to enter into the furniture manufacturing industry as the furniture sector is one of the major contributors in GDP of Malaysia. Government is supporting local furniture manufacturers by giving them training on furniture production and also by increasing trade barriers for international players to enter the furniture market in the country. • One of the major problems faced by the furniture market in Malaysia has been the Exchange rate Fluctuation. In export market Malaysia furniture, is facing the tough competition in terms of price & design with other furniture exporting countries such 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 residential units in the country, increase in disposable income, the concept of fully furnished apartments; growth of the middle-class income segment and change in customers preference towards branded products. • The growing need for the stylish and latest fashionable furniture in Malaysian customers had increased the market share of the residential furniture in 2015. The growth of the Residential furniture segment had played a key role in the development of the overall domestic furniture market in the country. • There are many companies in the country who are providing furniture for residential segment. Companies such as Lorenzo, PohHuat, Macy Furniture and others are offering wide variety of residential furniture to the customers in Malaysia.
The arrival of international brands from Italy, Germany, Sri Lanka and other countries has brought a change in consumer perception and has resulted in the purchase of more expensive furniture products, which have in turn propelled the overall revenues of the residential furniture market. • The residential Furniture Market can be segregated on the basis of types of material used, by rooms, by product categories, by demand from major cities, by income group. • In residential furniture market, the major demand is originated through bedroom furniture products in 2015, followed by living room, dining room & kitchen furniture. Bedroom furniture contributed to ~% in 2015 in the overall residential furniture market.
The growth of the Malaysian economy and the gradual rise of disposable incomes have leveraged the buying capacity of people. This will eventually alleviated the willingness of the consumers to spend on comfort and luxury, thus leading to an increase in the demand for High-end residential furniture in the country. • The urban population of Malaysia is increasing, people are moving from rural area to urban areas in search of jobs, education and other reason, due to this shift the demand for residential furniture in Malaysia is expected to surge in the coming years. • How Malaysia Non-Residential Furniture Has Been Positioned? • Over the last few years 2010-2015, the rising industrial area, Increase in FDIs had increased the industrial sector in Malaysia due to which the demand of office furniture items in the domestic market had increased. Additionally, the increasing trend of shopping from malls had also increased the sales of contract furniture such 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 with the rising number of tourist visiting the country and number of foreign companies entering in Malaysia which is hugely driving the sales of hotel furniture and office furniture items in the market. • The Non-residential Furniture market had increased from USD ~Million in 2010 to USD ~ Million in 2020 at a CAGR of ~%.
The growing influence of travel and tourism industry and hospitality industry in Malaysia has enhanced the structure of hotel industry in Malaysia in the last few years. This has led to a gradual growth in the sales of high-end and luxury furniture in 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 majorly since the refurbishment of ecommerce sector in Malaysia. The online furniture market of Malaysia had also increased from USD ~ million in 2010 to USD ~ million in 2015. The players which have dominated the online furniture market of Malaysia are Lazada, Delima, Rakuten, You beli and others. • Increase in growth of e-commerce market has led to increase the online market for furniture products in the country. The e-commerce market has been witnessing a paradigm shift in the consumer behavior towards online shopping. This increasing trend of online shopping among the consumers in Malaysia has given a strong impetus to the arrival of numerous companies at large and small scale in online furniture shopping business recently.
It has also been anticipated that the online furniture market in future will increase due to the increase the in E-commerce & E-tail business of Malaysia. Also, the changing perception of customers for buying furniture products from offline to online stores and increase in trust in online shopping will increase the market for online 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 to the increase in infrastructure units, global demand and changing customer preference in the country. It has been estimated that the market will increase at a CAGR 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 be the growth in the forest area of Malaysia, Increase in Trend of online shopping, increase in residential and commercial furniture market and increase in export market of Malaysia. Other factors which will also account for the increase in growth of furniture industry in Malaysia are government support and increase in population of Malaysia. • Government is taking many initiatives to increase the growth of furniture market in 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 growth of furniture market. • E- Tail market of furniture is also gaining attention at a rapid pace, powered by inclining penetration of internet, changing perception of customers towards online segment, growing disposable income and busy schedule of people (who don’t get enough time to go and by the products offline). • In short term analysis 2015-2017, it has been expected that the rising infrastructural development in Malaysia coupled with increasing demand for new home 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 will change in Malaysia regarding the buying decisions for the furniture products in the country. There will be a shift in the customer’s preference in future; the customers will choose organized brands instead of developing furniture products from carpenters. The increase in knowledge about designs, wood materials and pricing schemes is envisaged to propel the Malaysian customers to choose more branded products. The increase in disposable income in Malaysia in coming years will lead the customers to buy high end furniture products. • In future, it had been forecasted that both residential as well as non-residential sector 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 and unorganized sector. • Listed major players and their positioning in the market • Identified major industry developments in last few years and assess the future growth of the industry • Regulatory framework help to understand investment opportunities and complexity 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