Country Report  


OPTIMISTIC OUTLOOK FOR SINGAPORE FURNITURE INDUSTRY


A Report on Singapore Furniture Outlook 2015 was released by the Singapore Furniture Industries Council (SFIC) on 6 November 2015. This annual market survey on the Singapore furniture industry was commissioned by SFIC with the supported of SPRING Singapore, and prepared by business consulting firm, BDO. Here FFE presents the overview and general information about the Singapore furniture industry extracted from the report. The Singapore Furniture Outlook 2015 can be downloaded from http://www. bdo.com.sg/pub/pub_singapore-furniture-outlook-2015.html

FIGURE 1: Furniture Industry Market Size (SGD Billions)

Overview
For the second year running, the Annual Furniture Industry Survey 2014-2015 has been jointly organised by the Singapore Furniture Industries Council and SPRING Singapore in partnership with BDO Consultants. The insights that have been revealed span across topics such as the furniture industry’s size and growth, export activities, international expansion plans and strengths and opportunities. This provides readers with a thorough picture of the industry’s landscape from all angles, with key metrics derived from data given by Singapore’s furniture players of all sizes and sectors. We hope that you will continue to find these insights as useful and as informative as the previous year’s, and hopefully these results will be useful in making some business decisions.

Continued sentiments of overall optimism see the industry forecast a pleasing growth of 7.4% from 2012 to 2015, and it is anticipated that the total market size will reach S$6.25 billion in 2015. Just as reassuring is the 2013 market size figure. In 2014, this was estimated to sit at S$6.01 billion; following verification in the 2015 survey, the 2013 market size was in fact slightly larger at S$6.06 billion. However, despite general optimism over the 4 years, the furniture industry saw slower than expected growth in 2014. Cautious that initial estimates may have been overly ambitious, these have been tempered to lower the market size to S$6.22 billion from previous forecasts of S$6.34 billion.

In an assessment of the market size broken down into the industry’s various sectors, retailers steal the show as the only sector to post continuous year-on-year growth. Retailers forecast that in 2015, the sector will achieve a size of S$1.20 billion and account for 19.2% of the total market. Another bright light is the contract manufacturing sector which, despite shrinking slightly from 2012 to 2013, expects to rebound strongly into the positives for growths of 7.7% from 2013 to 2014 and 3.7% from 2014 to 2015, hitting a high of S$2.29 billion in 2015.

Notably, the Singapore furniture industry’s 2012-2013 year-on-year growth has risen from a previous estimate of 3.2% to a verified growth of 4.1% but 2013-2014 forecasts dropped by almost half to 2.6%. This reflects the conservative figures that were provided for 2014 revenues. Charting Singapore’s year-onyear growth against the global year-on-year rates, it is possible to see that national growth has in general fared better or similarly. While national growth rates have seen a general downward trend since 2011, they are expected to maintain positive percentages, which are aligned with the global growth rates.

FIGURE 2: Furniture Market Size Breakdown 2012-2015 (SGD Millions)


About the industry

Singapore Furniture Industries Council was established in 1981 as the official representative body of Singapore’s furniture industry. Its membership comprises furniture manufacturers, contract manufacturers, retailers, designers, and furniture services and materials suppliers. Currently, the council represents 95% of established furniture manufacturers in Singapore, of whom 65% have subsidiary manufacturing plants in various countries across the region, including China, Indonesia, Malaysia, Myanmar, Thailand, and Vietnam.

SFIC’s primary role is to promote the interests of its members and of the Singapore furniture industry. For over 30 years, SFIC has helped its members to adapt to changes in the business environment by introducing trade, talent, design development and business innovation activities, as well as upgrading business capabilities. Revolving around SFIC’s 3i strategic framework – Improve, Innovate, and Integrate, all of the Council’s programmes aim to grow the local furniture industry and ultimately, to strengthen the ‘Singapore brand’ globally.