Critical Success Factors & Elements for Furniture Industry

A focused furniture sector strategy would help in allocating resources to where success can be reached.

Pakistan will not be competitive in mass furniture segments. Authenticity and material knowledge should be made to work for the competitiveness of “niche” or “ethnic” furniture for the higher end of the market. Good example: the Philippines.

Good value for price, timely deliveries and proper after-sales service are needed for keeping competitive at the special niches like antique/traditional ethnic furniture markets.

New furniture collections will have to be created at shorter intervals in order to keep pace with market opportunities.

Creating original designs and attractive branding are necessary for moving to higher price points. Design should provide real added value to the product. Brand should be the flag to catch the attention of buyers.

Avoid using wood raw material that comes from illegal or unsustainable sources, as products thereof are subject to trade barriers and retailer resistance.

The following social safeguards can be added here

· Avoid the reputation of inferior social conditions and child labor (not really an issue due to strictly regulated labor rules in Pakistan).

· Refer to the ILO basic working condition convention on occupational health and safety measures as a guideline.

As far as the social or labour conditions are concerned, no buyer’s local code of conduct can be imposed on a developing country producer as a mandatory measure. No such mechanism exists by international law. On the other hand, many of buyers’ groups and large retailers set similar “voluntary” agreements on a bilateral basis: their main interest is, however, not to become under the stigma of retailing “sweat-shop” products.

Elements of success

Pakistan should look at other successful role models when figuring out a certain set of success elements for developing the furniture industry and trade. Peninsular Malaysia is one of the world’s leading exporters of furniture from the tropical region, greatly thanks to its success in rubber wood development. Important lessons could be learned from the Malaysian experience, even though success factors cannot be repeated as such. Even in Malaysia this has not been the case in Sarawak and Sabah, which have not yet joined the Peninsula’s success story in adding value to their timber.
One disclaimer is, however, that even Malaysia has been over-using its domestic wood resources in the past. Easy money was made by exporting logs and sawn wood to the big Asian markets. Only the last ten years have raised the country to the main league of furniture exporters.