IN THIS
ISSUE
- "LEAD"ing
the Singapore Furniture Industry to Greater Heights
- IFFS/AFS 2006 Achieves Record
Deals, Exhibitor & Visitor Count
- Internationally Renowned Designers
on "Staying Relevant " In The Competitive World
Market
- Local Design Talents to Get
Career Boost
- SFIC Welcomes New Honorary Advisor,
Dr. Balaji Sadasivan
- Furniture Design Award (FDA)
2006 Winners
- Furniture Learning Institute
Offers New Enriching Pivot Courses for Both Executive &
Management Level
- HTL Managing Director Wins Top
Business Accolade
- Taking the Furniture Industry
to a Whole New Level
- Are You Facing Your Brutal
Facts
- Sitra Holdings Achieves EDB's
Regional HQ Award
- World Furniture Outlook 2006
- Calendar of Events
"LEAD"ing
the Singapore Furniture Industry to Greater Heights
 |
Officiating at the opening
of the lnternational Furniture Fair Singapore 2006
/ 23rd ASEAN Furniture Show, Dr Vivian Balakrishnan,
Minister for Community Development, Youth and Sports
and Second Minister for Trade & Industry, announced
that the SFlC will be embarking on a series of projects
under the government-led Local Enterprise and Association
Development (LEAD) programme to further enhance Singapore's
position as an international furniture hub. The LEAD
programme was launched last May by SPRING Singapore
and IE Singapore to partner industry associations
to enhance industry and enterprise competitiveness.
These projects, estimated to cost about S$16 million,
will give the industry a strong shot in the arm over
the next three years. SFIC's growth plan will focus
on three key areas - nurture a high value-added workforce,
develop more design-centric companies, and create
a synergised industry network to capture a bigger
global market share. |
"The strategic yet specific projects
to be supported under the LEAD programme will help to establish
Singapore as an international furniture marketing and design
centre. SPRING will continue to work closely with the SFlC
to grow the sector", said Mr Loh Khum Yean, Chief Executive
of SPRING Singapore.
IE Singapore, likewise, also pledged that
it will continue to work closely with the SFlC and industry
players to build up a pool of leading Singapore furniture
MNCs, help them to extend their global reach, and at the
same time, attract more overseas buyers to Singapore.
Projects to be undertaken by the SFlC
under the LEAD programme include:
Design excellence as
competitive edge
The SFlC aims to grow the number of design-centric local
furniture companies by about 30 per cent in three years
through the Furniture Design Award (FDA), designer codevelopment
and design entrepreneur development programmes. Since 1993,
the FDA has helped to nurture Singapore's budding design
talents and seen the participation of overseas furniture
designers as well. The SFlC intends to further raise the
profile and standard of the competition. Incentives will
also be provided for local furniture companies to employ
winning designers, so that they can be mentored on commercialising
their designs.
Under the designer co-development programme,
the SFlC will leverage on the annual FDA to identify five
outstanding design young talents each year and reward them
with a 12-month employment contract with some of Singapore's
leading furniture companies. The SFlC will co-fund 70% of
the young designers' payroll while they are being placed
on a meaningful mentoring programme that leads to the commercial
production of their works.
The design entrepreneur development programme
targets to increase the stream of world-class products for
overseas markets by providing budding furniture designers
and entrepreneurs with exhibition space, of up to 20 sqm
per designer, at the annual IFFS/AFS. Aptly known as 'PLATFORM1,
this initiative aims to be a sought-after plafform for new
and young promising furniture designers in Singapore and
the region to showcase their new prototypes, kick-start
their design careers and attract potential manufacturers.
Continuous development
and optimisation of human capital
industry and enterprise Dr Vivian Balakrishnan, Minister
for Community Development,Youth and Sports and Second Minister
for Trade & Industry at the IFFS/AFS 2006 The SFlC aims
to improve the degree of value-add per worker in the industry
by competitiveness. Official Opening enhancing operations
at the Furniture Learning Institute (FLI) and developing
suitable curricula for industry practitioners to continuously
upgrade themselves.
In addition, the LEAD Programme also supports
the implementation of study missions to countries renowned
for best practices and to cross-share with like-minded practitioners
on ways to overcome business challenges, develop innovative
ideas and for networking. The missions will focus on areas
which will have a positive multiplier effect on Singapore's
furniture industry, particularly in design, retail concepts
and enhancements of the FLI and Singapore as the "Asian
centre" for the furniture trade.
Strategic branding and
marketing
Not forgetting about the "survival kit" of today's
global business plan - strategic branding and marketing
- the SFlC also intends to groom 15 local furniture SMEs
each year as exporters. The new exporters mentoring programme
aims to increase the pool of "Singapore furniture brand
ambassadors" in the global market to enhance the visibility
of the industry's capabilities and design-led offerings,
attract more buyers and grow Singapore's global market share.
Finally, the LEAD Programme also includes
funding to enhance the lnternational Furniture Centre (IFC).The
IFC, which will be launched later this year, is in line
with JTC Corporation's master plan to revitalise Sungei
Kadut, which is home to many local furniture companies.
The IFC will encourage more furniture companies to use Singapore
as a springboard for their expansion into the Asia Pacific,
a region that is well recognised as a rapidly growing market
as well as a manufacturing base.The LEAD funding will enable
the IFC to consolidate its role as an effective Asian business
conduit for the international furniture trade. Some of the
Centre's areas of enhancement include strategic business
matching, design development, market development trips overseas
and buying programmes to Singapore.
The approved initiatives in the Singapore
furniture industry LEAD programme are slated for implementation
this year and will be completed by March 2009.
|
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"The SFlC is glad to
be able to customise initiatives that
complement the industry's competitive strengths - high
quality
control and reliability - to sustain our growth and
viability with the support of the LEAD programme and
the assistance of SPRING Singapore, IE Singapore and
various other government agencies. This wellrounded
development plan is designed to benefit multiple fronts
in the industry, ranging from human capital optimisation
and promoting design and retail excellence to industry
branding and market development", said Mr
James Koh, President of the SFIC. |
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IFFS/AFS
2006 Achieves Record Deals, Exhibitor & Visitor Count
The lnternational Furniture Fair Singapore
2006/23rd ASEAN Furniture Show (IFFS/AFS 2006) has again
proven to be an excellent business conduit for the international
furniture trade fraternity in Asia. The fair generated a
record yield of estimated USD 240 million of spot orders
over the five-day event from 1 to 5 March at the Singapore
Expo. The event is also expected to garner an additional
USD 2.1 billion of follow-on sales for the year ahead.
Registering the highest exhibitor and visitor
count in its 23-year history, with 505 exhibitors from 29
countries and 17,838 trade participants from 113 countries,
IFFS/AFS 2006 has also, in turn, garnered an estimated USD
32 million in revenue and economic spin-offs for Singapore's
MICE (Meetings, Incentives, Conventions and Exhibitions)
and tourism industries.
The IFFS/AFS 2006 occupied six halls of the
Singapore Expo and boasted an increase of eight per cent
in size from 2005 to an astounding nett exhibition space
of 35,500 sqm. The number of new exhibitors also grew by
more than 100 per cent, from 85 companies in 2005 to 176
this year to provide potential new business ventures.
The ASEAN countries, like Indonesia, Malaysia,
Myanmar, the Philippines, Thailand, Singapore and Vietnam,
saw significantly stronger participation at the IFFS/AFS
2006 and displayed an impressive 20 per cent increase in
nett exhibition space compared to last year's show.
With more than 32,000 pieces of furniture
and furnishing products featured at IFFS/AFS 2006, Singapore
boasts the largest collection of quality products in the
ASEAN region and remains the preferred sourcing destination
for prominent buyers. The IFFs/AFS 2006 attracted close
to 40 per cent more foreign buying delegations than IFFs/AFS
2005, from 48 buying groups to 77, boasting prominent players
from the neighbouring regions as well as Europe, America,
the Middle East and Africa.
Mr Steven Chew, Chief Operating Officer
of Sitra Holdings (International) Pte Ltd, Singapore said:
"This year's show has been
the best we had since we started exhibiting at the fair
five years ago. We saw more quality buyers this year compared
to the previous ones. Besides continuing to use the IFFS/AFS
as a key plafform to reach out to our customers, we will
definitely increase our exhibition space at next year's
fair."
"The huge
array of products on display, coupled with distinctive designs,
was truly exceptional! We are convinced that three days
is not sufficient and we intend to return next year and
will stay for the entire
show period of five days. We are certain that our business
orders springboard from IFFS/AFS," commented
VIP Buyer, Mr Peter Walkom, Managing Director of Casual
Living from Australia.
On what to expect at next year's show, Mr
James Koh, President of the Singapore Furniture Industries
Council (SFIC) and Chairman of IFFS Pte Ltd, said: "Moving
forward, the SFIC and IFFS Pte Ltd will be rolling out new
initiatives geared towards improving the size, scope, and
quality of the show. IFFS/AFS 2007 will see the implementation
of 'PLATFORM: a design entrepreneur development programme,
and the launch of the inaugural World of Woodworking Machinery
2007, or WO WMAC 2007. We are looking forward to staging
an even bigger, better and more comprehensive show for our
international audience next year!"
To be held at Hall 7 of the Singapore Expo
from 3 to 6 March next year, WOWMAC 2007 is expected to
feature more than 100 exhibitors from over 20 countries
and showcase the latest furniture manufacturing technology,
machinery components, supplies and services over 10,000
sqm of floor space. Furniture manufacturers as well as other
visitors at the next year's show will be able to seamlessly
visit WOWMAC and source for products catering to the various
processing and manufacturing phases of wooden furniture.
These include forestry equipment, fitting tools, raw materials,
laminates and finishing solutions. Products that facilitate
timber processing, handling and storage will also enhance
the show's attraction, along with furniture assembly equipment
such as automated machinery and DIY tools.
The announcement of WOWMAC 2007 has created
a tremendous buzz among the furniture trade community. One
excited IFFSIAFS 2006 exhibitor is Mr Ciril Jonas, Managing
Director for Holz-Her Asia Pte Ltd, who said: 'WOWMAC
is an excellent idea and we are definitely interested to
participate in the inaugural show rather than those in the
neighbouring countries."
Dr Vivian Balakrishnan, Minister for Community
Development, Youth and Sports and Second Minister for Trade
& Industry, who officiated at the IFFSIAFS 2006 opening
ceremony, said: "The IFFS/AFS
had grown to become Asia's leading furniture trade fair
and a 'must-visit' destination for every international furniture
buyer coming to this part of the world. I'm confident that
IFFS/AFS will continue to grow and become a truly iconic
and worldclass trade show like the other internationally
renowned furniture fairs in Cologne and Milan."
IFFSIAFS 2007, together with WOWMAC 2007,
will become the largest annual trade show in Singapore,
boasting a nett space of 42,000 sqm spread over seven halls
of the Singapore Expo. The estimated annual economic spinoffs
for Singapore's MICE and tourism sectors will increase to
about USD 40 million. IFFS Pte Ltd reported that at the
closing of IFFSIAFS 2006, more than 60 per cent of exhibition
space for the 2007 fair had already been booked, with exhibitors
hailing from China, Hong Kong, Indonesia, Singapore,Taiwan,
USA and Vietnam.
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Internationally
Renowned Designers on "Staying Relevant" in the
Competitive World Market
 |
"In
a perpetually modernizing world, I would like to see
a greater Asian influence," rallied
Hong Kong-based Douglas Young, Founder of G.O.D. (Goods
of Desire), who was one of the keynote speakers at the
Furniture Design Forum (FDF) 2006. |
The forum, with a panel of international
speakers - Douglas Young, Thomas Jacobsen, Voon Wong and
Michael Young - stressed the importance of being
unique and craving a niche for oneself. Organized
for the fourth year in conjunction with IFFS/AFS 2006, the
forum was attended by more than 250 people comprising design
enthusiasts, furniture trade practitioners, designers and
students.
Speaking on "A Quest for
Asian Lifestyle", Douglas Young specified the need
to retain and infuse the Asian tradition with modern ingenuity
to create truly original and innovative products to make
a mark in the world market.
"We
have to find our own voice", echoed Singapore-born
designer Voon Wong, founder of UK-based voonwong&bensonsaw,
highlighting the need to make a distinction with our own
culture and progress with the times.
To Mr Simon Ong, Chairman of
the SFlC Design Development Committee, the environment here
is now at its most conducive as the local government has
been stepping up support to develop the creative industry
into a truly world-class and lucrative one.
"We recently announced our
partnership with the Singapore government to launch a series
of new initiatives to promote design excellence. There is
no better time than now to reinvent ourselves and create
a unique competitive edge. With Uniquely Singapore offerings
in the world market, our voice in the global playing field
is set to be louder said Mr Ong at his opening address at
FDF2006.
With FDF 2006 primarily focusing
on progression and adaptability, the audience was charged
up to find out how they could better stay relevant in the
industry.
To Michael Young, founder of
Michael Young Studios from the UK, design is strongly linked
to cultural experiences and designers need to have their
ears on the ground to closely tap on trends in order to
create works that strike a chord with modern consumers.
 |
"We
came to be inspired and be updated on the latest happenings
in the design industry. It was definitely a fruitful
session," said Kay Burrell from Design
Details Australia, when asked to comment on the forum.
losing the interactive
forum was a lively panel discussion and Q&A session
moderated by Mr Andrew Pang,Vice Chairman of the SFlC
Design Development Committee and Ms Kelley Cheng,
SFlC Design Advisory Panel Member, on "Beyond
Design". The audience engaged the forum's four
eminent speakers and John Kelly, founder of John Kelly
Furniture and Accessories, USA in topics like branding,
product value-add, entrepreneurship and the impact
of culture on design. John Kelly is also a member
of the SFlC Design Advisory Panel.
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Local
Design Talents to Get Career Boost
The SFlC announced in March its
plan to groom young talented designers through a new design
mentoring programme, which will be developed in partnership
with leading local furniture companies.
 |
The initiative - Designer
Co-Development Programme - will leverage the annual
Furniture Design Award (FDA) to identify 15 outstanding
designers and award them with a one-year employment
contract with some of Singapore's top furniture companies
over the next three years. The SFlC will co-fund the
salaries of the designers, who will be placed on an
intensive mentoring programme that leads to the commercial
production of their works. |
While outstanding arts and design
graduands from the various local institutions and non-affiliated
designers are welcome to apply for the programme, top priority
will be given to FDA finalists.
"The primary aim of our
initiative is to establish design as the bedrock of the
industry's profitability," said Mr Simon Ong, Chairman
of the Design Development Committee for the SFIC.
"With the Designer Co-Development
Programme, we hope to encourage more companies to adopt
design as a strategic tool in their businesses and hopefully
cultivate an expanded pool of furniture design talents.
This will, in turn, lead to a continuous production of innovative
furniture products that we can export worldwide. Our ultimate
goal is to leverage design as a substainable and strategic
advantage to anchor the industry's growth in the competitive
global market", he added.
The SFlC will also be stepping
up efforts to brand and market FDA to a higher profile.
Over the next three years, the SFlC will invest up to S$1
million to promote FDA, develop new platforms to showcase
the winning furniture designs worldwide and raise design
standards in the industry. To kickstart the year's activities,
SFlC partnered the National University of Singapore (NUS)
to showcase the Gold Award winner entry for FDA 2005 Young
Designers Category at the Salone Satellite @ Milan in April
2006.
The FDA 2006, which comprises
the Students, Young Designers and Open categories, drew
a total of 365 entries from 14 countries across the world.
The theme for this year's FDA was "FLY", where
students and young designers were challenged to think up
innovative concepts that were truly "out of this world".
Mr Andrew Pang, Chairman of
FDA 2006 Organising Committee, said: "The impressive
showcase of creative works at this annual competition is
clear testimony of the vast potential in the region's furniture
design industry and affirms the Award's growing status as
an effective career launch pad for talented designers. We
are also heartened by the international furniture fraternity's
support and recognition of the awards as a coveted mark
of design excellence. With the FDA, we hope to provide budding
designers with a platform to showcase their creativity and
for the furniture industry, the opportunity to spot the
next 'Konstantin Grcic' right here in Singapore."
The winning designs of FDA 2006
were showcased at the IFFS/AFS 2006, Asia's premiere design-led
furniture trade exhibition, from 1 to 5 March 2006. As a
part of the SFIC's design outreach efforts, the designer
pieces of the FDA 2006 finalists were exhibited at the Esplanade
from 15 April to 1 May 2006.
The FDA 2006 is supported by
DesignSingapore Council, SPRING Singapore, International
Enterprise Singapore, Designers Association of Singapore,
Interior Design Confederation Singapore and Singapore Institute
of Architects.
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SFIC
Welcomes New Honorary Advisor, Dr. Balaji Sadasivan
 |
The SFlC is pleased to announce the
appointment of Dr Balaji Sadasivan, Senior Minister
of State, Ministry of Information, Communications
and the Arts (MICA) as its Honorary Advisor.
"Dr Balaji's esteemed experience,
insights and advice will be of great value as the
SFIC strives to further improve its services to enhance
industry and enterprise competitiveness as well as
encourage the industry as a whole to aspire towards
greater achievements in furniture design and innovation",
said Mr James Koh, SFlC President.
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Furniture
Design Award (FDA) 2006 Winners
STUDENTS CATEGORY
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Gold Award - Come Fly with me
Designer : Low Lin Kiat
Institution : National University of Singapore
Email : lowlinkiat@yahoo.com
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Silver Award - Disc
Designer : Liu Honfay
Institution : National University of Singapore
Email : honfay@yahoo.com
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Bronze Award - Sora
Designer : Lionel Wong Zhen Jie
Institution :National Universityof Singapore
Email : lionelart@excite.com
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Merit Award -Vita
Designer :Tan Yih Sze
Institution : Inspiration Design School
Email : yihsze@yahoo.com
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Merit Award - Fei Stool
Designer : Chin Wei Min
Institution : Ternasek Polytechnic
Email : wei_dsc@yahoo.com.sg
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Merit Award - Floating Dreams
Designer : Chen Xi
Institution : National University of Singapore
Email : cicixi@gmail.com
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Certificate of Participant -
Spiro
Designer : Riswandi Tjahyono
Institution : Raffles Design Institute
Email : risld@hotmail.com
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YOUNG DESIGNERS CATEGORY
OPEN CATEGORY
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Furniture
Learning Institute Offers New Enriching Pivot Courses for
Both Executive & Management Level
 |
In February 2006, FLI piloted
two mandarin public run courses "Problem Solving
& Decision Making" (PSDM) and "Communication
& Relationship Management" (CRM). for the executive
and management level staff in the industry. PSDM is
designed to, facilitate operation staff to learn beyond
just techniques in solving workplace problems, to help
the worker to anticipate and identify problems within
the circle of influence and to be proactive to generate
and evaluate alternative solutions. |
As for CRM, it is catered to enable a more
effective, productive and better work environment for the
supervisor through inculcating correct attitude towards
communication and building rapport among team members as
well as supporting the team's effort in achieving team synergy.
Those who attended the courses feedback that
the coverage and delsth of the during the course courses
were adequate. There were appropriate use of case study
discussion, role play and ground work to aid in the understanding
of the project. Participants from Star Furniture lndustries
Pte Ltd, Four Star Industries Pte Ltd, Merlin Furnishing
Pte Ltd and Air Division Pte Ltd gave their thumbs-up for
the new mandarin courses.
Training courses offered by the FLI are supported
by Singapore Workforce Development Agency (WDA). Participating
companies are able to apply for Enhanced Skill Development
Fund (SDF) as well as Skill Redevelopment Programme (SRP)
support, thus allowing companies even more incentive to
invest in their workforce. FLI is currently partnering OTI
Consulting to roll out the following courses. Training solutions
are learner-centered, set in creative adult-learning environment
and supported by award-winning validated psychometric tools.
| Programme Title |
Date |
Fees |
Net Investment |
| |
|
|
40 years
& above
(A levels & below) |
Others |
PSDM: Problem Solving & Decision Making
(Operational Level) |
6-7 July,
28-29 August,
18-19 October |
$270 |
$13 |
$40 |
PSDM: Problem Solving & Decision Making
(Supervisory Level) |
22-23 June,
26-27 September,
4-5 December |
$270 |
$13 |
$40 |
Personal Effectiveness
(Operation Level) |
22-23 May,
3-4 August,
9-10 November |
$270 |
$13 |
$40 |
Personal Effectiveness
(Supervisory Level) |
8-9 May, 27-28 July,
14-15 September,
7-8 December |
$270 |
$13 |
$40 |
Communications & Relationship Management
(Operation Level) |
15-16 May,
14-15 November,
21-22 November |
$270 |
$13 |
$40 |
Communications & Relationship Management
(Supervisory Level) |
12-13 July,
4-5 September,
30-31 October |
$270 |
$13 |
$40 |
* Fees are inclusive of 5% GST
** Net Investment is inclusive of SDF and SRP funding (Terms
&Conditions Apply)
For more information kindly contact Mr EricTeo at 6568 3221
or email eric@singaporefurniture.com
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HTL
Managing Director Receives Top Business Accolade
 |
Mr Phua Yong Tat, Group
Managing Director of HTL lnternational Holdings Ltd
(HTL), was conferred the prestigious "Businessman
of the Year at the Singapore Business Awards (SBA)
2006Award Presentation Ceremony in March 2006, becoming
the first furniture industry leader in Singapore to
be honoured with this Award. The SBA, which was organized
by the Business Times and DHL , was launched in 1985.
Winners were chosen by a panel of judges drawn from
industry, academia and official agencies.
Mr Phua was honoured 'for his outstanding entrepreneurial
drive in transforming HTL from a traditional maker
into an international brand name, with more than 95
per cent of its high-quality leather furniture products
exported to over 40 countries worldwide ". |
Mr Phua and his two brothers started the company
in 1976 with just $10,000 in a simple factory at Lowland
Road in Upper Serangoon, to produce PVC sofas for the domestic
market. In 1993, the company became the first furniture
manufacturer to be listed on the Singapore Stock Exchange.
Since then, with 9 manufacturing plants in Singapore, Malaysia
and China, HTL is widely recognized as one of the world's
leading sofa manufacturers and leather tanners.
Described by his staff as a very hands-on
boss, Mr Phua has combined foresight with modern management
and selling techniques to steer HTL lnternational to become
a global success. Over a span of five years up to FY 2005,
HTL's turnover nearly tripled to S$598 million while its
bottom line grew five times to S$54.1 million. HTL has also
been named by US-based Forbes magazine for four consecutive
years as one of the 200 Best Small Companies in the World.
The modest Mr Phua said, "ThisAward
was not just for me, but also my brothers, Yong Pin and
Yong Sin, who founded HTL with me 30 years ago, our families
and our staff". "We don't take our success for
granted. We still have a lot to learn to win more market
share," he added.
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Taking
the Furniture Industry to a Whole New Level
 |
The masterplan by JTC to
turn Sungei Kadut into a one-stop vibrant furniture
hub is now almost a scintillating reality. At its heart
is IFC, an iconic building boasting worldclass facilities
and top notch services for all furniture solutions.
And in time to come, Sungei Kadut will be transformed
to a modern furniture street comprising a concentrated
cluster of furniture and furniture-related business,
resting alongside residential areas, shopping malls
and other amenities. |
Be the early bird to benefit
from this major industry initiative. Over 60% space at the
IFC has already been booked todate. To apply for export
showrooms and offices, please get in touch with Miss Cindy
Chua, Marketing Executive at Tel: (65) 6569 6988, Fax: (65)
6569 9939 or Email: enquiry@ifcsingapore.com.
For more information, visit www.ifcsingapore.com
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Are
You Facing Your Brutal Facts
Face reality as it is, not as
it was or as you wish it to be, change before you have to,
and allocate resources based upon return, not upon need;
these are the three overriding principles of strategic leadership
that guided Jack Welch, the legendary former CEO of General
Electric. These principles serve as an essential blueprint
for any company in the furniture industry to continue to
grow in these changing times.
A strategic leader's focus must
be on building a team of competent managers to execute the
leader's vision. The strategic leader's number one role
is to clarify the company's overall goals and clearly define
and articulate its direction.
So how do you go about determining
reality as Jack Welch defines it? It must start with an
honest assessment of your company's strengths and weaknesses
tied to an awareness of changes in the marketplace. This
should begin with a critical evaluation of where you are
spending your time.
As a strategic planner and CEO
Coach specializing in high-growth entrepreneurial companies,
I have had the opportunity to workwith a number of furniture
manufacturers and importers. Most are so buried in day to
day operations that they can't see the big picture, causing
their company to miss opportunities and, in some cases,
to go from high-growth to going out of business. As the
leader of a company, if you are spending the majority of
your time involved in daily operations, making every key
decision and buried in the details, you will never have
the time or energy to see the forest for the trees.
By far the most successful company
I have worked with in this industry is Four Hand a furniture
importer based in Austin, Texas. Four Hands has received
many indust, awards as well as national and local recognition
as one of America's fastest growing privately held companies.
Their international client base includes many of the top
100 furniture retailers in the world.
In order to ensure alignment
throughout the organization, Brett Hatton, the company's
CEO and founder, holds strategic retreats on a quarterly
and annual basis with his management team. At these sessions,
the agenda always include:
>A review of their budget
> Financial results
> Projections by each department
In addition, each department
head also reports on whether they have met the objectives
established since the last strategic session. This exercise
helps them clearly identify the achievements and disappointments
of the preceding quarter or year.
This leads to what I consider
the most important part of the agenda, which is to identify
the company's brutal facts. What drives this is a SWOT analysis.
By systematically assessing the company's strengths, weaknesses,
opportunities and threats, they determine their brutal facts,
and create the focus for the upcoming quarter.
The term brutal facts was introduced
to the business community in Jim Collin's classic book,
Good to Great. It is considered by many business owners
and experts, to be the most important and indispensable
business book written in the past two decades. It is a MUST
read for any business owner.
One of the major themes of Collin's
book is that "you absolutely cannot make a series of
good decisions without first confronting the brutal facts."
His research for the book clearly demonstrated that great
companies continually refined their path to greatness by
acting on the brutal facts of reality.
In 1999, while experiencing spectacular
growth, Four Hands identified three brutal facts that demanded
action. Continued growth along with the ability to meet
the capacity of demand would require:
> More Inventory
> More People
> More Capital
The Company decided to take
a hard look at its business model, which was the traditional
model for furniture importers and wholesalers at their stage
of growth. Hatton concluded that without a drastic change
in the model, they were on a course that required a significant
cash infusion without an appreciable return on investment.
In addition, he did not see increased profit margins to
justify the risk, work and effort.
Four Hands did not have the
necessary infrastructure or cash to continue to bring inventory
from the country of origin into its warehouse in Austin,
unpack it, hold inventory while it was waiting for other
merchandise to complete an order, put orders together, repack
and shin small (US$250 to US$1,000) purchase orders.
As a result or ~neisro ul searching,
Hatton and his management team decided to turn their business
model upside down. A major decision was made to raise the
price for minimum orders. In addition, the company began
targeting its sales and marketing efforts to the top 100
furniture retailers who were appropriate candidates for
the company's designs.
After considerable number-crunching,
Four Hands determined that it could make higher margins
and offer outstanding savings to their targeted customer
profile through a containerdirect program. Under this program,
clients could buy a broad selection of merchandise that
could be shipped directly from the country of origin to
a client's warehouse or distribution center.
This minimized the amount of
merchandise Four Hands had to stock and stabilized the number
of the people necessary for receiving, shipping and handling
in Austin. In order to accomplish this, additional systems
and training was required on virtually every front. Customers
needed to understand the benefits of the program and how
it enabled them to achieve enhanced margins, greater profitability
and the ability to offer special events and sales when containers
landed.
Before that could happen, the
sales team needed to buy into the program and be comfortable
explaining these benefits to their customers. It was equally
important for them to become comfortable saying no to current
and prospective customers who could not meet the new minimums.
The program's success also demanded new tracking systems.
Facing the brutal facts for
Four Hands at their stage of growth in 1999 enabled them
to simplify their business model at a critical time. By
focusing on implementing their new model, Four Hands continued
to grow and prosper and did not fall victim to the inevitable
cash demands of their old model.
Four Hand's brutal facts at
the beginning of 2001 were as brutal as the company ever
faced. A major threat emerged when it appeared likely that
India, Four Hands' primary manufacturing source, and Pakistan,
two nuclear powers, were on the brink of war.
To further emphasize the potential
for disaster, a member of the Four Hands management team
was in Rajasthan during a nuclear test by lndia designed
to get Pakistan's attention, though miles away, he felt
the ground shake beneath him as the nuclear test began.
Whether it got Pakistan's attention or not, it codified
a major brutal fact for Four Hands; lndia at war would certainly
impact on whether carpenters would be drafted, factories
would remain open and the country would be able to ship
from its ports. Even a short halt to production could cripple
cash flow, and a longer one could force clients to fill
their floor with merchandise from other manufacturers.
Four Hands assessed their brutal
facts and broke them down into three numbers.
1,2,3:
One country
producing about 70% of the company's product line
Two customers generating over 50% of revenues
Three manufacturers producing the majority
of their product line
Hatton took immediate action.
He attended trade shows throughout the world in order to
identify new sources, manufacturers and product lines from
other countries. He also greatly enhanced sales and marketing
efforts. The goal was to go deeper with greater penetration
into current and targeted accounts.
The results of Hatton identifying,
and more importantly acting, on these brutal facts led to
a stronger, more exciting and more diverse product line
and company. Over the years, Four Hands has confronted many
other brutal facts that required difficult decisions and
action. They included:
> Finding a way to make the
Austin warehouse more profitable or eliminate it
> The need for real-time financial data and analysis
> Discarding a software system the company had invested
heavily in for a new, user-friendly system
> Teaching and utilizing a methodology that has enabled
the company to meet the daily, weekly, and monthly challenges
of communications in an international organization
Companies rarely falter because
they lack information. Most of the companies I have worked
with in the furniture industry had virtually identical access
to good information.
The key to identifying brutal
facts lies not in better information, but in turning information
into information that cannot be ignored.
At each critical stage of growth,
Four Hands has reinvented itself. The company realized early
on that what took them to one level of growth would not
take them to the next. A company's mantra should be to "face
the danger" every day and deal with those dangers first.
Great leaders, strategic leaders, FACE THE DANGER. They
realize that only through a thorough examination and assessment
of the brutal facts are they capable of making the right
decisions. Regardless of how successful a company has been
in their past, ignoring today's' or the futures' brutal
facts will lead to disastrous results.
In the words of Jim Collins,
"breakthrough results come about by a series of good
decisions, diligently executed and accumulated one on top
of another. On the really big choices, companies must often
throw all of its resources into the task of converting its
entire system. "
Strategic leaders are comfortable
accepting ambiguity and uncertainty and understand that
they will never have all the information they would like
to make decisions. A rapidly changing world deals ruthlessly
with those that don't change. Strategic leaders don't fix
the past they create the future. Reiterating Jack Welch,
"they face reality as it is, not as they would like
it to be".
This article is
contributed by Mr Richard Russakoff, President of Bottom
Line Consultants inc (USA) and Inc. Magazine's former Senior
Consultant for strategic and financial planning, cash flow
management, capital acquisition, and business valuation.
Back
to Top
Sitra
Holdings Achieves EDB's Regional HQ Award
Sitra, a leading
brandenttic distributor of furniture and wood-based products
is first amongst local entetptises in the furniture industry
to receive RHQ award
The Group intends
to leverage on the RHQ status to strengthen its key corporate
infrastructure while continuing to enhance its global market
presence
 |
Sitra Holdings (International)
Pte Ltd ("Sitra" or the "Group")
has achieved the Regional Headquarters ("RHQ)
Award, making it the first amongst local enterprises
in the furniture industry to do so. The Group intends
to leverage on the RHQ status to strengthen its key
corporate infrastructure while continuing to enhance
its presence in key global markets such as Asia, Australasia,
the Middle East, Europe and North America. The objective
of the RHQ award is to encourage local companies to
build a strong Singapore base from which to expand
their business activities into the fast-growing Asian
region and beyond.
"The RHQ award is a sign of our commitment to
Singapore as a premier location to do business. Singapore
is definitely our location of choice for a regional
headquarter because we are able the find some of the
best expertise in Asia for key functions such as brand
development and marketing, quality management, finance,
administration and human resources,"says Mr George
Chew, Chief Executive Officer, Sitra Holdings (International)
Pte Ltd. |
SPRING Singapore, the government
agency leading the development of the furniture industry
lauded Sitra's achievement as a significant milestone for
the industry. SPRING'S Chief Executive Mr Loh Khum Yean,
said: We would like to see more companies such as Sitra
anchoring their business here. With strong global connectivity;
sound financial, legal and logistics infrastructure; a growing
pool of creative and design talents; and a strategic location,
Singapore is a choice location as the nerve centre for HQ
operations and for tapping the region's resources. We aim
to develop Singapore into an international furniture hub
that companies can use as a springboard into the region".
Sitra intends to leverage on
the RHQ to further strengthen its key corporate infrastructure
services, including expanding its sales and marketing team
and its design capabilities in Singapore, while it continues
to strengthen its proprietary brands and product offerings.
The Company also intends to continue to expand its distribution
channels and market presence globally. This includes the
opening of new lifestyle furniture retails outlets in key
markets such as Australia.
'We are a brand-centric company
with an international presence and currently distribute
our own branded products to 48 countries in Asia, Australasia,
Europe, the Middle East and North America. Having Singapore
as our RHQ will provide an added boost to our brand value
because Singapore has always been known for its strength
in key corporate services such as marketing, treasury and
human resources as well as a strong and stable regulatory
regime," Mr Chew adds.
SPRING believes that Sitra's
strong emphasis on branding and design has boosted its success.
"As more local companies hone these two cutting-edge
capabilities, Singaporedesigned furniture will move several
notches up in the world in terms of image and value,"
said Mr Loh. "SPRING is working with our furniture
industrypartners to enhance the brand image of Singapore-designed
furniture. The key lies in boosting the industty's capabilities
in management, design, knowledge and research."
Sitra has consistently won awards
for its entrepreneurship and excellence in quality management.
Sitra was shortlisted for the Enterprise 50 awards for two
consecutive years in 2004 and 2005, achieving twenty-seventh
and ninth position respectively. As a mark of its emphasis
on quality management, the Group has also been awarded the
BS EN 9001:2000 certification for quality management every
year since 1997.
The Group's products can be
categorised into the two product groups, namely (i) high
value wood-based products such as decking, flooring, fencing,
door and door components, window and window components and
other moulded products, marketed under the "COMCIA"
and "decKING brands; and (ii) premium lifestyle furniture
such as outdoor garden furniture, DIY (or "Do-It-Yourself")
fencing systems, garden accessories, indoor furniture and
contract furnishings, marketed under the "Pacific"
brand range.
Since 1979, the Group has gradually
evolved from being a commodity trader of timber into a brand-centric
distributor of high quality woodbased products and premium
lifestyle furniture carrying its proprietary brands today.
"Our continued success has been built upon a two pronged
strategy of differentiation, namely to create product brands
and to focus on our own in-house design capabilities,"
Mr Chew concludes.
Back
to Top
World
Furniture Outlook 2006
The world production of furniture
is worth about US$250 billion in 2005. Furniture Times highlights
some of the major imports and exports figures, their impact
on the furniture trade and focus on some aspects that the
industry will take note in the furtherance of their businesses.
a. World Furniture Production
for 2005: US$250 billion
The seven major industrial economies
which consist of United States, Italy, Germany, Japan, the
United Kingdom, Canada and France together produce 56% in
value of the world total. The furniture production of all
developed countries combined covers 73% of the world total.
Furniture production in emerging countries currently amounts
to 27% of the world total in value, of which 13% is in China.
In the 1995-2005 period, there
was a very large increase in the imports of United States
(from US$6.5 billion to US$23.8 billion) and of the United
Kingdom (from US$1.7 billion to US$6.7 billion).
Furniture demand is expected
to grow in 2006 in all large markets.The global outlook
is positive due to the continuing strong growth in the US
as well as the upturn in Asia.
The list of countries that expects
more than 3% growth in real terms includes:
- Ireland of Western Europe
- Estonia, Hungary, Latvia, Lithuania, Czech Republic and
Slovakia of the new EU members
- Croatia, Russia and Ukraine of Central and Eastern Europe
- China, India, Indonesia, Malaysia, Philippines, Singapore,
Taiwan, Thailand and Vietnam of Asia
- Chile of South America
- Israel, South Africa and United Arab Emirates of Africa
Overall, world trade of furniture
is expected to grow by 6% in 2005 and by 7% in
2006.
Back to
Top
Calendar
of Events
| May
2006 |
| 4 - 7 |
Copenhagen International
Furniture Fair
Copenhagen, Denmark |
| 16 - 20 |
SASMIL - International Fair of Accessories, Semi-Finished
Products for the Furniture Industry
Rho-Pero , Italy |
| 20 - 23 |
International Contemporary Furniture
Fair
New York, USA |
| 21 - 25 |
International Trade Exhibition for Furniture &
Interiors
Riyadh, Saudi Arabia |
| 30 May - 02 Jun |
MEBLE - Fair of Furniture and Furnishing
Poznan, Poland |
| June
2006 |
| 4 - 6 |
The Office Exhibition - Middle East international
office interiors and facilities
management exhibition
Dubai, UAE |
| 4 - 6 |
The Hotel Show - Showcase for suppliers
of equipment, technology, services to the hospitality
industry
Dubai, UAE |
| 12 - 14 |
NeoCon. World's Trade Fair
Chicago, USA |
| 27 - 30 |
Wood Mac China/Furnitek China/WoodBuild
China |
| July
2006 |
| 20 - 23 |
Furnitex 2006 Decoration + Design 06
Melbourne, Australia |
| 24 - 28 |
World Market Center
Las Vegas, USA |
| August
2006 |
| 1 - 4 |
International Fair of Furniture
Manufacturers’ Suppliers
Sao Paulo, Brazil |
| 16 - 19 |
Expo Mueble Internacional Verano
Guadalajara, Mexico |
| 17 - 21 |
International Famous Furniture Fair
Dongguan, China |
| 18 - 21 |
China International Furniture Fair
Guangzhou, China |
| 19 - 23 |
Shenzhen International Furniture Expo
Shenzhen, China |
| 24 - 28 |
KOFURN - lnternational Furniture
and Woodworking Machinery Fair
Seoul, Korea |
| 25 - 29 |
Tendence Lifestyle
Frankfurt, Germany |
| September
2006 |
| 6 - 9 |
Malaysia Furniture Export Exhibition
Kuala Lumpur, Malaysia |
| 6 - 9 |
lnternational Furniture Fair Chengdu
Chengdu, China |
| 9 - 12 |
Promosedia - lnternational Chair
Exhibition
Udine, Italy |
| 9 - 12 |
Decosit - lnternational Trade Fair For Upholstety
Fabrics
Brusels, Belgium |
| 11 - 14 |
Furniture China
Shanghai, China |
| 13 - 17 |
Index Mumbai
Mumbai, India |
| 19 - 22 |
MOW
Ostwestfalen, Germany |
| 19 -23 |
lnternational Furniture Fair Valencia
Valencia, Spain |
| 21 - 24 |
100% Design Lodon
London, UK |
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DISCLAIMER
Whilst every care is taken to ensure accuracy of the information
on this newsletter, SFIC accepts no liability for damages
caused by misinterpretation of information, expressed or
implied, within this newsletter. No part of this newsletter
may be reproduced in any form or by any means, without prior
permission in writing from SFIC.
