Sales reduced to a crawl
Sales reduced to a crawl
Eddy Soetriyono, Contributor, Jakarta
Quiet and listless. That's the general prognosis of the
current furniture industry in Indonesia as shown by the low
sales during several major exhibitions in Jakarta over the past
few months.
The same bleak atmosphere has enveloped one of the city's
elite furniture centers, the Jakarta Design Center. It has
repeatedly placed large "special sale" banners promising huge 30
percent to 70 percent discounts, but they are still unable to
draw enough customers.
Although the center has never been packed with customers like
other malls, the current number of shoppers has dropped even
further than the precrisis period of 1997.
"Today we are no longer limping, but worse, we are crawling,"
said one of the staff members at the Decorous shop.
One look in newspapers, and you will see advertisements for
major clearance sales placed on the pages by both local producers
and importers in an effort to lure buyers. Several exclusive
Italian furniture products from Da Vinci, for example, have been
put up for sale at an enormous 70 percent discount.
The lengthy economy crisis has continued to have repercussions
on various businesses, including the furniture sector.
"It's more than quiet, it's almost lifeless," muttered
Junaedhi Anggabrata, the owner of PT Kesathi Andara, a local
furniture manufacturer.
Before 1997, his firm regularly received orders from various
hotels and restaurants in Jakarta and Bali. However, demand
drastically dropped after the monetary crisis hit.
Another manufacturer badly hit by the prolonged crisis was PT
Profil Kencana.
In the good days, it was one of the major suppliers for star-
rated hotels in big cities across the country. Their products
furnished the Grand Hyatt, Borobudur, Aryaduta, Le Meridien and
Shangri-La in Jakarta; Preanger, Hyatt and Chedi in Bandung;
Westin and Shangri-La in Surabaya; and Nikko and Bali
Intercontinental in Bali.
But the monetary crisis has made the construction of new
hotels a rarity. Existing hotels have even extended their
interior "rejuvenation" cycle, from the normal renovation period
of every five years to 10 years or more.
Amid the unfavorable situation, some companies have somehow
managed to survive by focusing on new and specific markets,
including catering to the tastes of foreign buyers.
Junaedhi, for instance, has frequently exhibited his chairs --
mostly of teakwood and mahogany -- in several countries overseas.
The result has been amazing with an overwhelming list of
foreign orders. In addition, the rupiah's value at that time had
extremely depreciated. Junaedhi told of how they were on the
verge of not being able to fill all the shipment orders.
Currently, about 70 percent of his firm's products are for
export, while the remaining are destined for the domestic market,
which is almost entirely designed for residences of high-ranking
officials, Junaedhi explained.
Indonesia, according to many, is home to two types of
furniture manufacturers.
The first concentrates on mass production of a limited number
of models, while the second specializes in small quantities -- a
maximum of two to three pieces -- of certain models. Helped by
the designers, the latter type of manufacturer accepts orders for
tailor-made furniture to match the customers' requirements and
taste.
Prices certainly vary depending on items ordered. A large size
teakwood bed sports a price tag of at least Rp 10 million, while
a living room set costs Rp 12 million.
Junaedhi said an owner of a luxury residence needs a budget of
between Rp 100 million and Rp 200 million for its furniture
alone.
While some local producers are focusing their business on
exports, manufacturers from several countries, like Italy, China
and the United States, are going the opposite route.
In major cities like Jakarta, Surabaya, and Bandung, one can
see well-to-do Indonesians purchasing imported brands, both in
classical and modern designs, at local distributor outlets.
Besides being frequently put on display at first-class
exhibitions here, these imported products are easy to find at
major shopping centers in Jakarta, such as Plaza Senayan and Ratu
Plaza.
The price? A classic modern Barcelona chair from the States
created by the late Bauhaus architect, Ludwig Mies van der Rohe
(1886-1969), carries a price tag of US$1,320. That's already with
a 40 percent discount.
A replica of a pair of leather chairs with chrome-plated steel
bars created by Le Corbusier (1887-1965), a world renowned
designer, made by Cassina, Italy, costs $6,000. A single piece
goes for $3,750. At the time this article was written, the outlet
at the Jakarta Design Center was offering a 25 percent discount.
Similar models manufactured in America were put on offer at
$2,050 (for a pair) and $1,250 for one piece.
Solichin Gunawan, the president director of Atelier Interior,
said the difference in price was understandable, because Italy is
widely acknowledged for its superior quality, which is probably
due to the country's long history and rich tradition in the
furniture industry.
"Their craftsmen are not only good at imitating, but at the
same time they are able to improve any defects," said Solichin.
Other famous Italian brands, such as B&B and Matteograssi, are
already on the market here. Their prices are on the high side,
charging about Rp 7 million for one chair. A leather dining chair
costs about Rp 19 million, so for the total set of six or eight
chairs one would have to spend over Rp 100 million.
For those who love furniture with transparent glass features,
creations from Viam are available at Rp 40 million for the table
and Rp 50 million for the chairs. The decorative aspect of these
chairs -- which are able to withstand up to 200 kilograms of
pressure -- comes out stronger.
But one observer, who wishes to remain anonymous, warned
consumers to be cautious and not be easily dazzled by an imported
label.
He said that a well-known importer of Italian products often
brought in items that were difficult to sell in its country of
origin. But with a clever promotion, these "underground" pieces
sold like hot cakes at exorbitant prices in Jakarta.
But what about the furniture created by our own designers?
"Design hasn't developed very well in our country. Maybe it's
because we actually don't have the tradition of really sitting on
a chair," Solichin said.
He said that the country's craftsmen were only good at
duplicating. He referred to local producers in Jepara, Central
Java, which is home to skilled craftsmen.
When astute foreign businessmen came with samples of their own
designs to be produced by craftsmen in Jepara, the products were
superior in both touch and style.
But now, after the foreigners' departure, the locals are back
to their former craft, and are unable to come up with new
designs.
Moreover, local products are notorious for offering illogical
prices to customers seeking classical furniture.
Solichin recalled an experience he had during the first year
of the monetary crisis, when he needed a replica of a Louis XIV
chair. A local manufacturer set the price at Rp 3.5 million,
while an importer from Milan, Italy, quoted only Rp 900,000.