Growing Demand For Quality Malaysian Furniture In Puerto Rico

KUALA LUMPUR, April 30 (Bernama) -- Despite the overall downturn in Puerto Rico’s economy from 2007 to 2011, retail sales of furniture have seen a six per cent overall increase, according to the Malaysia External Trade Development Corporation (MATRADE). Puerto Rico has one of the highest Gross Domestic Product (GDP) per capita amongst Caribbean nations due largely to its consumption patterns mirroring that of the USA. In 2011, total import of wooden furniture into Puerto Rico totalled US$109.41 million. "It is advisable for Malaysian exporters to consider a local representative to avoid problems with quality issues, importation procedures and merchandise returns," said Jonathan Rao, Trade Commissioner of MATRADE Miami. "The promotion of Malaysian furniture could also be effectively carried out through the High Point and Las Vegas Furniture Shows in the USA that are visited by Puerto Rican companies," he said in a statement on Monday. In 2011, Malaysia’s market share for kitchen furniture rose from 0.85 per cent in 2010 to 3.89 per cent (US$0.44 million), bedroom furniture from 11.29 per cent to 12.57 per cent (US$5.63 million) and other wooden furniture from 3.32 per cent to 6.29 per cent (US$2.45 million). MATRADE said the prospects for Malaysian furniture exporters were extremely good as local production was generally limited and targeted at the lower end market. In contrast, it said, the general perception of Malaysian furniture was highly favourable especially for wooden bedroom and dining sets, and entertainment and TV cabinet sets. Citing Puerto Rico Country Business Patterns Report 2009, MATRADE said local Puerto Rican furniture manufacturers had also declined between 2006 and 2009 with the number of companies down by 12.6 per cent and employees by 14.3 per cent in that interval. MATRADE noted that heavy competition from ‘Big Box’ furniture stores with higher purchasing power such as the local Mueblerias and US chain, Rooms-to-Go, also placed pressure on smaller furniture distributors. These smaller companies currently sought greater flexibility in terms of providing mixed containers that would reduce inventory costs, it said. The distribution margins for large-scale importers range from 20 per cent to 40 per cent while smaller retailers tend to mark up at least 100 per cent. -- BERNAMA