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Furniture industry: time to consider producing instead of doing outsourcing

AKA Group and Tan Thanh Furniture raised the offered purchase prices continuously to scramble for the design of a chair. The final price was 10 times higher than the starting price.

The fierce scramble between the two enterprises took place within the framework of the Hoa Mai Furniture Design Competition organized by the Handicraft and Woodworking Association of HCM City (Hawa) on March 12.

 

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This was the first time in the last 17 years that enterprises in the wooden furniture industry had an opportunity to attend an auction of products designed by prize winners. The competition is reserved for students majoring in applied design and interior decoration.

Tan Thanh Furniture finally obtained the right to own the design of the chair which won second prize at VND42 million, much higher than the starting price of VND4 million.

The designer of the chair, Quach Minh Quan, said this was the first time he had joined the ‘playing field’.

Most wooden furniture manufacturers make products according to designs provided to them and ordered by importers.

What surprised the third-year student of the interior design faculty at the Ton Duc Thang University was the fact the enterprises wanted to use his design to commercialize products. They paid a price which was 10 times higher than the starting price.


Explaining his decision to spend a big amount to buy the design, Pham Chan Quang, director of Tan Thanh Furniture, said the chair has a simple design but has sophistication and elegance. Quang believes that the products made with the design will fit many different markets thanks to the aesthetics.

For many years, Tan Thanh has been making furniture products outsourced by partners, but it still doesn’t have products designed by themselves.

Besides the design, Tan Thanh also bought four other designs at the auction.

“With the designs, we will introduce our exclusive products to international clients. This will increase the value of products,” he said.

Quang hopes that the products will be available in the market in Q4.

Besides Tan Thanh, other furniture manufacturers such as AA Corporation, Truong Thanh Corporation, AKA Group, Chan Chinh and Hanpdpick also bought designs at the auction.

Analysts said that most wooden furniture manufacturers make products according to designs provided to them and ordered by importers. The presence of over 20 manufacturers at the auction was unprecedented.

This shows that furniture manufactures have become aware of the need to shift from doing outsourcing to making products of their own.

In 2019, Vietnam exported $10.5 billion worth of wooden products.

Kim Chi 

 

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