Speech by Minister S Iswaran at the International Furniture Fair Singapore 2018

​OPENING ADDRESS BY MR S ISWARAN, MINISTER FOR TRADE AND INDUSTRY (INDUSTRY), AT THE INTERNATIONAL FURNITURE FAIR SINGAPORE 2018, SINGAPORE EXPO, THURSDAY, 8 MARCH 2018, 10.30AM

Mr Ernie Koh, Chairman of International Furniture Fair Singapore

Mr Mark Yong, President of the Singapore Furniture Industries Council (SFIC)

Distinguished guests,

Ladies and gentlemen,

Introduction

1                       Good morning. I am delighted to join you today at the International Furniture Fair Singapore (IFFS).

2                       Since its inaugural event in 1981, the IFFS has become Asia’s premier design-led sourcing platform, with a comprehensive and diverse range of furniture and furnishing designs from all around the world.  This year, the IFFS will see 374 exhibitors from 26 countries, and 20,000 international trade buyers and visitors from over 100 countries.  There are 15 National Pavilions at the show this year, with the debut of pavilions from France, Japan, Portugal, and Turkey.

Capturing new opportunities in the furniture sector

3                       The global furniture market is expected to expand from S$624 billion in 2016 to S$770 billion in 2021, with the Asia Pacific market continuing to see a strong 5% growth. Coupled with changing consumer preferences and the emergence of new technologies, these developments present fresh and exciting opportunities for the furniture industry.

4                       Online retail is an example where we see a convergence of these trends.  E-commerce is an increasingly important channel for the furniture industry, as it provides greater convenience and options for consumers.  This is especially pertinent in Asia, where e-commerce penetration rates are expected to see double-digit growth.  Consumers will be able to instantly compare products from sellers in various parts of the world.  This results in greater competition, but also in unparalleled opportunities for companies that are able to adopt e-commerce to access new markets, and scale their businesses more quickly than ever before.

5                       The industry has also seen a shift in consumer demographics, as the millennials come of age.  Young urban-dwellers are well-travelled, design-savvy, and digitally-inclined.  They have specific tastes and needs, and are looking for unique pieces to differentiate their homes and express themselves.  Companies can no longer rely on the same designs, and will have to create distinctive designs and features.  Let me share three ideas on how our companies can do more to stand out from the competition.

Harnessing innovation and design in furniture and furniture merchandising

6                       First, companies can tap on new technologies to increase customer engagement, and develop solutions that can better meet their preferences and needs.  Emerging technologies that can complement the furniture and furnishing industry include augmented reality (AR) and virtual reality (VR).  These technologies share many similarities with furniture and urban living solutions, with the emphasis on the interactions between space, light, and colour.

7                       The IFFS is the first furniture and furnishing trade exhibition in Asia Pacific to feature AR.  At the IFFS today, we see the adoption of AR to create more immersive experiences for visitors at the fair, allowing exhibitors to showcase expanded product ranges.  The technology unlocks new ways for companies to create meaningful engagements with their customers, including a wider range of furniture beyond the constraints of physical space.  Singapore companies such as KODA, have also adopted VR solutions to help customers experience a mock-up of their living space in order to make a more informed purchase.  So there is no need to bring a measuring tape to the store!

8                       Second, furniture companies can differentiate themselves through innovative and unique design.  An example is Sam & Sara, an upscale home accessories brand with distinctive designs.  Their aesthetics combine traditional craftsmanship from their Indian heritage, such as the use of sand casting techniques, with contemporary designs and unorthodox materials such as hand-forged steel, leather, nickel, and reclaimed wood.

9                       Through collaboration with award-winning designers around the world, Sam & Sara was able to launch new creative pieces that better met consumer demand.  “Ipse Ipsa Ipsum” was their first design-led branded offering, and their first collaboration with veteran furniture designer Nathan Yong.  I am very proud to say that the collection was launched here at the IFFS last year, and it has gone on to receive critical acclaim internationally in the design community.  This year, Sam & Sara will continue to push new creative frontiers through the launch of a new collection called “The Peranakan Moderne” with designers, Jeremy Sun and Nicholas Paul.  The collection will evoke a sense of wonder and nostalgia for consumers by combining hand craft and technology.

10                    Third, companies can seek new market segments and adapt their business models to grow.  A company that has successfully done so is SecretLabs.  SecretLabs started by selling premium chairs targeted at the gaming community.  With their ergonomic designs and adjustment parts, SecretLab’s chairs have also found favour in the corporate world where executives spend long hours at a desk, such as in law firms and at banks.  It was able to quickly identify this new demand and capture the corporate customer segment.  SecretLabs’ online platform has also allowed it to confidently manage supply chain processes and ensure better customer experience from pre- to post-sales.  Secretlab has since expanded its operations to six major markets, including the US, UK, Australia, Canada, and is shipping its chairs to 35 other markets.  This is a good example of how a company has remained sensitive to the needs of the customers, and transformed to take advantage of new opportunities.

Building a thriving furniture ecosystem together

11                    To expand the depth and breadth of opportunities available to companies in Singapore, the Government is committed to developing a strong furniture ecosystem together with our industry partners.  With our strong pool of design talent and extensive networks in the region, I am excited to see what these new collaborations can create.

12                    In this regard, I would like to congratulate the Singapore Furniture Industries Council (SFIC) on the launch of the Singapore Furniture Industry 2021 Roadmap.  The roadmap is part of the broader Industry Transformation Map (ITM) in the retail industry, and SFIC has set out an ambitious vision for Singapore’s furniture industry – ‘To be the Asian Hub Influencing Tomorrow’s Urban Living’.  This roadmap was developed by SFIC, in partnership with the Government, industry, and partners across diverse clusters including urban planners and architects.

13                    The roadmap outlines concrete steps to help companies transform by seizing new opportunities overseas, strengthening partnerships, and developing capabilities to create customer-centric and innovative urban living solutions.  To illustrate, Singapore companies can work with the SFIC to participate in overseas trade fairs, in markets such as China and the Philippines.  Tech-savvy companies can increase their digital reach by leveraging SFIC’s FLAUNT e-commerce platform, a curated collection of furniture and furnishing products with a virtual shopfront.  In addition, the Customer Centric Innovation Programme will link our furniture companies with the relevant partners to deepen the companies’ industry knowledge, adopt design thinking, and understand the changing needs of their customers, such as ASEAN’s growing urban population.

14                    I encourage companies that are ready to transform to step forward to work with SFIC, or to meet with my colleagues at SPRING and IE Singapore, and the soon to be established Enterprise Singapore.  We will work together to support your growth.

Conclusion

15                    In closing, let me congratulate SFIC for another successful IFFS.  With Singapore’s thriving innovation ecosystem, growing design scene, and strong linkages to the region, I am confident that the SFIC will continue its good work to support the development of the furniture industry.

16            I wish everyone a fruitful and engaging time at the fair. Thank you.