Approaching new customer segments, investing in design teams, and building brand presence are strategies being implemented by Vietnamese furniture businesses to regain growth momentum in 2014.
Increasing Creativity Quotient
Over 500 brands within the wood processing industry ecosystem participated in HawaExpo 2024, an international exhibition specializing in furniture and fine arts and crafts, held in Ho Chi Minh City. Throughout the 4-day event, it drew in over 20,000 visitors, including more than 4,000 international buyers. "This is an opportunity for Vietnamese furniture companies to showcase new values to international partners," commented Ms. Võ Thị Thu Hà , the director of the Jadora brand.
According to Ms. Hà , amid a significant decline in Vietnamese wood and wood product exports in 2023, companies in the industry are making tremendous efforts to break through this year. Many solutions have been implemented to achieve this goal. For Jadora, the focus has been on increasing creativity. The brand has assembled a design team of over 20 individuals, predominantly young, energetic, and passionate designers. The result of this investment is a collection of impressive furniture, featuring diverse design styles ranging from youthful and colorful designs like Oriento, Coastal, Tết, to elegant and sophisticated styles like Valente, Rudo.
Leveraging indigenous cultural strengths, Jadora's young designers introduce culturally rich furniture collections inspired by Vietnamese heritage such as Lộc, Hùng King, drawing inspiration from ancient court life. In addition to investing in creative value, Jadora adopts a new export approach, opting for Original Design Manufacturing (ODM) instead of the traditional Original Equipment Manufacturing (OEM). This method requires proactive investment in creativity, including design and brand building, providing complete autonomy in business without reliance on specific orders.
This is also the goal that the Vietnamese wood processing industry is striving towards. Mr. Nguyễn Chánh Phương, Vice Chairman of HAWA, mentioned that since the beginning of 2024, HAWA has intensified support for its member enterprises, specifically organizing promotional and commercial events to create more sales opportunities. Simultaneously, they provide consultancy and assistance to help companies transition their business models, focusing on increasing design and brand investment to enable proactive business and reduce dependence on processing orders.
"When owning a brand and participating in higher segments of the supply chain, the surplus value will also be better," said Mr. PhÆ°Æ¡ng.
Jadora targets customers in Australia, Japan, the United States, and Canada. These markets demand high-quality products and ensure sustainability standards with the environment. The production for Jadora is handled by the skilled team of AA Corporation, its parent company. AA Corporation operates one of the largest factories in Vietnam, covering an area of up to 60 hectares, equipped with modern technology imported from Europe, and certified with various standards such as FSC - Controlled Wood Origin Certification, ISO 9001, ISO 14001, and the BSCI social responsibility standard. In Vietnam, Jadora is exclusively distributed by Nội thất Nhà Xinh.
Turnkey Solution
Unlike Jadora, Abella is a brand that offers customers a complete solution for project furniture, especially in the hotel sector. The Abella team has already designed 40 hotel room and apartment studio models with diverse designs and dimensions for customers to choose from. Based on these sample designs, customers can customize the space according to their preferences in terms of size, color, materials, and more.
Mr. Nguyá»…n Thanh Phong, the director of the Abella furniture brand, stated that the brand focuses on the mid-high segment of the hotel industry, targeting 3 to 4-star establishments. However, their customer approach strategy is entirely different, aiming at more distant markets that may lack conditions for material production and construction expertise, such as India, Cambodia, Mozambique, East Africa, and domestically in provinces like LÃ o Cai and HÃ Giang. These markets require comprehensive interior construction solutions, utilizing modern materials like MDF, Laminate.
According to Mr. Phong, investors always aim to have a concrete understanding of the space, a clear grasp of costs, timelines, and product quality right from the outset before signing contracts. Consequently, Abella employs modern technology, European machinery, and an automated warehouse system, utilizing 3D design and digitizing the entire production process, including packaging and assembly. Clients can track their orders at various stages through a dedicated application. Another distinctive feature is Abella's use of VR technology, allowing customers to experience virtual interior spaces. Subsequently, the design, construction, production, and installation processes are perfected.
"With the interior construction expertise from AA Corporation, this solution will help investors solve cost, delivery time, and budget challenges in the quickest time possible," stated Mr. Phong. With this entirely new approach, Abella anticipates executing 200 rooms per month in the first year, with the expectation of doubling that number in the subsequent years.
Source: Cafebiz
