Abstract

Furniture products with significant value added are increasingly being seen as a strategic objective for the industry of forest product. Furniture is one of the strategic commodities for the Indonesian economy. One of the pillars which determines the competitiveness of export furniture products is marketing. This study aims to determine the competitiveness of the Indonesian furniture industry in terms of marketing. In this case, Vietnam used as an object of comparison since they has been Indonesia's main competitor in the furniture trade for decades. The data was obtained by using literature study method. This research used mixed method 5P marketing analysis which consists of position, product, place, promotion, and price. The competitiveness of Indonesian furniture industry was still relatively low compared to Vietnam’s. In terms of position, Indonesia and Vietnam have market segments which are sensitive to illegal timber such as the United States and the European Union. Even though Indonesia already has a timber legality assurance system through the Timber Legality Verification System (SVLK), the export values of Indonesian furniture is still less than Vietnam. From a product perspective, Indonesian furniture industry is slightly greater than Vietnamese furniture industry. Indonesia has reached the level of augmented product, greater than Vietnam, which is mostly still a core product. However, Vietnam's furniture industry is experiencing a fairly rapid development. Currently, Vietnam's timber products are in demand with the international market due to their innovative designs. In terms of location (distribution), both countries are being assisted from easy access to global shipping. In terms of promotion, Indonesia needs to emulate Vietnam by facilitating the furniture industry (especially small and medium industries) to participate in international exhibition activities, so as to expand the furniture market network. In term of price, Vietnam is greater in offering lower prices since it was supported by the availability of abundant labor at low prices and investment support. Meanwhile, Indonesia has the advantage of the large availability of raw materials from production forests.

Full Text
Published version (Free)

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call