KOCHI: The Indonesians are coming! The Indonesians are coming! After the Chinese invasion, it is now the turn of Indonesian goods to flood the Kerala market.
Call it the impact of demonetisation or high labour charges. Low-priced teak furniture from Indonesia are swamping showrooms across the state. A high-profit margin is luring traders to go for furniture from the equatorial nation.
Indonesian teak sofa sets come in the Rs 12,000 plus price range in the wholesale market compared to pieces made locally priced at Rs 17,000 and above. Similarly, a dining table set is priced at Rs 12,000 compared to local ones costing between Rs 14,000 and Rs 15,000. It seems there is no stopping the Indonesian juggernaut.
Considered to be the furniture hub of the state, Nellikuzhy has also fallen under the Indonesian spell. Its 400 shops dotting a three-km stretch along the Aluva-Munnar Road houses imported pieces from Indonesia.
Abu Vattapara, who distributes furniture in Alappuzha, Idukki, Kollam and Pathanamthitta, told Express the advent of Indonesian furniture in Nellikuzhy took place less than a year ago.
“There is scarcity of local wood and manpower. Similarly, demonetisation has hit the industry badly. With construction activities going down, there are very few takers for new and expensive furniture,” he said.
“Maintaining manpower when business is down is not a viable option for traders and manufacturers. This prompted them to opt for Indonesian furniture,” said Abu. There are a number of traders in Nellikuzhy who directly import the pieces.
Its price is 25 per cent less compared to local versions, he said. Besides lower costs, traders get unique designs hitherto unseen in the state. “As per demand, the orders are given to suppliers in Indonesia. The pieces arrive on a monthly basis. Some of them have to be assembled here,” said Abu.
Forest Industries Travancore Ltd (FIT) of the state government has woken up to the challenge. Its research and development wing will plan strategies to overcome the competition, FIT managing director P Krishnan told Express. “We will be adopting the patterns and styles of imported furniture and make it locally,” he said.
“Though Indonesian teak furniture is a new trend in the market, it can pose a challenge to industries here in the future. By introducing new styles this challenge can be curtailed to some extent,” he said. Though Indonesian pieces are characterised by better polishing, local furniture are superior in terms of wood quality and sustainability, he said.