Rattan Furniture and technical Innovation in China

Topic: The Rattan furniture

& Technical innovation in

China By China Industrial Co. Ltd

June 1, 2015

Introduction Paage

Chp1

Instability Chp2 Niche

Market

Chp3 Sustainable

CONTENTS

PAGE

Chp4

Review

3 Introduction

Introduction As everybody knows, the art of crafting using

rattan has been honed over two thousand years

in China. Our ancestors made rattan furniture.

Some of the famous paintings of the Tang and

Song Dynasties include rattan chairs. Chinese

rattan craft has revolutionized the way rattan is

used worldwide.

Zhao Ji's painting (The Northern Song Dynasty) is

displaying at the Imperial Palace Museum in Taipei.

Class Wicker Furniture at Victorian Era.

4 Introduction

Introduction Chinese rattan craft had become of special interest to

Europeans and Americans by the end of the eighteen

century.

The rattan furniture industry became flourishing in

the 70’s when American demand increased. In the

90’s the industry began to atrophy due to problems

with human resources, certain restrictions and strong

competition.

18 th Century 70’s

5 Introduction

Introduction Today, the growing concern about climate change

among consumers has led to an increased in the demand

for environmentally friendly products. Rattan furniture

is made using non-timber forests which should provide

a competitive advantage for as the products are more

environmentally friendly.

However there has been a gradual decline in China’s

rattan furniture industry. Let us discuss some of the key

reasons for this.

Chapter.1

Instability Upstream

Key1

7 Chp1 Instability Upstream

• Rattan grown in China do not possess the qualities which

are suitable for furniture;

A lack of stability in upstream industry has also created a lack of confidence in the

downstream industry

• Rattan suitable for furniture are mainly exports from

Southeast Asia, Indonesia in particular;

• Countries which export rattan do not have stable export

policies.

8 Chp1 Instability Upstream

Investors are unwilling to invest money

Investors are unwilling to invest money in

the downstream industry to develop new

production technologies due to supply

instability. The limited number of investors

lack the financial and human resources to

successfully resolve this (industry

predicament).

Chapter.2

Remaining A Small Market

Key2

10 Chp2 Remaining A Small Market China has a huge consumer market,

but the rattan furniture industry remains a small market.

Despite China huge potential market and abundance of skilled artisans, for nearly 100 years the rattan furniture in China has

remained a niche market. The following points reinforce this:

11 Chp2 Remaining A Small Market Rattan materials possess

many advantages over traditional materials; However there are some limitations. It is extremely

difficult to produce quality rattan furniture using

conventional machinery;

12 Chp2 Remaining A Small Market

Rattan has a small diameter and is therefore not suitable for spelling in slab form;

13 Chp2 Remaining A Small Market

Rattan has a hard skin but a soft core therefore it cannot be the independent supporting part of furniture;

14 Chp2 Remaining A Small Market

The density of rattan causes cutting blades to become buried in it.

15 Chp2 Remaining A Small Market

Rattan is difficult to work with using machines as the material is too flexible.

16 Chp2 Remaining A Small Market Rattan furniture in China has been developing

over a long time, but there has yet to be investors willing and able to invest on promoting rattan to the public successfully. This means that the true potential of the rattan market is still yet to be realized.

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17 Chp2 Remaining A Small Market

Rattan furniture has traditionally been handmade on a small scale by local artisans which limits productivity.

18 Chp2 Remaining A Small Market

Early 50’s Began manufacturing rattan

furniture in Hong Kong at

OEM service.

Beginning of 80’s Mr. Choi transferred the

factory to Guangdong, China.

1999 Mr.Choi built (Hello Hobby)

and carried domestic market

sales.

2001 Started franchise chain stores cooperation in China.

Case Sharing:

19 Chp2 Remaining A Small Market

90’s

Pure Rattan Furniture

2001 Rattan & Wood

Combination

Furniture

2011 Wood & Rattan

Combination Furniture

Future?

Transition

Chapter.3

Truly Sustainable

Key3

21 Chp3 Truly Sustainable

Rattan Industry Truly Sustainable Needs

。

Stable Supply Protection From National Policy

Working Together

22 Chp3 Truly Sustainable

Rattan Industry Truly Sustainable Needs

Stable Supply

As rattan development has been receiving more attention recently, rattan weaving has been identified as the intangible cultural heritage of Guangdong last year. However, as a handmade product, the rattan industry has encountered a lack of skilled technicians and a stable supply of rattan material.

23 Chp3 Truly Sustainable

Rattan Industry Truly Sustainable Needs

Protection From National Policy

The rattan furniture market has begun to shrink due to high costs despite the large potential market. The success of the rattan industry as a whole will require more than the efforts of one or two innovative companies. There needs to be a national organization to help implement policies which can support the development of the Chinese rattan insustry.

24 Chp3 Truly Sustainable

Rattan Industry Truly Sustainable Needs

Working Together

We call on industry experts to work together to help maintain and promote growth in the rattan industry.

Chapter.4

Review

Final

26 Chp4 Review

Reluctant to Invest

The instability of rattan materials

has made investors reluctant to

invest in this industry.

Advanced Machinery

Only advances in mechanical

manufacturing can help the rattan

industry sustainably flourish.

High Wages

Increases in wages in mainland

China has driven up the costs of

production.

Market is Shrinking

Despite the large existing rattan

market, the market is beginning

to shrink due to rising

manufacturing costs.

27 Chp4 Review

No Longer Sustainable

Using high wages to attract

skilled manual technicians and to

promote rattan furniture is no

longer sustainable.

Hard to Find Young People

The rapid development of society

makes it hard to find young

people willing to learn the

handicraft.

Protection From National Policy

Rattan furniture is a “Provincial

Intangible Cultural Heritage”

belonging to the art of furniture. The

art development side of rattan

furniture requires even more

protection from national policy than

the business side of rattan furniture.

Andychan@hellohobby.net