May 20, 2021
Furniture retail in Singapore is bearing the brunt of Covid-19 losses.
Global cargo shortages due to closed borders and factories operating at half-capacity are making it harder for retailers to navigate this uncertain climate.
The most common customer complaints are delays, slow response and lack of stock. At the backend, retailers are burning the midnight oil liaising with suppliers, fine-tuning the supply chains and dealing with shipping nightmares to cater for the orders flowing in.
What’s causing this seismic shift?
Trends have shown that customers are looking for customization in furniture that better suit their homes and lifestyles.
Retailers have responded by obtaining more variety in their production and increasing their capacity to make furniture on demand.
This means investing more in professional designer services and pre-orders which results in downsizing inventory.
External factors have also influenced this direction, including rising rent and warehousing costs.
Made-on-demand furniture used to take up to 30 days in 2019 - but with border closures, factories at half-capacity, cargo shortages and more, delays are to be expected. Read our extensive coverage on this matter here.
Despite the economy's recent recovery and growing demand, companies may not be able to return to pre-covid efficiency.
With slow vaccination rates across the globe and new virus variants emerging, we try our best to stick to schedule but other influencing factors might derail plans.
When demand is high and supply is low, air and sea freight rates have risen almost 60% since the beginning of 2020 and the trend does not show a slow down.
Petrol prices are also steadily increasing, costing S$1.76/l in May 2021 in comparison to S$1/.37/l in May 2020, thanks to the growing appetite for e-commerce as the economy slowly bounces back.
Regrettably, costs are expected to continue trending upwards before stabilising to fit market demands. We could see sky-high shipping prices in the next 6 months to come.
As a homeowner, how do you stay prepared for the uncertainties 2021 will bring?
It’s best to order the items you need now, even if it is ahead of your timeline. Costs are predicted to only go up in the next 6 months along with increasing prices of raw materials such as wood.
As a brand with their roots in the furniture industry since 1946, we honour the invoice and the team will always communicate clearly to customers to adjust their expectations and work according to their schedule.
Your home becomes a beacon of hope during these trying times and we empathise with customers who are looking forward to upgrading their space.
Thank you for your continuous support, kind understanding and charitable patience.
Singaporean businesses are known for their cutting-edge agility and survival instincts, and we’re sure that coming together as one country, we’re able to weather through the Covid-19 storm and put the Little Red Dot on the headlines again.
May 29, 2021
Malaysia's lockdown has big impacts on the Singapore retail industry, which includes electronics, textiles, furniture, raw materials and more. Read on to find out what you can do as a consumer.
April 28, 2021
April 28, 2021