www.ChinaSourcingReports.com

Myanmar supplier profi lesDetailed profi les of 25 suppliers with verifi ed manufacturing and export credentials

Product gallerySpecifi cations and full-color images of 176 top-selling export products ranging from armchairs to gazebos

Industry trendsCoverage of current issues, plus insights into supply centers, products and pricing

April 2013US$150

FurnitureEssential sourcing intelligence

Global Sources is off ering this series of Developing Country Sourcing Reports as part of its corporate social responsibility undertakings in partnership with the Hinrich Foundation, a philanthropic development organization whose mission is promoting sustainable global trade.

The aim is to give international buyers new sourcing opportunities from experienced exporters, generating orders and creating lasting jobs in developing economies.

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FURNITURESupplier capability in Myanmar

Years of economic sanctions and ineffective management have pushed Myanmar’s furniture industry to severe underdevelopment. Unable to keep profitability up as a result of these difficulties, many suppliers have stopped exporting or shut down altogether in recent years.

Reforms to the country’s political and economic systems, however, are expected to reverse the status quo. Changing to a democratic form of government, the nation has benefited from eased restrictions and is confident of attracting an influx of fresh capital from foreign investors within the next few years.

These developments are also seen to favorably affect the furniture sector as makers are expected to be granted entry once again to key markets in the West. The removal of impediments to the local use of the US dollar is also regarded as a boost to the industry.

Objective, methodology & scope

1. Suppliers of furniture will generally increase prices over the next six months due to the rising cost of raw materials, particularly hardwood. This includes teak, padauk, red sandalwood and pyinkado. A number of interviewed enterprises will maintain quotes to remain competitive.

2. A total ban on the export of teak and other types of hardwood is set to take place next year. This directive is expected to improve the availability and enhance the quality of components used for furniture.

3. Prices are typically determined by the materials utilized, design complexity and embellishments. Low-end models are small and usually made of teak, and nonlumber plant-based materials.

Key findings

Executive Summary

In this report• 19 in-depth company profi les• 6 short company profi les• 176 top-selling export products• Supplier demographics• Supplier survey• Industry statistics and charts

This Myanmar Sourcing Report is part of a series designed to provide buyers with information on new products from export manufacturers in supply markets that specialize in handmade merchandise.

The Developing Country Sourcing Report series is part of Global Sources’ corporate social responsibility initiatives. It is offered in conjunction with the Hinrich Foundation, whose mission is promoting sustainable global trade. One of its objectives is to help create jobs in developing Asia through export promotion.

To produce this report, large, midsize and emerging manufacturers, all with substantial export experience, were surveyed. The selection of suppliers is designed to reflect the composition of the industry in Myanmar in terms of geographic location, materials used and range of products offered.

For in-depth profiles, our researchers visited the facilities of each company and interviewed senior executives who discussed their recent performance and provided forecasts for the next 12 months. All other makers in this report were either visited or contacted by phone.

In each case, companies were required to answer specific questions designed to verify their manufacturing and export credentials, including a breakdown of exports by product type and market. Suppliers also participated in a survey designed to provide insight into the industry.

This report covers different classifications of furniture available in Myanmar, including living room, bedroom, dining and outdoor pieces. Each product category has its own price guide that describes features of low-end, midrange and high-end models.

The Industry Overview section discusses key issues affecting export manufacturers. It provides insight on the composition of the industry and elaborates on the important supply centers within Myanmar.

The Products & Prices section details the features and price ranges of furniture. It also examines the design and manufacturing processes, main materials used, and sourcing centers where components are procured.

Midrange and upscale items feature various kinds of hardwood, including pyinkado and padauk.

4. Product design trends over the next six months will generally come in simple styles, depending on the availability of timber. Improved durability and designs originating from East and Southeast Asia, which are characterized by floral shapes and patterns, will also be featured.

5. Yangon and Mandalay, the country’s two largest cities, are the most important manufacturing centers in Myanmar. Companies typically establish factories in these locations because of stable manpower availability. Proximity to various government offices allows makers to conduct a number of processes more efficiently.

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4 Myanmar Sourcing Reports

CONTENTS

Disclaimer: Any recommendation contained in this report may not be suitable for all investors or businesses. Moreover, although the information contained in this report is obtained from sources believed to be reasonably reliable, the accuracy or completeness of such information cannot be guaranteed. The author and the publisher of this report (and the publisher’s affi liates, agents, sales representatives and service contractors) do not make any representation or warranty whatsoever (whether express or implied) in relation to any of the contents of this report (including any information, opinion, recommendation or conclusion contained in this report) (collectively, “Contents”), whether as to the accuracy, completeness, quality, fi tness, suitability or reliability of such Contents (or any portion thereof ) or otherwise, and shall not be liable under any circumstances whatsoever for any error, omission, defect or defi ciency in, or for any use of or reliance on, such Contents (or any portion thereof ).

All product images are provided by the companies interviewed and are for reference purposes only. Those product images featuring products with trademarks, brand names or logos are not intended for sale. Products that are not the specifi c topics of editorial articles are shown for illustrative and/or demonstrative purposes only. We, our affi liates, and our affi liates’ respective directors, offi cers, employees, representatives, agents or contractors, do not accept and will not have any responsibility or liability for product images (or any part thereof ) which infringe on any intellectual property or other rights of a third party.

Copyright 2013 Trade Media Limited. All rights reserved. Reproduction in whole or in part in any form or medium without express written permission of Trade Media Holdings Limited and Trade Media Limited is prohibited.

Published by Publishers Representatives Limited (on behalf of Trade Media Limited)4th Floor, Century Yard, Cricket Square, Elgin Avenue, P.O. Box 32322 SMB, George Town, Grand Cayman, Cayman Islandsc/o 22/F Vita Tower, 29 Wong Chuk Hang Road, Aberdeen, Hong Kong

ISBN 978-988-15981-2-7

Contents

EXECUTIVE SUMMARY 3 Key fi ndings Objective, methodology & scope

INDUSTRY OVERVIEW 11 Country facts Supplier summary Exports

Products & prices 14 Production & export statistics Typical parts & components Price guides

Supplier survey 20 Export prices Export sales Export markets Major challenges R&D focus

SUPPLIER PROFILES 23 Supplier matrix: Comparison of supplier location, sales revenue & export capability Profi les of 25 verifi ed suppliers

PRODUCT GALLERY 73 Living room furniture Bedroom furniture Dining & kitchen furniture Outdoor furniture

CONTACT DETAILS 103

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LES pagprix: Comparison of supplier locmparison of suppevenue & export capabilityort capab

files of 25 verifi ed suppliersles of 25 verifi ed supplie

PRODUCT GALLERY RODUCT GALLERLiving room furnitureLiving room fBedroom furniturBedroom fuDining & kitcDining OutdoorOutdo

www.ChinaSourcingReports.com 11

Country facts

Capital YangonArea 676,578sqkm (40th)

Population 55.2 mn (24th)Median age 27.2 yearsLiteracy rates (2006) 94% (male) 86% (female)Major language Burmese

Government Unitary presidential constitutional republicAdministrative divisions 7 regions and 7 statesFiscal year April 1 - March 31

Labor force 33 mnUnemployment rate 5.4%Population below poverty 33% line (2007)

GDP $89.2 bn (77th)GDP per capita $1,400 (205th)GDP growth 6.2%Infl ation rate 3.1%Lending interest rate (2011) 16.3%Economic revenue Services: 42% sources Agriculture: 39% Industry: 19%

Total exports $8.5 bnKey export industries Natural gas, wood products, pulses, beans, fi sh, rice, garments and gemsTop export markets (2011) Thailand: 37% China: 19% India: 14%

Lead time to export, median case 4.6 daysContainer port traffi c (2011) 166,608 TEUs

Natural resources Petroleum, timber, tin, antimony, zinc, copper, tungsten, lead, coal, marble, limestone, precious stones, natural gas, hydropower

Figures in italics denote rank in world. All figures as of 2012 unless otherwise specifiedSources: CIA The World Factbook, The World Bank & Asian Development Bank

Myanmar

Industry Overview

Industry Overview

The furniture industry in Myanmar reflects the general condition of the country’s economy. The sector suffers from underdevelopment and stagnation as a result of various factors, including inefficient processes and two decades of sanctions imposed by the US and the EU.

Furniture enterprises are confronted with several challenges stemming primarily from the procurement of raw materials. Although the country is endowed with vast forests from which an abundant supply of hardwood is available, it is difficult for domestic manufacturers to source these inputs. The government controls the local availability of lumber, which is primarily exported to neighboring countries such as India and China. To maximize revenue, timber that is shipped out of the country is predominantly composed of top-grade logs, limiting the amount accessible to local makers.

Furthermore, domestic companies can only legally purchase wood from the administration through auctions and requests for tender. These systems prevent most SMEs from obtaining high-quality materials due to the prohibitive costs involved. As a result, many manufacturers are constrained to use low-cost wood with subpar quality, which affects product competitiveness.

A number of enterprises circumvent this problem by purchasing high-grade lumber through illegitimate channels. Some buy from unauthorized traders and others resort to bribery of government officials.

Besides difficulties in raw material sourcing, the industry’s nonprogressive status is directly attributed to economic sanctions imposed by the US and the EU. Foreign investment has been diminished greatly since the 1990s in response to the former junta government’s human rights violations

and other nondemocratic policies.

Myanmar, nonetheless, maintains trading partnerships with nearly 50 countries worldwide. The bulk is from Asia, with the most active ones being India, China and Thailand. Despite this, exports have risen minimally while penalties are in place, leaving

the economy in general weakened and unable to keep up with those of neighboring nations.

Overseas revenue specific to furniture is not officially recorded. Trade associations estimate, however, that turnover in recent years has averaged $40 million annually.

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24 Myanmar Sourcing Reports

Supplier Profiles

SUPPLIER MATRIX

Company Yearestablished

Ownership Head office location

Factory location(s)

Full-time employees

Part-time employees

In-depth profiles

Asia Wood 1999 Locallyowned

Yangon(Yangon)

Yangon(Yangon)

89

Baoh Family 1997 Locallyowned

Yangon(Yangon)

Yangon(Yangon)

180

Beautiful Wood 2001 Locallyowned

Yangon(Yangon)

Yangon(Yangon)

130

Bella Interiors 2007 Locallyowned

Yangon(Yangon)

Yangon(Yangon)

80

Calamus Hill 2000 Locallyowned

Thanlyin(Yangon)

Thanlyin (Yangon)

50

Classic Home 1997 Locallyowned

Yangon(Yangon)

Yangon(Yangon)

120

Cupid Trading 1981 Locallyowned

Yangon(Yangon)

Yangon(Yangon)

120

Glorious Family 2005 Locallyowned

Yangon(Yangon)

Yangon(Yangon)

65 10

Great Myanmar Island 1994 Locallyowned

Yangon(Yangon)

Yangon(Yangon)

35

Green Gold 1994 Locallyowned

Yangon(Yangon)

Yangon(Yangon)

150 50

Hi-Tech Forest 1991 Locallyowned

Yangon(Yangon)

Mandalay (Mandalay)

120

KKA 1993 Locallyowned

Yangon(Yangon)

Mandalay (Mandalay)

80

Lin Win 1991 Locallyowned

Yangon(Yangon)

Yangon(Yangon)

500

Maco 1993 Locallyowned

Yangon(Yangon)

Yangon(Yangon)

20 10

Myanmar KEK 1998 Locallyowned

Yangon(Yangon)

Mandalay (Mandalay)

60 30

New Telesonic 2000 Locallyowned

Yangon(Yangon)

Yangon(Yangon)

40

The Timberland 2010 Locallyowned

Yangon(Yangon)

Yangon(Yangon)

80

TK 2001 Locallyowned

Yangon(Yangon)

Yangon(Yangon)

20

United Wood 2001 Locallyowned

Yangon(Yangon)

Yangon(Yangon)

200

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30 Myanmar Sourcing Reports

Supplier ProfileSupplier Profiles

Capability

Contact details

Asia Wood Co. Ltd

Annual sales $900,000 Share of total sales 90% Annual export sales $900,000 Total monthly capacity 3,000 pieces Average monthly output 2,000 pieces Capacity utilized 67% Average monthly exports 2,000 pieces Export ratio 100%

Company facts

Year established 1999 Head offi ce location Yangon (Yangon) Ownership Locally owned Factory location(s) Yangon (Yangon) Full-time employees 89 Total annual sales (all products) $1,000,000

Sales & output: Furniture

Processes performed Raw material preparation ✓

Cutting & molding ✓

Assembly ✓

Carving ✓

Finishing ✓

Exports by product Living room furniture 25%Bedroom furniture 25%Dining & kitchen furniture 25%Outdoor furniture 25%

Exports by market North America –EU –Europe (non-EU) 30%Asia-Pacific 70%Middle East –Other –

Business contact MYINT Than Than

Phone (95-9) 7324-3839

Fax (95-1) 685-140

E-mail asiawood.ygn@gmail.comthanasiawood@gmail.com

URLwww.globalsources.com/ asiawood.cowww.asiawoodttm.com

Address 24 Myawadimingyi Street, Hlaing Tharyar Industrial Zone, Yangon, Yangon, Myanmar

Asia Wood was established in 1999. Total revenue reached $1 million last year.

The main market is Singapore, accounting for 70 percent of exports. France and Germany absorb one-tenth of turnover. The rest is shipped to Malaysia, South Korea, Japan, Taiwan and Turkey.

The supplier focuses on the midrange and high end. Living room and outdoor furniture are the best-sellers. Teak chairs in basic design are available for $90. Picnic table and bench sets can reach $2,100.

The main materials used are pyinkado wood and teak. They are procured domestically.

The owner is the main designer and creates 10 new models every year. Sampling time is two weeks to a month.

Asia Wood has an 8,094sqm factory in Yangon city’s Hlaing Tharyar Industrial Zone. The workshop is equipped with drills, and cutting, planing and shaping machines. All are purchased from Germany, Italy and Taiwan.

The plant can roll out 3,000 pieces every month. The average monthly output is 2,00 pieces.

There are 89 full-time employees. Two inspectors are in charge of QC. They check all production stages, including shaping, assembly and finishing.

Packaging normally consists of corrugated paper and cartons. The MOQ is one FEU. Delivery time is 60 days.

Asia Wood is a member of the Myanmar Timber Merchants Association. The company plans to expand its market presence in the Asia-Pacific region over the next 12 months.

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www.ChinaSourcingReports.com 31

Supplier Profile Executive Sum-Supplier Profiles

Popular export models

Model SSC-0404 Capuccino Sofa SetMOQ FEUPackaging CartonDelivery 60 daysPrice $2,300Description Living room furniture set; four pieces; teak; 1,800x600x800mm three- seater sofa, two 740x600x800mm armchairs and 1,100x600x430mm coffee table

Model SSC-0409 Latte Sofa SetteeMOQ FEUPackaging CartonDelivery 60 daysPrice $1,885Description Living room furniture set; four pieces; teak; 1,900x700x940mm three- seater sofa, two 710x700x940mm armchairs and 1,200x600x380mm coffee table

Model SSC-0405 FLORA T-L Day BedMOQ FEUPackaging CartonDelivery 60 daysPrice $1,250Description Sectional sofa set; two pieces; teak; 2,130x760x790 and 1,000x760x790mm; doubles as daybed

Model SSC-0401 Expresso L-Shape SofaMOQ FEUPackaging CartonDelivery 60 daysPrice $1,265Description Sectional sofa set; two pieces; teak; 2,130x760x735mm three-seater sofa and 1,120x760x300mm ottoman

Model Dining Set (Nine Pieces)MOQ FEUPackaging CartonDelivery 60 daysPrice $2,300Description Dining furniture set; nine pieces; teak; 2,000x1,000x760mm table and eight 480x560x860mm chairs

Model Dining SetMOQ FEUPackaging CartonDelivery 60 daysPrice $2,200Description Dining furniture set; 13 pieces; teak; 3,100x1,200x775mm table and 12 450x535x1,050mm chairs

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